Quarterly Report • Nov 9, 2018
Quarterly Report
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| SEKm | Q3 2018 | Q3 2017 | Change, % | Jan-Sep 2018 | Jan-Sep 2017 | Change, % |
|---|---|---|---|---|---|---|
| Net sales | 2,802 | 2,220 | 26 | 8,169 | 6,520 | 25 |
| Operating profit (EBITA) | 297 | 277 | 7 | 613 | 702 | -13 |
| Operating margin (EBITA), % | 10.6 | 12.5 | - | 7.5 | 10.8 | - |
| Profit for the period | 171 | 179 | -4 | 303 | 444 | -32 |
| Earnings per share diluted, SEK | 1.06 | 1.11 | -5 | 1.89 | 2.77 | -32 |
| Operating cash flow2 | 186 | 73 | n/a | 554 | 511 | 8 |
| Average number of employees | 17,087 | 15,015 | 14 | 16,533 | 14,096 | 17 |
1) Note that all items related to the income statement presented in this report for 2017 and 2018 refer to continuing operations (excluding the health care operation in Finland held for sale) if not stated otherwise.
2) Refers to total operations.
Attendo is in an expansive phase. The need for new capacity in our markets will rise rapidly during the next ten years and we will be opening more nursing homes than ever during the year. The nursing homes we are developing will strengthen our market position and lay the foundation for long-term organic growth, although the high rate of openings will initially lead to lower margins.
Net sales in the Own operations contract model continued to increase, due to acquisitions and openings of new homes in recent quarters. We opened 12 own nursing homes during the third quarter, providing 319 beds. We also started construction of 13 new own nursing homes in Finland and Sweden during the quarter. At the end of the third quarter, Attendo had 2,519 beds under construction, slightly up from the second quarter of 2018. Attendo's organic growth amounted to four percent in the quarter and is expected to increase over time.
Net sales in Outsourcing were slightly higher versus the third quarter of 2017. However, during the fourth quarter 2018 some larger contracts will expire. The outsourcing market is assessed as generally stable but challenging.
Operating profit for the third quarter of 2018 was slightly higher compared to the third quarter last year. Acquisitions, contributions from units that were in the start-up phase during the comparison period and improvements in home care had a positive impact on profit. We are pleased to see that the improvement measures in the Swedish home care operations, combined with successful acquisitions, have contributed positively. At the same time, the Danish operations and the individual and family care operations stabilised during the quarter.
Profit was negatively affected by costs related to the large number of openings of new nursing homes. In pace with increased market activity, the time required to fill new homes is increasing. The loss from discontinued outsourcing operations was greater than earnings generated by new outsourcing units. The margin for Attendo as a whole is thus lower than in 2017, a consequence of high start-up costs and the acquisition of Mikeva, which has significantly lower margins than Attendo as a whole.
The high rate of openings will continue in upcoming quarters, which short term makes it challenging to increase the margin to the company's long-term target (EBITA margin) of 9 percent. The high rate of establishment is however a prerequisite for good long-term profit growth and future value creation. There is a large underlying need for new capacity and Attendo will consolidate its leading market position over the next few years.
The new leasing standard IFRS 16 will be implemented during 2019 and will have a significant impact on Attendo's income statement and balance sheet. Related to the year-end report 2018 we will present the full impact on Attendo and at the same time we will present updated financial targets reflecting the new accounting standard.
This is my first quarter as CEO of Attendo. I am very excited about the new role and the challenges ahead of us. Attendo is a well-managed company with a longterm perspective and, in many ways, a pioneer in the Nordic care services sector. I have devoted much of my first time meeting customers and colleagues in all of our geographies. My first impression is that Attendo is a company with employees who are passionate about improving the daily life for our customers, and helping them live life to the full – independently and with as few limitations as possible.
Society is facing large challenges in providing care services, where I see that Attendo has an important role to play. We contribute with innovations, quality improvement and providing more care to the local authorities for every krona spent. We must also continue to challenge ourselves to get even better and never settle for 'good enough'. Our firm ambition is to be at the forefront of improving the quality of care, establishing new operations and to solve important tasks for local authorities across the Nordics.
Net sales increased by 26.2 percent to SEK 2,802m (2,220) in the third quarter. Adjusted for currency affects, net sales increased by 21.4 percent. Net sales rose in all geographical markets except Denmark.
The growth is mainly attributable to acquisitions, new homes in own operations, higher occupancy in own homes that were in a start-up phase during the comparison quarter and contractually agreed price increases.
Net sales increased by 34.4 percent in own operations and by 1.8 percent in outsourcing operations.
Operating profit (EBITA) amounted to SEK 297m (277) and the operating margin was 10.6 percent (12.5). The EBITA increase is attributable to profit from acquired units and higher occupancy in own homes that were in a start-up phase in the comparison quarter. Profits improved in home care operations in Sweden as a result of selected acquisitions that have increased customer density, as well as continuous efforts to improve planning and processes. Home care operations in Denmark generated lower losses than in the comparison period.
New units in own operations had negative impact on profits due to initially low occupancy. Subsequent to the comparison quarter, Attendo has opened a very high number of homes and thus has significantly more beds in start-up phase than during the same period in 2017. However, the number of beds opened in the past twelve months was lower this quarter than in the second quarter. Attendo is planning many additional openings in the next quarters. As a result, new units in own operations will continue to have negative impact on profits also the coming quarters.
The loss of profits due to ended outsourcing contracts was larger than profits from new outsourcing units.
Profits in individual and family care operations were slightly lower than in the comparison quarter and the annual effect was significantly less negative than in previous quarters. The close down of parts of individual and family care operations initiated in the second quarter is proceeding as planned.
Changes in currency exchange rates had a positive effect on operating profit of SEK 8m compared to 2017.
EBIT amounted to SEK 260m (250). Amortisation of acquisition-related intangible assets was SEK 10m higher than in the comparison quarter in 2017.
At the end of the third quarter, Attendo had a total of 683 (528) units in operation, of which 584 in own operations. The number of beds in nursing and care homes was 18,590 (13,873), of which 15,343 in own operations. There were 57 homes and 2,519 beds under construction in own operations at the end of the period.
Net sales per contract model, Q3 2018
Net financial items amounted to SEK -35m (-21) for the quarter, including net interest expense of SEK -31m (-14). The change in net interest expense was mainly due to new loans raised in 2017 in connection with the acquisition of Mikeva.
Income tax for the period amounted to SEK -54 (-50), corresponding to a tax rate of 24.0 percent (21.8). The higher tax rate is primarily due to non-deductible losses in home care operations in Denmark.
Profit for the period amounted to SEK 171m (179), corresponding to basic earnings per share of SEK 1.07 (1.12) and diluted earnings per share of SEK 1.06 (1.11).
Attendo reports comparable figures adjusted for operations held for sale starting from 2017. Numbers related to 2016 have therefore been excluded from the tables.
Net sales for the period increased by 25.3 percent to SEK 8,169m (6,520). Adjusted for currency effects, net sales increased by 21.7 percent. Net sales increased in all geographical markets except Denmark.
The growth is mainly attributable to acquisitions, but also to new homes in own operations, higher occupancy in own operations homes that were in a start-up phase during the comparison period and contractually agreed price increases.
Net sales increased in own operations by 32.8 percent and in outsourcing operations by 3.3 percent.
Operating profit (EBITA) decreased to SEK 613m (702) and the operating margin decreased to 7.5 percent (10.8). Profits for the first nine months were reduced by non-recurring costs of SEK 73m.
EBITA, excluding non-recurring costs, amounted to SEK 686m, corresponding to an operating margin of 8.4 percent. Attendo is in an expansion phase with considerably more beds opened than historically, which entails initial losses but support future profit growth. The large number of openings and longer start-up periods than historically implies that the negative effects of new units were greater than the increase in profits from units that were in start-up phase during the comparison period. Profits were thus negatively impacted by a record-high number of new units in own operations, but also by lower contribution from individual and family care, including discontinued integration services, as well as larger loss of profits from ended outsourcing contracts than profits from new outsourcing units.
Profits from acquired units, higher occupancy in units that were in start-up phase during the comparison period and Attendo's continuous efforts to improve planning and processes contributed positively to profits.
Changes in exchange rates had an overall positive effect on EBITA of SEK 17m compared to 2017.
EBIT decreased to SEK 507m (622). Amortisation of acquisition-related intangible assets was SEK 26m higher than during the comparison period in 2017.
Net sales per country, January-September 2018
Net financial items amounted to SEK -108m (-54) for the period, including net interest expense of SEK -86m (-42). In all material respects, the change is attributable to the same items described in the section on the third quarter.
Income tax for the period amounted to SEK -96 (-124), corresponding to a tax rate of 24.0 percent (21.8). In all material respects, the change is attributable to the same items described in the section on the third quarter.
Profit for the period was SEK 303m (444), representing basic earnings per share of SEK 1.89 (2.78) and diluted earnings per share of SEK 1.89 (2.77).
Operating cash flow was SEK 186m (73) in the third quarter, including changes in working capital of SEK -116m (-190). The improved cash flow is mainly attributable to higher employee-related liabilities in Finland.
Cash flow from net investments in non-current assets was SEK -44m (-65) and cash flow from assets and liabilities held for sale amounted to SEK -59m (-300). Business acquisitions reduced cash flow by SEK -19m (-95). Cash flow from financing activities was SEK -79m (-14).
Total cash flow in the third quarter amounted to SEK -4m (-344).
Operating cash flow for the period January-September amounted to SEK 544m (511) and total cash flow to SEK 260m (-364).
Consolidated equity as of 30 September 2018 amounted to SEK 5,691 (5,113), corresponding to diluted equity per share of SEK 35.41 (31.84).
Net debt amounted to SEK 4,673m (3,322).
| SEKm | Sep 30, 2018 |
Sep 30, 2017 |
Dec 31, 2017 |
|---|---|---|---|
| Interest-bearing liabilities | 5,373 | 3,562 | 5,236 |
| Provisions for post-employment benefits | 52 | 64 | 52 |
| Liquid funds | -752 | -304 | -475 |
| Net debt | 4,673 | 3,322 | 4,813 |
Interest-bearing liabilities, excluding provisions for post-employment benefits, amounted to SEK 5,373m (3,562) on 30 September 2018. The increase was due mainly to new loans in connection with the acquisition of Mikeva. Cash and cash equivalents as of 30 September 2018 amounted to SEK 752m (304) and Attendo had SEK 948m (970) in unutilised committed credit facilities.
The total number of shares is 160,933,098. Attendo holds 519,423 treasury shares and the total number of shares outstanding as of 30 September 2018 was thus 160,413,675.
The average number of employees in the third quarter was 17,087 (15,015).
Interim Report January-September 2018 9 (27) 1 Refers to total operations.
Net sales in own operations continued to increase and amounted to SEK 2,233m (1,661) in the quarter. The growth of 34.4 percent is attributable to acquisitions and new homes in own operations.
A total of 12 homes with 319 beds were opened during the quarter: 10 homes in Finland with 307 beds and 2 homes in Sweden with 12 beds. At the end of the period, Attendo had 15,343 beds in Own operations, an increase by 48 percent since the same quarter in 2017.
Construction began during the quarter of 13 homes, the majority of them nursing homes, with a total of 409 beds: 279 beds in Finland and 130 beds in Sweden. The number of beds under construction increased slightly compared to the preceding quarter to 2,519 at the end of the quarter.
Attendo closed a number of homes during the quarter. Several customers have been moved to other Attendo units, while other operations were phased out entirely.
| Own units | Total | Sweden | Finland | Norway | Denmark |
|---|---|---|---|---|---|
| Units in operation* | 584 | 209 | 365 | 2 | 8 |
| Beds in operation** | 15,343 | 3,793 | 11,327 | 163 | 60 |
| Beds under construction*** | 2,519 | 751 | 1,696 | - | 72 |
| Home care customers | 10,490 | 8,820 | - | - | 1,670 |
* All own units - including nursing homes, care homes, home care units and other units.
** Own nursing homes (care for older people) and own care homes (care for people with disabilities, social psychiatry and individuals and families).
*** Own nursing homes (care for older people) and own care homes (care for people with disabilities and social psychiatry).
Own operations 80% of Net sales Operations in Sweden, Finland, Norway and Denmark
Net sales in outsourcing increased by 1.8 percent to SEK 569m (559) during the quarter. The higher net sales are explained by currency effects and contractually agreed price increases.
In total, Attendo lost ongoing, not yet ended contracts during the quarter, with annual revenues of approximately SEK 60m.
During the quarter, Attendo was entrusted to continue to operate Nykils servicehus in Linköping and Vårdbo Åkersberga in Österåker, in Sweden. Estimated annual revenues for these contracts are approximately SEK 40m.
During the second quarter of 2017, Attendo announced that a number of larger outsourcing contracts were lost. Some contracts were lost as one local authority decided to insource several contracts from private operators. These contracts will end during the next quarter. The estimated annual revenues for these contracts are approximately SEK 200m.
| Outsourcing | Total | Sweden | Finland | Norway | Denmark |
|---|---|---|---|---|---|
| Units in operations* | 99 | 84 | 10 | 4 | 1 |
| Beds in operations** | 3,247 | 2,580 | 304 | 335 | 28 |
| Home care customers | 980 | 800 | 180 | - | - |
* All outsourced units including nursing homes, care homes and home care units and other units.
** Nursing homes (care for older people) and care homes (care for people with disabilities, social psychiatry and individuals and families).
All staffing operations are held for sale and the financials from these operations are reported in the income statement as "Profit for the period from operations held for sale" and in Note 1.
20% of Net sales Operations in Sweden, Finland, Norway and Denmark
The summer months usually mean greater focus on daily outdoor activities at Attendo. The summer 2018 in the Nordics was however characterized by the unusual and long-lasting heat wave. During the heat wave, Attendo took necessary actions, both on central and local levels, to prevent dehydration and other discomfort for our customers. Actions included installing fans or portable air conditioning to mitigate the effects of the heat as well as updating procedures for how operations can optimally manage long periods of extreme heat. As a result of the actions taken severe deviations seem to have been prevented, although some discomfort could not be entirely avoided.
The ongoing care and health care reform in Finland – the SOTE reform –is expected to within a few years give older people greater freedom of choice in care for older people. During the quarter, Attendo demonstrated our lifestyle homes closer to people's everyday life through a "pop-up nursing home" at a shopping centre in Pori, Finland. A space was furnished exactly like an Attendo home, where passing shoppers could peek in and get a sense of Attendo's available lifestyle concepts. During this period daily activities such as physical exercise for older people and health and nutrition advice were arranged. A fashion show of various clothing styles for older people was much appreciated.
Attendo has been engaged in an ambitious sustainability program for several years. Part of the effort is aimed at reducing the impact of our business on the environment and the climate. During the quarter, Attendo installed solar panels on the roof of the new nursing home Attendo Lyckliga gatan in the town of Kävlinge in Skåne, Sweden. The installation improves energy efficiency in the building while supplying the home with locally produced, zero-carbon and renewable energy.
For the second year running, Attendo Unika in the Stockholm area was nominated for the Lead the Way Award in the Employer of the Year category. The award is given by the state-owned company Samhall to persons who strive to integrate people with disabilities in the labour market.
Attendo Finland has awarded The Nurse of the Year within care and health care, and the Innovation of the Year, which was granted to a solution of a package of dental care products for expectant mothers.
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, payors 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 at: 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 in care for older people were higher in the third quarter of 2018 than in the previous quarter and the same period in 2017. Contracted volumes in care homes for people with disabilities were slightly lower.
In mid-September, elections were held to the parliament, county councils and local authorities in Sweden. The final political constellations in the national parliament and in many local authorities are still unclear. However, in total, Attendo believes that the discussion regarding profits on welfare services will be less significant at the national level and that the election outcome could over the long term mean increased opportunities for new cooperation at local level.
Demand for Attendo's own operations remained good in Finland, linked to needs to replace former capacity and underlying demand.
Preparations for the comprehensive health and care reform (the "SOTE" reform) are ongoing in Finland. However, it is uncertain when the reform will be decided in the parliament and the timetable for implementation has not yet been determined. Attendo remains optimistic about the opportunities offered by the reform for private providers. The impact of the SOTE reform will be less in the care sector relative to the health care sector.
The Danish home care market is still very challenging for private providers. Attendo is reviewing its home care operations while focusing on developing own nursing homes.
Activity in the Norwegian market remains low, but individual local authorities are taking steps towards opening a larger part of the market to competition. These include Bärum in the Oslo area, which has announced that four care homes will be outsourced during the next few years.
In Sweden, 290 local authorities are responsible for social care and care for older people, while 20 regional authorities (regions and county councils) provide health and dental care. Attendo's customers in Sweden are mainly local authorities responsible for social care and care for older people Local authorities, regions and county councils are also responsible for financing health and social care.
The Finnish health care system is decentralized with 311 local authorities responsible for providing primary health care, social care and care for older people, along with 20 hospital districts, each of which provide specialist care to several municipalities. Attendo's customers in Finland are mainly local authorities providing social care. As in Sweden, Finnish local authorities have far-reaching responsibility for financing welfare services.
Hoivakoti Mäntytuuli Oy, a provider of care for older people in Alajärvi, Finland, was acquired on 1 July 2018. Seniorikoti Kultaharju Oy, a provider of care for older people in Lappeenranta, Finland, was acquired on 1 July 2018. Hämeenkoski, a provider of care for older people in Hollola, Finland, was acquired on 1 September 2018.
During the quarter, Attendo entered into an agreement to acquire a number of care properties, in Imatra, eastern Finland.
Operations in Scandinavia have since 2014 been divided into two separate business areas: Attendo Scandinavia Care for Older People and Attendo Scandinavia Care. Aimed at greater clarity and improved coordination, all operations in Scandinavia have been concentrated in the new business area Attendo Scandinavia. The prior business area director for Attendo Scandinavia Care for Older People - Ammy Wehlin – is now Managing Director for the new business area, supported by Cecilia Addamshill as deputy Director. There are no changes to Attendo's Executive Management.
The Finnish Competition and Consumer Authority has applied for and been granted an extended time period to review the sale of Attendo's health care operations to Terveystalo. The sale is expected to close in late 2018.
Attendo had transactions with two related parties, which in all material respects consisted of Attendo leasing properties from companies in which these parties are shareholders. These transactions do not exist during 2018 but are reported as part of the comparable period below.
Related parted transactions had a value of SEK 1m (5) during the year. All related-party transactions take place on market terms. For further details, please refer to page 60 of Attendo's 2017 annual report.
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 management salaries, the Board of directors' fees and costs for external consultants.
Net sales for the period were SEK 8m (9), and were entirely related to services provided to subsidiaries. The loss after financial items was SEK -21m (-21). At the end of the quarter, cash and cash equivalents amounted to SEK 0m (0), shares in subsidiaries to SEK 6,494m (6,494), and non-restricted equity to SEK 6,025 (6,175).
.
Attendo's profitability is subject to seasonal variations, weekend and holiday effects. For Attendo, public holidays and weekends 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 and New Year holidays.
GG-Hoiva Oy, a provider of care for older people in Kaavi, Finland, was acquired on 1 October 2018.
On 23 October 2018, Attendo entered a binding agreement to acquire FSB Finsk Omsorg, a provider of home care services in Stockholm. The preliminary takeover date is in early December 2018.
On 1 November 2018, Attendo acquired the home care operations of Athena Omsorg in Umeå through an asset acquisition.
Splendida hemtjänst, a provider of home care services in Stockholm was acquired through an asset acquisition on 1 November 2018.
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 2017, page 20. 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 2017. The Finnish Health Care operations are reported as operations held for sale in accordance with IFRS 5, as from the second quarter 2018.
IFRS 15 came into force on January 1, 2018 and replaced IAS 18 Revenue and IAS 11 Entrepreneurship Agreements and associated SIC and IFRIC. The standard does not have any impact on the financial statements apart from increased disclosure requirements. IFRS 9 deals with the classification, valuation and reporting of financial assets and liabilities and replaces parts of IAS 39. The standard will not have any material impact on the Group's financial statements.
The interim information on page 1-16 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.
Attendo does not report any forecast.
Danderyd, November 9, 2018
Martin Tivéus
CEO
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.
Review report over Interim Financial Statements (Interim report) prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act.
We have reviewed this report for the period 1 January 2017 to 30 September 2018 for Attendo AB (publ) (Corporate Id Number 559026-7885). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act.
Stockholm, 9 November 2018
PricewaterhouseCoopers AB
Patrik Adolfson Eva Medbrant Lead partner
Authorized public accountant Authorized public accountant
Note that all profit and loss items for 2017 and 2018 in the report relate to the continuing operations (i.e. excluding the Finnish health care operations held for sale) unless otherwise stated.
| Q3 2018 | ||||
|---|---|---|---|---|
| 2,802 | 2,220 | 8,169 | 6,520 | 8,977 |
| 4 | 2 | 12 | 11 | 17 |
| 2,806 | 2,222 | 8,181 | 6,531 | 8,994 |
| -1,781 | -1,443 | -5,413 | -4,371 | -6,039 |
| -682 | -470 | -1,997 | -1,364 | -1,931 |
| -46 | -32 | -158 | -94 | -134 |
| 297 | 277 | 890 | ||
| 10.6 | 12.5 | 7.5 | 10.8 | 9.9 |
| -37 | -27 | -106 | -80 | -110 |
| 260 | 250 | 507 | 622 | 780 |
| 9.3 | 11.3 | 6.2 | 9.5 | 8.7 |
| -35 | -21 | -108 | -54 | -77 |
| 225 | 229 | 399 | 568 | 703 |
| -161 | ||||
| 171 | 179 | 303 | 444 | 542 |
| 6.1 | 8.1 | 3.7 | 6.8 | 6.0 |
| 138 | ||||
| 209 | 223 | 409 | 545 | 680 |
| 209 | 223 | 409 | 545 | 680 |
| 3.39 | ||||
| 3.38 | ||||
| 159,784 | ||||
| 160,544 | ||||
| -54 38 1.07 1.06 160,414 160,592 |
-50 44 1.12 1.11 159,719 160,629 |
613 -96 106 1.89 1.89 160,413 160,687 |
Q3 2017 Jan-Sep 2018 Jan-Sep 2017 Jan-Dec 2017 702 -124 101 2.78 2.77 159,773 160,566 |
*) Includes operations held for sale
| Q3 2018 | ||||
|---|---|---|---|---|
| 209 | 223 | 409 | 545 | 680 |
| 0 | -6 | 0 | -6 | 2 |
| -35 | -21 | 129 | -5 | 50 |
| -35 | -27 | 129 | -11 | 52 |
| 174 | 196 | 538 | 534 | 732 |
| 732 | ||||
| 174 | 196 538 |
Q3 2017 Jan-Sep 2018 Jan-Sep 2017 Jan-Dec 2017 534 |
| SEKm | Sep 30, 2018 | Sep 30, 2017 | Dec 31, 2017 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 7,178 | 7,076 | 8,541 |
| Other intangible assets | 651 | 546 | 717 |
| Equipment | 546 | 464 | 559 |
| Other non-current assets | 118 | 78 | 109 |
| Total non-current assets | 8,493 | 8,164 | 9,926 |
| Current assets | |||
| Trade receivables | 1,081 | 1,028 | 1,204 |
| Other current assets | 560 | 504 | 411 |
| Cash and cash equivalents | 519 | 304 | 475 |
| 2,160 | 1,836 | 2,090 | |
| Assets held for sale | 462 | 600 | 786 |
| Assets in operations held for sale, note 1 | 2,323 | - | - |
| Total current assets | 4,945 | 2,436 | 2,876 |
| Total assets | 13,438 | 10,600 | 12,802 |
| EQUITY AND LIABILITIES | |||
| Equity | 5,691 | 5,113 | 5,369 |
| Non-current liabilities | |||
| Liabilities to credit institutions | 5,295 | 3,450 | 5,171 |
| Provisions for post-employment benefits | 52 | 64 | 52 |
| Other provisions | 18 | 10 | 11 |
| Other non-current liabilities | 119 | 107 | 131 |
| Total non-current liabilities | 5,484 | 3,631 | 5,365 |
| Current liabilities | |||
| Liabilities to credit institutions | 73 | 112 | 65 |
| Trade payables | 209 | 226 | 281 |
| Other current liabilities | 1,657 | 1,473 | 1,648 |
| 1,939 | 1,811 | 1,994 | |
| Liabilities held for sale | 27 | 45 | 74 |
| Liabilities in operations held for sale, note 1 | 297 | - | - |
| Total current liabilities | 2,263 | 1,856 | 2,068 |
| Total equity and liabilities | 13,438 | 10,600 | 12,802 |
Refers to total operations, for operations held for sale, see note 1
| Jan-Sep | Jan-Sep | Jan-Dec | |||
|---|---|---|---|---|---|
| Operational cash flow, SEKm | Q3 2018 | Q3 2017 | 2018 | 2017 | 2017 |
| Operating profit (EBITA) | 350 | 337 | 762 | 844 | 1 084 |
| Depreciation and amortization of tangible and intangible assets | 50 | 37 | 171 | 109 | 154 |
| Changes in working capital | -116 | -190 | -35 | -137 | -73 |
| Paid income tax | -51 | -55 | -188 | -152 | -207 |
| Other non-cash items | -3 | 9 | 5 | 5 | 13 |
| Cash flow after changes in working capital | 230 | 138 | 715 | 669 | 971 |
| Investments in tangible and intangible assets | -53 | -71 | -191 | -187 | -267 |
| Divestment of tangible and intangible assets | 9 | 6 | 30 | 29 | 59 |
| Operating cash flow | 186 | 73 | 554 | 511 | 763 |
| Interest received/paid | -33 | -8 | -78 | -41 | -72 |
| Free cash flow | 153 | 65 | 476 | 470 | 691 |
| Net change in assets and liabilities held for sale | -59 | -300 | 307 | -513 | -647 |
| Acquisition of operations | -19 | -95 | -274 | -262 | -1 262 |
| Warrants | -15 | -12 | -29 | -25 | -25 |
| Share issue | - | - | - | - | 56 |
| Repurchase of own shares | - | -33 | - | -33 | -33 |
| Dividends paid | - | - | -204 | -195 | -195 |
| Change in bank overdraft facilities | 8 | 42 | 8 | 42 | - |
| Repayment of loans | -72 | -11 | 224 | -23 | -618 |
| New borrowings | - | - | 200 | 175 | 1 833 |
| Total cash flow | -4 | -344 | 260 | -364 | -200 |
| Cash and cash equivalents at the beginning of the period | 768 | 653 | 475 | 670 | 670 |
| Effect of exchange rate changes on cash | -12 | -5 | 17 | -2 | 5 |
| Cash and cash equivalents at the end of the period | 752 | 304 | 752 | 304 | 475 |
| Jan-sep | Jan-Sep | Jan-Dec | |||
|---|---|---|---|---|---|
| Cash flow, SEKm | Kv3 2018 | Q3 2017 | 2018 | 2017 | 2017 |
| Cash flow from operations | 197 | 130 | 637 | 628 | 899 |
| Cash flow from investing activities | -122 | -460 | -128 | -933 | -2,117 |
| Cash flow from financing activities | -79 | -14 | -249 | -59 | 1,018 |
| Total cash flow | -4 | -344 | 260 | -364 | -200 |
| SEKm | Sep 30, 2018 | Sep 30, 2017 | Dec 31, 2017 |
|---|---|---|---|
| Opening balance | 5,369 | 4,825 | 4,825 |
| Total comprehensive income | 538 | 534 | 732 |
| Transactions with owners | |||
| Share issue | - | - | 56 |
| Warrants | -15 | -20 | -20 |
| Repurchase of own shares | - | -33 | -33 |
| Share-savings plan | 3 | 2 | 4 |
| Dividend | -204 | -195 | -195 |
| Total transactions with owners | 216 | -246 | -188 |
| Closing balance | 5,691 | 5,113 | 5,369 |
| SEKm | Sweden | Finland | Norway | Denmark | Group | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q3 | FY | Q3 | Q3 | FY | Q3 | Q3 | FY | Q3 | Q3 | FY | Q3 | Q3 | FY | |
| 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | |
| Net sales service | |||||||||||||||
| area | 1,441 | 1,432 | 5,664 | 1,201 | 646 | 2,747 | 109 | 85 | 359 | 51 | 57 | 207 | 2,802 | 2,220 | 8,977 |
| - Care for older | |||||||||||||||
| people | 1,080 | 1,031 | 4,061 | 906 | 524 | 2,185 | 95 | 85 | 339 | 51 | 57 | 207 | 2,132 | 1,697 | 6,792 |
| - Care | 361 | 401 | 1,603 | 295 | 122 | 562 | 14 | - | 20 | - | - | - | 670 | 523 | 2,185 |
| Net sales | |||||||||||||||
| contract model | 1,441 | 1,432 | 5,664 | 1,201 | 646 | 2,747 | 109 | 85 | 359 | 51 | 57 | 207 | 2,802 | 2,220 | 8,977 |
| - Own operations | 996 | 970 | 3,868 | 1,159 | 611 | 2,601 | 36 | 28 | 110 | 42 | 52 | 186 | 2,233 | 1,661 | 6,764 |
| - Outsourcing | 445 | 462 | 1,796 | 42 | 35 | 146 | 73 | 57 | 249 | 9 | 5 | 22 | 569 | 559 | 2,213 |
| SEKm | Sweden | Finland | Norway | Denmark | Group | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan | Jan | FY | Jan | Jan | FY | Jan | Jan | FY | Jan | Jan | FY | Jan | Jan | FY | |
| Sep | Sep | 2017 | Sep | Sep | 2017 | Sep | Sep | 2017 | Sep | Sep | 2017 | Sep | Sep | 2017 | |
| 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||
| Net sales service | |||||||||||||||
| area | 4,340 | 4,227 | 5,664 | 3,365 | 1,869 | 2,747 | 312 | 254 | 359 | 152 | 170 | 207 | 8,169 | 6,520 | 8,977 |
| - Care for older | |||||||||||||||
| people | 3,235 | 3,008 | 4,061 | 2,516 | 1,522 | 2,185 | 273 | 254 | 339 | 152 | 170 | 207 | 6,176 | 4,954 | 6,792 |
| - Care | 1,105 | 1,219 | 1,603 | 849 | 347 | 562 | 39 | - | 20 | - | - | - | 1,993 | 1,566 | 2,185 |
| Net sales | |||||||||||||||
| contract model | 4,340 | 4,227 | 5,664 | 3,365 | 1,869 | 2,747 | 312 | 254 | 359 | 152 | 170 | 207 | 8,169 | 6,520 | 8,977 |
| - Own operations | 2,991 | 2,874 | 3,868 | 3,233 | 1,763 | 2,601 | 105 | 72 | 110 | 128 | 155 | 185 | 6,457 | 4,864 | 6,764 |
| - Outsourcing | 1,349 | 1,353 | 1,796 | 132 | 106 | 146 | 207 | 182 | 249 | 24 | 15 | 22 | 1,712 | 1,656 | 2,213 |
| Q3 2018 | ||||
|---|---|---|---|---|
| 11 | 20 | 31 | 26 | 26 |
| 41 | 48 | 154 | 145 | 224 |
| -7 | -6 | -24 | -27 | -57 |
| 45 | 62 | 161 | 144 | 193 |
| 5 | 97 | 211 | 208 | 1,568 |
| 2 | 28 | 93 | 56 | 243 |
| 0 | - | 0 | - | 13 |
| 7 | 125 | 304 | 264 | 1,824 |
| Q3 2017 Jan-Sep 2018 Jan-Sep 2017 Jan-Sep 2017 |
For further information regarding acquisitions, see page 14.
| SEKm | Level | Sep 30, 2018 | Sep 30, 2017* | Dec 31, 2017* |
|---|---|---|---|---|
| ASSETS | ||||
| Loans and receivables | ||||
| Trade receivables | 1,081 | 1,028 | 1,204 | |
| Cash and cash equivalents | 519 | 304 | 475 | |
| Total financial assets | 1,600 | 1,332 | 1,679 | |
| LIABILITIES | ||||
| Financial liabilities at fair value through profit or loss | ||||
| Contingent considerations | 3 | 135 | 93 | 132 |
| Other financial liabilities | ||||
| Borrowings/leasing liabilities* | 5,368 | 3,562 | 5,236 | |
| Trade payables | 209 | 226 | 281 | |
| Total financial liabilities | 5,712 | 3,881 | 5,649 |
*) Includes operations held for sale
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 2017, note C23.
Level 3: The fair value of contingent considerations is based on estimated outcome from the contractual clauses in the share purchase agreements.
| SEKm | Sep 30, 2018 | Sep 30, 2017 | Dec 31, 2017 |
|---|---|---|---|
| Assets pledged as collateral | 125 | 149 | 133 |
| Contingent liabilities | - | - | - |
Assets and liabilities related to the Finnish healthcare business have been reported as held for sale. Exchange rate differences related to hedge accounting will be allocated in connection with the divestment.
| Analysis of profit from operations held for sale | Q3 2018 | Q3 2017 Jan-Sep 2018 Jan-Sep 2017 Jan-Dec 2017 | |||
|---|---|---|---|---|---|
| Net sales | 566 | 521 | 1,735 | 1,626 | 2,180 |
| Other operating income | 0 | 0 | 1 | 0 | 0 |
| Total revenue | 566 | 521 | 1,736 | 1,626 | 2,180 |
| Personnel costs | -253 | -224 | -804 | -725 | -971 |
| Other external costs | -256 | -232 | -770 | -744 | -995 |
| Amortization and depreciation of tangible and intangible | |||||
| assets | -4 | -5 | -13 | -15 | -20 |
| Operating profit (EBITA) | 53 | 60 | 149 | 142 | 194 |
| Amortization of acquisition related intangible assets | -6 | -5 | -17 | -16 | -21 |
| Operating profit (EBIT) | 47 | 55 | 132 | 126 | 173 |
| Net financial items | - | - | - | - | - |
| Profit before tax | 47 | 55 | 132 | 126 | 173 |
| Income tax | -9 | -11 | -26 | -25 | -35 |
| Profit for the period from operations held for sale | 38 | 44 | 106 | 101 | 138 |
| Jan-Sep | Jan-Sep | Jan-Dec | |||
|---|---|---|---|---|---|
| Cash flow, SEKm | Q3 2018 | Q3 2017 | 2018 | 2017 | 2017 |
| Cash flow from operations | 113 | 39 | 215 | 109 | 134 |
| Cash flow from investing activities | 0 | -2 | -1 | -16 | -17 |
| Cash flow from financing activities | 0 | 0 | 0 | 0 | 0 |
| Total cash flow from operations held for sale | 113 | 37 | 214 | 93 | 117 |
| Balance sheet, SEKm | Jan-Sep 2018 Jan-Sep 2017 Jan-dec 2017 | ||
|---|---|---|---|
| Assets in operations held for sale | |||
| Intangible assets | 1,833 | - | - |
| Equipment | 26 | - | - |
| Other non-current assets | 7 | - | - |
| Current assets | 457 | - | - |
| Total assets | 2,323 | - | |
| Liabilities in operations held for sale | |||
| Non-current liabilities | 11 | - | - |
| Provisions | 1 | - | - |
| Trade payables and other current liabilities | 286 | - | - |
| Total liabilities | 298 | - | - |
| Q3 2018 | Q3 2017 Jan-Sep 2018 Jan-Sep 2017 Jan-Dec 2017 | |||||
|---|---|---|---|---|---|---|
| Net sales | SEKm | 2,802 | 2,220 | 8,169 | 6,520 | 8,977 |
| Organic growth | % | 4.1 | 1.7 | 3.3 | 1.4 | 0.9 |
| Acquired growth | % | 17.3 | 4.2 | 18,4 | 4.5 | 7.4 |
| Changes in currencies | % | 4.8 | 0.1 | 3.6 | 0.9 | 0.6 |
| Operating profit (EBITA) | SEKm | 297 | 277 | 613 | 702 | 890 |
| Operating margin (EBITA) | % | 10.6 | 12.5 | 7.5 | 10.8 | 9.9 |
| Profit for the period | SEKm | 171 | 179 | 303 | 444 | 542 |
| Profit margin | % | 6.1 | 8.1 | 3.7 | 6.8 | 6.0 |
| Working capital * | SEKm | -288 | -167 | -288 | -167 | -314 |
| Return on capital employed * | % | 8.5 | 11.3 | 8.5 | 11.3 | 10.1 |
| Net debt to equity ratio* * | times | 0.8 | 0.6 | 0,8 | 0.6 | 0.9 |
| Equity to asset ratio * | % | 42 | 48 | 42 | 48 | 42 |
| Operating cash flow * | SEKm | 186 | 73 | 554 | 511 | 763 |
| Net investments | SEKm | -45 | -65 | -161 | -144 | -193 |
| Average number of employees | 17,087 | 15,015 | 16,533 | 14,096 | 14,341 | |
| Key data per share | ||||||
| Earnings per share. Basic | SEK | 1.07 | 1.12 | 1.89 | 2.78 | 3.39 |
| Earnings per share. Diluted | SEK | 1.06 | 1.11 | 1.89 | 2.77 | 3.38 |
| Equity per share, basic * | SEK | - | - | 35.47 | 32.00 | 33.60 |
| Equity per share, diluted * | SEK | - | - | 35.41 | 31.84 | 33.44 |
| Average number of shares outstanding, basic | thousands | 160,414 | 159,719 | 160,413 | 159,773 | 159,784 |
| Average number of shares outstanding, diluted | thousands | 160,592 | 160,629 | 160,687 | 160,566 | 160,544 |
| Number of shares, end of period | thousands | 160,933 | 160,000 | 160,933 | 160,000 | 160,933 |
| Number of treasury shares, end of period | thousands | 519 | 522 | 519 | 522 | 521 |
| Number of shares outstanding, end of period | thousands | 160,414 | 159,478 | 160,414 | 159,478 | 160,412 |
* Includes operations held for sale
| SEKm | Q4 2016* | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 |
|---|---|---|---|---|---|---|---|---|
| Total net sales | 2,647 | 2,111 | 2,189 | 2,220 | 2,457 | 2,624 | 2,743 | 2,802 |
| - Net sales, own operations | 1,656 | 1,557 | 1,646 | 1,661 | 1,901 | 2,056 | 2,168 | 2,233 |
| - Net sales, outsourcing | 787 | 554 | 543 | 559 | 556 | 568 | 575 | 569 |
| - Net sales, staffing | 204 | - | - | - | - | - | - | - |
*) Includes operations held for sale
| SEKm | Q4 2016* | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 |
|---|---|---|---|---|---|---|---|---|
| Total net sales | 2,647 | 2,111 | 2,189 | 2,220 | 2,457 | 2,624 | 2,743 | 2,802 |
| - Net sales Sweden | 1,388 | 1,376 | 1,419 | 1,432 | 1,437 | 1,448 | 1,452 | 1,441 |
| - Net sales Finland | 1,114 | 595 | 628 | 646 | 878 | 1,030 | 1,133 | 1,201 |
| - Net sales Norway | 86 | 85 | 84 | 85 | 105 | 97 | 106 | 109 |
| - Net sales Denmark | 59 | 55 | 58 | 57 | 37 | 49 | 52 | 51 |
| Operating profit (EBITA) | 241 | 239 | 186 | 277 | 188 | 188 | 128 | 297 |
| Operating margin (EBITA). % | 9.1 | 11.3 | 8.5 | 12.5 | 7.7 | 7.2 | 4.7 | 10.6 |
| Profit for the period | 151 | 154 | 111 | 179 | 98 | 92 | 40 | 171 |
| Profit margin. % | 5.7 | 7.3 | 5.1 | 8.1 | 4.0 | 3.5 | 1.5 | 6.1 |
| Earnings per share basic, SEK | 0.94 | 0.96 | 0.69 | 1.12 | 0.61 | 0.57 | 0.25 | 1.07 |
| Earnings per share diluted, SEK | 0.94 | 0.96 | 0.69 | 1.11 | 0.61 | 0.57 | 0.25 | 1.06 |
| Average number of employees | 14,602 | 13,600 | 13,674 | 15,015 | 15,076 | 15,545 | 16,967 | 17,087 |
*) Includes operations held for sale
| SEKm | Q3 2018 | Q3 2017 Jan-Sep 2018 Jan-Sep 2017 Jan-Dec 2017 | |||
|---|---|---|---|---|---|
| Net sales | 2 | 3 | 8 | 9 | 11 |
| Personnel costs | -4 | -6 | -14 | -19 | -24 |
| Other external costs | -4 | -2 | -9 | -8 | -10 |
| Operating profit | -6 | -5 | -15 | -18 | -23 |
| Finance net | -2 | -2 | -6 | -3 | -4 |
| Profit after financial items | -8 | -7 | -21 | -21 | -27 |
| Group contributions | - | - | - | - | 25 |
| Profit before tax | -8 | -7 | -21 | -21 | -2 |
| Income tax | - | - | - | - | - |
| Profit for the period | -8 | -7 | -21 | -21 | -2 |
Profit for the period corresponds to total comprehensive income
| SEKm | Sep 30, 2018 | Sep 30, 2017 | Dec 31, 2017 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Shares in subsidiaries | 6,494 | 6,494 | 6,494 |
| Total non-current assets | 6,494 | 6 494 | 6 494 |
| Current assets | |||
| Receivables to group companies | - | 4 | 28 |
| Other receivables | 3 | 2 | 1 |
| Cash and cash equivalents | 0 | 0 | 0 |
| Total current assets | 3 | 6 | 29 |
| Total assets | 6,497 | 6,500 | 6,523 |
| EQUITY AND LIABILITIES | |||
| Equity | 6,026 | 6,176 | 6,251 |
| Current liabilities | |||
| Liabilities to group companies | 459 | 306 | 256 |
| Other liabilities | 12 | 18 | 16 |
| Total current liabilities | 471 | 324 | 272 |
| Total equity and liabilities | 6,497 | 6,500 | 6,523 |
| Year-end report January-December |
14 February 2019 |
|---|---|
| Annual General Meeting | 11 April 2019 |
| Interim report, January-March | 3 May 2019 |
| Interim report January-June | 19 July 2019 |
| Interim report January-September | 24 October 2019 |
A telephone conference will be held on November 9, 2018 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 8 566 426 96 FI: +358 981 710 492 UK: +44 203 008 9807
Link to webcast: https://tv.streamfabriken.com/attendo-q3-2018
Fredrik Lagercrantz 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.
Attendo AB (publ)
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 700 units in operation, in more than 200 municipalities. The company has more than 24,000 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 | Equity plus interest bearing liabilities. |
| Earnings per share | Profit for the period in relation to the average number of shares outstanding. |
| Equity/asset ratio | Equity as a percentage of total assets. |
| Equity per share | Equity in relation to the average number of shares outstanding. |
| Liquid funds | Cash/cash equivalents, short term investments and derivatives with a positive fair value. |
| Net debt (alternative performance measure) | Net debt is a way to describe the Group's indebtedness and its ability to repay its debt with cash if all debts were cancelled today. Net debt is defined as interest bearing liabilities and provisions for post employment benefits less liquid funds. See the section "Financial position" in this report for a reconciliation of net debt. |
| 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. |
| Operating cash flow (alternative performance measure) |
Operating cash flow is a measure of the cash generated by the Group in its ongoing operations. Operating cash flow is defined as cash flow from operating activities adjusted for investments and divestments of tangible and intangible assets as well as paid and received interest. See note C31in the annual report 2017 for a reconciliation of the measure on a full year basis. |
| 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) (alternative performance measure) |
Attendo uses operating profit (EBIT) as an internal key figure as it shows the development of the ongoing operations regardless of funding. It is defined as profit before net financial items and income tax. See the consolidated income statement for a reconciliation of EBIT. |
| Operating profit (EBITA) (alternative performance measure) |
Operating income (EBITA) is used as a key figure since it shows the development of the ongoing operations without influence from depreciation and amortization of acquisition related intangible assets and regardless of funding. Operating profit (EBITA) is defined as profit before amortisation of acquisition related intangible assets, net financial items and income tax. See the consolidated income statement for a reconciliation of EBITA. |
| Organic growth (alternative performance measure) |
In order to show the underlying development of sales excluding acquisitions and currency effects, Attendo reports organic growth. Organic growth is defined as increase of net sales excluding acquisitions and currency effects. See note C31 in the annual report 2017 for a reconciliation of Organic growth on a full year basis. |
| 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 capital employed (alternative performance measure) |
Attendo has chosen to report the return on capital employed as it shows profits from the operations in relation to the capital used in the operations. Operating profit (EBIT) is defined as operating profit (EBIT) rolling 12 months as a percentage of average capital employed. See note C31 in the annual report 2017 for a reconciliation of the key figure on a full year basis. |
| Working capital (alternative performance measure) |
Working capital is an important key to optimizing cash generation. It is defined as current assets less liquid funds and short term interest bearing assets, minus short-term non-interest bearing liabilities and provisions. Assets and liabilities held for sale are excluded from the working capital. See note C31 in the annual report 2017 for a reconciliation of Working Capital on a full year basis. |
| New unit | Unit in operation less than 12 months. |
|---|---|
| Existing unit | Unit in operation more than 12 months. |
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