Humana — Earnings Release 2021

Feb 10, 2022

Temporarily weaker result in fourth quarter rounded off a stable 2021

Fourth quarter, October–December 2021

• Operating revenue was SEK 2,110 million (1,948), an increase of 8 percent. Organic growth was 3.4 percent.
• Operating profit amounted to SEK 82m (101), a decline of 18 percent. Adjusted operating profit was SEK 85m (101), a decline of 16 percent.
• Net profit after tax for the period amounted to SEK 33m (49).
• Basic and diluted earnings per share for the period amounted to SEK 0.68 (0.94).
• Operating cash flow amounted to SEK 157m (296).

Full year, January–December 2021

• Operating revenue was SEK 8,188m (7,797), an increase of 5 percent. Organic growth was 3.1 percent.
• Operating profit amounted to SEK 493m (471), an increase of 5 percent. Adjusted operating profit was SEK 495m (453), an increase of 9 percent.
• Net profit after tax for the period amounted to SEK 276m (262).
• Basic and diluted earnings per share for the period amounted to SEK 5.67 (4.94).
• Operating cash flow amounted to SEK 785m (779).

Significant events in and after the end of the quarter

• The acquisition of Balans Behandling AB was completed in October after Humana entered into an agreement to acquire the company in the second quarter of 2021. The business comprises enhanced foster care, outpatient care with an assisted living home and a treatment home. The company's annual revenue is approximately SEK 60m and has around 20 employees.
• In November, Humana acquired the assistance company Enigheten Personlig assistans AB with an annual revenue of approximately SEK 50m and around 150 employees.
• On 17 December, Johanna Rastad took over as the new President and CEO of Humana AB, succeeding Rasmus Nerman who had been President and CEO since 2015.
• After the end of the quarter, Humana acquired the Finnish individual and family care company Kalliola Oy, which provides individual and family care to children and youths, accommodation and outpatient care in southern Finland. The company's annual revenue is approximately EUR 9m, corresponding to SEK 93m, and has around 190 employees.
• Humana's Board proposes to the 2022 AGM that no dividend be paid for the 2021 financial year and that any profits be carried forward.

Key ratios

SEK millions	Oct-Dec 2021	Oct-Dec 2020	%	Jan–Dec 2021	Jan–Dec 2020	%
Net revenue	2,101	1,947	8%	8,176	7,771	5%
Other operating revenue	9	1	613%	12	26	-54%
Operating revenue	2,110	1,948	8%	8,188	7,797	5%
Operating profit	82	101	-18%	493	471	5%
Adjusted operating profit	85	101	-16%	495	453	9%
Net profit for the period	33	49	-32%	276	262	5%
Operating cash flow	157	296	-46%	785	779	1%

Comments from the CEO

The Humana Group reported strong growth during the fourth quarter and the overall underlying operations were positive. Operating profit, on the other hand, was weak. A large part of the decline in profit was linked to the Individual & Family operations, in which we completed a major adaptation and quality assurance initiative that involves adapting ourselves to increasingly challenging needs across society. The effects of the pandemic also weighed down profit during the quarter. The full year 2021 can be summarised financially as solid, with stable growth (5 percent), profitability (6 percent) and debt (4.6x EBITDA). We are close to our financial targets, but we have more work to do to fully achieve them.

The Humana Group's revenue increased during the fourth quarter by 8 percent to SEK 2.1 billion. Organic growth was 3.4 percent. For the full year, revenue grew by 5 percent to SEK 8.2 billion while organic growth amounted to 3.1 percent. Adjusted operating profit amounted to SEK 85m during the quarter, a decrease of 16 percent, partly due to temporary reasons. Adjusted operating profit for the full year was SEK 495m, an increase of 9 percent compared to the previous year.

Three acquisitions

During the quarter and in January, we had the pleasure of welcoming three new operations into Humana with a total of 350 employees and annual revenues corresponding to SEK 200m. In October, we completed the acquisition of the individual and family company Balans Behandling AB, based in northern Sweden (and for which we had entered into an acquisition agreement back in the second quarter). In November, we acquired the assistance company Enigheten Personlig assistans AB, which has operations in Dalarna. Finally, after the end of the quarter in early January, we acquired the Finnish individual and family company Kalliola Oy, which strengthens our presence in the Uusimaa region, not least in the Helsinki region.

Pandemic took off again

The fourth quarter was unfortunately marked by the pandemic, with the new omicron variant of the virus

spreading at a rate we had not experienced before. Our procedures for managing infection are well established and continued to work well. However, the rapid spread of infection in society and the quarantine rules greatly increased levels of sick leave and absence. Infection spreading through our operations combined with the challenging staffing levels and absences ultimately had a negative effect on both costs and revenue in the quarter, at the same time as state subsidies decreased.

Adaptation and quality assurance initiative

A large part of the decrease in profit in the quarter refers to the Individual & Family business area. The underlying operation is to some extent negatively affected by the pandemic. However, a major part of the decrease in profit for the business area in the quarter is explained by non-recurring costs. Costs linked to decisions during the year to close a handful of units amounted to SEK 15m. Consequently, there was neither a positive contribution to the result from these units. In addition, we had costs of approximately SEK 10m for adapting existing units to change in demand, but also costs for starting up new units. Over time we expect these new units to compensate for the closed operations.

In recent years, demand within residential care homes has gradually changed and we now welcome clients with increasingly special needs. This can for example involve problems linked to major societal

challenges such as gang criminality, honour-related violence and drug abuse. We work continuously with adjustments and quality assurance to adapt our operations to society's development and needs, but during the fourth quarter a major adaptation and quality assurance work was completed. The work included increasing the competence level in certain existing operations through training and methodological work, increasing or changing staffing, and adapting premises to be able to meet the stated needs of our contractors. We chose to close a handful of units. In parallel, five new units were opened in the quarter; four units offering housing for adults with functional impairments (covered by LSS) and one residential care home aimed at children and youths.

All in all, our own adaptation and quality assurance work, the start-ups of new units and the acquisitions we have made within Individual & Family during the year will make us better prepared to face an increasingly difficult social climate and meet the care needs that follow from this development.

The pandemic has affected occupancy

With regard to other business areas, Elderly Care also had a weak quarter in terms of profit, ending in a deficit both in the quarter and for the full year. The pandemic has affected occupancy and staffing negatively and the ramp up of five new homes under own management have advanced slower than planned. We are now initiating a work to increase the pace of change and measures will be taken to achieve our objectives for the business area.

Personal Assistance continued to develop stably despite the reduced size of the market, the prevailing pandemic and its associated staffing challenges.

Operations in Finland are continuing to build a solid foundation for the future and after adjusting non-recurring items, the business developed according to plan. Adjusted operating profit in the quarter entails an improvement in profitability compared with the previous year, while the pandemic remains a challenge. In January, the first regional elections to the new welfare areas were held in line with the SOTE reform, and this is something we are monitoring closely.

Reform to strengthen competence in Norway

Operations in Norway remained strong, driven both by growth in assistance and a high opening rate for care homes, which is reflected in organic growth. As of 2022, requirements for a university degree for all new employees working with children and youths within individual and family care will apply in Norway. The background is a reform, which aims to strengthen

We are developing the important area of quality monitoring, meaning that from the first quarter of 2022 we will report on quality through a new index consisting of twelve important parameters that we consider crucial for quality and its development and which better highlight the quality status within the Group.

quality and competence in these care services. In March, the new government in Norway is expected to appoint a public inquiry to study how commercial operations can be phased out in various tax-financed welfare services.

Expanded quality measurement via the new index

Systematic quality efforts are absolutely central to the care we provide. For several years, we have continuously measured and openly reported on our quality through the Humana Quality Index, HQI. In 2022, we will take the next step. We are developing the important area of quality monitoring, meaning that from the first quarter of 2022 we will report on quality through a new index consisting of twelve important parameters that we consider crucial for quality and its development in our operations and which better highlight the quality status within the Group.

To conclude, I took over as President and CEO of Humana on December 17 and this year-end report is, thus, my first report in the new role. It is with humility and great pleasure that I take on the task of leading Humana. This is a company with a unique commitment among its employees and a drive to help people, our customers and clients, lead a good life. I now look forward to working with all my colleagues in continuing to develop our operations, while at the same time striving to ensure positive progress within Nordic care as a whole.

Stockholm, 10 February 2022

Johanna Rastad

President and CEO, Humana AB

This is Humana

We drive the future of welfare

Humana is there for people with functional impairment, psychosocial disorders and mental illness, as well as for the elderly. Our vision is Everyone is entitled to a good life.

With assignments in hundreds of municipalities, 9,000 customers and clients, 18,000 employees and several hundred units in Sweden, Finland, Norway and Denmark, we are a major provider in Nordic welfare today. Humana shows what quality care is all about. Our work is based on the individual's circumstances and needs. Our care is grounded in scientific evidence and the best available know-how, and is provided by knowledgeable, dedicated employees. Both our own and external surveys confirm that we succeed in what we do time and time again. But we won't stop there. Continuous development to maintain the highest quality is an essential aspect for us. We intend to set a new, higher standard of care. This is how we drive the future of Nordic care and welfare.

Everyone is entitled to a good life. Humana works to make this a reality.

Five business areas Operations in four countries

Strong market position in the Nordics

Humana is a Nordic care group with marketleading positions in individual and family care and personal assistance. We are growing in elderly care and are building new care homes under our own management.

18 329 employees

9,384 customers

8,188 revenue, SEK millions

The financial data on this page refers to the full year 2021.

Strategy for sustainable care

Humana's vision and overall objective deal with social sustainability at an individual and societal level. For that reason, sustainability is an integral part of our strategy.

We have defined four strategic target areas: quality, attractiveness as an employer, profitable growth and social responsibility. These target areas, together with our core values, steer our business towards the vision that everyone is entitled to a good life.

Sweden, 73%

Finland, 16% Norway, 11% Denmark, 0%

STRATEGIC TARGET AREAS QUALITY OPERATIONS ATTRACTIVE EMPLOYER

OBJECTIVE The obvious choice of provider of care services for customers, clients and contractors who require high quality.

PROFITABLE GROWTH

SOCIALLY RESPONSIBLE PROVIDER

Financial overview

Operating revenue by business area

SEK millions	Oct-Dec 2021	Oct-Dec 2020	%	Jan–Dec 2021	Jan–Dec 2020	%
Individual & Family	578	528	9.5%	2,257	2,101	7.4%
Personal Assistance	768	743	3.3%	3,042	2,931	3.8%
Elderly Care	190	157	20.7%	669	608	10.1%
Finland	328	321	2.2%	1,284	1,327	-3.2%
Norway	241	193	25.0%	916	788	16.4%
Other3)	5	5	-4.3%	20	43	-54.5%
Total operating revenue	2,110	1,948	8.3%	8,188	7,797	5.0%

Organic growth by business area

Percent	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Individual & Family	-2.8%	2.2%	0.9%	0.4%
Personal Assistance	1.5%	3.8%	1.9%	4.1%
Elderly Care	20.6%	10.3%	10.1%	7.7%
Finland	1.5%	-4.1%	-0.5%	7.4%
Norway	17.5%	9.8%	13.8%	8.9%
Total organic growth	3.4%	3.1%	3.1%	4.1%

Operating profit by business area

SEK millions	Oct-Dec 2021	Oct-Dec 2020	%	Jan–Dec 2021	Jan–Dec 2020	%
Individual & Family	7	38	-80.9%	168	190	-11.5%
Personal Assistance1)	57	34	68.4%	208	160	30.2%
Elderly Care	-8	4	-290.9%	-3	10	-127.5%
Finland2)	2	10	-75.7%	56	62	-10.2%
Norway	33	19	75.0%	103	69	49.6%
Other3)	-10	-4	n/a	-40	-20	n/a
Total operating profit	82	101	-18.5%	493	471	4.7%

Operating margins by business area

Percent	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Individual & Family	1.3%	7.1%	7.5%	9.0%
Personal Assistance	7.5%	4.5%	6.8%	5.5%
Elderly Care	-4.0%	2.8%	-0.4%	1.6%
Finland	0.7%	3.1%	4.3%	4.6%
Norway	13.8%	9.9%	11.3%	8.7%
Total operating margin	3.9%	5.2%	6.0%	6.0%

1) Operating profit in the fourth quarter 2021 includes retroactive repayment of previously paid-in pension premiums totalling SEK 11m.

2) Operating profit in the fourth quarter 2021 includes a final settlement of a dispute of SEK -13m.

3) Operating revenue and operating profit in the second quarter 2020 include capital gain on the sale of properties of SEK 17m.

Group development

Revenue

Operating revenue in the fourth quarter amounted to SEK 2,110m (1,948), an increase of 8.3 percent. Organic revenue increased by 3.4 percent (3.1) for the quarter. All operations contribute, except for Individual & Family. Acquired operations contributed SEK 87m to revenue in the fourth quarter. Operations under own management accounted for 95 percent of total revenue in the quarter, and contracted operations accounted for 5 percent.

Operating revenue for the full year amounted to SEK 8,188m (7,797), an increase of 5.0%. Organic revenue growth was 3.1 percent (4.1). Acquired operations contributed SEK 203m. Operations under own management accounted for 95 percent of total revenue and contracted operations accounted for 5 percent.

The pandemic continued to impact operations throughout 2021, above all the end of the fourth quarter was burdened by the pandemic. Revenue was negatively affected both in the quarter and throughout the full year, primarily through lower occupancy in elderly care in Sweden and Finland but also in other operations.

Profit

Operating profit for the fourth quarter totalled SEK 82m (101), a decrease of 18.5 percent. The decrease is attributable to Individual & Family, Elderly Care and Finland. The operating margin was 3.9 percent (5.2). Adjusted operating profit amounted to SEK 85m (101), a decrease of 15.8 percent, and was attributable to Individual & Family and Elderly Care. The adjusted operating margin was 4.0 percent (5.2). Adjusted operating profit includes retroactive repayment of previously paid-in pension premiums (SEK 11m) in Personal Assistance and a final settlement of a dispute (SEK -13m) in Finland.

Operating profit for the full year totalled SEK 493m (471), an increase of 4.7 percent, and the operating margin amounted to 6.0 percent (6.0). Adjusted operating profit amounted to SEK 495m (453), an increase of 9.3 percent. The adjusted operating margin was 6.0 percent (5.8). Adjusted operating profit includes retroactive repayment of previously paid-in pension premiums (SEK 11m) in Personal Assistance and the final settlement of a dispute (SEK -13m) in Finland, while the comparative period was impacted by a capital gain from the sale of property totalling SEK 17m.

The Covid-19 pandemic has affected the Group in several ways. Lower occupancy had a negative effect on revenue while a high number of sickness absences and PPE increased costs, at the same time as state subsidies were limited. Overall, the financial impact on the Group in the fourth quarter was negative and, thus, somewhat negative for the full year.

Effects on profit from lease contracts regarding rent, depreciation, amortisation and financial costs as a consequence from the accounting standard IFRS 16, which has been applied since 1 January 2019, amounted to SEK 18m in the quarter (see table).

IFRS 16 effects, SEK millions	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Rental charges	103	87	382	342
Depreciation and amortisation	-85	-73	-316	-288
Operating profit	18	15	66	55

Revenue

Operating profit

Net financial effect	-25	-20	-90	-71
Profit before tax	-7	-5	-24	-24

Operating cash flow and interest-bearing net debt

Operating cash flow in the fourth quarter amounted to SEK 157m (296). The decrease is mainly attributable to changes in working capital.

Humana's interest-bearing net debt increased by SEK 715m to SEK 4,226m. (3,511). Net debt increased mainly due to increased lease liabilities and reduced cash. The leverage ratio, measured as interest-bearing net debt in relation to adjusted EBITDA, is 4.6x (4.3).

In order to improve the capital structure, Humana repurchased shares of SEK 159m in the first quarter of 2021. In September, Humana used 769,200 shares as consideration in an acquisition. As of 31 December 2021, the holding of treasury shares amounts to 8 percent of the total number of outstanding shares corresponding to SEK 258m at cost. The repurchased shares have reduced cash and equity, which increases the company's interest-bearing net debt. In the future, the company's holding of treasury shares may ultimately be used as payment for or to finance acquisitions of companies and/or other assets. They may also be cancelled.

Performance by business area

Individual & Family

Revenue for the fourth quarter amounted to SEK 578m (528), an increase of 9.5 percent compared to the corresponding period last year. The increase in revenue for the quarter was driven by acquisitions. Organic growth was -2.8 percent (2.2). The negative organic growth is mainly due to closed operations within children and youths. Revenue for the full-year period increased by 7.4 percent to SEK 2,257m (2,101). Acquisitions and new units drove the increase in revenue. Organic growth for the full year was 0.9 percent (0.4).

Operating profit for the fourth quarter totalled SEK 7m (38), a year-on-year decrease of 80.9 percent. Closed operations had a negative effect on the quarter, the related costs amounted to SEK 15m. This was partly offset by acquired operations. Furthermore, quality-enhancing measures in the operations and within properties had a negative effect on profit by approximately SEK 10m. Operating profit for the full year totalled SEK 168m (190), a decrease of 11.5 percent. The operating margin for the quarter was 1.3 percent (7.1) and 7.5 percent (9.0) for the full-year period. The full year is also negatively affected by closed operations, partly offset by acquired operations.

Personal Assistance

Revenue increased by 3.3 percent to SEK 768m (743) in the fourth quarter. Organic growth was 1.5 percent (3.8). Revenue for the full-year period was SEK 3,042m (2,931), an increase of 3.8 percent, of which 1.9 percent (4.1) was organic. The increase in revenue was mainly due to a higher attendance allowance and acquired operations, partly offset by fewer assistance hours.

Operating profit for the quarter totalled SEK 57m (34), an increase of 68.4 percent. Operating profit for the full year totalled SEK 208m (160), an increase of 30.2 percent. Adjusted for retroactive repayment of previously paidin pension premiums (SEK 11m), operating profit for the quarter amounted to

Percentage of Group revenue Q4 2021

Operating revenue and operating margin

Percentage of Group revenue Q4 2021

Operating revenue and operating margin

SEK 46m (34) and SEK 197m (160) for the full year. The operating margin was 7.5 percent (4.5) for the fourth quarter and 6.8 percent (5.5) for the full year. The adjusted operating margin was 6.0 percent (4.5) for the fourth quarter and 6.5 percent (5.5) for the full year. Operating profit and operating margin in the quarter and full-year period increased due to more efficient cost management, positive contributions from acquisitions and lower social security contributions for young employees.

Elderly Care

Revenue amounted to SEK 190m (157) in the fourth quarter. Organic growth was 20.6 percent (10.3). Revenue for the full-year period amounted to SEK 669m (608), an increase of 10.1 percent. Organic growth for the full year was 10.1 percent (7.7). The revenue increase and organic growth in the quarter and full year are entirely due to five new elderly care homes under own management.

Operating profit in the quarter amounted to SEK -8m (4). Operating profit for the full year amounted to SEK -3m (10). The operating margin was -4.0 percent (2.8) for the fourth quarter and -0.4 percent (1.6) for the full year. Start-up costs for five new elderly care homes under own management had a negative impact on profit in the fourth quarter. The improved results for established units under own management had a positive impact on fourth-quarter profit despite continued negative effects from the pandemic.

Percentage of Group revenue Q4 2021

Operating revenue and operating margin

Finland

Revenue amounted to SEK 328m (321) in the fourth quarter, an increase of 2.2%. Organic growth was 1.5 percent (-4.1), mainly driven by higher occupancy in outpatient care for families and children. Revenue for the full year amounted to SEK 1,284m (1,327), a decrease of 3.2 percent, and organic growth was -0.5 percent (7.4). A weaker Euro had a negative effect on revenue during the year. The negative organic growth during the full year was mainly due to decreased occupancy in institutional care for children and youths.

Operating profit for the fourth quarter amounted to SEK 2m (10), a year-onyear decrease of 75.7 percent. Operating profit for the full year totalled SEK Percentage of Group revenue Q4 2021

Operating revenue and operating margin

56m (62). Adjusted for a settled dispute (SEK 13m), operating profit for the quarter amounted to SEK 15m (10) and SEK 69m (62) for the full year. The operating margin was 0.7 percent (3.1) for the quarter and 4.3 percent (4.6) for the full year. The adjusted operating margin was 4.7 percent (3.1) for the fourth quarter and 5.3 percent (4.6) for the full year. The improved results for the fourth quarter and full-year period are mainly due to improved contractual terms in elderly care and better operational efficiency.

Norway

Revenue increased by 25.0 percent to SEK 241m (193) in the fourth quarter. Revenue for the full-year period amounted to SEK 916m (788), an increase of 16.4 percent. Organically, revenue increased by 17.5 percent (9.8) in the quarter and by 13.8 percent (8.9) in the full year. The increase in revenue and organic growth are mainly due to an increased number of units in the segment for housing with special services and an increase in customers in personal assistance.

Operating profit for the quarter amounted to SEK 33m (19), a year-on-year increase of 75.0 percent. The operating margin for the quarter was 13.8 percent (9.9). Operating profit for the full year totalled SEK 103m (69), an increase of 49.6 percent. The operating margin for the full-year period amounted to 11.3 percent (8.7). Operating profit and operating margin for the quarter and full year rose due to an increased number of customers in personal assistance and operational improvements, particularly within children and youths.

Percentage of Group revenue Q4 2021

11%

Operating revenue and operating margin

Financial position

Financing

Consolidated equity amounted to SEK 2,553m (2,354) on 31 December 2021. The equity/assets ratio was 28.4 percent (29.3). Interest-bearing net debt amounted to SEK 4,226m (3,511), a year-on-year increase of SEK 715m. The leverage ratio, measured as interest-bearing net debt in relation to adjusted EBITDA, increased to 4.6x (4.3). Debt increased due to investments in new units, acquisitions and share buybacks.

	31 Dec	31 Dec
SEK millions	2021	2020
Non-current interest-bearing liabilities	4,702	3,457
Current interest-bearing liabilities	218	813
Cash and cash equivalents	-695	-759
Interest-bearing net debt	4,226	3,511
of which interest-bearing lease liabilities	2,773	2,190
Interest-bearing net debt excl lease liabilities	1,453	1,321
Equity/assets ratio	28.4%	29.3%
Interest-bearing net debt/adjusted EBITDA 12 months, times	4.6x	4.3x

Cash flow

Cash flow for the fourth quarter amounted to SEK 15m (-199), where net cash flow from operating activities was SEK 145m (266). The lower cash flow from operating activities is mainly due to changes in working capital. Cash flow for the year amounted to SEK -92m (-42), where net cash flow from operating activities was SEK 689m (661).

Cash flow from investing activities amounted to SEK -48m (-38) for the fourth quarter. Cash flow from investing activities for the fourth quarter is explained by acquisitions and investments in new units. Cash flow for the year from investing activities amounted to SEK -260m (-37). The change is explained by acquisitions during the year, while the comparative period was affected by the disposal of properties.

Cash flow from financing activities amounted to SEK -82m (-428) for the fourth quarter, consisting entirely of repayment of lease liabilities. The fourth quarter of 2020 was affected by amortisations of loans and share buybacks. Cash flow for the year from financing activities amounted to SEK -521m (-667). This change is mainly explained by lower amortisations of loans in 2021.

Financial targets

Profitability

An operating margin of 7 percent over the medium term.

Revenue growth

Annual organic revenue growth of 5 percent over the medium term. Bolt-on acquisitions may generate additional annual growth of 2–3 percent.

Capital structure

Interest-bearing net debt not exceeding 4.5 times EBITDA, i.e. operating profit before depreciation, amortisation and impairment (see Financial definitions and intent). Debt may temporarily exceed the target level, which may happen during acquisitions.

Dividend policy

Payment of a dividend equivalent to 30 percent of net profit for the year. The proposed dividend shall consider Humana's long-term development potential and financial position.

Sustainability

Quality report for the fourth quarter, October-December 2021

Humana Quality Model and quality at Humana

Quality must be measured and monitored. Measuring and following up helps to develop our operations and to always keep high quality in focus. To measure quality within the Group and be able to compare various operations and see changes over time, Humana has developed the Humana Quality Model (HQM). The model is built on two parallel approaches: seven quantitative indicators that are weighed together to form the Humana Quality Index (HQI) along with qualitative and quantitative following up of customers'/clients' individual plans (implementation plan) and the personal goals that guide them. Both perspectives are equally important in creating an overall assessment of quality. Follow-ups are done quarterly. The quality reports are published on Humana's website.

In order to further strengthen our quality monitoring and get greater clarity on the results of the initiative for individuals, Humana's quality organisation continued to develop the tool in 2021 and produced a new HQI which, among other things, includes more indicators. This will be introduced in the first quarter of 2022. In order to be able to make a comparison with 2021, a benchmark measurement will be carried out for the full year 2021. You can find more information about the new HQI here: https://www.humanagroup.com/quality/humana-quality-model/

Humana Quality Index

The Humana Quality Index was at the same level throughout 2021: 94/100. Humana's customer satisfaction index (CSI) for the Group has reached our longterm target of 85 percent. Personal assistance customers are even more satisfied, with a CSI of 89 percent.

Most of our customers, clients and employees have received a Covid-19 vaccine. Since the virus continues to circulate, we continue to follow the procedures in place that are intended to minimise the spread of the virus in health and care operations.

Serious deviations

During the fourth quarter, nine Lex Sarah incidents were reported to the Health and Social Care Inspectorate (IVO) that pertained to Humana's Swedish operations. Two critical deviations were reported in our Norwegian business area.

Follow-up of individual plans

The proportion of individual plans that were followed up as planned was 90/100 in the fourth quarter of 2021 – better than in recent years, but lower than in 2018 when we reached 92%. 

In Personal Assistance, the number of implementation plans has increased and is now at 90 percent. This is a stable and clear increase. Other business areas are relatively stable and there is a continued need for improvement to reach the target of 100 percent. Over time, we see a stable, gradual increase in individual plans that are followed up as planned.

Read more about sustainability at Humana

Quality is one of the four target areas that form the basis for Humana's sustainable care strategy. Other target areas are attractive employer, profitable growth and socially responsible provider. Read more about Humana's sustainable strategy on our website at https://www.humanagroup.com/sustainability/.

Humana Quality Index

Other information

Employees

The number of full-time employees at 31 December 2021 was 10,945 (10,639).

Shares, share capital and shareholders

The number of shares in Humana AB at 31 December 2021 amounted to 53,140,064 with a quotient value of SEK 0.022 corresponding to share capital of SEK 1,180,879. The number of shareholders was 4,669. The five largest shareholders were Impilo Care AB, Incentive AS (via funds and mandate), Alcur Fonder, Nordea Investment Funds and SEB Investment Management.

Share buybacks

At the 2020 AGM, the Board was mandated to repurchase shares as long as the company's total holdings of treasury shares does not exceed one-tenth of all shares in the company and to transfer treasury shares in the company. In February and March 2021, Humana repurchased 2,357,348 shares at a cost of SEK 159m, corresponding to an average price of SEK 67.51 per share. In September 2021, Humana used 769,200 shares as consideration in an acquisition. Subsequently, the company's total treasury shares amount to 4,247,859 shares, which is 8.0 percent of the total number of outstanding shares and votes. After the transactions, the total number of shares excluding treasury shares is 48,892,205.

Marketplace

Humana's shares trade on the Nasdaq Stockholm Main Market. The company's ticker symbol is HUM and the ISIN code is SE0008040653.

Share-based incentive programmes

Humana has no ongoing long-term share-related incentive programme for senior executives or other employees.

In June 2020, Impilo Care AB, Humana's principal owner, made an offer to Board members and senior executives of Humana to acquire synthetic options in Humana issued by Impilo Care AB. Humana did not participate in the offer and it will not give rise to any costs for Humana. A total of 461,000 synthetic options were acquired. The total market value of the options on the transaction date is estimated at approximately SEK 1.4m. The synthetic options are related to Humana's share and expire after three years. The options can be exercised from 1 April 2023 to 30 June 2023. The exercise price is SEK 77.90 per option.

Related party transactions

The Group's related parties consist of the Board of Directors, Group management and the CEO, through ownership of the company and through their roles as senior executives. Related party transactions are made at arm's length and based on market conditions.

Risks and uncertainties

In the course of its operations, Humana is exposed to different types of financial risks, which can be divided into liquidity and funding risk, interest rate risk, credit risk and currency risk. Risks are described in more detail in the section in Humana's 2020 annual and sustainability report entitled Risks and risk management on pages 64–71 as well as in Note G20.

The main risks related to operations and uncertainties that can affect the company's performance are related to political decisions that may affect private care companies, as well as risks when implementing completed acquisitions.

Humana conducts operations that are financed by state, municipal and regional entities and, as such, operations can be affected by political decisions. As a result, Humana's opportunities for growth are affected by public opinion and political views on the company's areas of operation. Humana is constantly monitoring the external situation. The purpose is to quickly perceive external changes in order to assess risks and opportunities, as well as adapt operations to external changes. The political situation is evaluated continuously.

Communicable diseases exist in society. These infections can affect anyone in society but the situation is most difficult for vulnerable persons. Humana's operations include customers and clients in vulnerable groups and there are guidelines and procedures in the company's management system on how to prevent and manage various communicable diseases. Communicable diseases may also lead to several employees getting sick at the same time, which entails a risk of not having enough qualified staff to meet needs. A pandemic also entails a risk of a negative impact on Humana's revenues and costs, for example, due to lower occupancy or costs for sickness absences and PPE. Humana's operations are affected by the prevailing Covid-19 pandemic. A crisis management structure has been supporting the work of minimising transmission and impact since the pandemic began.

This year-end report was not subject to a review by the company's auditors as per ISRE 2410.

The Board of Directors and the CEO certify that this year-end report for 2021 gives a true and fair presentation of the Parent Company's and the Group's operations, financial position and earnings, and describes the material risks and uncertainties facing the Parent Company and the Group.

Stockholm, 10 February 2022

Johanna Rastad,

President and CEO

Consolidated income statement

SEK millions Note	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net revenue	2,101	1,947	8,176	7,771
Other operating revenue	9	1	12	26
Operating revenue 3.4	2,110	1,948	8,188	7,797
Other external expenses	-254	-220	-926	-913
Personnel costs	-1,633	-1,531	-6,333	-6,039
Depreciation, amortisation and impairment	-126	-95	-420	-371
Other operating expenses	-14	-1	-16	-2
Operating expenses	-2,028	-1,847	-7,695	-7,326
Operating profit	82	101	493	471
Financial income	0	0	4	6
Financial expenses	-37	-35	-143	-145
Profit before tax	46	66	354	332
Income tax	-12	-17	-78	-70
Net profit for the period	33	49	276	262
Attributable to:
Parent Company shareholders	33	49	276	262
Non-controlling interests	-	-	-	-
Net profit for the period	33	49	276	262
Earnings per share, SEK, before dilution	0.68	0.94	5.67	4.94
Earnings per share, SEK, after dilution	0.68	0.94	5.67	4.94
Average number of shares, thousands	48,892	52,562	48,699	52,995

Consolidated statement of other comprehensive income

	Oct-Dec	Oct-Dec	Jan–Dec	Jan–Dec
SEK millions Note	2021	2020	2021	2020
Net profit for the period	33	49	276	262
Other comprehensive income
Items that have been/may be reclassified to profit or loss
Hedges of net investments in foreign operations 6	-7	15	-24	39
Exchange difference on translation of foreign operations	14	-35	51	-74
Net profit and other comprehensive income for the period	40	29	303	227
Attributable to:
Parent Company shareholders	40	29	303	227
Non-controlling interests	-	-	-	-

Condensed consolidated balance sheet

SEK millions Note	31 Dec 2021	31 Dec 2020
Assets
Non-current assets
Goodwill 5	4,148	3,815
Other intangible assets	11	5
Property, plant and equipment	360	314
Right-of-use assets	2,669	2,119
Financial assets	55	42
Total non-current assets	7,243	6,295
Current assets
Trade receivables and other receivables	923	852
Other current receivables	140	138
Cash and cash equivalents	695	759
Total current assets	1,759	1,749
TOTAL ASSETS	9,002	8,044
Equity and liabilities
Equity
Share capital	1	1
Other paid-in captial	1,096	1,096
Reserves	21	-6
Retained earnings	1,436	1,264
Equity attributable to Parent Company shareholders	2,553	2,354
Equity attributable to non-controlling interests	-	0
Total equity	2,553	2,354
Non-current liabilities
Non-current lease liability	2,557	1,958
Other interest-bearing liabilities 6	2,146	1,499
Deferred tax liabilities	74	70
Provisions	4	-
Total non-current liabilities	4,780	3,527
Current liabilities
Current lease liability	216	232
Other interest-bearing liabilities	3	581
Trade payables	165	128
Other current liabilities 6	1,285	1,222
Total current liabilities	1,669	2,163
TOTAL EQUITY AND LIABILITIES	9,002	8,044

Condensed consolidated statement of changes in equity

					Equity attributable to
		Other			Parent	Non
SEK millions	Share capital	paid-in capital	Translatio n reserve	Retained earnings	Company shareholders	controlling interests	Total equity
Opening balance, 1 Jan 2020	1	1,096	29	1,158	2,284	22	2,305
Comprehensive income for the period
Net profit for the period	-	-	-	262	262	-	262
Other comprehensive income for the period	-	-	-35	-	-35	-	-35
Total comprehensive income for the period	-	-	-35	262	227	-	227
Owner transactions
Sale of operation	-	-	-	-	-	-22	-22
Share buybacks	-	-	-	-156	-156	-	-156
Total owner transactions	-	-	-	-156	-156	-22	-178
Closing balance, 31 Dec 2020	1	1,096	-6	1,264	2,354	-	2,354
Opening balance, 1 Jan 2021	1	1,096	-6	1,264	2,354	-	2,354
Comprehensive income for the period
Net profit for the period	-	-	-	276	276	-	276
Other comprehensive income for the period	-	-	27	-	27	-	27
Total comprehensive income for the period	-	-	27	276	303	-	303
Owner transactions
Share buybacks	-	-	-	-159	-159	-	-159
Agreement to settle acquired operations with shares	-	-	-	55	55	-	55
Total owner transactions	-	-	-	-104	-104	-	-104
Closing balance, 31 Dec 2021	1	1,096	21	1,436	2,553	-	2,553

	Condensed consolidated statement of cash flows
--	------------------------------------------------	--	--	--

	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
SEK millions Note
Profit before tax	46	66	354	332
Adjustments for:
Depreciation, amortisation and impairment	126	95	420	371
Financial items, net	37	34	139	139
Capital gain on sale of property, plant and equipment	-	-	-	-17
Other non-cash items	-8	-	-2	-
Cash flow from operating activities before change in working capital	201	196	912	824
Change in working capital	-21	129	-12	71
Cash flow from operating activities	180	325	900	895
Financial items paid, net	-36	-41	-139	-143
Income tax paid	1	-18	-72	-90
Net cash flow from operating activities	145	266	689	661
Acquisition of subsidiaries, net cash impact	5 -18	-10	-153	-18
Disposal of properties	-	2	-	114
Investments in other non-current assets, net	-30	-29	-107	-133
Cash flow from investing activities	-48	-38	-260	-37
Net change in borrowings	-	-200	-50	-227
Repayment of lease liability	-83	-73	-312	-284
Share buybacks	-	-154	-159	-156
Cash flow from financing activities	-82	-428	-521	-667
Cash flow for the period	15	-199	-92	-42
Cash and cash equivalents, opening balance	672	980	759	836
Exchange differences in cash and cash equivalents	9	-22	28	-35
Cash and cash equivalents, closing balance	695	759	695	759

Key ratios

	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Operating revenue	2,110	1,948	8,188	7,797
Operating margin, %	3.9%	5.2%	6.0%	6.0%
Interest-bearing net debt, SEKm	4,226	3,511	4,226	3,511
Return on capital employed, %	1.1%	1.5%	6.6%	7.1%
Equity/assets ratio, %	28.4%	29.3%	28.4%	29.3%
Operating cash flow, SEKm	157	296	785	779
Interest-bearing net debt/adjusted EBITDA, 12 months, times	4.6x	4.3x	4.6x	4.3x
Average full-time employees, Individual & Family	2,099	2,003	2,169	2,065
Average full-time employees, Personal Assistance	5,159	5,085	5,209	5,099
Average full-time employees, Elderly Care	991	858	955	862
Average full-time employees, Finland	1,554	1,583	1,605	1,669
Average full-time employees, Norway	939	1,000	994	838
Average full-time employees, Central Functions, including Denmark	61	63	65	59
Total average full-time employees	10,804	10,591	10,996	10,592
Full-time employees at end of period	10,945	10,639	10,945	10,639
Average number of customers, Individual & Family	1,823	1,738	1,789	1,746
Average number of customers, Personal Assistance	1,876	1,914	1,874	1,893
Average number of customers, Elderly Care	998	871	894	825
Average number of customers, Finland	4,213	3,841	4,079	3,947
Average number of customers, Norway	430	322	406	317
Average number of customers, Denmark	44	65	61	68
Total average number of customers	9,384	8,750	9,102	8,795
Average number of shares, thousands	48,892	52,562	48,699	52,995
Equity per share, SEK	52	45	52	44
Earnings per share, SEK, after dilution	0.68	0.94	5.67	4.94

Parent Company

Condensed income statement

SEK millions	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Operating revenue	-	-	-	2
Operating expenses	-3	-3	-16	-17
Operating profit	-3	-3	-16	-15
Interest income	17	19	40	108
Interest expenses	-34	-30	-103	-108
Profit after financial items	-19	-14	79	-15
Group contributions	132	-	132	105
Change in untaxed reserves	-1	-	-1	4
Profit before tax	112	-14	52	94
Income tax	-25	3	-13	-25
Net profit for the period	87	11	39	69

Condensed balance sheet

SEK millions	31 Dec 2021	31 Dec 2020
Non-current assets	1,684	1,629
Current assets	1,897	1,616
TOTAL ASSETS	3,582	3,244
Equity	1,508	1,572
Untaxed reserves	149	148
Non-current interest-bearing liabilities	1,508	946
Other current liabilities	417	578
TOTAL EQUITY AND LIABILITIES	3,582	3,244

Notes

Note 1 Accounting policies

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting along with applicable stipulations in the Swedish Annual Accounts Act. The report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act – Interim Reports. In general, the same accounting policies and bases of calculation have been used as in the annual report for 2020, which was prepared in accordance with the International Financial Reporting Standards as ratified by the EU, and interpretations of these.

Disclosures in accordance with IAS 34.16A appear in the financial statements and their associated notes as well as in the interim information on pages 2–8, which form an integral part of this financial report.

New accounting standards applied from 1 January 2021

Humana has determined that new or amended standards and interpretations will not have any significant effect on the consolidated financial statements.

Note 2 Estimations and assessments

Preparation of interim financial statements in compliance with IFRS requires management to make accounting estimates and assumptions which affect the application of the accounting policies and the carrying amounts of assets, liabilities, income and expenses. The actual outcome may differ from these accounting estimates and assessments. The critical assessments and sources of uncertainty in estimates are the same as in the most recent annual report.

Note 3 Operating segments

	Individual & Family		Personal Assistance		Elderly Care
SEK millions	Jan–Dec 2021	Jan–Dec 2020	Jan–Dec 2021	Jan–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net revenue – External income	2,255	2,101	3,042	2,931	669	608
Other operating revenue	2	-	-	-	-	-
Operating revenue	2,257	2,101	3,042	2,931	669	608
Profit before depreciation, amortisation and other operating expenses	206	225	209	162	14	22
Depreciation, amortisation and impairment	-37	-34	-1	-2	-16	-12
Other operating expenses	-1	-2	-	-	-	-
Operating profit	168	190	208	160	-3	10

	Finland		Norway		Other		Total
SEK millions	Jan–Dec 2021	Jan–Dec 2020	Jan-Dec 2021	Jan–Dec 2020	Jan–Dec 2021	Jan–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net revenue – External income	1,276	1,326	915	788	19	17	8,176	7,771
Other operating revenue	8	1	1	-	1	26	12	26
Operating revenue	1,284	1,327	916	788	20	43	8,188	7,797
Profit before depreciation, amortisation and other operating expenses	74	83	116	81	295	270	914	844
Depreciation, amortisation and impairment	-19	-22	-12	-12	-335	-289	-420	-371
Other operating expenses	-	-	-	-	-	1	-1	-2
Operating profit	56	62	103	69	-40	-20	493	471

Note 4 Revenue by country

SEK millions	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Sweden	1,537	1,429	5,970	5,664
Finland	328	321	1,284	1,327
Norway	241	193	916	788
Denmark	4	5	18	18
Total operating revenue	2,110	1,948	8,188	7,797

Note 5 Acquisitions

Net assets in acquired companies at date of acquisition

SEK millions	Team J son1)	Fideli Omsorg1)	Balans Behandling1)	Enigheten1)	Total
Non-current assets	0	4	0	-	4
Current assets	27	27	13	12	79
Non-current liabilities	-2	-	0	-	-2
Current liabilities	-8	-15	-5	-7	-35
Net identifiable assets and liabilities	17	16	8	5	46
Goodwill	65	195	11	12	283
Total consideration	82	211	21	17	329
Cash and cash equivalents in acquired entities	-20	-10	-7	-5	-42
Payment with own shares	-	-55	-	-	-55
Contingent consideration	-1	-73	-7	-	-81
Effect on cash and cash equivalents	61	73	5	12	151

	Other
Settlement of considerations attributable to prior acquisitions	1
Minor acquisitions	1
Total effect on cash and cash equivalents	153

1) The acquisition analysis is preliminary as the final settlement has not been determined.

Team J-son

In February 2021, Humana acquired the Swedish individual and family company Team J-son, a provider of high-quality care services for children and youths with special needs. Operating revenue from Team J-son included in the consolidated income statement since acquisition date amounts to SEK 87m for the full year and SEK 24m for the quarter. The acquired companies also contributed SEK 11m to profit for the full year and SEK 2m for the quarter.

Fideli Omsorg

On 1 September 2021, Humana acquired 100 percent of the shares of care company Fideli Omsorg AB. The acquisition strengthens Humana's operations in social psychiatry and care of people with disabilities, and complements Humana's offering geographically. The consideration for Fideli Omsorg (cash and debt free basis) comprised SEK 83m in cash and 769,200 shares in Humana corresponding to SEK 50m based on a volume-weighted average price on Nasdaq Stockholm over 10 trading days before the contract date (SEK 65.00). The fair value of the shares amounted to SEK 55m. In addition to this, Humana may pay an earn-out of no more than SEK 75m based on Fideli Omsorg's profit in 2021, 2022 and 2023. The goodwill of SEK 195m included in the acquisition of Fideli Omsorg partly corresponds to the geographical precense that is achieved in the area of social psychiatry and care of people with disabilities and partly to the synergy gains arising from the merger.

Transaction costs of SEK 1.4m have been reported as administrative costs in the consolidated income statement.

Operating revenue from Fideli Omsorg that has been included in the consolidated income statement since 1 September amounts to SEK 38m for the full year and SEK 29m for the quarter. The acquired companies also contributed SEK 4m for the full year and SEK 2m to profit for the quarter.

Balans Behandling

In October 2021, Humana acquired the Swedish individual and family company Balans Behandling AB, a provider of highquality care services for children and youths with special needs. Operating revenue from the acquired companies included in the consolidated income statement since 1 October amounts to SEK 12m for the full year and the quarter. The acquired company also contributed SEK 1.4m to profit for the quarter and full year. Transaction costs of SEK 0.2m have been reported as administrative costs in the Group.

Enigheten

In November 2021, Humana acquired the Swedish assistance company Enigheten Personlig assistans AB, which strengthens Humana's position and opportunities within Personal Assistance in Dalarna. Operating revenue from the acquired company included in the consolidated income statement since 1 November amounts to SEK 9m for the full year and the quarter. The acquired company also contributed SEK -0.5m to profit for the quarter and full year. Transaction costs of SEK 0.2m have been reported as administrative costs in the Group.

If the acquisitions above had been made as at 1 January 2021, consolidated operating revenue for the full year would total SEK 8,308m (SEK 120m higher) and profit for the period would total SEK 496m (SEK 3m higher).

Note 6 Fair value of financial instruments and level in valuation hierarchy

31 Dec 2021	Financial liabilities at fair value through profit or loss	Total carrying amounts	Fair values	Level 1	Level 2	Level 3
Financial liabilities
Earn-out payment	80	80	80	-	-	80
31 Dec 2020 SEK millions	Financial liabilities at fair value through profit or loss	Total carrying amounts	Fair values	Level 1	Level 2	Level 3
Financial liabilities
Earn-out payment	6	6	6	-	-	6

Fair value measurement

When determining the fair value of an asset or liability, the Group uses observable data as far as possible. Fair value is categorised in various levels in a fair value hierarchy based on input data that is used in the valuation method as follows:

Level 1: according to prices quoted in an active market for the same instruments

Level 2: based on directly or indirectly observable market data that is not included in level 1

Level 3: inputs that are not observable in the market

Presentation of the opening/closing balances for financial instruments measured at level 3, earn-out payment

SEK millions	31 Dec 2021	31 Dec 2020
Opening balance, 1 January	6	13
Total recognised gains and losses:
Cost of acquisition	81	1
Settled during the period	-19	-8
Reversed to income statement	12	-
Closing balance, end of period	80	6

Hedge accounting

The Group is hedging parts of the foreign exchange risk related to net investments in foreign operations. As at 31 December 2021, the Group had exposure to EUR, NOK and DKK. DKK makes up a small amount and is not hedged. NOK and EUR are hedged using loans in foreign currency. Hedge accounting entails recognising the effective part of the translation differences in the consolidated statement of other comprehensive income. As at 31 December 2021, the Group had loans of EUR 40m and loans of NOK 328m for which hedge accounting is applied. The related translation difference of SEK -31m (50) before tax is consequently recognised in the consolidated statement of other comprehensive income.

Reconciliation of financial statements with IFRS

In the financial reports that Humana issues, there are alternative performance measures specified that complement the measurements defined or specified in the applicable financial reporting rules. Alternative performance measures are indicated when, in their context, they provide clearer or more detailed information than the measurements defined in the applicable financial reporting rules. Alternative performance measures derive from the company's consolidated accounts and are not measured in accordance with IFRS.

SEK millions	Oct-Dec 2021	Oct-Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Adjusted operating profit
Operating profit	82	101	493	471
Capital gain on sale of property	-	-	-	-17
Retroactive repayment of previously paid-in pension premiums	-11	-	-11	-
Final settlement dispute	13	-	13	-
Adjusted operating profit	85	101	495	453
Adjusted EBITDA
Operating profit	82	101	493	471
Depreciation, amortisation and impairment	126	95	420	371
EBITDA	209	196	913	842
Capital gain on sale of property	-	-	-	-17
Retroactive repayment of previously paid-in pension premiums	-11	-	-11	-
Final settlement dispute	13	-	13	-
Adjusted EBITDA	211	196	916	824
Organic revenue growth
Revenue, base	1,937	1,902	7,761	6,968
Revenue, organic growth	67	59	238	289
Total organic growth	3.4%	3.1%	3.1%	4.1%
Operating cash flow
Operating profit	82	101	493	471
Depreciation, amortisation and impairment	126	95	420	371
Change in working capital	-21	129	-12	71
Investments in other non-current assets, net	-31	-29	-117	-133
Operating cash flow	157	296	785	779

	31 Dec 2021	31 Dec 2020
Interest-bearing net debt
Non-current interest-bearing liabilities	4,702	3,457
Current interest-bearing liabilities	218	813
Cash and cash equivalents	-695	-759
Interest-bearing net debt	4,226	3,511
Adjusted EBITDA, 12 months	916	824
Interest-bearing net debt/Adjusted EBITDA, 12 months, times	4.6x	4.3x
Return on capital employed, %
Total assets	9,002	8,044
Deferred tax liabilities	-74	-70
Trade payables	-165	-128
Other current liabilities	-1,285	-1,222
Capital employed	7,478	6,624
Operating profit	493	471
Financal income	1	1
Total	494	471
Return on capital employed, %	6.6%	7.1%
Equity/assets ratio, %
Total equity	2,553	2,354
Total assets	9,002	8,044
Equity/assets ratio, %	28.4%	29.3%

Financial definitions and intent

Financial performance measures

	Definition	Intent
Return on capital employed (%)	Operating profit and finance income divided by total capital employed multiplied by 100.	Indicates the operating return on the capital that owners and lenders have made available. The intent is to show consolidated returns, regardless of the financing.
EBITDA	Operating profit before depreciation, amortisation and impairment.	The measure is used to monitor the company's profit/loss generated by operating activities and facilitate comparisons of profitability between different companies and industries.
Adjusted operating profit and adjusted EBITDA	Operating profit and EBITDA adjusted for items affecting comparability.	Adjustment for non-recurring items is made to facilitate a fair comparison between two comparable periods and to show the underlying trend in operating activities excluding non-recurring items.
Operating cash flow	Operating profit including changes in depreciation/amortisation/impairment, working capital and investments in other assets (net).	The exclusion of cash flow from acquisitions and financing facilitates an analysis of cash conversion in operating activities.
Organic growth	Growth in local currency for comparable companies in each segment that Humana owned during the previous comparative period.	The measure shows the underlying sales growth in comparable companies between the different periods.
Interest-bearing net debt	Borrowing excluding interest rate derivatives less cash and cash equivalents and interest-bearing assets.	Net debt is used as a simple way to illustrate and assess the Group's ability to meet financial commitments.
Interest-bearing net debt excl. lease liabilities	Borrowing excluding interest rate derivatives and lease liabilities less cash and cash equivalents and interest-bearing assets.	Net debt is used as a simple way to illustrate and assess the Group's ability to meet financial commitments.
Interest-bearing net debt/ adjusted EBITDA	Interest-bearing net debt divided by adjusted EBITDA.	The measure indicates consolidated debt in relation to adjusted EBITDA. This is used to illustrate the Group's ability to meet financial commitments.
Equity/assets ratio (%)	Equity including non-controlling interests divided by total assets multiplied by 100.	Indicates the proportion of assets that are financed with equity. The aim is to assess the Group's solvency in the long term.
Capital employed	Total assets less non-interest-bearing liabilities.	The measure indicates the portion of the company's assets financed by interest-bearing capital.

Other performance measures

	Definition
Equity per share	Equity attributable to Parent Company shareholders divided by number of shares at end of period after redemption, buyback and new share issue.
Average number of shares	Calculated as the average daily number of shares outstanding after redemption and buyback.
Items affecting comparability	Non-recurring items that complicate the comparability between two given periods.
Average number of full-time employees	Average number of full-time employees during the reporting period.
Average customers	Average number of customers during the period.
Earnings per share for the period	Profit for the period attributable to Parent Company shareholders less the period's share of the adopted dividend divided by average number of shares.
Operating profit	Profit before financial items and tax.
EBIT margin (%)	Operating profit divided by operating revenue multiplied by 100.

This information is information that Humana AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, on 10 February 2022 at 08:00 CET.

A web-based teleconference will be held on 10 February 2022 at 09:00 CET at which President and CEO Johanna Rastad and CFO Noora Jayasekara will present the report and answer questions. To participate, call:

SE: +46 8 5055 8357 UK: +44 33 3300 9265 US: +1 63 1913 1422 (For US also use code: 67832648#)

Conference call Financial calendar Contact

Annual and Sustainability report	4 April 2022
2021
Interim report Jan–Mar, Q1 2022	5 May 2022
2022 Annual General Meeting	10 May 2022
Interim report Jan–Jun, Q2 2022	18 Aug 2022
Interim report Jan–Sep, Q3 2022	10 Nov 2022

Noora Jayasekara CFO +46 70 318 92 97 noora.jayasekara@humana.se

Ewelina Pettersson IR Manager 0730 747 912 ewelina.pettersson@humana.se

Humana AB Warfvinges väg 39, 7th fl. 112 51 Stockholm Telephone: +46 8-599 299 00 www.humanagroup.com