Full year report January December 2015

Transcription

1 Full year report January December 215 Telephone conference February 12, 216 Thomas Berglund, CEO Olof Bengtsson, CFO

2 Continued improvements in Capio Nordic and Germany France almost compensated for the price reduction Highlights 215 Stable development full year 215: 2.9% organic sales growth 8.8% EBITA growth % adj. profit growth 3 Net debt at MSEK 2,936 (3,44) supported by improved cash conversion financial leverage of 2.9x Proposed dividend per share of SEK.5 Result growth in Nordic and Germany driven by organic sales growth and productivity improvements All but four hospitals (out of 22) in France together fully compensated for the price reduction and the strikes Set to speed up change in European healthcare Capio AB (publ) 2

3 Group financial development Capio Group OCT - DEC JAN - DEC , % , % Adj. net sales 2 3,512 3, ,486 13, Organic sales growth, % Adj. operating result (EBITDA) , Margin, % Adj. operating result (EBITA) Margin, % Adj. profit for the period Adj. EPS, SEK Net capital expenditures In % of net sales Net debt 2,936 3,44 2,936 3,44 Financial leverage * Good organic sales growth in line with market growth, mainly from the Nordic segment with the Group impacted by the general price reduction in France Continued margin improvement in Nordic and Germany in France all but four hospitals together fully compensated for the price reduction and strikes in 215 Adj. profit improved from the higher operating result, improved finance net and lower effective income tax rate for the full year Net capex in 215 at 2.9% of sales was well in line with the financial target * Financial leverage 214 based on reported operating result (EBITDA) of MSEK 1,12. Capio AB (publ) 3

4 Segment Capio Nordic Capio Nordic OCT - DEC JAN - DEC , % , % Adj. net sales 4 1,896 1, ,243 6, Organic sales growth, % Adj. operating result (EBITDA) Margin, % Adj. operating result (EBITA) Margin, % Net capital expenditures In % of net sales Positive development in St Göran s Hospital, Specialist Clinics and Norway Strong focus on improving performance in Proximity Care a program to reduce employees (FTE) by -9 ongoing The two newly acquired clinics in Norway contributed positively Increased focus on Modern Management to drive patient time and productivity Stable growth and result development Capio AB (publ) 4

5 Segment Capio Germany Capio Germany OCT - DEC JAN - DEC , % , % Adj. net sales ,145 1, Organic sales growth, % Operating result (EBITDA) Margin, % Operating result (EBITA) Margin, % Net capital expenditures In % of net sales Patient case mix and pricing support organic sales growth General hospitals show positive result development (mainly the Dannenberg hospital) Specialized hospitals show a stable development Net capex impacted by an ongoing construction project at one of the general hospitals A platform for increased focus on Modern Medicine Capio AB (publ) 5

6 Segment Capio France Capio France OCT - DEC JAN - DEC , % , % Adj. net sales 1,324 1, ,98 5,7 1.8 Organic sales growth, % Adj. operating result (EBITDA) Margin, % Adj. operating result (EBITA) Margin, % Net capital expenditures In % of net sales Shift from in- to outpatients giving a 5.7% outpatient growth and 3.8% total patient growth Improved underlying volume growth supported by expansion projects and additional doctors The lower result was impacted by the price reduction, doctor strikes, the ongoing integration of the Parisis hospital and the newly opened Belharra hospital (MSEK-83, whereof price MSEK -57) Capio AB (publ) 6 All but four out of 22 hospitals have together fully compensated for the price reduction

7 France impact of the price reduction, strikes and structural changes in Q4 and full year 215 OCT - DEC JAN - DEC Net sales 1,324 1,293 5,98 4,869 Total sales growth, % Organic sales growth, % whereof price and strike effects, % whereof volume, % Adj. operating result (EBITA) Margin, % EBITA growth, % Structural and strike effects Price/volume component* General price reduction Total effect *Price/volume component per quarter and full year Q1 Q2 Q3 Q4 Total Capio AB (publ) 7 Improved underlying volume growth in the quarter as well as for the full year 215 All but four hospitals (out of 22) have together fully compensated for the price and strike effects Significant actions taken to improve organization and productivity in the four lower performing hospitals positive results expected gradually during H1 216 Recognition of the price/volume component impacted the quarter with MSEK -14 compared to 214 (full year effect MSEK -5) Continued strong focus on operational performance

8 France Modern Medicine and Rapid Recovery improving productivity Capio France hip and knee prosthesis surgery Provided in day care: Number AVLOS development hip and knee replacements JAN - DEC Days , % , % Capio France The French market Capio Sweden The Swedish market * 5. * 213 data Number of inpatients and outpatients % 7, 6,35 5,296 5,529 5, , 6 4, , 5 4,66 4, , , 7 2 1, Number of procedures Discharged, % <=4 days Source: French market data; Scansanté (ATIH), Swedish market data; Socialstyrelsen Capio growth of hip and knee replacements well above market growth Continued significant AVLOS reduction for hip and knee replacements also in 215. Total AVLOS reduction from 211 to 215 was -39%. AVLOS in 215 at 5. days (Capio Sweden average at 2.7 days) The number of procedures performed in day care almost tripled compared to 214 Capio AB (publ) 8 Rapid Recovery strategy continues to deliver

9 Cash flow OCT - DEC JAN - DEC Capio Group, MSEK Net debt opening -3,231-3,525-3,44-5,42 Operating result (EBITA) Capital expenditure Divestments of fixed assets Net capital expenditure In % of net sales Add-back depreciation Net investments Change in working capital Operating cash flow Cash conversion, % Free cash flow after financial items and tax Cash conversion, % Improved operating and free cash flow conversion in 215 Net capex at 2.9% in 215 the quarter impacted by seasonal effects Lower depreciation in 215 mainly due to the French SLB transaction in 214 Financial items and tax positively impacted by lower net debt and interest rates as well as lower tax instalments in France Improved cash conversion Capio AB (publ) 9

10 Capital employed & financing Capio Group, MSEK 31 Dec 31 Dec Operating capital employed 1,388 1,43 In % of net sales Other capital employed 6,549 6,217 Capital employed 7,937 7,62 MSEK 4, 3, 2, x Return on capital employed, % Net debt 2,936 3,44 Financial leverage Equity 5,1 4,18 Financing 7,937 7,62 1, Q4 Q1 Q2 Q3 Q Net debt Financial leverage 1 Operating capital employed well in line with year-end 214 Capital employed higher due to the French SLB tax payment in Q2 (MSEK -374) combined with changes in exchange rates ROCE improved on an adjusted basis from 7.1% in 214 to 7.5% in 215 Net debt lower due to improved cash flow and the new share issue financial leverage at 2.9x at year-end 215 Solid financial position Capio AB (publ) 1

11 Financial targets Net sales and organic sales growth (RTM) Operating result (EBITDA) and margin (RTM) 1 Net capital expenditure and in % of sales (RTM) MSEK % 14, 12, 1, 8, 6, 4, 2, Q4 Q1 Q2 Q3 Q Net sales, RTM Organic sales growth, % RTM MSEK % 1,4 1,2 1, Q4 Q1 Q2 Q3 Q Operating result (EBITDA) RTM Op margin (EBITDA), % RTM MSEK % Q4 Q1 Q2 Q3 Q Net capital expenditure, RTM In % of sales, RTM Net sales growth The target is to grow organically at least in line with the market and add acquisition growth at least at a similar rate over time Operating result (EBITDA) The target is to grow operating result at a higher rate than sales growth through increased productivity and operational leverage Net capital expenditure The target with present business mix is to keep net capex around 3% of net sales per year including Modern Medicine and expansion related capex Capio AB (publ) 11

12 Proposed dividend Dividend policy Capio targets annual dividends that over time reflect a payout ratio of ~3 percent of the Group s earnings after tax per year, allowing for a meaningful reinvestment in the business. Decisions relating to dividend proposals take into account Capio s future revenue, financial position, capital requirements, business opportunities and the situation for the Group in general. Proposed dividend 215 to be paid in 216: SEK.5 Capio AB (publ) 12

13 Financial calendar Capital market day (Capio St. Görans s hospital, Stockholm, Sweden) on the evening of March 14 and a full day March 15, 216 focus on the Capio model and strategy. Register at Capio annual report 215 available in April 216 Interim report January March due May 11, 216 Annual general meeting (Gothenburg concert hall, Gothenburg, Sweden) on May 11, 216 at 16. (CET): A proposal will be made to the AGM to issue a convertible debenture loan to all employees Capio AB (publ) 13

14 Questions and Answers Capio AB (publ) 14

15 Footnotes 1 and 2 Comparison period last year adjusted for structural changes made in 214. Adjustments refer to the handover of a Nordic contract business in late 214, the divestment of Capio UK and the French sale and leaseback transaction of seven French hospital properties (the French SLB transaction). Refer to page 14 in the published full year report for further information and pages 2 and 27 for reported numbers for For definitions of adjusted profit/loss for the period and adjusted EPS please refer to page 3 in the published full year report 4 Comparison period last year adjusted for the handover of a Nordic contract business in late 214. Please refer to page 14 in the published full year report for further information and pages 2 and 27 for reported numbers for Comparison period 214 adjusted for the French sale and leaseback transaction of seven French hospital properties (the French SLB transaction) in 214. Please refer to page 14 in the published full year report for further information and pages 2 and 27 for reported numbers for 214 Capio AB (publ) 15

16