Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1
First quarter January–March• Net sales rose 12 per cent to SEK 2,811 million (2,516). Ac-
quired growth was 13 per cent, the exchange rate effect had a -1 per cent impact on organic growth and organic growth was 0 per cent
• Operating profit (EBIT) was SEK 144 million (62)• EBITA increased 92 per cent to SEK 173 million (90), corre-
sponding to a margin of 6.2 per cent (3.6)• Adjusted EBITA, excluding items affecting comparability,
increased 28 per cent to SEK 187 million (147). The adjusted EBITA margin was 6.7 per cent (5.8)
• Profit for the period totalled SEK 62 million (9)• Earnings per share were SEK 0.65 (0.12) before and SEK
0.65 (0.12) after dilution• Cash conversion was 79.2 per cent (68.2)• Free cash flow totalled SEK 148 million (34).
Significant events • Ambea assesses that net sales and EBITA were impacted to
a limited extent by COVID-19 during the quarter. During the second quarter, COVID-19 is expected to have a greater impact due to higher costs for personal protective equipment (PPE) and higher sickness absence rate. Combined with the lower rate of occupancy in elderly care in particular, COVID-19 is expected to have an adverse impact on sales of about 3 per cent and on earnings of approximately SEK 40–60 million during the second quarter
• In view of the growing uncertainty caused by the spread of COVID-19 and the subsequent economic impact, the Board of Ambea has decided to withdraw its proposal to the AGM for a dividend payment
• During the quarter, a restructuring programme was initiated in Norway. The expected savings effect on a full-year basis is SEK 30 million, gradually increasing from the second quarter of 2020. Items affecting comparability of SEK 14 million were charged to the quarter. Read more on page 7
• During the quarter, the acquisition of Vivamus A/S was com-pleted. Read more on page 23
• After the end of the quarter, Benno Eliasson became new CFO.
A strong quarter in a challenging time
Interim report January–March 2020
* Alternative performance measures. For reconciliation with IFRS financial statements, see Note 8, for purpose and definition, see ambea.com/investor-relations/reports-and-presentations
Consolidated key figures2020 2019 2019
SEK million Jan–Mar Jan–Mar ∆ % R12 Jan–DecNet sales 2,811 2,516 12 11,335 11,040
EBITA* 173 90 92 734 650
Operating margin, EBITA (%)* 6.2 3.6 6.5 5.9
Adjusted EBITA* 187 147 28 830 788
Operating margin, adjusted EBITA (%)* 6.7 5.8 7.3 7.1
Operating profit, EBIT 144 62 132 607 525
Operating margin, EBIT (%)* 5.1 2.5 5.4 4.8
Profit after tax 62 9 589 267 215
Earnings per share before dilution, SEK 0.65 0.12 442 2.96 2.52
Earnings per share after dilution, SEK 0.65 0.12 442 2.96 2.51
Cash conversion (%)* 79.2 68.2 96.5 94.8
Free cash flow* 148 34 335 986 872
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2
Interim report January–March 2020
The fight against COVID-19 marked the latter part of the first quarter and the whole organisation has made a tremendous contribution to contain the spread. A chal-lenging time, but Ambea was able to capitalise on the overall competence of our Scandinavian organisation. In our activities related to COVID-19, we have strived to stay one step ahead and used preventive measures to keep the virus out of our facilities and to limit its spread. The early introduction of visiting restrictions, support in routines and intensive work to ensure the supply of PPE were all import-ant initiatives. But I would like to highlight the untiring commitment and skills of all of our employees who have been our greatest resource in combating this pandemic. The financial impact of COVID-19 was limited during the quarter. Profitability was stronger year-on-year and we continue to prioritise measures to strengthen margins in the operations that were previously Aleris Omsorg and the opening of new Vardaga residential facilities.In the first quarter, net sales amounted to SEK 2,811 million (2,516). Adjusted EBITA rose 28 per cent year-on-year to SEK 187 million (147).
During the quarter, net sales rose SEK 295 million, corre-sponding to 12 per cent, mainly attributable to the acquisition of Aleris Omsorg, which was finalised in the middle of January 2019. Organic growth was 0 per cent.
Adjusted EBITA rose 28 per cent to SEK 187 million, mainly attributable to acquisitions and synergy realisations. Over the past 12 months, Vardaga has opened 521 beds under own management, which impacts earnings in the short term but in the longer term offers both organic growth and higher prof-itability. Work progressed as planned during the quarter to strengthen margins by adopting Vardaga’s business concept into the acquired Aleris Omsorg operations. Nytida’s margin strengthened year-on-year due to synergy realisation and the effects of the structure programme that was completed in 2019 to phase out overlapping operations following the acquisition of Aleris Omsorg. Altiden was impacted by higher costs to strengthen the organisation ahead of future growth. During the quarter, Klara reported rising margins year-on-year, primarily driven by continued positive demand for subscription services for ambulatory care nurses.
In Stendi, work continued with the previously announced re-structuring programme to strengthen margins by significantly reducing the number of local offices and strengthening central functions. The programme is progressing as planned and costs affecting comparability of SEK 14 million were charged to earnings in the quarter. This work will continue during the seasonally weak second quarter while we continue to focus on implementing our operative management model in Norway to ensure favourable long-term profitability. Our earlier assess-ment of restructuring costs totalling SEK 45 million stands firm together with estimated annual savings of SEK 30 million, expected towards the end of 2020.
During the quarter, Vardaga, opened two nursing homes with a total of 116 beds, and Nytida opened one group home with six beds. At the end of the quarter, the number of beds and placements in the pipeline was 2,181, corresponding to 25 per cent of the total number of beds and placements under own management.
The acquisition of Vivamus in Denmark was completed during the quarter. Vivamus provides residential care for people with disabilities and developed as planned during the first few months in the Group.
During the quarter, our net profit for management contracts amounted to annual sales of SEK 157 million, while no new an-nouncements were made by municipalities to retake contracts.
We are carefully monitoring the status of COVID-19 and will continue to take measures to protect our care receivers and employees. Our assessment is that COVID-19 will have an adverse impact on sales in the second quarter of about 3 per cent and on earnings of approximately SEK 40–60 million. If we look beyond the next few quarters, our assessment is that demand for our services remains favourable.
Finally, I would like to thank all of our employees for the incredible work being carried out in this difficult situation. Together, we are performing a duty that is more important than ever – to offer people who need our support the best life possible.
Comments from Fredrik Gren, President and CEO
Fredrik Gren
A strong quarter in a challenging time
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 3
Interim report January–March 2020
Group
First quarter Net salesNet sales rose 12 per cent to SEK 2,811 million (2,516). Acquired growth was 13 per cent, the exchange rate effect had a negative -1 per cent impact on organic growth and organic growth was 0 per cent year-on-year. Sales in the quarter were positively impacted by the leap year.
Net sales in Own Management amounted to SEK 2,085 million (1,803), up 16 per cent compared with the year-earlier period, due to acquisitions and start-up units.
Net sales in Contract Management amounted to SEK 666 million (634). The year-on-year sales growth was positively impacted by the start-up of previously won contracts. Excluding additional Contract Management operations, the acquisition of Aleris Omsorg increased sales in Contract Management by 10 per cent, corresponding to SEK 36 million year-on-year.
Net sales in Staffing declined 24 per cent to SEK 60 million (79).
Earnings EBIT rose 132 per cent to SEK 144 million (62), representing a margin of 5.1 per cent (2.5).
EBITA rose 92 per cent to SEK 173 million (90). The EBITA margin was 6.2 per cent (3.6). EBITA for the quarter was impacted by items affecting comparability of SEK -14 million (-57), attributable to costs for the previously announced restructuring programme in Norway.
Adjusted EBITA for the quarter rose 28 per cent to SEK 187 million (147). Completed acquisitions and synergy realisations from acquisitions had a positive impact on earn-ings, while ongoing new-starts had a negative impact. The leap year had a positive impact on earnings. The effect of the spread of COVID-19 had a limited impact on earnings for the first quarter. The adjusted EBITA margin was 6.7 per cent (5.8).
Net financial itemsDuring the quarter, net financial items amounted to SEK -64 million (-50). Net interest income was negatively impacted by currency effects of SEK 12 million and increased impact from IFRS 16 of SEK 6 million, but positively impacted by a de-crease in interest expense of SEK 5 million. As a result of the coronavirus situation, demand for commercial papers has decreased and the company can see that commer-cial papers outstanding will be replaced by greater use of existing committed credit facilities, which will lead to higher financing costs.
Income tax Tax expense for the period was SEK -18 million (-3), corresponding to an effective tax rate of 22 per cent (22).
Profit for the period Profit for the period totalled SEK 62 million (9), corresponding to earnings per share of SEK 0.65 (0.12) before dilution and SEK 0.65 (0.12) after dilution.
Net sales by segmentJan–Mar 2020
Net sales by contract modelJan–Mar 2020
32%
32%
2%
VardagaNytida
Stendi
Altiden
27%
Klara
6%
74%
24%
2%
Own ManagementContract Management
Sta�ng
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 4
Interim report January–March 2020
Free cash flow for the period amounted to SEK 148 million (34). The year-on-year increase in free cash flow was due to stronger earnings and reduced tied-up working capital, partly due to calendar effects.
The year-on-year cash flow for the period decreased, impacted by the acquisition last year of Aleris Omsorg and related borrowing.
At 31 March 2020, net interest-bearing debt amounted to SEK 8,217 million (8,970) or 5.2 times 12 months adjusted EBITDA. The decrease in net debt was due to the repayment of part of the loan raised for the acquisition of Aleris Omsorg following the completion of the new share issue in the second quarter of 2019.
* Alternative performance measures. For reconciliation with IFRS financial statements, purpose and definition, see ambea.com/investor-relations/reports-and-presentations
Cash flow2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–DecAdjusted EBITDA 377 313 1,571 1,508
Adjustment for non-cash items -8 17 -61 -35
Changes in working capital -56 -105 64 15
Cash flow from investments in fixed assets -27 -20 -118 -110
Operating cash flow, including investments increased capacity 285 205 1,457 1,377Net financial items -62 -47 -261 -248
Tax paid -62 -67 -114 -119
Reversal of items affecting comparability -14 -57 -96 -138
Free cash flow 148 34 986 872Acquisition/disposal of shares and participations -103 -2,592 -125 -2,614
Cash flow from financing activities -5 2,805 -1,071 1,739
Other 1 -7 -6 -14
Cash flow during the period 38 241 -208 -6
Financial position31 Mar 31 Mar 31 Mar 31 Mar 31 Dec 31 Dec
SEK million2020 2020 excl.
IFRS 162019 2019 excl.
IFRS 162019 2019 excl.
IFRS 16Net interest-bearing debt* 8,217 3,284 8,970 4,714 7,916 3,212
Rolling 12 months adjusted EBITDA* 1,571 831 795 636 1,508 796
Net debt/Rolling 12 months adjusted EBITDA 5.2 4.0 11.3 7.4 5.3 4.0
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 5
Interim report January–March 2020
VardagaAt Vardaga’s just over 100 residential care facilities across Sweden, we provide elderly care where every day is as meaningful as the next. Every one of our nursing homes, short-term accommodation units, home care and day services offers a high level of expertise and a safe environment. Our employees ensure quality of life and safety for every care receiver.
QuarterVardaga’s net sales rose 14 per cent year-on-year to SEK 909 million (796).
Net sales in Own Management amounted to SEK 561 million (457), up 23 per cent due to the acquisition of Aleris Omsorg and to newly opened units.
Net sales in Contract Management amounted to SEK 348 million (339). The 3 per cent increase was due to a positive contribution from the start-up of new contracts. During the quarter, Vardaga’s net profit on the allocation of new contacts amounted to SEK 157 million, while no new announcements were made by municipalities to retake contracts.
Adjusted EBITA declined 8 per cent to SEK 48 million (52). Costs for new start-ups had a negative impact. Efforts that are ongoing to close the margin gap in the ac-quired Aleris Omsorg had a positive impact.
The adjusted EBITA margin was 5.3 per cent (6.5). The margin decline was attribut-able to a higher number of start-ups under Own Management and to the acquisition of Aleris Omsorg. EBITA margin for mature units decreased 0.6 percentage points, mainly attributable to the inclusion of previously acquired units from Aleris Omsorg in the population from the first quarter.
During the quarter, one home-care operation in Nacka was divested as part of a strategic review of the home-care segment. The divestment is not deemed to have any material impact on earnings.
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 Q1 2019 2020
Vardaga adjusted EBITA margin RTM** %
* Alternative performance measures. ** Includes effects of IFRS 16 as of Q1 2019. For purpose and definition, see ambea.com/investor-relations/reports-and-presentations
Total Vardaga Mature units
2020 2019 ∆ 2019SEK million Jan–Mar Jan–Mar % R12 Full-yearNet sales 909 796 14 3,606 3,494
Adjusted EBITA* 48 52 -8 203 207
Operating margin, adjusted EBITA (%)* 5.3 6.5 5.6 5.9
Operating margin, adjusted EBITA mature units (%) 9.8 10.4 11.4 12.4
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 6
Interim report January–March 2020
NytidaNytida provides support and care for children, young people and adults with life-long disabilities and psychosocial problems. We provide residential care, day services, support for individuals and families, and schools in approximately 400 units across Sweden. Using proven models and in-depth knowledge, our 8,500 employees help to strengthen the ability of individuals to live an independent life.
QuarterNet sales rose 4 per cent to SEK 912 million (873).
Net sales in Own Management amounted to SEK 781 million (755), up 3 per cent. This growth was attributable to the acquisition of Aleris Omsorg and to start-up units.
Net sales in Contract Management amounted to SEK 131 million (118). The 11 per cent increase was due to a positive contribution from the start-up of previously won contracts.
Adjusted EBITA rose 25 per cent to SEK 129 million (103). Earnings were positively impacted by the effects of synergy-realisation and the programme implemented in 2019 aimed at optimising overlapping capacity resulting from the acquisition of Aleris Omsorg. During the quarter, the trend for mature units in Individual and Family made a positive contribution year-on-year.
The adjusted EBITA margin was 14.1 per cent (11.8).
2019 2020
8
10
12
14
16
18
Q1 Q2 Q3 Q4 Q1
Nytida adjusted EBITA margin RTM** %
* Alternative performance measures. ** Includes effects of IFRS 16 as of Q1 2019.
2020 2019 ∆ 2019SEK million Jan–Mar Jan–Mar % R12 Full-yearNet sales 912 873 4 3,703 3,664
Adjusted EBITA* 129 103 25 538 512
Operating margin, adjusted EBITA (%)* 14.1 11.8 14.5 14.0
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 7
Interim report January–March 2020
StendiStendi is the largest care provider in Norway and runs nationwide operations in support and residential care for adults, children and young people. We also provide personal assistance, elderly care and home care. We have about 5,000 employees and more than 400 units across Norway.
QuarterNet sales rose 13 per cent to SEK 761 million (671). The increase was largely due to the acquisition of Aleris Omsorg. The currency effect on sales in comparable units had a negative impact of 4 per cent year-on-year.Net sales in Own Management amounted to SEK 686 million (579), up 18 per cent. This growth was attributable to the acquisition of Aleris Omsorg.Net sales in Contract Management amounted to SEK 75 million (92), where the lower sales were a result of contracts previously handed back in elderly care.Adjusted EBITA amounted to SEK 13 million (-12). The improved performance was mainly the result of lower costs for temporary staff and higher staffing efficiency aris-ing from ongoing work to introduce Ambea’s operative management model.During the quarter, work with the previously announced restructuring programme in Norway progressed as planned. The aim of the programme is to centralise support functions and strengthen local leadership. The programme is expected to achieve annual savings of about SEK 30 million, which will be realised gradually as of the second quarter of 2020. Items affecting comparability of SEK 14 million were charged to the quarter and total items affecting comparability are estimated at about SEK 45 million. The programme is expected to have full effect by the end of 2020.The adjusted EBITA margin was 1.7 per cent (-1.8).
0
1
2
3
4
5
6
Q1 Q2 Q3 Q4 Q1 2019 2020
Stendi adjusted EBITA margin RTM** %
* Alternative performance measures. ** Includes effects of IFRS 16 as of Q1 2019.
2020 2019 ∆ 2019SEK million Jan–Mar Jan–Mar % R12 Full-yearNet sales 761 671 13 3,197 3,106
Adjusted EBITA* 13 -12 n.a. 106 80
Operating margin, adjusted EBITA (%)* 1.7 -1.8 3.3 2.6
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 8
Interim report January–March 2020
AltidenAltiden is the largest private care provider in Denmark, with operations comprising el-derly care, home care, rehabilitation and disability care. All over Denmark, we provide skilled care services based on respect. Approximately 1,000 employees ensure quality of life and a safe environment with a focus on development.
QuarterNet sales rose 74 per cent to SEK 169 million (97). The increase is attributable to acquisitions. The currency effect on sales in comparable units had a negative impact of 1 per cent year-on-year.Net sales in Own Management amounted to SEK 57 million (12). The sales growth was attributable to acquisitions and higher rates of occupancy in new units.
Net sales in Contract Management amounted to SEK 112 million (85), with the increase attributable to the acquisition of Aleris Omsorg, which was finalised in the middle of January 2019.
Adjusted EBITA amounted to SEK -3 million (3). Adjusted EBITA was negatively impacted by higher costs to strengthen the organisation and a weak performance in home care services. Acquired units (Casablanca Bo & Ehrverv ApS and Vivamus A/S) developed as planned and had a positive impact on earnings.
The adjusted EBITA margin was -1.6 per cent (3.0).
During the quarter, the acquisition was completed of Vivamus A/S, which provides residential care for people with disabilities in the Copenhagen region.
2020 2019 ∆ 2019SEK million Jan–Mar Jan–Mar % R12 Full-yearNet sales 169 97 74 556 484
Adjusted EBITA* -3 3 -194 -12 -8
Operating margin, adjusted EBITA (%)* -1.6 3.0 -2.2 -1.6
* Alternative performance measures.
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 9
Interim report January–March 2020
Klara Klara is one of Sweden’s leading providers of staffing services for social care. We are an authorised staffing company and are ISO certified. With personal service and long experience in the industry, Klara provides the best staffing solutions for both public and private clients. We offer ambulatory care nurses and temporary doctors, nurses and other care workers, in Sweden.
QuarterNet sales declined 24 per cent to SEK 60 million (79). The decrease was attributable to a negative trend in temporary staffing services to the private customer segment due to the introduction of VAT liability for sales in July 2019. The decline was partly offset by increased sales in Klara Team, which offers qualified on-call services on a subscription basis.
Adjusted EBITA was SEK 6 million (5), representing a margin of 10.0 per cent (6.3). The performance was positively impacted by Klara Team and the effects of previously undertaken efficiency measures.
* Alternative performance measures. ** Includes effects of IFRS 16 as of Q1 2019.
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4 Q1 2019 2020
Klara adjusted EBITA margin RTM**, %
2020 2019 ∆ 2019SEK million Jan–Mar Jan–Mar % R12 Full-yearNet sales 60 79 -24 274 292
Adjusted EBITA* 6 5 20 26 25
Operating margin, adjusted EBITA (%)* 10.0 6.3 9.5 8.6
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 0
Interim report January–March 2020
* Includes management contracts to be retaken.
Operational key figures2019 2019 2019 2019 2020
SEK million Q1 Q2 Q3 Q4 Q1
AmbeaNumber of beds and placements operated under own management, on the closing date 8,220 8,441 8,490 8,637 8,832
Number of beds and placements under own management (RTM) 249 424 490 562 600
Number of beds and placements under own management under construction, on the closing date 2,234 2,167 2,252 2,309 2,181
Net won/lost management contracts, annual volume SEK million* 7 5 -120 -28 157
VardagaNumber of beds operated under own management, on the closing date 2,139 2,313 2,433 2,545 2,661
Number of beds under own management (RTM) 153 300 420 477 521
Number of beds under own management under construction, on the closing date 1,964 1,910 1,934 1,983 1,867
Net won/lost management contracts, annual volume SEK million* 107 0 -189 -36 157
NytidaNumber of beds and placements operated under own management, on the closing date
5,170 5,170 5,117 5,138 5,150
Number of beds and placements under own management (RTM) 93 114 62 77 71
Number of beds and placements under own management under construction, on the closing date 190 180 241 249 237
Net won/lost management contracts, annual volume SEK million* 1 5 69 8 0
StendiNumber of beds operated under own management, on the closing date 881 923 905 868 871
Number of beds under own management (RTM) 3 5 3 3 3
Number of placements under own management under construction, on the closing date
3 0 0 0 0
Net won/lost management contracts, annual volume SEK million* -101 0 0 0 0
AltidenNumber of beds and placements operated under own management, on the closing date 30 35 35 86 150
Number of beds under own management (RTM) 0 5 5 5 5
Number of beds and placements under own management under construction, on the closing date
77 77 77 77 77
Net won/lost management contracts, annual volume SEK million* 0 0 0 0 0
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 1
Interim report January–March 2020
Other eventsLegal proceeding regarding social security costs for temporary staff in NorwaySince the first quarter of 2019, through the acquisition of Aleris Omsorg’s operations, Ambea has been involved in an ongoing legal proceeding in Norway regarding costs for temporary staff. Ambea’s exposure as a result of this proceeding is limited to NOK 30 million, which has been reserved as a provision on the combined companies’ balance sheet. Ambea is working actively to increase the proportion of permanent employees in the Norwegian operations.In the third quarter of 2019, the District Court pronounced its decision. Of the 24 parties involved in the legal proceeding, two were considered entitled to social secu-rity benefits for previously delivered services. Both the defendant and Ambea have appealed the judgement to the Court of Appeal.Tax audit in NorwayThe Norwegian Tax Administration had previously initiated an audit of Aleris Om-sorg’s operations’ reporting of tax for temporary staff. During the quarter, the Tax Administration announced that the review had been concluded without any follow-up actions.Tax audit in SwedenIn 2018, Ambea received a reassessment notice from the Swedish Tax Agency regard-ing VAT of SEK 12 million, including tax surcharges, for prior years in Ambea AB (publ). The reassessment was mainly related to input VAT on costs arising from the IPO in 2017. The company has appealed the Swedish Tax Agency’s preliminary deci-sion and is awaiting further assessment in the Administrative Court, which is why no provision has been made for the cost.
Legal dispute in NorwayDuring the fourth quarter of 2019, lawsuits were filed against Ambea citing the pre-viously communicated irregularities in Norway, which are described in the Q1 report for 2019. The dispute concerns circumstances that existed prior to the acquisition of Aleris Omsorg’s operations in Norway, and estimated costs associated with the case have already been reserved in the combined companies’ balance sheet.
Related-party transactionsDuring the quarter, no transactions took place between Ambea and its related parties that had any material impact on the company’s position and earnings. The nature and volume of transactions remained unchanged during the period compared with the preceding year.
Events after the end of the quarterAfter the end of the quarter, the impact of the spread of COVID-19 has continued to affect the company’s operations. During the second quarter, COVID-19 is expected to have a greater impact due to higher costs for personal protective equipment (PPE) and higher sickness absence rate. Combined with the lower rate of occupancy in elderly care in particular, COVID-19 is expected to have an adverse impact on sales of about 3 per cent and on earnings of approximately SEK 40–60 million during the second quarter.
Seasonal variationsAmbea’s operating profit is affected by seasonal variations, weekends and public holidays.
Weekends and public holidays reduce Ambea’s profitability due to higher personnel costs for inconvenient working hours. Most of the public holidays in countries where the company operates normally fall in the second quarter. In certain years, Easter may fall in the first quarter and then impacts its profitability. Christmas and New Year affect the first and fourth quarters.
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 2
Interim report January–March 2020
The company’s personnel costs are similarly affected when employees take out their holidays. For example, the company is most profitable in the third quarter, as em-ployees usually take their holidays during July and August and therefore receive hol-iday pay that is continuously accrued throughout the year. Costs during the summer months are also generally lower due to a reduced schedule for central activities, such as mandatory training programmes and central initiatives, during this period.
EmployeesThe average number of full-time employees (FTEs) during the quarter was 14,161 (13,214), with the increase mainly due to acquisitions.
Risks and uncertainties Ambea is exposed to a variety of risks and attaches great importance to continuously analysing, minimising and managing these risks. The risk assessment is also central to the annual strategy process, where specific risks in relation to the company’s abil-ity to achieve its financial targets and strategic ambitions are evaluated. Ambea has identified the following risks: brand risks, industry and market risks, compliance and legal risks, operational risks and financial risks. For a description of these risks and how they are managed, refer to pages 48–49 of the 2019 Annual Report.
Key judgements and estimatesFor information about key judgements and estimates in this interim report, refer to Note G32 in the company’s 2019 Annual Report.
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 3
Interim report January–March 2020
Other informationThe company’s auditors have not reviewed this report.
The Board of Directors’ assuranceThe Board of Directors and Chief Executive Officer hereby provide their assurance that this interim report provides a true and fair overview of the operations, position and earnings of the Parent Company and the Group, and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.
Stockholm, 12 May 2020
Lena Hofsberger Chair of the Board
Daniel Björklund Anders Borg Lars Gatenbeck
Liselott Kilaas Gunilla Rudebjer Mikael Stöhr
Patricia Briceño Charalampos Kalpakas Magnus Sällström Employee representative Employee representative Employee representative
Fredrik Gren President and CEO
Presentation of the first quarter of 2020Ambea will hold a presentation for the financial market, with the possibility to participate by teleconference, at 10:00 a.m. CEST on Wednesday, 13 May 2020. The presentation will be held in English, and be available as a webcast at ambea.se
Call-up informationTo make sure that the hook-up to the conference call works, please call at least five minutes before the conference call’s start time to register, or use the code: 1190474.
Phone numbersSweden: +46 (0)8 506 921 80UK: +44 (0)20 71 92 80 00US: +1 63 15 10 74 95
ContactJacob Persson, Head of Group Business Control & Investor RelationsTelephone +46 (0)708 64 07 52
Forthcoming report occasionsAnnual General Meeting 15 May 2020Q2 interim report for 2020 19 August 2020Q3 interim report for 2020 5 November 2020
Ambea is the leading private care company in Sweden, Norway and Denmark, with more than 900 units and approximately 26,000 employees. Within our group of companies, we provide residential facilities, support, education and social care staffing. We aim to be the quality leader in all that we do and our vision is to make the world a better place, one person at a time. The company was founded in 1996, is headquartered in Solna and listed on Nasdaq Stockholm. www.ambea.se
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 4
Interim report January–March 2020
Consolidated earnings in summary2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–Dec
Operating incomeNet sales 2,811 2,516 11,335 11,040
Other operating income 21 17 103 99
Total operating income 2,832 2,533 11,439 11,139
Operating expensesConsumables -92 -92 -383 -383
Other external costs -316 -375 -1,474 -1,532
Personnel costs -2,062 -1,809 -8,103 -7,851
Depreciation, amortisation and impairment of fixed assets -218 -195 -868 -845
Other operating expenses -0 -0 -3 -3
Operating expenses -2,688 -2,471 -10,832 -10,614
Operating profit 144 62 607 525
Financial income 0 11 1 12
Financial expenses -64 -61 -264 -261
Net financial items -64 -50 -262 -249Profit after net financial items 80 12 345 276
Profit before tax 80 12 345 276
Tax on profit for the period -18 -3 -77 -61
Profit for the period 62 9 267 215
Profit for the period attributable to shareholders of the Parent Company 62 9 267 215
Earnings per share before dilution, SEK 0.65 0.12 2.96 2.52
Earnings per share after dilution, SEK 0.65 0.12 2.96 2.51
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 5
Interim report January–March 2020
Earnings per share2020 2019 2019
Jan–Mar Jan–Mar R12 Jan–Dec
Profit for the period attributable to shareholders of the Parent Company, SEK million 62 9 267 215
Earnings per share before dilutionAverage number of shares, thousands 94,437 74,748 90,593 85,727
Earnings per share before dilution, SEK 0.65 0.12 2.96 2.52
Earnings per share after dilutionAverage number of shares, thousands 94,599 74,928 90,733 85,837
Earnings per share after dilution, SEK 0.65 0.12 2.96 2.51
Consolidated statement of comprehensive income in summary2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–DecProfit for the period after tax 62 9 267 215
Other comprehensive income, items not transferable to profit or lossRemeasurement of defined-benefit pension plans – – -9 -9
Tax related to remeasurement of defined-benefit pension plans – – 2 2
Total items not transferable to profit or loss – – -7 -7
Other comprehensive income, items transferable to profit or lossTranslation differences -78 15 -106 -13
Hedging of net investments in foreign operations 44 -11 48 -7
Cash flow hedges -9 0 -7 2
Hedging cost reserve 0 -1 -3 -4
Tax -9 2 -9 2
Total items transferable to profit or loss -52 5 -77 -19Total other comprehensive income -52 5 -84 -25Total comprehensive income for the period 10 14 183 190Comprehensive income for the period attributable to shareholders of the Parent Company 10 14 183 190
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 6
Interim report January–March 2020
Consolidated balance sheet in summary31 Mar 31 Mar 31 Dec
SEK million 2020 2019 2019
AssetsFixed assetsGoodwill 6,540 6,511 6,532
Customer contracts and customer relationships 572 668 607
Other intangible assets 24 23 24
Right-of-use assets 4,905 4,321 4,698
Tangible assets 263 226 251
Derivative instruments 0 3 3
Deferred tax assets 52 66 54
Non-current receivables 101 96 101
Total fixed assets 12,457 11,914 12,270
Current assetsInventories 0 0 0
Accounts receivable 1,035 1,145 1,078
Other receivables 113 98 67
Prepaid expenses and accrued income 274 294 261
Cash and cash equivalents 88 297 52
Total current assets excluding assets held for sale 1,511 1,834 1,458Assets held for sale 81 82 82
Total current assets 1,592 1,917 1,540Total assets 14,048 13,831 13,810
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 7
Interim report January–March 2020
Consolidated balance sheet in summary – continuation31 Mar 31 Mar 31 Dec
SEK million 2020 2019 2019
Equity and liabilitiesEquityShare capital 2 2 2
Other capital contributions 6,165 4,965 6,165
Reserves -69 8 -17
Retained earnings including profit or loss for the period -2,052 -2,235 -2,114
Total equity attributable to shareholders of the Parent Company 4,046 2,739 4,036Non-controlling interests – – –
Total equity 4,046 2,739 4,036
Non-current liabilitiesNon-current interest-bearing liabilities 1,442 2,193 961
Lease liabilities 4,374 3,665 4,170
Pension provisions 33 33 39
Other provisions 33 69 48
Deferred tax liabilities 167 173 173
Total non-current liabilities 6,050 6,133 5,390
Current liabilitiesCurrent interest-bearing liabilities – 1,200 –
Commercial papers 1,867 1,537 2,228
Lease liabilities 622 672 610
Accounts payable 237 260 266
Tax liabilities 23 56 53
Other non-interest-bearing liabilities 170 145 200
Accrued expenses and deferred income 1,034 1,089 1,027
Total current liabilities 3,953 4,959 4,384Total equity and liabilities 14,048 13,831 13,810
Consolidated statement of changes in equity in summary2020 2019 2019
SEK million Jan–Mar Jan–Mar Jan–DecOpening balance 4,036 2,725 2,725Comprehensive income 10 14 190
Transactions with shareholdersWarrants issued – – 2
Share buybacks – – -5
New share issue – – 1,215
Issue expenses – – -15
Dividends – – -74
Closing balance 4,046 2,739 4,036
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 8
Interim report January–March 2020
Consolidated cash flow statement in summary2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–Dec
Operating activitiesProfit before tax 80 12 345 276
Adjustment for non-cash items 214 215 809 810
Cash flow from operating activities before working capital and tax 294 226 1,154 1,087Tax paid -62 -67 -114 -119
Cash flow from operating activities before changes in working capital 231 159 1,040 968
Cash flow from changes in working capitalChange in operating receivables -31 -69 108 70
Change in operating liabilities -26 -37 -44 -55
Cash flow from operating activities 175 54 1,104 982
Investing activitiesInvestment in intangible assets -2 -4 -5 -7
Investment in tangible assets -25 -27 -113 -115
Divestment of tangible assets 0 11 1 11
Free cash flow 148 34 986 872Acquisition and disposal of shares and participations -103 -2,592 -125 -2,614
Other financial assets -1 -6 1 -4
Cash flow from investing activities -131 -2,619 -241 -2,729Cash flow after investing activities 44 -2,565 863 -1,746
Financing activitiesNew loans/Loans raised 720 4,936 4,696 8,911
Repayment of loan liabilities -801 -1,105 -5,964 -6,221
Repayment of lease liability -158 -135 -558 -581
Change in revolving credit facility 234 -891 -367 -1,492
New share issue – – 1,200 1,200
Premiums for warrants – – 0 2
Share buybacks – – -5 -5
Dividends paid – – -74 -74
Cash flow from financing activities -5 2,805 -1,071 1,739
Cash flow during the period 38 240 -208 -6
Cash and cash equivalents on the opening date 52 62 297 62
Exchange rate differences in cash and cash equivalents -2 -4 -1 -4
Cash and cash equivalents on the closing date 88 297 88 52
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 1 9
Interim report January–March 2020
Parent Company income statement in summary2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–Dec
IncomeNet sales 1 6 12 17
Total income 1 6 12 17
Operating expensesOther external costs -2 -6 -12 -15
Personnel costs -3 -5 -15 -16
Amortisation of intangible assets -0 -0 -0 -0
Operating expenses -6 -11 -27 -32Operating loss -5 -5 -15 -15
Financial items -6 -24 -41 -59
Loss after financial items -11 -29 -56 -74
Appropriations – – 199 199
Profit/loss before tax -11 -29 143 124
Tax on profit for the period – – -27 -27
Profit/loss for the period -11 -29 116 98
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 0
Interim report January–March 2020
* From the fourth quarter of 2019, the entire cash pool has been recognised as liability in the Parent Company. The Group’s indebtedness has not been impacted. The comparative figures have been restated for comparability.
Parent Company balance sheet in summary31 Mar 31 Mar 31 Dec
SEK million 2020 2019 2019
AssetsIntangible assets
Software 1 1 1
Financial assetsParticipations in Group companies 7,209 7,210 7,208
Derivative assets 3 5 3
Total fixed assets 7,213 7,216 7,213
Current assetsReceivables from Group companies 3,588 2,162 2,555
Other receivables 17 17 12
Prepaid expenses and accrued income 15 9 11
Cash and bank balances 0 0 0
Total current assets 3,620 2,188 2,579Total assets 10,833 9,404 9,792
Equity and liabilitiesShare capital 2 2 2
Statutory reserve 0 0 0
Total restricted equity 3 2 2
Share premium reserve 1,404 201 1,403
Retained earnings 1,869 1,851 1,771
Profit/loss for the period -11 -29 98
Total non-restricted equity 3,262 2,022 3,272Total equity 3,264 2,024 3,274
Untaxed reserves 33 – 33
Non-current liabilitiesLiabilities to credit institutions* 1,480 2,189 965
Total non-current liabilities 1,480 2,189 965
Current liabilitiesCommercial papers 1,867 2,737 2,228
Accounts payable 1 1 1
Tax liabilities 21 0 20
Liabilities to Group companies* 4,156 2,440 3,253
Other liabilities 0 0 0
Accrued expenses and deferred income 11 11 17
Total current liabilities 6,057 5,191 5,520Total equity and liabilities 10,833 9,404 9,792
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 1
Interim report January–March 2020
NotesNOTE 1 Accounting policiesThis interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act, as well as the Swedish Financial Reporting Board’s RFR 1, Supplementary Accounting Rules for Groups, and RFR 2 Accounting for Legal Entities. The accounting policies applied are consistent with those applied in the preparation of the most recent annual report.
New or revised IFRS standards from 2020None of the new or revised standards or interpretations, which were applicable from 1 January 2020, had any material impact on the financial statements of the Group or the Parent Company. No new or revised standards were applied in advance.
Adjustment of value of participations in tenant-owner associationsParticipations in tenant-owner associations were previously measured at cost. As of the fourth quarter of 2019, participations in tenant-owner associations have been measured at estimated fair value, for more information see the 2019 Annual Report. The comparative figures for the quarter were restated and impacted as follows: goodwill declined SEK 33 million, non-current receivables increased SEK 65 million, retained earnings increased SEK 18 million and deferred tax increased SEK 13 million.
Alternative performance measuresLast year, alternative performance measures were presented adjusted for the effects of the introduction of IFRS 16, to facilitate a comparison with 2018. As comparability exists between 2020 and 2019, no such adjusted measures are now presented, apart from Net debt/Rolling 12 months adjusted EBITDA, which pertains to the covenant for the revolving credit facility and the Group’s EBITA and EBITDA.
As of the first quarter of 2020, disclosures are no longer provided for EBITDA margin, adjusted EBITDA margin, equity/assets ratio and return on equity. These alternative performance measures have been excluded as management does not use the measures in its follow-up and governance of operations. Management monitors operations at adjusted EBITA level, and for this reason items affecting comparability have been allocated, to the extent they can be derived from a specific division and operating segment. The comparative year has been restated.
NOTE 2 Segment informationAmbea’s operations consist of the following segments:
Vardaga Comprises elderly care in Sweden.
Nytida Comprises care for people with functional disabilities in Sweden.
Stendi Comprises support for children and youth, personal assistance, residential care, elderly care and home care in Norway.
Altiden Comprises operations in elderly care, home care, social care and disability care in Denmark.
Klara Comprises subscription services for ambulatory care nurses and temporary doctors and nurses in Sweden.
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 2
Interim report January–March 2020
* The column “Unallocated items” consists of centrally approved costs for general central administration, restructuring measures, acquisitions.
Note 2 Segment information – continuation
January–March 2020
SEK million Vardaga Nytida Stendi Altiden KlaraUnallocated
items*Group
adjustments Group
Operating incomeNet sales 909 912 761 169 60 0 0 2,811
Other operating income 8 6 3 0 17 4 -17 21
Internal transactions 0 0 0 0 -17 0 17 0
Total income from external customers 917 917 764 169 60 4 0 2,832EBITA 48 129 -1 -3 6 -6 0 173
EBITA margin, % 5.3 14.1 -0.1 -1.8 10.0 – – 6.2
Items affecting comparability – – 14 – – 0 – 14
Adjusted EBITA 48 129 13 -3 6 -6 0 187
Adjusted EBITA margin, % 5.3 14.1 1.8 -1.8 10.0 – – 6.7
Amortisation of intangible assets -29
Operating profit (EBIT) 144Net financial items -64
Profit after net financial items 80
Profit before tax 80Tax on profit for the period -18
Profit for the period 62Assets 5,471 5,829 1,895 479 180 194 0 14,048
January–March 2019
SEK million Vardaga Nytida Stendi Altiden KlaraUnallocated
items*Group
adjustments Group
Operating incomeNet sales 796 873 671 97 79 0 0 2,516
Other operating income 3 3 6 0 10 4 -10 16
Internal transactions 0 0 0 0 -10 0 10 0
Total income from external customers 800 876 677 97 79 4 0 2,533EBITA 52 103 -19 1 5 -51 0 90
EBITA margin, % 6.5 11.8 -2.8 1.0 6.3 – – 3.6
Items affecting comparability – – 7 2 – 48 – 57
Adjusted EBITA 52 103 -12 3 5 -3 0 147
Adjusted EBITA margin, % 6.5 11.8 -1.8 3.0 6.3 – – 5.8
Amortisation of intangible assets -29
Operating profit (EBIT) 62Net financial items -50
Profit after net financial items 12
Profit before tax 12Tax on profit for the period -3
Profit for the period 9Assets 4,738 6,261 2034 183 181 434 0 13,831
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 3
Interim report January–March 2020
Type of service delivery (January–March)
Vardaga Nytida Stendi Altiden Klara GroupSEK million 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Own Management 561 457 781 755 686 579 57 12 – – 2,085 1,803
Contract Management 348 339 131 118 75 92 112 85 – – 666 634
Staffing – – – – – – – – 60 79 60 79
Total 909 796 912 873 761 671 169 97 60 79 2,811 2,516
During the year, Ambea completed the acquisition of Vivamus A/S. The consideration (purchase price) transferred for the acquisition comprised cash in the amount of SEK 148 million. This acquisition generated goodwill of SEK 115 million, corresponding to the difference between the consideration transferred and the acquired net assets identified. The goodwill mainly relates to a stronger market position and operative and
administrative synergies. The acquisition analysis is prelimi-nary. Since the acquisition date, Vivamus has contributed SEK 28 million to net sales, and SEK 6 million to profit before tax. If the acquisition had taken place on 1 January 2020, the company would have contributed SEK 30 million to net sales and SEK 6 million to profit before tax.
Effect on financial positionSEK million 2019
Identified intangible assets –
Identified net assets excl. intangible assets 33
Group goodwill 115
Total purchase consideration (price of shares) 148
Net impact on cash 101
Distribution of net assets on the date of acquisitionSEK million 2020
Fixed assets 3
Right-of-use assets 57
Accounts receivable and other receivables 11
Cash and cash equivalents 47
Non-current liabilities and provisions –
Lease liabilities 57
Accounts payable and other liabilities 29
Identified net assets 33
Note 3 Revenue from contracts with customers
Note 5 Business combinations
NOTE 4 Items affecting comparability2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–Dec
Restructuring and acquisition-related items -14 -57 -96 -138
Total items affecting comparability -14 -57 -96 -138
Items affecting comparability in 2020 relate to the restructuring programme in Norway as announced in the year-end report for 2019. Items affecting comparability in 2019 related to integration and synergy-realisation costs in connection with the acquisition of Aleris Omsorg, and to the restructuring of Nytida
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 4
Interim report January–March 2020
Note 6 Fair value of financial instruments in the fair value hierarchyClassification in the fair value hierarchy
1 2 3
31 Mar 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar 31 Mar 31 DecSEK million 2020 2019 2019 2020 2019 2019 2020 2019 2019 2020 2019 2019
AssetsInterest-rate derivatives 0 3 3 – – – 0 3 3 – – –
LiabilitiesInterest-rate derivatives 9 – – – – – 9 – – – – –
Earn-out – – 1 – – – – – – – – 1
NOTE 7 Pledged assets and contingent liabilities31 Mar 31 Mar 31 Dec
SEK million 2020 2019 2019
Leased assets 60 84 66
Chattel mortgages 7 10 7
Real estate mortgages 9 9 9
Total pledged assets 76 103 82
* For distribution by line in profit or loss, see ambea.com/investor-relations/reports-and-presentations
Ambea applies the following hierarchy for the fair value mea-surement of financial instruments:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. This level includes Eligible treasury bills, Bonds and Other interest-bearing securities. Remeasurement is recognised under Financial items.
Level 2 – Observable data for assets or liabilities other than quoted prices included in Level 1, either directly (i.e. as price quotations) or indirectly (i.e. derived from price quotations). This level includes derivative instruments that are recognised under Other current assets or Other current liabilities.
Level 3 – Data for assets or liabilities not based on observable market data.
Ambea has loans denominated in both SEK and NOK and is thereby exposed to interest-rate risk. According to the compa-
ny’s financial policy, at least 50 per cent of the interest-rate risk should be hedged. To reduce the company’s interest-rate risk, the company purchased an interest-rate swap and an interest rate cap in March 2019, both with maturities of three years. In total, 60 per cent of the company’s interest-rate risk is hedged through interest-rate derivatives on the balance-sheet date.
Derivatives are classified as Level 2 assets in the fair value hierarchy. The change in fair value of the interest rate cap and interest-rate swap is recognised in other comprehensive income and SEK 9 million was charged against other comprehensive income for the quarter. Ambea uses the standard report of issu-ing banks for the market valuation of purchased interest-rate caps and interest-rate swaps. The measurement is based on the bank’s standard pricing model and method. The measurement is based on the bank’s average price.
Fair value of financial instruments in the fair value hierarchy
Acquisitions and divestments during the yearDate Acquisitions Divestments Operations Segments Annual sales8 Jan 2020 Vivamus AS Residential care for people with disabilities. Altiden DKK 80 million
1 Feb 2020 Nacka Hemtjänst Home-care operations in Nacka (transfer of operations)
Vardaga SEK 25 million
Note 5 Business combinations – continuation
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 5
Interim report January–March 2020
NOTE 8 Reconciliation with financial statements2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–Dec
Growth/Acquired growthGrowth in net sales (%) 12 72 3 82
Of which acquired growth (%) 13 70 3 81
Of which currency effect (%) -1 0 -1 0
Of which organic growth (%) 0 2 -0 1
Operating margin (EBIT)Net sales 2,811 2,516 11,335 11,040
Operating profit (EBIT) 144 62 607 525
Operating margin, EBIT (%) 5.1 2.5 5.4 4.8
EBITA and adjusted EBITAOperating profit (EBIT) 144 62 607 525
Amortisation and impairment of intangible assets 29 28 127 125
EBITA 173 90 734 650Items affecting comparability 14 57 96 138
Adjusted EBITA 187 147 830 788
Net sales 2,811 2,516 11,335 11,040
EBITA margin (%) 6.2 3.6 6.5 5.9
Adjusted EBITA margin (%) 6.7 5.8 7.3 7.1
EBITDA and adjusted EBITDAOperating profit (EBIT) 144 62 607 525
Depreciation, amortisation and impairment of tangible and intangible assets 218 195 868 845
EBITDA 362 257 1,475 1,370Items affecting comparability 14 57 96 138
Adjusted EBITDA 376 314 1,571 1,508
EBITDA and adjusted EBITDA excluding IFRS 16Operating profit (EBIT) 144 62 607 525
Depreciation, amortisation and impairment of tangible and intangible assets 218 195 868 845
Additional: Rental expenses -188 -159 -740 -711
Net effects of IFRS 16 on EBITDA -188 -159 -740 -711
EBITDA excluding effects of IFRS 16 174 98 735 659Items affecting comparability 14 57 96 138
Adjusted EBITDA excl. IFRS 16 188 154 831 796
EBITA and adjusted EBITA excluding IFRS 16Operating profit (EBIT) 144 62 607 525
Amortisation and impairment of intangible assets 29 28 127 125EBITA 173 90 734 650Less, amortisation IFRS 16 163 140 641 -618
Additional: Rental expenses -188 -159 -740 711
Net effects of IFRS 16 on EBITA -25 -19 -99 -94
EBITA excluding effects of IFRS 16 148 71 634 556Items affecting comparability 14 57 96 138
Adjusted EBITA excluding IFRS 16 162 128 731 694
EBITA margin excluding IFRS 16 5.3 2.8 5.6 5
Adjusted EBITA margin excluding IFRS 16 5.8 5.1 6.4 6.3
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 6
Interim report January–March 2020
NOTE 8 Reconciliation with financial statements – continuation2020 2019 2019
SEK million Jan–Mar Jan–Mar R12 Jan–Dec
Operating cash flowAdjusted EBITDA 376 314 1,571 1,508
Adjustment for non-cash items -8 17 -61 -36
Cash flow from investing activities excl. acquisitions and divestments of subsidiaries -27 -20 -118 -110
Adjustment for cash flow from investing activities related to increased capacity/growth 14 8 60 54
Changes in working capital -56 -105 64 15
Operating cash flow 298 214 1,517 1,430
Cash conversion (%)Operating cash flow 298 214 1,517 1,430
Adjusted EBITDA 376 314 1,571 1,508
Cash conversion (%) 79.2 68.2 96.5 94.8
Items affecting comparabilityReversal of restructuring and acquisition-related costs– of which costs included in the line item of other external costs 1 33 51 81
– of which costs included in the line item of personnel costs 13 22 41 52
– of which costs included in the line item of depreciation, amortisation and impairment 0 1 4 4
Total restructuring and acquisition-related costs 14 57 96 138Total items affecting comparability 14 57 96 138
31 Mar 31 Mar 31 DecSEK million 2020 2019 2019
Net debt, Net debt/Adjusted EBITDA, RTMNon-current interest-bearing liabilities 5,817 5,858 5,131
Current interest-bearing liabilities 2,489 3,409 2,838
Less: cash and cash equivalents -88 -297 -52
Net debt 8,217 8,970 7,917Adjusted EBITDA RTM 1,571 795 1,508
Net debt/Adjusted EBITDA, RTM (times) 5.2 11.3 5.3
Net debt, Net debt/Adjusted EBITDA, RTM excl. effects of IFRS 16Non-current interest-bearing liabilities 5,817 5,858 5,131
Less: non-current lease liabilities pertaining to properties recognised on the lease liability line -4,346 -3,629 -4,134
Current interest-bearing liabilities 2,489 3,409 2,838
Less: current lease liabilities pertaining to properties recognised on the lease liability line -588 -626 -571
Less: cash and cash equivalents -88 -297 -52
Net debt excluding effects of IFRS 16 3,284 4,715 3,213Adjusted EBITDA RTM excluding effects of IFRS 16 831 636 796
Net debt/Adjusted EBITDA, RTM (times) excluding effects of IFRS 16 4.0 7.4 4.0
A M B E A A B ( P U B L ) C O R P . R E G . N O . 5 5 6 4 6 8 - 4 3 5 4 | I N T E R I M R E P O R T Q 1 2 0 2 0 2 7
Interim report January–March 2020
Quality management in the fourth quarter of 2020Actions linked to the COVID-19 pandemicOur society has been marked by COVID-19 and Ambea’s role and important contribution to society has become increasingly clear during the pandemic. The aim of our work has always been stay one step ahead and introduce preventive measures. Adopt clear and established procedures for how employees should handle various situations and a close and solution-ori-ented dialogue with our clients and authorities.• Ambea set up a central crisis management team already at
the end of February. Through our contacts with care compa-nies across Europe and the US we received an early insight into the challenges facing us, which enabled us to take action.
• Work was based on the recommendations of the authorities, but in several instances Ambea acted before the authorities and clients had time to present their guidelines.
• One example is the ban on visits which Ambea introduced on 11 March at all nursing homes and other facilities with risk groups. In Sweden, the government introduced a national ban on visits to nursing homes on 1 April. In Norway on 13 March and in Denmark on 18 March.
• Ambea’s facilities are used to working with hygiene prac-tices, handling gastric and seasonal influenza or working with palliative care. So we have used the basic skills within the organisation and developed these work processes and procedures.
• Communication and leadership have been key factors in creating a sense of security for care receivers, relatives and employees. We quickly established a routine to contact all relatives if a residential facility reported a confirmed case.
• We have benefited from our size and geographic spread in sharing knowledge, as countries and regions are in different stages of the pandemic. Several times a week, business man-agers and medical employees have taken part in webinars to learn the latest information and to meet experts for advice
and knowledge transfer. Ambea’s intranet has been a knowl-edge hub and the channel is accessible to all employees.
• A particular focus was on PPE and our established partner-ships and contact network has enabled us to continuously provide prioritised operations with adequate PPE.
Quality and HR Flash• In the first quarter, Ambea’s Quality and HR Flash score*
fell from 6.94 to 6.86 in Vardaga, while increasing slightly from 6.94 to 6.97 in Nytida (max. 10). The key figures for HR were given a greater value in the Q1 calculation, which meant the index value was negatively impacted by short sickness absence that increased during the period due to COVID-19.
• Quality and HR Flash was also carried out in Stendi and Altiden for the second time according to Ambea’s structure, at both operational and division level. Stendi’s index fell from 6.25 in the fourth quarter to 6.17 in the first quarter. Altiden’s index also fell, from 7.6 to 7.0 in the first quarter. Altiden has adjusted the target scale used in the index cal-culation, which led to lower results. Like Sweden, the rise in sickness absence due to COVID-19 had a negative impact on Stendi’s and Altiden’s index.
• The share of serious deviations in the first quarter (grade 4) in Vardaga and Nytida was 0.07 per cent, which is unchanged compared with the fourth quarter of 2019 (0.08). No serious de-viations were reported in the first quarter for Stendi and Altiden.
• Five Lex Sarah reports were lodged, four by Nytida and one by Vardaga. The IVO has issued two decisions and the cases were closed without any remarks. The IVO has not issued any decisions on the other cases. In Vardaga, three Lex Maria reports were lodged, one was closed without any remarks and no deci-sions have been issued for the other two cases. In the preceding quarter, five Lex Sarah reports were submitted and two Lex Ma-ria reports, all decisions have been issued without any remarks.
• Individual complaints investigated by the IVO: Four individual complaints were registered in relation to Vardaga’s opera-
tions, but the IVO has not yet made a decision on any of the cases. One complaint was registered in regard to Nytida’s operations, but no decisions have been issued. Five different complaints were lodged in the preceding quarter, but no decisions have been issued.
• Inspections: The IVO conducted 29 inspections of Nytida’s op-erations, decisions have been issued in 11 cases with remarks from IVO in two of these. For Vardaga, seven inspections were conducted during the quarter, decisions have been issued in two of these without any remarks.
• In Stendi, the authorities conducted five inspections in chil-dren care with minor remarks in two of these. In Altiden, one inspection was conducted by the patient safety board, which resulted in neither remarks nor observations.
* The Quality and HR Flash is Ambea’s tool for monitoring the Group’s quality and hu-man resources management. It is sent out to all operations every month.
The quarter in figures
Awards and distinctionsMost Nytida operations in Skåne were LGBT certi-fied during the quarter by the Swedish Federation for Lesbian, Gay, Bisexual, Transgender, Queer and Intersex rights (RFSL) The certification means Nyt-ida now has a number of operations with excellence in this field and that employees gained new tools and knowledge to ensure good interaction with young people in our operations.
During the quarter, Vardaga received a quality award from the Municipality of Täby. The award aims to stimulate and re-ward work focused on quality in relation to the elderly in Täby. This is the fourth consecutive year that Vardaga’s operations have received the award.