Attendo AB (publ)

Thank you and good morning. Today we present Attendo's Q2.

The results showing clear improvements both financially and operationally. To start with, I'm very pleased that Attendo's OliviaCare business is now a part of Attendo. Together we integrate the leading private provider in disabled care and individual and family care in Sweden The first part of the integration has been successful and financially, Team Olivia is delivering well in line with our expectations. In May this year, we presented a new medium term target of achieving an EPS of at least 550 kronor per share in 2026. I see this quarter as a milestone on the way to deliver on this target and as an indication of our ability to create significant shareholder value in the years to come. I'm also pleased to say that our most recent measurements in employee engagement and customer satisfaction continues to show strong progress. A last thought, we've given you an update on the development during the quarter, followed by a more detailed financial analysis from our CFO, Mikael Malmgren. Slide two, please. In the second quarter, we managed to grow sales with 12%, mainly driven by M&A, foremost Team Olivia Care. Underlying adjusted EBITDA improved by 40 million to 187 million SEK and affected the Team Olivia acquisition in combination with underlying operational improvements in Scandinavia. In Finland, we managed to maintain profit year over year in spite of a negative cost price effect in the quarter due to the high wage increase in 2023. For the full year, we expect the cost to be fully offset by price adjustments. And further, a lower result in nursing homes was compensated by higher result in disabled care and social psychiatry. According to the new elderly care law in Finland, we need to step up beforehand in order to welcome new customers. Since customer inflow was initially lower than expected, we've had more staff than necessary during most of the quarter. However, I'm pleased to see that we've had better inflow in June, which in turn allowed for better staff efficiency. In Scandinavia, we almost doubled our profit year on year, adjusted for one loss. Team Olivia was the biggest contributor to the improvement, but we also improved performance from our own nursing homes. Customer influence has been strong, and we have increased occupancy by one percentage point since last quarter and last year. Finally, we report strong cash flow during the quarter as a result of the profit improvement and positive working capital, and we maintained a strong balance sheet in spite of the acquisition. Post-acquisition of Team Olivia, we're at 2.2 in NetApp WTA. This means that we still have headroom to continue with our active capital allocation, with buybacks, investments and non-operations, as well as selective acquisitions. Next slide, please. Now a few comments on the progress for sustainability work and non-financial KPIs. In my introduction, I mentioned progress on key metrics related to employee engagement and customer and relative satisfaction. These metrics are particularly important because they go to the heart of what we do. In recent years, we have placed a strong focus on leadership, employee engagement and culture. During the second quarter, we hosted leadership events with all our managers in each business area, and in these we share experiences, listen to inspiring talks and award good performance. Having the ambition to be seen as the preferred employer with the best leaders in the care industry, The results of our employee survey shows that we are on the right track. Net promoter score of employee recommendation is now at an all-time high at 26, an increase of 15 points since last year, well above the industry average. When it comes to customer satisfaction, results of our survey shows a similar trend. Customer MPS was 45 in Q2, up from 40 last year. Engaged employees are the basis for customer satisfaction, and we see a strong connection between these measures. Next slide, please. So let's turn to the development of occupancy, which is a key factor for our long-term profitability. Group occupancy at the end of the second quarter was unchanged at 86%. Underlying, however, we can report an increase in occupancy in Scandinavia during the quarter with one percentage point from 86 to 87%, mainly as an effect of internal efforts to increase sales and slightly better market conditions locally. In Finland, the market was slow in the beginning of 2024, reflecting the challenging financial situation in the welfare regions. We also added net 100 beds in the quarter. Still, the underlying demand is strong and we expect customer inflow to start increasing again as welfare regions over time needs to fulfill their commitments to their citizens. Overall, we see growing underlying needs in society in all our markets. We continue to see an increasing number of customers who choose to live in our nursing homes. Next slide, please. The left graph shows sales on a rolling 12-month basis, both for the group and for each business area. The most significant factor for sales development over the past 12 months has been improved business terms in Finland. With the acquisition of Team Olivia and in combination with underlying operational improvements, we're starting to see an upturn also in Scandinavia. The chart to the right shows rolling 12 months least adjusted to beta margin. Group margin improvement has over the past 18 months been driven by the performance in the Finnish elderly care segment, but now we start to see margin improvements in Scandinavia as well. We expect the financial improvements in Scandinavia to continue as a result of higher occupancy and further operational improvements. The acquired parts of Tim Olivia will also improve the business area performance year on year from now on. Now let's take a closer look at the financials for the quarter, and please go ahead, Mikael.

Thank you, Martin. So let's turn to the next page. So net sales in the quarter increased to 4.8 billion SEK, which is up 12% compared to quarter last year. The organic growth for the quarter was 3%. Organic growth was flat in attended Scandinavia, where we saw continued organic growth in own nursing homes. However, growth was offset by outsourcing contracts that ended end of last year. Including acquisitions, Scandinavia grew 21%. In Atendo Finland, the organic growth was 6% and primarily driven by improved terms. Currency effects had a minor effect on sales. Slide seven, please. Excluding Atendo Scandinavia's one-offs, the reported result improved to 323 million SEK, and correspondingly, the lease adjusted EBITDA increased from 147 to 187 million. Lease adjusted EBITDA in Scandinavia improved, excluding one of us, by 39 million year over year, while Finland lease adjusted EBITDA was in line with previous year. Next slide, please. Growth for Attendo Finland amounts to 6% reported and in local currency. Lease adjusted EBITDA was in line with last year at 131 million. The quarter was impacted by high personnel costs and negative cost versus price effects in own nursing homes, and which will also impact the result in Q3 before improving again in Q4. The negative development in nursing homes was offset by improved terms in social psychiatry and disabled care, as well as improved operational KPIs, including reduced staff turnover, recruitment, and sick leave cost. Occupancy rates remained unchanged. However, sold beds increased at the end of the quarter, and we added 100 net new beds. As mentioned earlier, the Finnish government announced in April that staffing requirements and care for older people will be reduced from 0.65 to 0.6 care staff per resident from January 25. We maintain a positive view of the change requirements, and although still early days, our assumption is that this will have a neutral effect on profitability in absolute terms. Slide nine, please. In tender Scandinavia, the organic growth was flat. We saw a continued underlying growth in own nursing homes driven by price and net new sold beds. However, growth was offset by lower revenue from the outsourcing contracts that ended end of last year. And acquisitions had a considerable effect on sales, and in total, Scandinavia grew by 21%. Lilly suggested a beta, excluding one of more than double to 75 million. The improvement was driven by Team Olivia acquisition, as well as improved results from our own nursing homes and lower losses in Denmark. The positive development was partly offset by the ended outsourcing contracts, which had a negative 15 million impact versus Q2 last year. Ended outsourcing contracts will continue to impact the result, while gradually less throughout the remaining part of the year. As part of our turnaround plan in Denmark, we exited our home care operations in Q2, and this will have a positive 10 million in beta effect going forward on an annualized basis. In addition, and in line with our strategic plan to focus on own nursing homes, we signed an agreement to divest our outsourced nursing home at the beginning of July and we expect closing beginning of August. Please note, though, that we expect Q3 to be impacted by additional non-recurring integration and divestment costs for Denmark of around 20 million. Slide 10, please. Our cash flow on a rolling 12 month basis remains strong at 820 million and continues to improve. And please note that in the quarter working capital was impacted by end of quarter timing effects and the non-recurring lump sum collective agreement salary payment in Finland. CapEx was also slightly higher and will, as previously communicated, continue to normalize at more normal historical levels compared to last year's low level. Also note that during the quarter we repurchase shares to a value of 110 million, and we will continue our repurchases in Q3 under a new program. The program, which is decided quarterly by the board, aims to repurchase up to 150 million up until next quarterly report, and will be, as before, executed under the Safe Harbor regulation. Next slide, please. Let's start at the top left. The adjusted earnings per share improved due to the improved lease adjusted EBITDA and was as expected slightly offset by increased financing costs and increased income tax. On the top right, we note that the lease adjusted EBITDA margin, excluding the Q2 one-offs in Scandinavia, continued to improve to 4.6% on a rolling 12-month basis. On the bottom left, lease adjusted net debt EBITDA ratio increased, and the increase is primarily due to the acquisitions concluded in April. Net interest expense in the quarter was 40 million and driven by increased financing costs due to the recent acquisition. On a rolling 12-month basis, the net interest expense increased and will going forward continue to increase due to the reasons mentioned. Next slide, please. I'd just like to briefly recap on our new financial targets that we introduced in May. Our new APS target is to reach at least 550 SEC per share by 26. This target is not a best case, and it represents what we target to at least and are committed to deliver as a minimum. The target is made up of three building blocks, the first block being Team Olivia, where we expect the positive contribution of at least 0.5 sec per share from 2025 when fully integrated. Second building block is a beta improvement. We expect underlying and beta growth of at least 10% per year, driven by increased occupancy, operational efficiency, price adjustments, new units, and continued add-on acquisitions in existing segments. Thirdly, we see good opportunities to increase shareholder value through active capital allocation. We will continue, and when favorable, to seek board approval for quarterly continuous buybacks, as well as annually seek mandate from the annual general meeting. So far to date this year, we have repurchased shares to about 180 million SEK, which corresponds to about 5% to 6% of outstanding shares on an annualized basis. And as mentioned, a new program will start on Monday and which will run up until our next quarterly report. The program has a mandate to repurchase up to 150 million SEC and will be executed under safe harbor. These three building blocks add up to at least 550 EPS in 26. So let me now turn to the debt target. The adjusted net debt to adjusted EBITDA should be in the range of 1.5 to 2.5. We could temporarily exceed 2.5, for example, in connection with a major acquisition. In regard to the dividend, we maintain our previous target of paying out 30% of adjusted net profit. With that, I hand over to you, Martin.