Humana AB (publ)

Good morning and welcome to Humana's Q4 and full year 2024 presentation. My name is Evelina Pettersson and I'm the head of IR at Humana. With me today, I have our CEO, Nathalie Bolak-Nilsson, and our CFO, Kristoffer Herou. They will walk you through the presentation. Please go ahead, Nathalie.

Thank you. And we will start off with some of the highlights from the period. There are three specific areas that I'd like to highlight. First of all, we are continuing to improve on our financials, and we have also reached our target on net debt ratio, which we are quite happy about. We ended the year with a strong cash position, which also allowed the board to propose a dividend of one SEC. And this morning, they also made a resolution to repurchase our own shares. So happy about the improvement on the financial. The second area is our ability to execute on the strategic agenda. We have during the quarter made the divestment of the elderly care units. The last parts came together. And as you saw earlier this week, we pressed release that we have now completed the divestment. We will continue to focus in our targeted areas, child welfare services and disability services in Finland. We have also completed the integration of Team Olivia in Norway. This has been done in a very good way and has exceeded our expectations, both on the business case and on synergies. So a job very well done by the Norwegian team. On the theme of making a real difference, which we also like to talk about within Humana, we are happy to see that we have continued to improve our customer satisfaction by four percentage points Q4 this year compared to Q4 last year. And we have also made a decision and a commitment to introduce and set science-based targets both on short-term and long-term net zero targets, which I believe we are the first ones within the Nordic Care market to set, and we're happy to lead the way in this area. As mentioned, the satisfied customers have increased, both on a quarterly level and on year compared to previous year. We have a continued high degree of satisfied employees, and we are delivering a very safe service continually. On the social impact, which we like to measure, we have increased the number of placements in our care homes that lead to a lower level of care. by six percentage points and this is of course a great achievement for the individuals who can return to a more normal way of life they're returning to schools etc and it's also a great impact to the society when we achieve this and when we continue to increase our social impact We have also increased the number of clients in our residential care homes who achieve the targets on their implementation plans from 62 to 66%, which makes a big difference for the individual per se. During the Q3 presentation, we talked about the areas that we will put special attention to in the short-term agenda. And we have been executing on these areas. On the cost control area, one of the highlights is that we have now set the Swedish organization. We have gathered the support functions within the different companies and the different business areas in Sweden into common functions. This itself allows us to start introducing common processes, routines, and systems. And it also allows us to ensure that we have specialized services for all of our business areas. And at the same time, we are achieving a high degree of savings of approximately 55 million SEK, which will be fully implemented by the end of 2026. The main part of these savings will be effectuated during this year. We are also continuing to work with the internal governance and control and ensuring that we become one Humana, that we work according to common processes, that we set targets on a group level, break them down and follow up to ensure that we reach our goals in a good way. And we have also put a lot of focus on consolidation of the Humana group. As we talked about in the Q3 presentation, Sumana has a long history of growing through acquisitions. And this has led us to have a fairly complex company structure. We have around 180 companies when we started off this journey, and we have now set targets of reducing the company group to around 50 companies. And we have started the execution of this project. It's a fairly complex project. It impacts, of course, moving staff, securing contracts, reapplying for permits, considering tax and financial impact. But I am convinced that this will help us become much more efficient in all types of activities. And we are expecting savings of around 10 million SEX by implementing this. And it will be fully implemented by the end of 2026. We also said that we are very happy with the specialization strategy that we have in place, but that we would deep dive into a few areas to see if we can optimize them further. And the areas that we have reviewed during Q4 is INF. And we have made two main conclusions from that work. One is that we are in the residential care home business and we are market leaders there, especially in Sweden, but also in Finland. And within this area, we will continue to strengthen the surrounding services such as family home and supported housing. And the point of doing this is that we can keep the placement for a longer time in different levels of care. And it will give us also more business in the surrounding areas with slightly higher margins. It is also beneficial for the children and the young people during their upbringing that they get a better continuity and the same contact through a longer period of time. So we're very happy about that direction. We will also, for the adult segment, continue to strengthen our position within LSS in Sweden. We see that it will give the mix, our portfolio within INF, slightly better stability moving forward. In Finland, we have dived into two areas and one is the open care area where we have now seen for quite a period of time, and we expect also moving forward to see a slightly decreased purchasing behavior from the region. And this is due to the savings programs that have been implemented there. The type of open care services that we have today are not mandatory legal, legally mandatory services, which makes it easier to save on those types of services. And at the same time, it's not a long-term viable solution to save on those because it means that you will start increasing the need for institutional care. But with the new Disability Care Act in Finland, we see opportunities in developing a concept for disability open care services, which we believe will give us advantages in two different ways. One is it's a legally mandatory service, so it's not a service that's easy to save on for the SOTE regions. And it's also a service that we can easily add to our already existing network for open care services. So it will not give us a large amount of additional overhead. We also see the opportunity that it will feed into a nice care chain into our disability care homes, which is a focus area for us. The other area we looked into in Finland is the mental health area. And we see that there are some interesting movements as regards the housing options. So we will for now maintain our mental health position on the market and we will closely follow and monitor the tendering over the upcoming year. And the third area that we talked about for a phase two is the elderly care area. And we have just initiated the work on that to form a strategy for the elderly care within Nordics. So I'm looking forward to getting back on future presentations and telling you more about that. Now over to you, Kristoffer, for some financial highlights.

Yes, thank you. To start with, I would like to recognize the milestone that Humana reached over 10 billion SEK in yearly revenues in 2024. 10.3 billion to be accurate. This is an increase with 7% from 2023 and an increase of 12% for the quarter compared to the same quarter last year. The organic growth is not yet where we want it to be, but improvements are accomplished during 2024. We are on a positive track when it comes to development in adjusted EBIT. At the same time, as mentioned, we have increased our revenues with 7% during 2024. The adjusted EBIT has increased 18%. which makes us proud but not satisfied. Now diving into the different segments. Within Sweden, both individual and family and elderly care performed well in the quarter with an organic growth of 5 and 11% respectively. The EBIT was improved for individual and family in the quarter And elderly care is summarizing the year with an EBIT improvement of 37 million SEK compared to last year. As you know, personal assistance is facing a challenging situation in its market. The revenue decreased also during this quarter compared to last year. The EBIT in queue for last year was positively impacted by 10 million SEK effect from an adjustment in pension costs. If that effect is excluded, personal assistance shows a slightly improved EBIT in this quarter compared to last year. Looking at the full year of 2024, the EBIT in Sweden improved by 15 million SEK, corresponding to 6%. Finland has had a tough quarter. The decrease in demand within open care services, as we also mentioned in Q3, has continued also in this quarter. To face this, we have been very active and reshaped parts of our organization, which has led to some one-time costs of approximately 4 million SEK, which we have recognized in this quarter. The other sub-segments in Finland show an improved EBIT compared to previous periods both for the quarter as well as for the full year. And in Finland we are actively working with finding organic growth opportunities and we have started to build a pipeline with new business opportunities. And as you know we have now divested the elderly care business in Finland and as I was pleased to see the purchase price of 25 million euros coming into our bank account last Monday. Norway continues to perform also in this quarter. In addition to integrate the new business of Team Olivia Norway, the segment has also performed an organic growth in the quarter of more than 8% and for the full year of almost 12%. Many of the synergies from the acquisition have been realized, but some synergies are still to be taken out during 2025. During this year, one of our primary focuses in Norway is to improve the profitability within the sub-segment healthcare services, or as we say, helse- och omsorgstjänster. We had a strong operating cash flow in the quarter, In this quarter we managed to be accurate in our cash collection at year end, resulting in a cash position of almost 600 million SEK. And with our cash position and the development of the business in general and our current financial position in mind, the board is now proposing to the AGM a dividend for the year of 1 SEK per share. And in combination with this, the board has also taken a decision to utilize their existing mandate from the last AGM to repurchase up to 1 million shares. To summarize, let's catch up with our financial targets. We are not yet where we want to be when it comes to our organic growth. During the last two quarters, we have improved compared to last year, but clearly still a way to go. However, excluding personal assistance, we are at 4.1% in the quarter and 5.5% for the full year. Our adjusted EBIT has improved in the quarter compared to last year and also on a full year basis. For the full year, the adjusted EBIT is 5% compared to 4.6% in 2023. And last but definitely not least, our capital structure gradually improves. From the debt ratio of 3.8% in Q2, just after the acquisition of Team Bolivia Norway, we have now managed to come down to our targeted level of 3.0%. And with that, back to you, Natalia. Thank you.