Humana AB (publ)

Good morning and welcome to the Humana Q2 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. If you are listening to the presentation via webcast, you can ask written questions using the form below. Now I will hand the conference over to speakers. Please go ahead.

Thank you. Good morning and welcome to Humana's Q2 presentation. My name is Evelina Pettersson. I'm the head of IR at Humana. With me today I have our CEO Natalie Bolat-Nilsson and our CFO Christopher Heroux. Please go ahead, Natalie.

Thank you, Evelina. Starting off with a few highlights. from the quarter we have an underlying profitability improvement in both sweden and norway performing well in those areas we have an ongoing transition in finland during the quarter we have performed a phase two of our transition program that we have talked about previously in a previous quarter report, and that will start taking effect from the second half of this year. We have good performance in all of our targeted growth areas, and this is a very good sign for the future. We're performing very nicely within the LSS segment in Sweden. We're performing nicely in our disability segment in Finland, and we're also performing well in our elderly care in Sweden. We have also amassed a good amount of projects in our pipeline in these target areas. And already now we signed several contracts amounting to about 100 million in annual revenue that will start up later this year and beginning of and during next year. And we are, of course, continuing to grow that pipeline. We have a new financing agreement in place that will reduce our financial costs with 35 million compared to the previous 12 months. That's starting to take effect already this week, actually. And together with our previously announced efficiency and consolidation programs that we are running, We actually now have 100 million in dedicated efforts that will reduce our costs with 100 million once in full effect. So we are very positive about the outlook moving forward. We have a strong cash flow during the quarter, a net debt decrease, and we have repurchased our own shares. Christoffer will get back to more about this shortly. We often talk about that we have a specialization strategy. For us, that means that we want to be the very best in the areas where we operate. and that we want to be able to drive the development in those areas in a positive way. I'd like to give you a few examples from our Almedalen agenda that we had recently. One is that we released a report. We actually spent a bit of time figuring out the legal costs associated with the insurance board reclaim processes within personal assistance. and what we could see is that we actually spend more money on the market on the legal processes than what the insurance board actually manages to take back in reclaims it's a big waste of taxpayer money we'd like to spend our efforts focusing on giving care to the personal assistance customers but we know that one of the best ways to do that is to have a very very sharp legal team and it's a bit unfortunate but it's the way it is on the market currently we hope there will be positive changes moving forward But for us, we actually win about 97% of our cases, and that's one of the best ways we can help our clients currently. Showing a couple of more examples of how we try to drive the development and monitor the development. It's the area of comorbidity. These are often clients with both mental health issues and often drug abuse issues. It's a group that has been very marginalized for many years on the market and the responsibility for the clients have been tossed between municipalities and regions and back to municipalities. And it's a big waste of money and it's causing a lot of issues for the clients. We operate within this segment. We have several units within this segment. And there has been an ongoing investigation since mid 2020 in this area that is now with the government being on referral there. And we hope that the suggestions will be implemented during 2026. In that case, we will see a much better setup for this area moving forward, which we are happy to say. And it also puts a lot of pressure on the municipalities and regions incorporating in, for example, tendering for this area. So it will be more cost effective and it will be better for the clients. So happy to have taken part in that effort. We also have talked a lot previously about our outcome measures and we continue to work heavily in this area, especially as regards our children and young people. It's really hard to believe that it's up to each social worker to make a decision on what is an effective treatment measure. when there's no evidence or treatment options, standardized treatment options available for them to make that decision. We would like to see a development in this area where we have national registers where we can collect data from municipalities and from private operators to see what is actually the best outcome of the different type of treatment methods. so that we can develop standardized care chains for these children and young people and have better effects, more cost-effective treatments, and so on. So we should learn from the healthcare. This is nothing new. It's been done within healthcare for many, many years. You collect the data, you have the codes, you collect the evidence of the treatment methods, and then you develop standardized care flows. for everything from hip replacement to cancer treatment so it's not impossible and we should absolutely make sure we drive that development further in sweden as well where we are working heavily on this going over to the financials the last 12 months revenues are growing with seven percent compared to the status one year ago