Capio AB (publ) Full year report January – December 2016

October – December 2016

  • Net sales MSEK 3,725 (3,512). Organic sales growth 2.9% (2.7) and total sales growth 6.1% (1.7)
  • Operating result (EBITDA)[1] MSEK 289 (285) and margin 7.8% (8.1). EBITDA increased by 1.4%
  • Operating result (EBITA)[1] MSEK 183 (179) and margin 4.9% (5.1). EBITA increased by 2.2%  
  • Operating result (EBIT) MSEK 153 (176) and margin 4.1% (5.0). EBIT decreased by 13.1%
  • Profit for the period[1] MSEK 135 (123) and adjusted profit for the period[1] MSEK 161 (127).
  • EPS after dilution[2] SEK 0.96 (0.88) and adjusted EPS after dilution[2] SEK 1.14 (0.90)

January – December 2016

  • Net sales MSEK 14,069 (13,486). Organic sales growth 3.3% (2.9) and total sales growth 4.3% (2.2)
  • Operating result (EBITDA)[1] MSEK 1,061 (1,001) and margin 7.5% (7.4). EBITDA increased by 6.0%
  • Operating result (EBITA)[1] MSEK 644 (592) and margin 4.6% (4.4). EBITA increased by 8.8%  
  • Operating result (EBIT) MSEK 558 (471) and margin 4.0% (3.5). EBIT increased by 18.5%
  • Profit for the period[1] MSEK 404 (194) and adjusted profit for the period[1] MSEK 467 (326).
  • EPS after dilution[2] SEK 2.86 (1.45) and adjusted EPS after dilution[2] SEK 3.30 (2.44)
  • Proposed dividend SEK 0.90 (0.50)

[1] Refer to page 31 for definitions of EBITDA and EBITA. Profit and adjusted profit refer to profit attributable to parent company shareholders.
[2] Refer to note 2 for calculations of earnings per share and adjusted earnings per share (before and after dilution).

  CEO comments:

“Solid performance 2016 driven by productivity improvements. Focus on acquisitions and digitalization create additional opportunities.” 

  • Organic sales growth of 3.3% and EBITA growth of 9% for the full year 2016
  • Continued positive development in Nordic and Germany with 17% and 12% full year EBITA growth respectively, from higher volumes and productivity improvements
  • France showed some weakness during Q4 from a lower than expected final yearly price reimbursement and some minor strike effects, resulting in a slightly lower full year operating margin (EBITA) than expected. December back on track for full margin compens­ation. Yet no clarity from the French government on the 2017 price development
  • Acquisitions during the last two months are adding net sales of more than MSEK 700 on a full year basis
  • We are speeding up digitalization, starting in primary care in Sweden with our 750,000[3] listed patients

Nordic continued to show solid net sales and result growth in line with our plans. Organic sales growth in the quarter was 4.3%, and for the full year 3.8%. During 2016, the operat­ing margin (EBITA) improved by 50 basis points to 4.9%.

The productivity increase in primary care in Sweden conti­n­ued and Capio S:t Göran’s hospital in Stock­holm contin­ued to enjoy close to double digit sales growth as a consequence of the transfer of patient volumes from the down-sized New Karolinska Hospi­tal. The new and larger accident and emerg­ency department (A&E) at Capio S:t Göran contributed to the continued good growth. Specialist care successfully developed the geriatric business in Stockholm resulting in strong growth, and is continuing the work to streamline its offer in the free healthcare choice market.

France was during the fourth quarter hit by lower than expected final yearly price reimbursement and some minor strike effects resulting in a slightly lower operating margin (EBITA) for the full year than expected. The full year result was negatively impacted by price reductions of MSEK -87. Volume growth and productivity improvements compensated for the main part of the price reductions, and the underlying margin development has improved quarter over quarter during 2016. Actions to further improve the development is continuing. These actions include reorganization of employ­ees, more efficient procure­ment, continuous improve­ments in a few remaining lagging units, and further develop­ment of med­ical specialties. December shows improved development, which has created a good starting point for the 2017 work to improve margins in France.

The focus going forward is of course on securing the ongoing positive trends in the current business. Since the end of 2016, we have increased acquisition activities. We have so far added net sales of more than MSEK 700 from acquisitions on a full year basis. Acquisitions made have margins above group average and will contribute positively to the margin develop­ment in 2017 and will gradually be enhanced further by synergies. The acquisition activity is expected to continue.

In our continuous efforts to strive for higher quality healthcare with greater patient involvement, Capio has signed an agree­ment with Doctrin, a Swedish provider of e-health solutions. The collaboration includes implement­ation of digital patient information tools to better prepare and facilitate physical consultations. Additional digital solutions for doctors' consultations are being developed and will be launched during 2017 for our 750,000[3] listed patients. Capio has also acquired a minority share in Doctrin AB to support further development of e-health services that can improve the healthcare system.

Thomas Berglund

President and CEO

[3]  Including the acquisition of Backa Läkarhus.

  
Presentation of the full year report

Investors, analysts and media are invited to participate in a telephone conference on February 10, 2017 at 09.30 am (CET). President and CEO Thomas Berglund and CFO Olof Bengtsson will present the report and answer questions. The telephone conference will be audio casted live on www.capio.com. To participate in the telephone conference, please register at www.capio.com and dial in five minutes prior to the start of the conference call.

Sweden: +46 8 566 426 92
UK: +44 203 008 98 13
US: +1 855 831 59 48
Finland: +35 898 171 04 93
France: +33 170 75 07 25

Prior to the start of the telephone conference, presentation slides will be available at www.capio.com.

A recorded version of the audio cast will be available at www.capio.com during the afternoon (CET).

 
For further information

Thomas Berglund, President and CEO
Telephone: +46 733 88 86 00, E-mail: thomas.berglund@capio.com

Olof Bengtsson, CFO
Telephone: +46 761 18 74 69, E-mail: olof.bengtsson@capio.com

Kristina Ekeblad, Investor Relations Manager
Telephone: +46 708 31 19 40, E-mail: kristina.ekeblad@capio.com

Henrik Brehmer, SVP Group Communication and Public Affairs
Telephone: +46 761 11 34 14, E-mail: henrik.brehmer@capio.com

For further information regarding Capio’s IR activities, refer to www.capio.com

This information is information that Capio AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person Henrik Brehmer set out above, at 08.00 (CET) on February 10, 2017.

  
About Capio

Capio AB (publ) is a leading, pan-European healthcare provider offering a broad range of high quality medical, surgical and psychiatric healthcare services through its hospitals, specialist clinics and primary care units. Since the Danish operation was acquired at the beginning of 2017, Capio operates in five countries; Sweden, Norway, Denmark, France and Germany. In 2016, Capio’s 12,435 employees provided healthcare services during 4.7 million patient visits across the Group’s facilities, generating net sales of MSEK 14,069. Capio operates across three geographic segments: Nordic (54 percent of Group net sales 2016), France (38 percent of Group net sales 2016) and Germany (8 percent of Group net sales 2016). For more information about Capio, please see
www.capio.com.