Capio AB (publ) Interim report January – June 2018

April - June 2018

  •  Net sales MSEK 4,179 (3,881). Organic sales growth 1.6% (0.5) and total sales growth 7.7% (8.6)
  •  EBITDA¹ MSEK 262 (256) and margin 6.3% (6.6). EBITDA increased by 2.3%
  •  EBITA¹ MSEK 138 (142) and margin 3.3% (3.7). EBITA decreased by 2.8%  
  •  Operating result (EBIT) MSEK 123 (108) and margin 2.9% (2.8). EBIT increased by 13.9%
  •  Profit for the period² MSEK 75 (70). Earnings per share after dilution² SEK 0.53 (0.50)

January - June 2018

  •  Net sales MSEK 8,335 (7,795). Organic sales growth 1.4% (1.9) and total sales growth 6.9% (8.6)
  •  EBITDA¹ MSEK 593 (598) and margin 7.1% (7.7). EBITDA decreased by 0.8%
  •  EBITA¹ MSEK 349 (374) and margin 4.2% (4.8). EBITA decreased by 6.7%  
  •  Operating result (EBIT) MSEK 299 (317) and margin 3.6% (4.1). EBIT decreased by 5.7%
  •  Profit for the period² MSEK 199 (222). Earnings per share after dilution² SEK 1.41 (1.57)

¹    Refer to page 34 in Interim report January–June 2018 for definitions of EBITDA and EBITA.
²    Profit for the period refers to profit attributable to parent company shareholders. Refer to note 2 in Interim report January–June 2018 for calculation of earnings per share (before and after dilution).

CEO comment:

“Nordic and France continue the good performance.

Enhanced focus on digitalization and specialization.”

The second quarter confirmed the good development in Nordic and France.

Nordic reached an 18% EBITA increase in Q2 and for the first half of the year, levelling out calendar effects, the increase was 10%. This included MSEK 20 of additional costs for digitalization in Capio Go and Capio Proximity Care and adjusted for this the EBITA increase for the first six months was 20%.

Despite fewer working days in both Q1 and Q2, France reached the same EBITA result in Q2 and H1 as last year, now demonstrating its ability to compensate for price decreases. During the second half of the year this trend is expected to grow stronger.

The poor development in Germany continued, but the implementation of the action program started as planned during Q2. In order to permanently change Germany’s ability to, ahead of competition, adopt to Modern Medicine and Rapid Recovery, we are making extensive changes in both organization and staffing.

Focusing on the Nordics

Increasing specialization
Over a number of years, Capio has increased the focus on specialization in order to deliver higher quality with good productivity. Capio S.t Göran has become a flagship for Capio in highly efficient acute hospital care and has successfully shifted out elective (planned) volumes to specialist clinics in the Stockholm area, becoming even more focused on the acute specialties. By expanding our offer in more standardized specialist care, we have been able to support the public healthcare with high quality care also outside of the complex and expensive acute hospitals. Examples of these specialties are orthopedics, healthcare for the elderly both at home and as inpatients, ophthalmology and psychiatry. This specialization is set to continue as a consequence of the overall healthcare develop­ment, including more patients waiting in queues, and will continue to benefit Capio’s performance.

We are now planning for a closer coordination of our three businesses in Sweden, Norway and Denmark. These countries have similar healthcare systems, all providing good quality healthcare once you are in the system, but are struggling with productivity – resulting in long waiting times for patients. During the second half of 2018, we are preparing a closer cooperation on know-how exchange, streamlining of our offerings both from a medical perspective and operational efficiency, closer procurement cooperation and joint IT based tools, supporting good service to patients and efficient processes. The step-wise implementation of this Nordic cooperation based on specialization will start in Q1 2019.

The Nordic markets provide good opportunities for continued solid organic growth by continued specialization and high preparedness for digitalization. In addition there are substantial growth opportunities through further consolidation in healthcare through mergers and acquisitions.

In order to fully take advantage of the Nordic opportunities, the Board has over the past year evaluated the structure and geographical presence of Capio. As Capio during spring has been approached by potential buyers of our non-Nordic operations, the Board is now running a structured process on poss­ible divestments of the operations in France and Germany.

The acquisition of Legevisitten strengthens Capio’s offering to elderly patients
Expanding healthcare for elderly patients and preparing for care choice in Stockholm and later on in other parts of the Nordics is a priority for Capio. The ageing population and the shortcomings in coordinating care for complex conditions create opportunities to offer a better and safer combination of care at home and as inpatient in a specialist acute geriatric hospital or with mobile medical resources.

Legevisitten not only contributes substantial volumes to Capio’s healthcare offering for elderly patients, but also strong management experience and capacity to develop tomorrow’s offering further for differentiated and better care for the elderly.

Capio Go and Capio Proximity Care

Speeding up digitalization
During the past year, we have put a strong focus on the Swedish primary care and the digitalization of healthcare, and digital consultations by Capio Go have been made available to Capio’s listed primary care patients. The service, built on dynamic algorithms with questions answered digitally by patients, assisting the medical staff and not just being a video call, is now fully up and running. In June we started to charge for the consultations according to the present regulations in the Swedish counties.

Capio’s combination of digital and physical healthcare constitutes a unique patient offering and will transform healthcare provision in Sweden and the Nordics both in terms of availability for patients and staff productivity. To further strengthen our digi-physical platform we have recently made two acquisitions in Sweden, which have brought Capio’s total number of primary care centers up to more than 100 and the number of Swedes listed at a Capio center is now close to 900,000. This means we have a recurring base of listed patients of about 9% of the Swedish population as our platform for digital and physical services.

Digital consultations by Capio Go is the first wave of digitalization. In the second wave we use the full algorithm of 100,000 dynamic questions to also prepare the physical visits in the care centers (“Better visits”). This tool for medical staff will facilitate an even better quality outcome of the consultation and also support productivity. The third wave of digitalization is to offer patients with chronic conditions a digital channel to Capio for continuous communication and feedback without always having to pay a visit to the physical care center.

All these three initiatives are there to make quality of healthcare even better and to improve availability to the primary care center for those, often elderly persons, who need the physical contact and consultation. The Capio promise is to offer first line care without waiting. We will be able to live up to this promise as the different services go live. Beside the improved quality from our medical staff using digital support, the most important effect for care seekers from digitalization is dramatically increased availability both through the digital service itself and by off-loading the physical care centers less complicated consultations.

Eliminating queues in combination with our ability to provide both digital and physical care increases the attractiveness of the care center and would lead to faster growth of the recurring listing base. In the future, this is also the most important financial effect for Capio. On-listing will add extra volumes with low marginal costs.

The good trend continues in France
Capio France has now learnt to proactively achieve produc­tivity improvements. Despite four fewer working days during H1 2018, Capio France has treated 3% more patients with 3% shorter lengths of stay and 1% less staff. These trends accelerated during the second quarter and clearly demonstrate productivity improvements to compensate for the 2018 price reduction of 1.2%.

Restructuring in Germany
The shortfall in Germany during the quarter is due to too long patient stays in hospitals and additional doctor turnover, resulting in lower capacity and net sales. The long stays are explained by lacking commitment to Modern Medicine from some doctors. In addition, the reduction of temporary staff upon the return of ordinary staff after the flu season was slow, resulting in too high staff costs. During Q2, we have taken actions to address these issues and speed up implementation of Rapid Recovery. This has led to a more extensive restructuring than originally planned, and in the general hospitals we have changed two of the hospital managers and are in the process of changing a number of senior doctors. These restructuring measures are impacting Q2 and will have further impact in Q3.


For the rest of the year, we expect continued good performance for Nordic and France and we will put strong effort into improving the German development. In addition, Capio will speed up the pace of development with strong management attention to support digitalization, specialization and further consolidation.

My successor, Attila Vegh will take office on October 1, 2018, and will continue the job implementing Capio’s strategy for the benefit of patients, funders, employees and shareholders.

Thomas Berglund
President and CEO

Presentation of the interim report
Investors, analysts and media are invited to participate in a telephone conference on July 20, 2018 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 To participate in the telephone conference, please register at and dial in five minutes prior to the start of the conference call.

Sweden: +46 8 566 426 93
UK: +44 20 3008 9804
US: +1 855 831 5944
Finland: +35 898 171 04 94
France: +33 170 75 07 12

Prior to the start of the telephone conference, presentation slides will be available at

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

For further information
Thomas Berglund, President and CEO
Telephone: +46 733 88 86 00, E-mail:

Olof Bengtsson, CFO
Telephone: +46 761 18 74 69, E-mail:

Kristina Ekeblad, Investor relations manager
Telephone: +46 708 31 19 40, E-mail:

Henrik Brehmer, SVP Group Communication and Public Affairs
Telephone: +46 761 11 34 14, E-mail:

For further information regarding Capio’s IR activities, refer to

This 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 July 20, 2018.

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. Capio operates in five countries; Sweden, Norway, Denmark, France and Germany. In 2017, Capio’s 13,314 employees (average full-time equivalents) provided healthcare services during 5.1 million patient visits across the Group’s facilities, generating net sales of MSEK 15,327. Capio operates across three geographic segments: Nordic (57% of Group net sales 2017), France (35% of Group net sales 2017) and Germany (8% of Group net sales 2017). For more information about Capio, please see