Interim report January March 2017 Telephone conference May 3, 2017 - PowerPoint PPT Presentation

Interim report January – March 2017 Telephone conference May 3, 2017 Thomas Berglund, CEO Olof Bengtsson, CFO

A solid start to the year Highlights January – March 2017 • Solid development:  3.3% organic sales growth  19.0% EBITA growth  24.6% Net profit growth  2.9x financial leverage. Net debt at MSEK 3,255 • Continued and further strengthened positive development in Nordic and Germany driven by organic sales growth, productivity improvements and leverage from acquisitions • In France volume growth and productivity improvements compensated for the price reduction in monetary terms. The aim is to reach a flat EBITA margin for the full year • Recent acquisitions are adding yearly sales of MSEK 900 with a margin above Group average. Increased acquisition activity expected to continue Increased acquisition activity Capio AB (publ) 2 2017-05-03

Group financial development JAN - MAR FULL YEAR Capio Group ∆ , % 2017 2016 RTM 2016 Net sales 3,914 3,603 14,380 14,069 8.6 Organic sales growth, % 3.3 3.7 3.2 3.3 Operating result (EBITDA) 342 296 1,107 1,061 15.5 Margin, % 8.7 8.2 7.7 7.5 Operating result (EBITA) 232 195 681 644 19.0 Margin, % 5.9 5.4 4.7 4.6 Profit for the period 152 122 24.6 434 404 EPS after dilution, SEK 1.10 0.86 3.10 2.86 Net capital expenditure -67 -96 -429 -458 In % of net sales 1.7 2.7 3.0 3.3 Net debt 3,255 3,009 3,255 2,872 Financial leverage 2.9 3.0 2.9 2.7 • Organic sales growth from volume growth and a higher case mix as overall price increases were limited. Recent acquisitions impact total sales growth positively • Continued result and margin improvement in Nordic and Germany driven by productivity improvements and leverage from recent acquisitions. France compensated for the price reduction in monetary terms • Profit for the period improved from the higher operating result • RTM March 2017 net capex back at the target level of 3.0% • Net debt and leverage impacted by the recent acquisitions Capio AB (publ) 3 2017-05-03

Implementation of the Modern Medicine strategy – resulting in improved AVLOS JAN - MAR FULL YEAR AVLOS by segment, Days 2017 2016 RTM 2016 2015 2014 2013 % % % % Capio Nordic 3.95 -4.1 4.12 3.96 4.01 -2.7 4.12 -1.0 4.16 -1.2 4.21 Capio Nordic excl. geriatrics 2.84 -3.7 2.95 2.81 2.83 -3.4 2.93 -2.7 3.01 -3.2 3.11 Capio France 4.41 -0.9 4.45 4.45 4.47 -3.0 4.61 -2.9 4.75 -3.7 4.93 Capio France excl. geriatrics 4.33 -2.0 4.42 4.41 4.43 -3.7 4.60 -3.2 4.75 -3.7 4.93 Capio Germany 4.40 2.1 4.31 4.57 4.54 -1.5 4.61 -4.4 4.82 0.0 4.82 Capio Germany excl. geriatrics 3.89 1.3 3.84 4.06 4.04 -3.1 4.17 -6.1 4.44 -0.7 4.47 Capio Group 4.30 -1.1 4.35 4.35 4.37 -2.7 4.49 -3.0 4.63 -2.5 4.75 Capio Group excl. geriatrics 3.93 4.00 3.99 4.01 4.15 4.33 4.47 -1.8 -3.4 -4.2 -3.1 • AVLOS (Average Length Of Stay) reduction in the Group was -1.1% and -1.8% excluding geriatrics. The geriatric business is growing in all segments • AVLOS development was impacted by a higher case mix in all segments but Nordic • Considering case mix changes AVLOS reduction was well in line with the historical trend Continued AVLOS reduction in 2017 Capio AB (publ) 4 2017-05-03

France – Modern Medicine and Rapid Recovery reducing AVLOS Capio France – hip and knee prosthesis surgery • Capio France’s growth of hip and Number of in- and outpatients % knee replacements well above 8,000 70 7,177 6,939 7,000 market growth also in 2017 60 55 6,305 54 5,949 6,000 5,529 50 5,296 44 4,911 5,000 • Continued significant AVLOS 40 4,066 33 4,000 30 reduction for hip and knee 3,000 19 20 2,000 11 replacements also in 2017. 9% more 7 10 1,000 2 0 0 patients discharged within four days 2010 2011 2012 2013 2014 2015 2016 2017 RTM in RTM March 2017 compared with Discharged, % <= 4 days Number of procedures Provided in 0 1 8 26 160 450 534 541 RTM March 2016 daycare: Number AVLOS development hip and knee replacements 2011-2016 • Total AVLOS reduction from 2011 to Capio France Jan-Mar 2017 AVLOS at 4.3 March 2017 was -48% for Capio days France Days 11-14 , % 11-15 , % 11-16 , % 2011 2014 2015 2016 Capio France 8.2 5.6 5.0 4.5 -32 -39 -45 The French market 10.2 9.0 8.4 - -12 -18 - • Steady growth in the number of Capio Sweden 3.9 3.3 2.7 2.6 -15 -31 -33 The Swedish market - 4.7 4.4 - - - - procedures performed in day care Rapid Recovery strategy Source: French market data; Scansanté (ATIH), Swedish market data; Socialstyrelsen continues to deliver Capio AB (publ) 5 2017-05-03

eHealth is a growing part of the future I need help! Digital documentation of Patient medical story medical story. Supported by questions/algorithms Triage Different Same time Same time time Different Different Acute hospital/ Self care Same place place place Specialist DIGITAL WHEN POSSIBLE, PHYSICAL WHEN NEEDED Digital consultations on track for roll-out from H2 2017 in primary care in Sweden Capio AB (publ) 6 2017-05-03

Segment – Capio Nordic JAN - MAR FULL YEAR Capio Nordic ∆ , % 2017 2016 RTM 2016 Net sales 2,153 1,904 13.1 7,833 7,584 Organic sales growth, % 4.9 3.0 4.3 3.8 Operating result (EBITDA) 152 112 35.7 562 522 Margin, % 1.7 5.9 7.2 6.9 Operating result (EBITA) 109 77 403 371 41.6 Margin, % 5.1 4.0 5.1 4.9 Net capital expenditure -37 -44 -161 -168 In % of net sales 1.7 2.3 2.1 2.2 • Strong organic sales growth in S:t Göran, the geriatric business in Stockholm and in Norway. Recent acquisitions impact total sales growth positively • Organic sales growth, productivity improvements and leverage from acquisitions behind the result growth. The timing of Easter between 2017 and 2016 also impacts results positively • Continued focus on Modern Management to drive patient time and productivity • Digital consultations in primary care will start during the spring and summer with a full roll-out from H2 2017 Solid net sales and result growth Capio AB (publ) 7 2017-05-03

Segment – Capio France JAN - MAR FULL YEAR Capio France ∆ , % 2017 2016 RTM 2016 Net sales 1,434 1,387 3.4 5,360 5,313 Organic sales growth, % 0.7 5.1 1.3 2.4 Operating result (EBITDA) 170 170 0.0 518 518 Margin, % 11.9 12.2 9.7 9.7 Operating result (EBITA) 111 111 283 283 0.0 Margin, % 7.7 8.0 5.3 5.3 Net capital expenditure -24 -41 -227 -244 In % of net sales 1.7 3.0 4.2 4.6 • Volume increase driven by all seven regions with a total patient growth of 5.6% in 2017. The introduction of geriatrics in our hospitals continue to impact inpatient growth positively • Organic sales growth and result was impacted by a price effect of MSEK -21 in 2017, which was compensated for in monetary terms. The aim is to reach a flat margin for the full year • Actions related to FTE reorganizations (productivity), business development combined with efficient procurement continue • Net capex impacted by divestments in 2017 Continuing development of Modern medicine and Rapid Recovery Capio AB (publ) 8 2017-05-03

Segment – Capio Germany JAN - MAR FULL YEAR Capio Germany ∆ , % 2017 2016 RTM 2016 Net sales 327 312 1,187 1,172 4.8 Organic sales growth, % 4.6 1.7 4.8 4.0 Operating result (EBITDA) 45 38 18.4 115 108 Margin, % 13.8 12.1 9.7 9.2 Operating result (EBITA) 39 32 21.9 90 83 Margin, % 11.9 10.2 7.6 7.1 Net capital expenditure -4 -10 -29 -35 In % of net sales 1.2 3.2 2.4 3.0 • Outpatient growth, driven by the introduction of new medical specialties and authorizations in 2017 • Total sales growth impacted by the divestment in Q1 2017 • Result driven by volume growth and productivity improvements in the general hospitals. The timing of Easter between 2017 and 2016 also impacts results positively • Entry into a new specialty through the acquisition of an eye specialist clinic in Bremen Increased focus on Modern Medicine drives AVLOS reduction Capio AB (publ) 9 2017-05-03

Cash flow JAN - MAR FULL YEAR Capio Group 2017 2016 RTM 2016 Net debt opening -2,872 -2,936 -3,009 -2,936 Operating result (EBITA) 232 195 681 644 Capital expenditure -78 -97 -445 -464 Divestments of fixed assets 11 1 16 6 Net capital expenditure -67 -96 -429 -458 In % of net sales 1.7 2.7 3.0 3.3 Add-back depreciation 110 101 426 417 Net investments 43 5 -3 -41 Change in working capital -130 -181 -75 -126 19 Operating cash flow 145 603 477 Cash conversion, % 62.5 9.7 88.5 74.1 -11 Free cash flow after financial items and tax 114 466 341 Cash conversion, % 49.1 -5.6 68.4 53.0 • RTM March 2017 net capex back at the target level of 3.0%. Divestments planned for 2016 realized in 2017 • Working capital impacted by an improved DSO following some payments from 2016 received in 2017 and higher customer advances in France. In 2016 cash flow was negatively impacted by a change in timing of payments of social security charges in France • Income tax payments and financial items overall stable compared to last year RTM net capex back at target level Capio AB (publ) 10 2017-05-03