Q4 Report Global Health Partner
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Q4 Report Global Health Partner

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Q4 Report Global Health Partner Q4 Report Global Health Partner Presentation Transcript

  • GLOBAL HEALTH PARTNER Q4 REPORT 26 FEB 2013 Marianne Dicander Alexandersson, CEO Tobias Linebäck, CFO
  • Agenda• Q4 performance and actions taken• 2012 performance• Market trends and opportunitiesFigures and graphs:• Revenue Q4 and 2012• Result Q4 and 2012• Performance/Service Line• Summary 2
  • Encouraging financial performance in Q4 • Revenues all time high • EBIT 10 million (4) 206 MSEK • EBITDA 17 MSEK (11) • Growth 10% of which 2% was organic • Increased focus behind improvement • Despite continued tough market situation in Sweden and Denmark with intense competition and depressed prices 3
  • Weak result 2012 due to weak Q2 and Q3 • Revenues amounted to • EBIT -4 million (15) 723 MSEK • EBITDA 30 MSEK (42) • 7% growth of which 0% was organic Weak performance in Q2 and Q3 due to Bariatrics and lost contracts in VGR together with high price pressure 4
  • Vulnerability in tenders decreased due to diversifiedrevenue sources Insurance companies The public patients from VGR tender at Spine Center Göteborg Free choice patients within VGR has successfully been replaced by patients from: Patients from other county councils 5
  • PrivateRevenues from insurance companies becoming Insurance companies County councilsincreasingly important Revenue distribution 100% 17 15 13 90% 21 20 80% 17 20 70% 16 32 35 60% 50% 40% 30% 63 63 63 53 52 20% 10% 0% 2009 2010 2011 2012 2012 Q4 6
  • Greater focus will increase profitabilityFROM… …TO Focus on • Growth in selected • Growth in Nordic region markets • Core business Process More Improve- patients ment 7
  • Actions takenFocus on core business and the Nordic region DIVESTMENTS INVESTMENTS• Bariatric Center Copenhagen (Q2) • Acquisition of Gildhöj privathospital (Q1)• Bodylift center (Q3) • Opening of Gastro Center Göteborg (Q2)• Nacka property (Q3)• Bariatric Center Cairo (Q4) • Acquisition of Odenplan (Q4)• Q4• Clinics in Bergen (Jan 2013) Prague clinic (Jan 2013) Q4 • Opening of Orthocenter Skåne in Malmö (Q4) 8
  • Market trends and opportunities in Sweden • Continued strong political focus on profitsPOLITICS/MEDIA • Quality, openness and long-term perspective • Increasing patient power –PATIENT TRENDS Patientmaktsutredningen (SOU 2013:2) • Patient free choice and insurance companiesPUBLIC • High focus on priceREIMBURSEMENT • New Karolinska, opportunities for elective careSYSTEMS through free choice system 9
  • Continued price pressure and consolidation in Denmark • Changed regulations have increased waitingPOLITICS/MEDIA times • Up to 5% insurance cost from first of July • Consolidation and reduction of smaller providersMARKET TRENDS • Price pressure from insurance companies • Accreditation requirement increases barriersQUALITY TRENDS for new entrance 10
  • UAE • RCDR (GHP´s Diabetes centre in Ajman)QUALITY elected as reference center in GCCOPERATIONAL • 2nd year anniversary with Emirate royal participation on international diabetes day • Stockholm´s Läns Landsting visited RCDRMARKET • Several business development opportunities 11
  • Q4 – All time high for revenuesSEK millions Revenue – Q4 • 10 % (5 %) growth - revenue increased from 206 187 to 206 187 • 2 % organic growth • Growth in areas where there is high patient power • Increased capacity in Stockholm and high patient pressure in Västra Götaland • Long Christmas holidays impacted end of period • Very good production in especially Spine/Ortho and Gastro 2011 2012 12
  • Q4 – Improved result from operationsSEK millions Operating profit – Q4 EBITA • EBIT amounted to SEK 10 million (4) and EBITDA 10 to SEK 17 million (10) • Improved performance from operations is 15 million, from -8 to 7 million before one-off income • Spine/Orthopaedics and Bariatrics (before one-off income 2011) improved significantly in Q4 2012 • Market still characterized by tough conditions, but 4 strong measures during the entire 2012 is starting to pay off • Central costs have been reduced during 2012 and amounted to -5,6 million (-6,9) for Q4 2011 2012 13
  • Full year growth lowered by slow performance in Q2 and Q3SEK millions Revenue – Full year • 7 % (15 %) full year growth – revenue increased from 675 to 723 • 0 percent organic growth 723 800 646 675 696 • Growth in areas where there is high patient 700 586 600 666 689 704 power 500 559 624 400 • Full year growth impacted by 300 200 100 • Lost VGR contracts 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Continued high competition and price 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 pressure 14
  • Weak Q2 and Q3 followed by comeback in Q4SEK millions Operating profit – Full year • EBIT amounted to SEK -4 million (15) and EBITDA to SEK 30 million (42) • When eliminating one-off income in Q4 2011, 2012 was only marginally behind 2011 • Disappointing full year performance, however the EBITDA 56 trend is positive as Q4 is much better than 2011 60 50 50 49 57 42 38 40 30 24 23 • Market was characterized by tough conditions 30 throughout the year, but strong measures during 20 the entire 2012 is starting to pay off 10 0 • Full year central costs amounted to -28,6 (-29,2), Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 but was reduced in Q4 following a down-size 2010 2011 2011 2011 2011 2012 2012 2012 2012 during the year 15
  • Q4 2012Positive cash flow in Q4 Q4 2011SEK millions Comments 20 • Strong operating cash flow in the fourth 10 quarter due to enhanced performance 0 in the clinics -10 • Cash flow from investing activities -20 mainly consists of investments in health care equipment -30 • Cash flow from financing activities -40 include new loans as well as some Operations Investments Financing Total cash flow loan repayments • Total cash flow has improved mainly due to increased operating performance 16
  • Q4 2012Full year cash flow affected by Q2 and Q3 performance Q4 2011SEK millions Comments 20 • Positive working capital changes have 10 improved cash flow from operations for 2012 compared to 2011 0 -10 • Cash flow from investing activities mainly consists of investments in health -20 care equipment and sale of property -30 in Nacka -40 • Cash flow from financing activities Operations Investments Financing Total cash flow include new loans as well as some loan repayments • Total cash flow is enhanced by sale of property in Q3. 17
  • Promising Q4 for Service Line Ortho/Spine • Very strong provider of orthopaedic and spine treatments in Sweden • Increased capacity in Stockholm • Patient free choice continues to be very important. • Lost VGR contracts affected full year profitability • Price reductions must be met through increased efficiency and patient flows • Price reductions in Denmark following tenders by insurance companies, but performance in Q4 under control Whole Whole Q4 Q4 Change year year ChangeSEK millions 2012 2011 % 2012 2011 %Revenues 131.8 113.7 16 450.9 379.6 19Operating result* 12.4 6.8 18.5 35.3Operating margin, % 9 6 4 9* Excluding goodwill write-down of 7 MSEK in OPA in Q3 2012 18
  • Weak second half year for Service Line Dental • Poor patient generation in Q3 and Q4 • Reduced profitability due to lighter treatments • Also changed dynamics between referral dentists and specialists • Continued strong marketing efforts Whole Whole Q4 Q4 Change year year Change SEK millions 2012 2011 % 2012 2011 % Revenues 22.3 27.8 -20 88.9 92.3 -4 Operating result* 1.3 1.9 13.7 6.5 Operating margin, %* 6 7 15 7* Including profit from sale of property in Q3 but excluding write down of goodwill in full year 2011 and Q3 2012 19
  • Cost cuts are paying off for Service Line Bariatrics• Heavy cost cuts during earlier part of 2012 have paid off• Q4 numbers for 2011 were affected by one-off items of +12,4 million, therefore improvement from operations is 11,3 million• Bariatric market is still very tough and is characterized by low prices• Gastro clinics have a strong market position• During 2012, efforts to focus business around core areas been executed • Bariatrics clinic in Copenhagen was closed during Q2 • Reconstructive plastic surgery clinic was sold during Q3 • Bariatrics clinic in Cairo was sold during Q4 • Bariatrics clinic in Prague was sold during Q1 2013 • Bariatric clinic in Bergen was sold during Q1 2013 Whole Whole Q4 Q4 Change year year ChangeSEK millions 2012 2011 % 2012 2011 %Revenues 44.2 38.0 16 154.6 174.7 -12Operating result* 0.6 1.8 -10.3 -0.2Operating margin, % 1 5 -7 0 20
  • Solid performance in Service Line Arrhythmia• Stable profitability• Increased patient flow from many counties outside Stockholm• High quality and short waiting lines stimulate patient genration• Patient flow is looking stable when going into 2013 Whole Whole Q4 Q4 Change year year Change SEK millions 2012 2011 % 2012 2011 % Revenues 7.5 7.3 3 28.9 28.6 1 Operating result 0.8 -0.1 2.7 2.8 Operating margin, % 11 -1 9 10 21
  • Summary Global Health Partner in 2012 Focus on More Patients and Process Improvement First signs of effect in Q4 Two main causes for EBITDA decline in Q2 and Q3 Bariatrics market declined 1 → GHP restructured the operation to improved results Lost VGR tenders 2 → Success in attracting other patients, decreased vulnerability Two main causes for improved result in Q4 1 Stronger revenue due to more patients 2 Several actions taken to reduce cost and increase efficiency WELL PREPARED FOR 2013! 22
  • www.globalhealthpartner.com Twitter: @ghpartnerContact:Marianne Dicander Alexandersson, CEO, +46 (0)705-62 85 55 marianne.dicander@ghpartner.comTobias Linebäck, CFO and IR, +46 (0)708-55 37 19, tobias.lineback@ghpartner.com 23