We Drive the Future of Welfare MEET ISABELLE 27
Total Page:16
File Type:pdf, Size:1020Kb
HUMANA ANNUAL REPORT 2019 We drive the future of welfare MEET ISABELLE 27 MEET NICLAS MEET BARBRO 29 31 INTRODUCTION HUMANA AS AN INVESTMENT FINANCIAL STATEMENTS About Humana 2 Why invest in Humana? 36 Board of Directors’ report 64 Humana in 2019 4 The share 38 – Appropriation of profits 67 Message from the CEO 6 Financial statements 68 CORPORATE GOVERNANCE Accounting policies 78 BUSINESS ENVIRONMENT Corporate governance report 42 Notes 82 AND STRATEGY – Chairman’s statement 42 Signatures of the Board of Directors 97 Trends 10 – Regulations, control model and 43 Auditor’s report 98 Market 12 internal control A sustainable strategy 14 – Board of Directors 52 OTHER 101 – Group management 54 OFFERING Risks and risk management 56 Individual & Family 26 Personal Assistance 28 Elderly Care 30 Finland 32 Norway 34 About the annual report. The legally required annual report is on pages 14–23, 42–55 and 64–97 and the statutory Sustainability Report according to the Annual Accounts Act can be found on pages 14–23. We drive the future of welfare humana is there for people with functional impairment, psychosocial disorders and mental illness as well as for the elderly. Our vision is “Everyone is entitled to a good life”. With assignments in hundreds of municipalities, 9,000 customers and clients, 15,000 employees and several hundred units in Sweden, Finland, Norway and Denmark, we are today a major provider in Nordic welfare. Humana manifests what quality care is all about. Our work is based on the individual’s circumstances and needs. And our care is grounded in scientific evidence and the best available know-how, and is provided by knowledgeable, dedicated employees. Both our own and external surveys confirm time and time again that we succeed in what we do. But we won’t stop there. Continuous development to maintain the highest quality is an essential aspect for us. We intend to set a new, higher standard of care. This is how we drive the future of Nordic care and welfare. Everyone is entitled to a good life. Humana works to make this a reality. Introduction About Humana Our business areas Individual and family care Humana offers a range of care services that include housing, care and treatment for individuals with psychosocial disorders and mental illness in Sweden, Norway, Finland and Denmark. We also offer housing with special service, both under contract and under our own management. A major Nordic welfare provider Strong market position in the Nordics Sales and profitability, 2019 8,503 1 7,46 7 Individual & Family customers revenues, SEKm Personal Assistance 14,869 369 employees Elderly Care operating profit, SEKm 2 | Humana Annual Report 2019 Introduction Personal assistance Elderly care Humana provides personal assistance to individuals with Humana provides elderly care through its high-quality homes functional impairments. The ambition is to give more people for the elderly, either under own management or under con- an opportunity to live a good life. Our customers are of all tract, in Sweden and Finland. The number of elderly care home ages and are found all over Sweden and in Norway. under own management is growing. Business areas, revenue distribution Focus on own management Geographical revenue distribution Individual & Family 28% Own management 93% Sweden 73% Personal Assistance 37% Under contract 7% Finland 16% Elderly Care 8% Norway 11 % Finland 16% Denmark 0% Nor way 11% Humana Annual Report 2019 | 3 Humana in 2019 Humana in 2019 Humana grows in Finland In April, Humana acquired the care company Coronaria Hoiva, a leading provider in elderly care and care homes in Finland. The acquisition doubled Humana’s operations in Finland. Today, Humana Finland has 2,700 employees who provide care to 4,200 clients every day. > Read about Humana Finland on page 32 Systematic quality assurance initiatives yield results The Humana Quality Model helps Humana monitor the quality of its operations. Our quality metric, the Humana Quality Index, is reported on a continuous basis and increased from 92 in 2018 to 94 in 2019, which is the highest figure to date. In the long term, the goal is to reach 100. > Read about Humana’s quality work on page 16 Key ratios 20191) 20181) Operating revenue, SEKm 7,467 6,725 2) Operating profit, SEKm 369 391 83 Operating margin, % 4.92) 5.8 Customer satisfaction index, 2019 Profit for the year, SEKm 187 245 Operating cash flow, SEKm 595 285 Interest-bearing net debt, SEKm 3,712 1,378 Interest-bearing net debt/adjusted EBITDA ratio 5.4 3 Average number of employees, full-time equivalents 10,175 9,782 Average number of customers 8,503 7,466 1,047 1) The 2019 figures include the effects of accounting standard IFRS 16, which took effect more customers/clients in 2019 1 January 2019. The 2018 figures exclude its effects, see more information in note P3. 2) Excluding the effects of IFRS 16 of SEK 46m, operating profit amounted to SEK 323m and operating margin totalled 4.3 percent. 4 | Humana Annual Report 2019 Humana in 2019 2 acquisitions and 37 properties sold Acquisition of Coronaria Hoiva Oy in Finland with full-year revenues of approx- imately SEK 559m and 1,100 employees. Acquisition of Assistans på Gotland AB with full-year revenues of approximately SEK 56m and approximately 115 employees. Sale of 37 commercial properties in Finland, Sweden and Norway to Samhälls- byggnadsbolaget i Norden. Value of the property portfolio, transferred in a sale and leaseback transaction: SEK 468m. Continued growth in own management Two new elderly housing units under own management were opened: Staffans- torp and Kungsängen with 72 respectively Openings in Staffanstorp and Kungsängen 80 flats. Five new elderly housing contracts During the year, Humana opened two new elderly homes under its own were entered in 2019, all with start of management, one in Staffanstorp and one in Kungsängen. Together, the operations in the first half of 2021: two new homes offer over 150 flats and large social areas for elderly • Vallentuna, 60 flats persons who need support in their everyday lives. • Falkenberg, 60 flats > Read about Elderly Care on page 30 • Norrtälje, 80 plus 60 flats • Ängelholm, 60 flats Five new LSS units with special service housing under LSS were opened. In Finland, 15 new units were opened: Humana invests four residential units with special service, seven health and social care units for chil- in leadership boost dren and adolescents, four outpatient units. During the year, an initiative called the Leadership Boost was launched to Outsourcing contracts strengthen leadership at Humana. One Seven contracts for operation of LSS units part is a leadership programme that 110 in Sweden. Start of operations: 2019–2020: managers have attended so far. Good managers form a basis for our employees Four contracts for operation of elderly to do a good job. housing units in Sweden. Starting in 2020. > Read about Humana as an employer 30 new contracts in Finland: residential on page 18 units with special service, health and social care units, and outpatient units. Operating revenue and operating margin Operating revenue by business area SEKm % SEKm –4 % 4 % 23 % 86 % 7 % 8,000 8 3,000 2,500 6,000 6 2,000 4,000 4 1,500 1,000 2,000 2 500 0 0 0 2014 2015 2016 2017 2018 2019 Individual Personal Elderly Finland Norway & Family Assistance Care Operating revenue Operating margin 2018 2019 Revenue growth Humana Annual Report 2019 | 5 Message from the CEO An intense 2019 as our Nordic care group grew In 2019, Humana took a definitive position as a leading Nordic care group. We had high activity, we grew, primarily in Finland and within Elderly Care in Sweden, and we had satisfied customers. Operating profit, on the other hand, was too low. To clarify the direction ahead – profitable growth – we created new financial targets starting from 2020. Humana plays an important role in welfare – we drive its future! Every month, I receive an email from our sitions, while we deliver good quality and Doubling of operations in Finland colleagues in Uppsala. The email talks about profitability. Both as a result of our strategic Let’s take a look back at the business in 2019. their ongoing work with our core values. All efforts and the new IFRS 16 accounting During the spring, the Finnish company units and all employees are involved. It not standard, the Board of Directors has revised Coronaria Hoiva was acquired. The acquisi- only makes for exciting reading, but serves as the financial targets starting from 2020. tion strengthened our position within elderly a reminder of what Humana’s foundation is. Why should Humana continue to grow? care and individual and family care, and We are there for our clients and custom- The simple answer is because we are needed. Humana Finland doubled its size and became ers. And our employees are the most funda- We are needed so that society can meet some one of the largest care providers in Finland. mental asset we have for meeting the needs of the major challenges that lie ahead of us. During the rest of the year the focus was on of each individual customer and client. Our The Nordic region has a growing and ageing integrating the new business, while continu- work on values and our internal training are population, and the need for care interven- ing to grow organically by establishing new important components for ensuring that we tions is increasing in tandem with the grow- units. The new acquisition has not lacked always remain relevant. We are constantly ing strain on municipal finances. The demo- challenges in terms of profit ability, but the moving forward and evolving, which ulti- graphic challenge also means that a lower development is moving in the right direc- mately benefits all stakeholders.