Attendo year-end report and report for fourth quarter 2015: Strong demand for own operations gave a positive effect on growth and earnings

Attendo reports strong growth in both sales and earnings in the fourth quarter of 2015. The full year results for 2015 are well in line with Attendo's long-term financial goals. Both growth and earnings are driven by a strong demand for Attendo’s own nursing homes in Sweden and Finland.

Comments from Attendo’s CEO Henrik Borelius
“The fourth quarter showed a strong growth and strong profit driven by own operations, where there is a great demand for our homes. The quarter was one of Attendo's strongest in terms of new operations, where for example eight own homes opened, while construction of seven new units began. In summary it was a strong quarter and a good 2015, well in line with our long term goals. The need for new beds in care for older people in Sweden was highlighted during the quarter, which confirms the opportunities for continued growth. I look forward to a good development of Attendo as a listed company.

The full year and the fourth quarter were characterized by very strong performance in Own operations. Attendo’s offerings are attractive which has generated strong organic growth. Occupancy in our own homes is good and we have worked in a structured way with planning and improved processes, which is reflected in the profit for the fourth quarter. As reported during the quarter, there is a shortage of nursing homes within care for older people and to meet this demand Attendo continues to invest. During 2015 Attendo opened around 700 nursing home beds for older people, and at year-end we had around 700 nursing home beds under construction. In Outsourcing operations net sales increased slightly both on a full year as well as on a quarterly basis, mainly due to the start of new contracts in the beginning of 2015. Staffing operations, which earlier this year had a weak sales trend, improved during the fourth quarter. Our assessment is however that both outsourcing and staffing will continue to be challenging markets.

Structured quality work and competence developments are high on the agenda of Attendo. During the fourth quarter the company’s quality thermometer showed a good development, with an index of 85 percent compared with 78 percent at the end of 2014. In Attendo Academy nearly 140 000 hours of training were conducted in 2015 - an important investment in our employees and important in order to be able to offer high quality care services.

In Finland, the government has agreed on the content and structure of the new SOTE regions which as of January 1, 2019 are taking over the main responsibility for care and health care. Freedom of choice should be encouraged and private providers should be able to offer care and health care services. In Sweden, the current anti-profit inquiry got partly new directives. For example, it will no longer propose an abolition of freedom of choice within primary care.

During 2015 we celebrated Attendo’s 30th anniversary. The highlight of the fourth quarter was the company’s IPO which attracted great interest from institutions and the interest from private investors was one of the highest ever in Sweden. 30,000 private investors subscribed for shares and we are particularly satisfied that from them, approximately 800 were Attendo employees. We welcome the many new owners which through their participation in the listing show us their confidence and willingness to take part of Attendo’s future development.

To summarize, Attendo is positive about 2016. Our market position is strong and prospects are good for continued stable growth with good quality and profitability.”

Summary of the fourth quarter 2015

• Net sales increased by 11 percent to SEK 2,564 (2,316), before and after adjustments for currency effects.
• Operating profit (EBITA) increased by 41 percent to SEK 215m (153), representing an operating margin of 8 percent (7).
• Adjusted profit for the period amounted to SEK 114m (-27), which represents adjusted earnings per share after dilution of SEK 0.71 (-0.17).
• Profit for the period amounted to SEK -9m (-27), which represents a profit margin of -0 percent (-1) and earnings per share after dilution of SEK -0.06 (-0.17).
• Operating cash flow amounted to SEK 324m (312).

Summary of the period January - December 2015

• Net sales increased by 9 percent to SEK 9,831 (9,045). Adjusted for currency effects, growth was 7 percent.
• Operating profit (EBITA) increased by 14 percent to SEK 933m (822), representing an operating margin of 9 percent (9).
• Adjusted profit for the period amounted to SEK 409m (263), which represents adjusted earnings per share after dilution of SEK 2.56 (1.64).
• Profit for the period amounted to SEK 286m (263), which represents a profit margin of 3 percent (3) and earnings per share after dilution of 1.79 (1.64).
• Operating cash flow amounted to SEK 765m (700).
• The Board proposes a dividend of SEK 0.54 per share for the year 2015.

Invitation to teleconference
The report will be presented at a teleconference call on February 25, 2016 at 10.00am CET. The conference is hosted by Attendo CEO Henrik Borelius and CFO Tomas Björksiöö. The presentation will be held in English.

To participate, please call in on one of the following numbers at least 10 minutes before the conference is scheduled to start:

SE:      +46 8 566 426 91
FI:        +358 9 817 104 91
UK:      +44 203 008 9819

You can follow the presentation and the conference call on the following web link:
http://cloud.magneetto.com/wonderland/2016_0225_Attendo/view

The report and other information material will be made public at:
http://www.attendo.com/investerare

Attendo AB
(publ)

For further information, please contact:
Ingalill Östman, Head of Investor Relations Attendo
Phone: +46 708 67 42 12
E-mail: ingalill.ostman@attendo.com

Stefan Svanström, Communications Director Attendo
Phone: +46 708 67 38 07
E-mail: stefan.svanstrom@attendo.com

Attendo is required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.

Attendo - the leading care and healthcare company in the Nordics
Attendo is the leading private provider of publicly financed care and healthcare services in the Nordic region. The company was founded in 1985 and was first to provide outsourced care for older people in Sweden. In addition to care for older people, Attendo provides care for people with disabilities, individuals and families, and, in Finland, healthcare and dental care. Attendo has 19 000 employees and is locally anchored with 510 operations in more than 200 municipalities in Sweden, Finland, Norway and Denmark. www.attendo.com

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