Humana : Humana : Annual and Sustainability Report 2024 Pdf, 7.4 MB.

01 This is Humana 3 Comments from the CEO 7 02 Trends and market 9 Important trends that are driving the demand for care services 10 Stable outlook for care services 12 03 Sustainable strategy 14 Strategy for sustainable care 15 Attractive employer 18 Profitable growth 20 Satisfied customers 21 Socially responsible provider 24 Enhanced sustainability work and reporting 27 04 Offering 29 Sweden 30 Individual & Family 31 Personal Assistance 33 Finland 35 Norway 37 05 Humana as an investment 39 Investing in Humana 40 The Humana share 42 06 Corporate governance 44 A comment from the Chair of the Board 45 Corporate Governance Report 47 Regulations, governance model and internal control 47 Board of Directors 56 Group Executive Management 57 Risks and risk management 59 07 Sustainability report 62 General information 63 Environmental information 71 Social information 78 Governance information 86 08 Financial reports 92 Board of Directors' Report 93 Appropriation of profits 97 Financial statements 98 Accounting policies 106 Group notes 110 Parent Company notes 124 The Board of Directors' signatures 125 Audit Report 126 09 Other Reconciliation with IFRS financial statements 130 Definitions of financial performance measures 132 Quarterly overview 133 Five-year overview 134 The legal annual report can be found on pages 44-58 and 62-125. Humana's statutory sustainability report has been prepared in accordance with the equirements of the Swedish Annual Accounts Act (ÅRL) as it read before July 1, 2024, and comprises pages 62-91. 01 This is Humana Nordic welfare provider Humana is there for people with functional impairments, psychosocial disorders and mental health issues, as well as for the elderly. Our role is to improve both the quality of life and to be a leading care provider. The care we provide is evidence-based through research, and we have devel-oped our own treatment methods in order to take on clients with complex prospects for individuals who, through needs, who other providers and pub- treatment, are given better opportuni- lic sector options are unable to care ties to contribute to our shared society. for. We measure the effects of our We are driven by the well-being of our customers and clients, and our shared core values of Joy, Engage-ment and Responsibility permeate our working methods. We invest in our employees, whose commitment and expertise are crucial for Humana care in order to safeguard the quality of our services and our contribution to society. Everyone is entitled to a good life. Humana works to make this a reality. Humana - an overview Net revenue 2020-2024 SEK m 12,000 2020 2021 2022 2023 2024 1) At 31 December 2024. 2) Concerns revenue breakdown. Overview 1) Employees 23,550 Customers 9,521 Our business model Contractors Humana's contractors primarily consist of municipalities in Sweden, Norway and Finland who purchase care ser-vices for their residents, but also provide care services on behalf of the public health authority in Norway. Humana also provides services directly on behalf of care recipi-ents who have been granted services by the state or a municipality within personal assis-tance in Sweden and Norway. Services Personal assistance Humana provides per-sonal assistance to indi-viduals with permanent functional impairments. Humana is the largest provider of personal assistance in Sweden and has customers of all ages in Sweden and Norway. Individual & family Humana provides ser-vices using highly spe-cialised expertise within individual and family care in Sweden, Norway and Finland. Humana operates units within residential care homes and schools, short-term housing, group homes, assisted living and day care facilities, family-based care, and outpa-tient health and medical care facilities, for all of life's stages and needs. Humana is the leading provider of skills-inten-sive institutional care for children and young people with extensive needs in every country in which we operate. Elderly care Humana provides elderly care in Sweden, both under its own management and under contract. Humana operates 22 elderly care homes in energy-efficient proper-ties offering high levels of comfort and living standards. All residents receive round-the-clock care in a safe, secure and homely environ-ment. They have their own flat and access to communal areas and activities. Revenue model Index-regulated agreements Index-regulated agreements are adjusted annually through the care price index, which weighs the outcome of changes in payroll expenses during the previous year against the change in the consumer price index. Over time, differences between cost increases versus revenue increases are adjusted. Individually negotiated agreements A high degree of specialisation and a high level of flexibility in adapting the offering according to the contractor's needs enables Humana to negotiate agreements based on expertise, resource-intensity and the degree of complexity in the service. State reimbursement level The level of reimbursement for the provision of personal assistance in Sweden is deter-mined annually in the state budget. The gov-ernment has decided to commission a study to look at indexing the reimbursement, which would result in the reimbursement being auto-matically adjusted upwards every year, linked to the change in labour costs. Humana in 2024 Strong financial development and reduced debt Humana is growing and helping more people to a good life Common Sweden organisation for greater efficiency and better service to the core operation Humana sets science-based targets for greenhouse gas emissions Humana increased its adjusted operat-ing profit by 18 percent over the full year 2024. The adjusted operating margin improved to 5.0 percent, while the leverage ratio fell to 3.0 times. Humana's net revenue during the year exceeded SEK 10 billion. The acquisi-tion of Team Olivia in Norway and healthy organic growth in Norway, and within individual and family and elderly care in Sweden, are driving growth. Support functions in Sweden have been integrated into a single organisation for streamlined processes and better ser-vice to the operations. Humana has signed up to the Science Based Targets initiative (SBTi). As a result, we will develop a short-term greenhouse gas emissions target, which will extend 5-10 years into the future, and a long-term net-zero target through to 2050. Find out more about our business areas on pages 29-38. Find out more about profitable growth and our strategy on pages 14-26. Read more in Comments from the CEO and our offering on pages 7-8 and 29-38. Read about Humana's sustainability work on pages 27-28 and 62-91. Key Ratios Net revenue, SEKm Operating profit, SEKm Adjusted operating profit, SEKm Operating margin, % 2024 2023 77 58% Profit for the year, SEKm Operating cash flow, SEK m Interest-bearing net debt (excl. IFRS 16), SEKm Net debt/rolling 12-month adjusted EBITDA (excl. leasing debts), times Average number of full-time employees Average number of customers 9,521 9,856 10,295 9,638 467 453 518 441 4.5 4.7 145 178 865 846 1,494 1,434 3.0 3.4 12,074 12,046 Humana - Sustainability and ongoing improvements During the year, Humana continued its efforts to achieve our vision: "Everyone is entitled to a good life". We have done this by continuing to develop our methods, establish new units, measure our social outcomes and highlight facts in the public debate, in order to strengthen the circumstances, conditions and rights of the individual. Safeguarding everyone's right to a good life also requires us to consider what we leave behind for future generations. We are proud to have committed to the Science Based Targets initiative as regards both short- and long-term targets. In order to achieve our "net zero" vision, we have undertaken to carry out active and ambitious work over the coming years. In 2024, we also placed a spotlight on our specialisation strategy, streamlining and consolidation. I had the privilege of taking up my position as new CEO over the summer break. I have visited many sites in our various countries, and had the opportu-nity to speak to many employees and customers. Some of the true hallmarks that permeate Humana are the val-ues-based corporate culture, the positive attitude, and the efforts being made to make life better for the people entrusted to our care. Having this foundation to stand on is vital when the only constant in our operating environment is change. I also note that Humana has largely grown to become what it is today through acquisitions. The cultures among the various companies have melded together to form the excellent Humana that we see today, but the organisations, systems and legal structures still testify to Humana's background. During 2024, we therefore focused on instigating a consolidation programme which will markedly reduce the number of companies in our Group, thereby reducing both complexity and costs. We also established a joint Sweden organi-sation, which brings together the support functions into a single organisation, and instigated the replacement of a number of systems. As regards the strategic agenda, we completed a number of transactions as part of our specialisation strategy during the year. We divested both our small operation in Denmark and our elderly care operation in Finland, and acquired Team Olivia in Norway. We also grew organically, with a number of new units in our prioritised growth areas. Our employee satisfaction remained high and stable, and we were delighted to see a reduction in employee turnover in all our countries and business areas during the year. Given the growing shortage of personnel in the sector, it is essential that we can both attract and retain personnel. At Humana, we often talk about mak-ing a real difference and being able to demonstrate it. During the year, cus-tomer satisfaction improved in virtually all our areas, from already high levels. Our social outcome metrics also indi-cated that we are improving. Th