Investment case

Several underlying trends in the world at large show that the need for care is increasing and is expected to continue to increase over the coming years. Thus, demand for innovative, cost-effective, high-quality care services will also increase. These trends include, among other things, an ageing population, increasing mental illness, old property holdings and increased demands for quality, specialisation and individual adaptation.

Humana contributes to price competition, quality competition, freedom of choice and drives social innovation. In this way, Humana acts as a catalyst for sustainable development in the entire care industry. The company has a clear strategy for how its operations will continue to develop and clear targets that focus on growing profitably
and sustainably – socially, economically and environmentally.
Through investments in research and constant development to meet the changing needs of the market, together with results oriented care that intends to fundamentally change the care market, Humana wants to set a new and higher standard of care in the Nordic region.

Five reasons to invest in Humana:

Humanas operations are underpinned by strong core values and ESG-committment focusing on people and quality. 

1. Humana drives the future of welfare

• Ambitious and committed care that will be able
  to demonstrate the results of the interventions.
  Ambition to develop more social outcome measurements and enter into social impact bonds.
• Invests in social innovation that will change the
  care market, including research in treatment
  methods.
• Humana works for the benefit to help more
  people to a better life.
• Humana’s ambition is to establish a new and
  higher standard of care in the Nordics, with the
  aid of extended quality measures (HQI).

2. Care is a stable and growing market

• Sector with supporting market trends.
• Market leader within personal assistance,
  individual och family care and growing within
  elderly care and healthcare.
• Complex care services with high degree of
  specialisation, permit requirements and investments create high entry barriers.
• Strong organisation, well equipped to meet
  societal challenges.
  
  

3. Humana has a clear and sustainable strategy

• Clear ambition to be the first choice for
  everyone working in the care sector.
• High-quality operations under continuous
  development. The standard for qualitative
  care should constantly be pushed forward.
• Profitable growth is created through development of existing services and opening new units. Complements and acceleration of
  organic growth takes place through acquisitions. Humana has a strong history of selective, value creating acquisitions.
• Committed and responsible local partner to
  contractors. Acts as a driving force for diversity and inclusion and contributes to stronger public finances.

4. Humana has a sustainable growth ambition and is well equipped for margin improvements

• Humana shall grow 5 percent organically with
  an additional 2–3 percent possible from
  acquisitions.
• Historically stable growth.
• Over the last five years, the annual average
  revenue growth was 8.3 percent.
• Over the last five years, the annual average
  operating margin was 5.5 percent.
• Investment in operational infrastructure creates
  possibilities to use existing infrastructure to
  increase margins.
• Good pricing power within important segments.

5. Good cash conversion reduces risk

• Revenues from state and municipalities, who
  pay on time and are creditworthy.
• Strong operational cash flow and good
  cash conversion, which is partly used for
  investments.
• For the last three years, cash conversion
  (operating cash flow divided by EBITDA)
  amounted to 93 percent 2020, 86 percent
  2021 and 78 percent 2022.