Child and woman in sofa

Humana as an investment

Why invest in Humana? Investing in Humana is investing in sustainable welfare. The company has a strong position in the growing care market and a clear strategy to achieve its overall goal - to be the preferred provider in the Nordic region of care services for customers, clients and clients with high quality requirements.

Humana wants to help set a new and higher standard for care in the Nordic region.

Several underlying trends in the world around us mean that the need for care is increasing and is expected to continue to increase in the coming years. Demand for high-quality, innovative and cost-effective care services will therefore grow. These include an ageing population, increased mental illness, old property portfolios and increased demands for quality, specialization and individualization.

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 throughout the care industry.

The company has a clear strategy for how the business will continue to develop and clear goals that are about growing profitably and sustainably; socially, economically and environmentally.

By investing in research and continuous development to meet the changing needs of the market, together with results-oriented care that aims to fundamentally change the care market, Humana wants to set a new and higher standard for care in the Nordic region.

Five reasons to invest in Humana:

Humana's business is underpinned by strong values and ESG commitments with a focus on people and quality.

1. Humana drives welfare forward

  • Ambitious and committed care that can demonstrate the results of its efforts. Ambition to develop more outcome measures and enter into social outcome contracts.
  • Investing in social innovation that will change the care market, including research into treatment methods.
  • Humana's ambition is to set a new, higher standard for care in the Nordic region, using the enhanced quality index (HQI) as a tool.

2.Care is a stable and growing market

  • Sector with supportive market trends.
  • Market leader in personal assistance, individual and family care and growing in elderly care and health care.
  • Complex care services with high specialization, licensing and investment requirements create high barriers to entry.
  • Strong organization, well equipped to meet societal challenges.

3. Humana has a clear and sustainable strategy

  • Clear ambition to become the first choice for anyone who wants to work with care.
  • High-quality operations under continuous development. The standard for what constitutes quality care will be constantly advanced.
  • Profitable growth is created by developing existing service offerings and starting new businesses. Complements and acceleration of organic growth are created through acquisitions. Humana has a strong history of selective,
    value-creating acquisitions.
  • Committed and responsible local partner to clients. Drives diversity and inclusion and contributes to a stronger economy.

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

  • Humana will grow organically by 5 percent. Acquisitions can contribute an additional 2-3 percent.
  • Historically stable growth.
  • Annual average revenue growth of 8.3 percent over the past five years.
  • Average annual operating margin of 5.5 percent over the past five years.
  • Investment in operational infrastructure creates opportunity to leverage existing infrastructure to increase margins.
  • Good negotiating position for price adjustments in key segments.

5. Good cash flow generation reduces risk

  • Revenue from government and municipalities, which pay on time and are creditworthy.
  • Strong operating cash flow and cash generation, which is used for investments and other purposes.
  • Cash flow generation (operating cash flow divided by EBITDA) has been 93% in 2020, 86% in 2021 and 78% in 2022 over the past three years.