Capio AB (publ) Full year report January December 2017mb.cision.com/Main/277/2446665/788295.pdf ·...

This is a translation of the original Swedish full year report. In the event of difference between the English translation and the Swedish original, the Swedish full year report shall prevail.

Capio AB (publ) Corporate identity number 556706-4448

Visiting address: Lilla Bommen 5 Tel. +46 31 732 40 00 Box 1064 SE-405 22 GOTHENBURG

Capio AB (publ) Full year report January – December 2017

October – December 2017

Net sales MSEK 4,077 (3,725). Organic sales growth 3.4% (2.9) and total sales growth 9.4% (6.1)

EBITDA1 MSEK 348 (289) and margin 8.5% (7.8). EBITDA increased by 20.4%

EBITA1 MSEK 232 (183) and margin 5.7% (4.9). EBITA increased by 26.8%

Operating result (EBIT) MSEK 205 (153) and margin 5.0% (4.1). EBIT increased by 34.0%

Profit for the period2 MSEK 155 (135). Earnings per share after dilution2 SEK 1.09 (0.96)

January – December 2017

Net sales MSEK 15,327 (14,069). Organic sales growth 2.4% (3.3) and total sales growth 8.9% (4.3)

EBITDA1 MSEK 1,114 (1,061) and margin 7.3% (7.5). EBITDA increased by 5.0%

EBITA1 MSEK 659 (644) and margin 4.3% (4.6). EBITA increased by 2.3%

Operating result (EBIT) MSEK 540 (558) and margin 3.5% (4.0). EBIT decreased by 3.2%

Profit for the period2 MSEK 370 (404). Earnings per share after dilution2 SEK 2.62 (2.86)

Proposed dividend SEK 0.95 per share (0.90)

CEO comments:

“Solid Q4 – now speeding up the journey of specialization and digitalization.” In October we set two targets: to reach a Group EBITDA

growth for the full year 2017 of 5-7% and to increase the

French EBITA margin in Q4 2017 compared with Q4 2016.

We are now delivering a 5% full year EBITDA increase for

the Group and a 100 basis points Q4 EBITA margin

increase for France. Organic sales growth increased in Q4,

especially in France, which contributed to the margin

improvements.

The solid result growth in Q4 for the Group (20%+ of both

EBITDA and EBITA) was mainly driven by actions taken in the

French hospitals for improved productivity, supported by a

positive calendar effect, and a continued solid development in

the Nordic business. The Nordic development was supported by

a positive trend change in the Stockholm primary care and con-

tributions from acquisitions. The German segment has under-

performed our expectations due to a continued weaker sales

growth than expected. Actions are being taken both to improve

sales and adjust costs. There is a continued strong focus on

improvements in all segments and we pay special attention to

France that now has to demonstrate and confirm a continued

ability to compensate for the price reductions and develop the

business further.

*

As a Group, we are now prepared to accelerate specialization in

all geographies. Below, France and Sweden are in focus.

Specialization will further develop Capio France

Since 2015, we have met the price decreases in France with

productivity improvements, enabled by modernization of the

healthcare provided – Rapid Recovery. We are seen as a leader

in this area.

We now start another transition – from a fully geographical

organization to a specialized organization that can be more

efficient in attracting patients and doctors to our Rapid

Recovery offering, driving growth and synergies of scale.

The five largest Capio hospitals, representing more than 50% of

the French net sales, are now organized under one management

team led by the country president. This increases focus and faci-

litates knowledge sharing in core activities, improves processes,

and coordinates important specialties between the hospitals.

The smaller hospitals will be focused on fewer specialties,

increasing quality, productivity and volume. Certain specialties

will also be gathered in separate organizations to have full focus

on providing the best and most efficient care to patients in these

areas of care. In addition, we are upgrading the IT environment,

to increase automation and facilitate digitalization, and are

strengthening procurement management to improve performance.

Digitalization transforms healthcare provision in Sweden

The obvious effect from digital consultations in primary care is

improved availability, while the most important medical

outcome of the way Capio drives digitalization is improved

quality. Capio’s unique feature is also the implementation of

digital consultations combined with our 83 physical primary

care centers in Sweden. This creates a coherent patient pathway

to Capio’s 750,000 listed patients and increases Capio’s

attractiveness to patients, hence representing a growth driver for

our primary care business in Sweden over the coming years.

Going forward

The specialization of the French organization and the digital

transformation in Sweden will support organic sales growth and

operating margin going forward. Acquisitions will continue to

contribute to the total growth of the Group. Thomas Berglund

President and CEO

1 Refer to page 34 for definitions of EBITDA and EBITA. 2 Profit for the period refers to profit attributable to parent company shareholders. Refer to note 2 for calculation of EPS (before and after dilution).

Capio AB (publ) Full year report, January – December 2017 2 (36)

The Group and the segments in brief

Capio Group OCT – DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

Net sales 4,077 3,725 9.4 15,327 14,069 8.9 Total sales growth, % 9.4 6.1 8.9 4.3

Organic sales growth, % 3.4 2.9 2.4 3.3

EBITDA 348 289 20.4 1,114 1,061 5.0 Margin, % 8.5 7.8 7.3 7.5

EBITA 232 183 26.8 659 644 2.3 Margin, % 5.7 4.9 4.3 4.6

Operating result (EBIT) 205 153 34.0 540 558 -3.2

Operating margin (EBIT), % 5.0 4.1 3.5 4.0

Profit for the period1 155 135 14.8 370 404 -8.4

Earnings per share after dilution2, SEK 1.09 0.96 2.62 2.86

Net capital expenditure -217 -138 -477 -458 In % of net sales 5.3 3.7 3.1 3.3

Net debt 3,691 2,872 3,691 2,872 Financial leverage 3.3 2.7 3.3 2.7

Segments

Capio Nordic OCT – DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

Net sales 2,324 2,009 15.7 8,695 7,584 14.6

Total sales growth, % 15.7 6.0 14.6 4.7


EBITDA 185 146 26.7 632 522 21.1 Margin, % 8.0 7.3 7.3 6.9

EBITA 146 108 35.2 459 371 23.7

Margin, % 6.3 5.4 5.3 4.9

Operating result (EBIT) 107 86 24.4 362 304 19.1

Operating margin (EBIT), % 4.6 4.3 4.2 4.0


Capio France OCT – DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

Net sales 1,434 1,394 2.9 5,435 5,313 2.3



EBITDA 148 123 20.3 471 518 -9.1 Margin, % 10.3 8.8 8.7 9.7

EBITA 82 65 26.2 226 283 -20.1

Margin, % 5.7 4.7 4.2 5.3

Operating result (EBIT) 95 62 53.2 216 280 -22.9 Operating margin (EBIT), % 6.6 4.5 4.0 5.3


Capio Germany OCT – DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

Net sales 319 322 -0.9 1,197 1,172 2.1 Total sales growth, % -0.9 10.3 2.1 2.4

Organic sales growth, % -2.3 5.5 0.0 4.0

EBITDA 35 43 -18.6 98 108 -9.3 Margin, % 11.0 13.4 8.2 9.2

EBITA 27 36 -25.0 68 83 -18.1

Margin, % 8.5 11.2 5.7 7.1

Operating result (EBIT) 22 31 -29.0 57 64 -10.9 Operating margin (EBIT), % 6.9 9.6 4.8 5.5


1 Profit attributable to parent company shareholders. 2 Refer to note 2 for calculation of earnings per share (before and after dilution).


Financial targets and development

Net sales and sales growth

Quarterly development 20151-2017 (RTM) Target and development

The target is to grow organically at least in line with the market and add acquisition growth at least at a similar rate over time

Total sales growth 8.9% and organic sales growth 2.4% (Jan-Dec 2017)

Organic sales growth was above market growth in Nordic and in line with market growth in France. Organic sales growth in Germany was slightly lower than the German market growth following lower inpatient volumes

Completed acquisitions are increasing the pace of total sales growth

EBITDA and margin


The target is to grow EBITDA at a higher rate than sales growth through increased productivity and operational leverage

EBITDA increased by 5.0% (Jan-Dec 2017)

The Nordic EBITDA increased at a higher rate than sales growth. In France, leverage was negative due to the lower prices and private market growth in combination with insufficient adjustment of resources. The lower organic sales growth in Germany impacted the development negatively

Positive contribution from the acquired businesses, in line with expectations

Net capital expenditure and in % of net sales


The target with present business mix is to keep net capex around 3% of net sales per year including Modern Medicine and expansion related capex

Net capital expenditures in % of net sales was 3.1% (Jan-Dec 2017), which was well in line with the target

1 RTM development adjusted for structural changes made in 2014. Refer to Capio Annual Report 2015 note 33.

0

2

4

6

8

10

11,000

12,000

13,000

14,000

15,000

16,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016 2017

Net sales Organic sales growth, %

Total sales growth, %

MSEK %

4

5

6

7

8

9

700

800

900

1,000

1,100

1,200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016 2017

EBITDA Margin, %

MSEK %

0

1

2

3

4

5

0

100

200

300

400

500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016 2017

Net capital expenditure In % of sales

MSEK %


Digitalization and specialization will support growth and speed of change

Digitalization gives higher quality, better availability and power to the patient – increasing the attractiveness of Capio’s healthcare offering

Our focus on digitalization is set to become the open and available entrance to Capio’s full healthcare offering, initially for

our 750,000 listed patients in Sweden. By the introduction of digital services, such as online doctor consultations, Capio is

able to combine digital and physical care, a unique setting in the Swedish market. Digital consultations offer instant access to

care without a physical visit. When physical care is needed the patient is transferred to one of Capio’s 83 primary care

centers – Digital when possible, physical when needed. Digital consultations will also free up capacity within the primary care

centers, increasing availability to physical treatment. These extended patient services will enhance attractiveness for patients

to list with a Capio primary care center and get access to our broad healthcare offering.

The most important medical outcome of the way Capio drives

digitalization is higher quality of care. In Capio, we are curr-

ently implementing services based on a medical algorithm with

about 100,000 dynamic questions. The patient starts the service

by describing a symptom of her or his problem. The algorithm

then starts asking questions and depending on how the patient

replies, new questions will be asked. After 5-10 minutes and 20-

40 questions, the system generates a description of the medical

history of the symptom (an anamnesis in medical language).

This gives the doctor a good understanding of the patient condit-

ions, enabling more precise diagnosing and more efficient use of

the time spent with the patient. The patient benefits from giving

the description ahead of the consultation, without the stress of

remembering everything in front of the doctor.

The algorithm is used for preparing digital as well as traditional

physical consultations. It is a new and very precise tool for the

patient to describe the problem, and for the doctor to use when

making diagnosis and deciding on treatment. In coming steps,

these dynamic algorithms will develop into artificial intelligence

(AI), learning from the combination of treatment and medical

outcome. Hence, digitalization of healthcare is much more than

a “digital” phone call or video call, it is to use the power of what

we call “Big data”. The algorithm collects patient data in a

structured way, available to the patient and valuable input in

creating AI-based solutions for better and more efficient health-

care provision. Capio is collaborating with Doctrin AB to

develop the algorithm based services, other digital patient

services, and AI based systems.

For less severe medical conditions, diagnosing and treatment

can now be done in a fully digital care setting. Patients are

treated without queuing and availability increases. Obviously,

much more convenient for many patients, not always having to

spend half a day going to the doctor. Also good for the physical

primary care as doctors and nurses can spend more of their time

on patients with chronic and other more severe conditions. As a

patient you get everything documented; the anamnesis, the treat-

ment and the complete medical record – fully open and available

for you as an individual. This means that the patient gets full

transparency and understanding, the power of knowledge.

As of now, Capio has introduced these services to ca. 450,000 of

our listed primary care patients. The remaining 300,000 will get

access during H1 2018. This includes both the fully digital con-

sultations and the use of the algorithm to prepare visits at the

primary care centers in Sweden. When fully implemented, the

online service will be available to all Swedish inhabitants.

During 2018, we will also start the introduction of digital

services in Norway.

1 Include doctor consultations and other visits in primary care, somatic specialist care and psychiatric special care 2 Accident and emergency visits. Capio estimate based on data from Socialstyrelsen 3 E.g. ENT, dermatology and gynecology

Source: SKL, Socialstyrelsen

2

0.1

26

0.5

42

2.5

A&E visits in hospitals2

Physical visits in hospitals

and specialist clinics

Physical visits in

primary care

Description

<0.5Digital care

Transfer of cases to

light A&E centers

Transfer of standardized

hospital care to specialist

clinics

Transfer of decentralized patient

accessible care3 from specialist

clinics to primary care setting

Transfer of less

severe conditions to

fully digital care

Healthcare trends

Total outpatient visits1 in Sweden

Million visits

Capio consultations online

X Total outpatient visits in Sweden

Capio outpatient visits in Sweden X

# c

onsultations

week

600

Going rate ~30 k visits / year

500

400


In Swedish primary care, the total number of physical visits is

around 42 million per year (doctor consultations, nurse and

other medical staff visits). At the end of 2017, fully digital

consultations can be estimated to less than 500,000 per year, a

small but rapidly increasing number. Capio is so far providing

only a minor part of this. With a direct link to our 750,000 listed

patients, we expect to capture an increasing share of digital

consultations. Our combined digital and physical healthcare

offering represents a unique setting for Capio in the Swedish

market and will support growth going forward.

Digitalization is also an important way to reduce cost of

healthcare in society. A visit to an A&E department costs

significantly more than a digital consultation. A doctor visit in a

primary care center also costs about two to three times more

than a digital consultation. Hence, besides the obvious positive

effects for patients and doctors, digitalization is also an

important way to get more treatment for the same cost to meet

the demographic changes in Sweden and Europe.

Specialization will support growth and productivity in Capio France

Capio is well positioned to continue to drive change within the French healthcare system. Our 22 hospitals with a national

presence, the core focus on medical quality and patient solutions for a rapid recovery has proven right in France. Capio is

seen as a leader in driving medical change in France. Now it is time for the next step to support growth and productivity.

Since 2015, we have met the price decreases in France with

productivity improvements, enabled by modernization of the

healthcare provided – Rapid Recovery. We are now seen as the

leader in implementing Modern Medicine, showing the way for

French healthcare. In addition, we have during 2017 strength-

ened our procurement initiatives to reach savings on materials

and services costs. This work will be continued.

Now we start another transition, from a fully geographical

organization to a specialized organization (as in Sweden) that

can be more efficient in attracting patients and doctors to our

Rapid Recovery offering, driving growth and synergies of scale

– as proven with the strong volume and productivity

improvements for the hip and knee replacement business.

The five largest Capio hospitals, representing more than 50% of

the French net sales, are now organized under one management

led by the country president. More peripheral activities within

these large units will be organized separately to focus know-how

exchange between the hospitals on core activities and proced-

ures. We see opportunities to have large activities like cardiol-

ogy, heart surgery and general surgery work closely together

between the different geographical locations.

The smaller hospitals will be focused on fewer specialties,

increasing quality, productivity and volume. Some alternative

partnerships may be studied with private or public players to

achieve this. Certain specialties will also be gathered in separate

organizations to have full focus on providing the best and most

efficient care to patients in these areas of care.

Projects are ongoing to upgrade and modernize the IT environ-

ments supporting production and administration to increase

automation and facilitate digitalization. Strengthened

procurement management is also a key initiative to improve

performance through pricing, quality and logistics.

The French government has adopted new legislation to improve

quality, efficiency and financial sustainability of the French

healthcare system. The legislation promotes new solutions to be

introduced and tested in the areas of organization, digital

transformation and reimbursement models. Capio will take part

in these programs by presenting solutions and projects based on

our achievements in Modern Medicine and Rapid Recovery in

France as well as our Swedish experience improving healthcare

provision and digitalization.

We expect these changes to support topline growth and make us

more responsive to the continued demands for efficiency and

quality in care.

Effects from specialization of hip and knee prosthesis surgery in France

Hip and knee replacements in Capio France continued to grow

during 2017, positively impacted by the use of Modern Medicine

as more doctors and patients are coming to our hospitals.

The average length of stay continued to decrease and the share of

patients being discharged within four days increased by four

percentage points compared with 2016. The number of hip and knee

prosthesis surgeries provided as outpatient care continued to increase

during the year. This is an example of how Capio adapts to and

contributes to driving Modern Medicine as hip and knee prosthesis

surgery in outpatient care, with sustained or improved quality, has

only been possible in recent years due to changes in treatment

methods and procedures.

Hip and knee prosthesis surgery Capio France

54

44

33

19

117

2

58

0

10

20

30

40

50

60

70

6,000

5,000

4,000

8,000

7,000

3,000

2,000

1,000

02017

7,475

2016

6,939

2015

6,305

2014

5,949

2013

5,529

2012

5,296

2011

4,911

2010

4,066

Number of proceduresDischarged, % <= 4 days

Number of in- and outpatients %

Provided in daycare:Number

0 1 8 26 160 450 534 636


Measuring Modern Medicine

Development of Average length of stay (AVLOS)1

By implementing Modern Medicine, treatment times can be reduced by Rapid Recovery after treatment. This means shorter

stays in hospital reducing the patient’s exposure to the hospital environment and increasingly, the patient can leave the

hospital already the same day as the treatment is completed.

OCT - DEC FULL YEAR

AVLOS by segment, Days 2017 % 2016 2017 % 2016 % 2015 % 2014 %

Capio Nordic 3.92 -1.5 3.98 3.93 -2.0 4.01 -2.7 4.12 -1.0 4.16 -1.2

Capio Nordic excl. geriatrics 2.84 -0.4 2.85 2.82 -0.4 2.83 -3.4 2.93 -2.7 3.01 -3.2

Capio France 4.30 -4.9 4.52 4.42 -1.1 4.47 -3.0 4.61 -2.9 4.75 -3.7

Capio France excl. geriatrics 4.22 -5.4 4.46 4.32 -2.5 4.43 -3.7 4.60 -3.2 4.75 -3.7

Capio Germany 4.42 -2.2 4.52 4.56 0.4 4.54 -1.5 4.61 -4.4 4.82 0.0

Capio Germany excl. geriatrics 3.88 -3.7 4.03 3.99 -1.2 4.04 -3.1 4.17 -6.1 4.44 -0.7

Capio Group 4.23 -3.4 4.38 4.32 -1.1 4.37 -2.7 4.49 -3.0 4.63 -2.5

Capio Group excl. geriatrics 3.85 -4.0 4.01 3.92 -2.2 4.01 -3.4 4.15 -4.2 4.33 -3.1

AVLOS continued to be shortened in the quarter but was impacted by a higher case mix in Nordic and Germany. AVLOS in Nordic was

impacted by a higher case mix for emergency patients. The Group’s strategic focus on Modern Medicine giving Rapid Recovery, and

Modern Management reduced AVLOS by 1.1% despite a higher case mix. Adjusted for geriatrics, the AVLOS reduction for the

Group was 2.2%. Considering the higher case mix in 2017, in addition to the increase from geriatrics, the AVLOS development was

well in line with the historical downward trend.

1 Refer to page 34 for definition.


Group development

Capio Group OCT - DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

KPI; Production, productivity and resources

Number of outpatients 1,341.1 1,243.3 7.9 4,865.3 4,457.0 9.2

Number of inpatients 57.6 57.7 -0.2 224.3 226.3 -0.9

Number of patients, kNumber 1,398.7 1,301.0 7.5 5,089.6 4,683.3 8.7

AVLOS, Days 4.23 4.38 -3.4 4.32 4.37 -1.1

Number of employees (FTE) 13,295 12,406 7.2 13,314 12,435 7.1

Income statement

Net sales outpatients 2,153 1,815 18.6 7,980 6,949 14.8

Net sales inpatients 1,674 1,659 0.9 6,387 6,178 3.4

Net sales other 250 251 -0.4 960 942 1.9

Net sales 4,077 3,725 9.4 15,327 14,069 8.9



EBITDA 348 289 20.4 1,114 1,061 5.0

Margin, % 8.5 7.8 7.3 7.5

EBITA 232 183 26.8 659 644 2.3

Margin, % 5.7 4.9 4.3 4.6

Profit for the period1 155 135 14.8 370 404 -8.4

Earnings per share after dilution2, SEK 1.09 0.96 2.62 2.86


Organic sales growth was driven by volume growth and a higher

case mix, while calendar effects impacted negatively on a net

basis (one working day less than in Q4 2016 in Nordic and

Germany and one more day in France). Price growth remained

limited, mainly following the French price reduction. Outpatient

volume growth was positive in all segments, while inpatient

volume growth in the Nordic and French segments did not fully

compensate for lower volumes in Germany. Acquisitions

impacted total sales growth positively.

Result growth was positively impacted by the French develop-

ment, supported by the staff and cost reduction program that was

implemented during autumn and the positive calendar effect.

The positive development was also driven by a continued good

performance in Nordic, supported by acquisitions performing in

line with expectations and a positive trend change following the

initiated actions in the primary care activities in Stockholm. The

result development was negatively impacted by the general price

reduction in France (MSEK -13) and the performance of the

German operations with lower inpatient volumes and insuffi-

cient cost adjustment. AVLOS decreased significantly during

the quarter, mainly related to improvements in France and

Germany. FTE growth was mainly driven by the acquisitions.

The operating result (EBIT) included amortization on surplus

values of MSEK -28 (-19) and restructuring and other non-

recurring items and acquisition related costs of MSEK 1 (-11).

The increase in amortizations was mainly related to the recent

acquisitions in Sweden and Denmark. Restructuring and other

non-recurring items were mainly related to restructuring

activities.

The profit for the period included net financial items of MSEK

-28 (-24) and income tax of MSEK -21 (7). Last year included a

revaluation of deferred income taxes in France amounting to

MSEK 26. The effective income tax rate was 12% (5%).

Earnings per share (EPS) after dilution was SEK 1.09 (0.96).

The development was mainly impacted by the higher operating

result, partly offset by the higher income tax.


Organic sales growth was driven by volume growth in Nordic

and France and a higher case mix in all segments. Price growth

was limited and impacted by the price reductions in France.

2017 comprised three working days less than 2016 in Nordic

and Germany and one working day less in France. Outpatient

volume growth was positive in all segments, while inpatient

growth in the Nordic segment did not compensate for the lower

volumes in France and Germany. Acquisitions impacted total

sales growth positively.

The result development was negatively impacted by the general

price reductions (MSEK -66) and the lower than expected

private market growth in France during 2017. Some French

hospitals were late adjusting their production resources and

productivity to the current market conditions and the actions

taken during spring and summer 2017 have impacted positively

from Q4 2017. The Nordic development was solid, supported by

acquisitions performing in line with expectations, but also from

a continued positive organic development. In terms of

productivity, AVLOS continued to be shortened but was

impacted by the higher case mix. FTE growth was driven by the

acquisitions but remained too high in France as the initiated

actions are not yet fully visible in the numbers.

The operating result (EBIT) included amortization on surplus

values of MSEK -107 (-75) and restructuring and other non-

recurring items and acquisition related costs of MSEK -12 (-11).

The increase in amortizations was related to acquisitions.

Restructuring and other non-recurring items were mainly related

to restructuring activities and transaction costs related to the

acquisitions made.

The profit for the period included net financial items of MSEK

-102 (-96) and income tax of MSEK -66 (-55). The effective

income tax rate was 15% (12%).

Earnings per share (EPS) after dilution was SEK 2.62 (2.86).

The EPS decrease was mainly due to increased amortizations on

surplus values and higher income tax.

1 Attributable to parent company shareholders. 2 Refer to note 2 for calculation of earnings per share (before and after dilution).


Development in the segments

Capio Nordic OCT - DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

KPI; Production, productivity and resources Number of outpatients 1,122.4 1,042.7 7.6 4,020.4 3,666.8 9.6

Number of inpatients 14.5 13.7 5.8 56.8 52.4 8.4

Number of patients, kNumber 1,136.9 1,056.4 7.6 4,077.2 3,719.2 9.6

AVLOS, Days 3.92 3.98 -1.5 3.93 4.01 -2.0


Income statement

Net sales outpatients 1,647 1,371 20.1 6,120 5,248 16.6

Net sales inpatients 632 593 6.6 2,399 2,181 10.0

Net sales other 45 45 0.0 176 155 13.5

Net sales 2,324 2,009 15.7 8,695 7,584 14.6



EBITDA 185 146 26.7 632 522 21.1

Margin, % 8.0 7.3 7.3 6.9

EBITA 146 108 35.2 459 371 23.7

Margin, % 6.3 5.4 5.3 4.9

Cash flow

Net capital expenditure -75 -45 -180 -168

In % of net sales 3.2 2.2 2.1 2.2

Capio Nordic October – December 2017

Organic sales growth was driven by volume growth in the

contract businesses and specialist free healthcare choice in

Sweden. Organic sales growth was positively impacted by a

higher case mix while one working day less than in Q4 2016

impacted growth negatively. The number of patient visits and

total sales growth was positively impacted by acquisitions.

Nordic’s result in Q4 was positively impacted by the initiated

actions in the primary care activities in Stockholm, Sweden. The

actions have turned the negative trend and in combination with

continued good performance in other business areas, supported

by acquired businesses performing in line with expectations, the

Nordic segment delivered a continued solid improvement.

AVLOS during the quarter decreased compared to 2016 despite

a higher case mix, mainly related to productivity improvements

in the specialist business. The number of FTEs increased mainly

from the acquisitions.

Net capital expenditure (net capex) increased compared to Q4

2016 due to a combination of expansion projects and timing

effects.

Capio Nordic January – December 2017

Organic sales growth was driven by volume growth in the

contract businesses and specialist free healthcare choice in

Sweden. Organic sales growth was also positively impacted by a

higher case mix while three working days less than in 2016

impacted growth negatively. The number of patient visits and

total sales growth was positively impacted by acquired

businesses.

The result development during 2017 was positively impacted by

the acquired businesses, which performed in line with expect-

ations, and from an organic improvement. Despite a higher case

mix, AVLOS decreased compared to 2016, mainly from prod-

uctivity improvements in the specialist business. The number of

FTEs increased mainly following the acquisitions.

Specialization in the form of bringing all orthopedic business in

Sweden into one organization has had a positive effect on

organic sales growth and productivity in 2017, especially during

the second half of the year. Also during 2017, the primary care

business in Sweden has launched digital visits and better support

for physical visits, which will be a key driver for improved

availability for patients as well as to drive patient growth in

coming periods.

Net capital expenditure (net capex) in 2017 was mainly related

to maintenance but with an increase of expansion capex in Q4

2017. The total capex spend also increased due to acquisitions.

Quarterly development from the fourth quarter 2016 to the fourth quarter 2017

Net sales and sales growth (RTM) EBITDA and margin (RTM) EBITA and margin (RTM)

0

3

6

9

12

15

4,000

5,000

6,000

7,000

8,000

9,000

Q4 Q1 Q2 Q3 Q4

2016 2017Net salesOrganic sales growth, %Total sales growth, %

MSEK %

4

5

6

7

8

9

200

300

400

500

600

700

Q4 Q1 Q2 Q3 Q4

2016 2017

EBITDA Margin, %

MSEK %

3

4

5

6

7

8

100

200

300

400

500

600

Q4 Q1 Q2 Q3 Q4

2016 2017

EBITA Margin, %

MSEK %


Development in the segments (cont.)

Capio France OCT - DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

KPI; Production, productivity and resources Number of outpatients 165.4 153.2 8.0 631.3 598.2 5.5

Number of inpatients 34.5 34.1 1.2 133.9 136.3 -1.8

Number of patients, kNumber 199.9 187.3 6.7 765.2 734.5 4.2

AVLOS, Days 4.30 4.52 -4.9 4.42 4.47 -1.1


Income statement

Net sales outpatients 451 411 9.7 1,671 1,574 6.2

Net sales inpatients 780 785 -0.6 3,006 2,986 0.7

Net sales other 203 198 2.5 758 753 0.7

Net sales 1,434 1,394 2.9 5,435 5,313 2.3



EBITDA 148 123 20.3 471 518 -9.1

Margin, % 10.3 8.8 8.7 9.7

EBITA 82 65 26.2 226 283 -20.1

Margin, % 5.7 4.7 4.2 5.3

Cash flow


In % of net sales 8.4 5.5 4.4 4.6

Capio France October – December 2017

Organic sales growth improved compared to the first nine

months, positively impacted by higher volumes. The volume

increase was partly explained by one more working day during

the quarter including improved timing of holidays at the end of

the year compared to last year, but also by an improved under-

lying volume growth. Organic sales growth was negatively

impacted by the general price reduction of 2.09% from March 1,

2017; in total impacting net sales and results in the quarter by

MSEK -13, corresponding to -1.0% of medical sales (including

a tariff payback of MSEK +6). At comparable exchange rates

total sales growth was 2.7% (0.4).

The Q4 margin increase in France was driven by higher organic

sales growth and the staff and cost reduction program that was

implemented during the second half of 2017. Q4 2017 included

one more working day including improved timing of holidays at

the end of the year, but also adjusted for the calendar effect, the

margin improved compared to Q4 2016. The development of the

hospitals that were late adapting to the lower volume growth

during the first nine months improved during Q4. The result was

negatively impacted by the lower price level (MSEK -13).

Net capex in the quarter was high, impacted by timing effects

and a refurbishment project in one of the hospitals.

Capio France January – December 2017

Organic sales growth was in line with market growth, but neg-

atively impacted by one working day less than 2016 in combina-

tion with a lower than expected private market growth. Latest

available market statistics indicate that the development for

private providers has slightly improved in recent months. The

organic sales growth and result was negatively impacted by

MSEK -66 from the general price reductions in 2017 and 2016,

corresponding to -1.4% of medical sales. At comparable

exchange rates total sales growth was 0.6% (3.0).

The result was negatively impacted by the lower price level

(MSEK -66) and the lower than expected private market growth

during the year. Some hospitals were late adjusting production

resources and productivity to the lower volume growth, and

were the main reason for the negative result development during

2017. The development of these hospitals improved during Q4

due to the staff and cost reduction program in combination with

improved sales growth.

The new specialized organization will be a driver for attracting

additional patients and doctors to our Rapid Recovery offering

(as proven for the hip and knee replacement business). This

combined with our efforts and focus on more efficient procure-

ment and improved IT support will drive growth and synergies

of scale over time.

Net capex was mainly related to maintenance and in line with last year.



0

1

2

3

4

5

1,000

2,000

3,000

4,000

5,000

6,000

Q4 Q1 Q2 Q3 Q4

2016 2017

Net salesOrganic sales growth, %Total sales growth, %

MSEK %

7

8

9

10

11

12

100

200

300

400

500

600

Q4 Q1 Q2 Q3 Q4

2016 2017

EBITDA Margin, %

MSEK %

3

4

5

6

7

8

0

100

200

300

400

500

Q4 Q1 Q2 Q3 Q4

2016 2017

EBITA Margin, %

MSEK %


Development in the segments (cont.)

Capio Germany OCT - DEC

JAN - DEC

2017 2016 Change, % 2017 2016 Change, %

KPI; Production, productivity and resources Number of outpatients 53.4 47.4 12.7 213.6 192.0 11.3

Number of inpatients 8.5 9.9 -14.1 33.6 37.6 -10.6

Number of patients, kNumber 61.9 57.3 8.0 247.2 229.6 7.7

AVLOS, Days 4.42 4.52 -2.2 4.56 4.54 0.4

Number of employees (FTE) 1,202 1,220 -1.5 1,224 1,221 0.2

Income statement

Net sales outpatients 55 33 66.7 189 127 48.8

Net sales inpatients 262 282 -7.1 982 1,011 -2.9

Net sales other 2 7 -71.4 26 34 -23.5

Net sales 319 322 -0.9 1,197 1,172 2.1

Total sales growth, % -0.9 10.3 2.1 2.4

Organic sales growth, % -2.3 5.5 0.0 4.0

EBITDA 35 43 -18.6 98 108 -9.3

Margin, % 11.0 13.4 8.2 9.2

EBITA 27 36 -25.0 68 83 -18.1

Margin, % 8.5 11.2 5.7 7.1

Cash flow


In % of net sales 4.4 3.1 3.6 3.0

Capio Germany October – December 2017

Organic sales growth was negatively impacted by lower in-

patient volumes and one working day less than in Q4 2016.

However, a significantly higher case mix and slightly higher

prices impacted growth positively. The lower inpatient volumes

were mainly due to the divestment of the hospital in Weissen-

burg and lower production in some of the general hospitals.

Outpatient volumes were positively impacted by the acquisition

of the eye surgery clinic in Bremen and additional outpatient

authorizations. The Bremen clinic has a higher price per out-

patient treatment than the Capio Germany average, which

impacted outpatient sales growth positively. At comparable

exchange rates total sales growth was -1.6% (5.5).

Result and margin were negatively impacted by the lower inpat-

ient volumes. The negative result development should also be

seen in relation to a very strong Q4 2016 in terms of sales and

result. The AVLOS development was impacted by a

significantly higher case mix. The number of FTEs decreased

following productivity improvements combined with the net

effect of the divestment and acquisition made during 2017.

Net capex was mainly related to maintenance and the finaliz-

ation of a refurbishment project in one of the general hospitals.

Capio Germany January – December 2017

Organic sales growth was positively impacted by higher out-

patient volumes, higher case mix and slightly higher prices,

while it was negatively impacted by three working days less

than in 2016 and lower inpatient volumes. The lower inpatient

volumes were mainly due to the divestment of the hospital in

Weissenburg and insufficient short-term doctor capacity in some

of the specialist clinics. Outpatient volumes were positively

impacted by the acquisition in Bremen (consolidated from April

1, 2017) and additional outpatient authorizations. The Bremen

clinic has a higher price per outpatient treatment than the Capio

Germany average, which impacted outpatient sales growth posi-

tively. At comparable exchange rates total sales growth was

0.4% (1.1).

Result and margin were negatively impacted by the lower

inpatient volumes, and a negative net effect from the acquisi-

tion/divestment. Actions are being taken both to improve

volumes and to adjust costs. This is also made to mitigate the

coming price reduction concerning parts of the specialized

business in 2018. The AVLOS development was impacted by

the significantly higher case mix and growth of treatments with

longer stays (e.g. geriatrics). Case mix adjusted AVLOS

continued to be shortened. The number of FTEs was in line with

last year.

Net capex was mainly related to maintenance and the finaliz-

ation of a refurbishment project in one of the general hospitals.



0

2

4

6

8

10

700

800

900

1,000

1,100

1,200

Q4 Q1 Q2 Q3 Q4

2016 2017

Net sales

Organic sales growth, %

Total sales growth, %

MSEK %

5

6

7

8

9

10

70

80

90

100

110

120

Q4 Q1 Q2 Q3 Q4

2016 2017

EBITDA Margin, %

MSEK %

5

6

7

8

9

10

50

60

70

80

90

100

Q4 Q1 Q2 Q3 Q4

2016 2017

EBITA Margin, %

MSEK %


Cash flow

OCT - DEC

JAN - DEC

Capio Group 2017 2016 2017 2016

Net debt opening -3,704 -3,149 -2,872 -2,936 EBITA 232 183 659 644

Capital expenditure -253 -142 -525 -464 Divestments of fixed assets 36 4 48 6

Net capital expenditure -217 -138 -477 -458 In % of net sales 5.3 3.7 3.1 3.3 Add-back depreciation 116 106 455 417

Net investments -101 -32 -22 -41 Change in net customer receivables -37 -39 -121 -33 Other changes in operating capital employed 151 153 -72 -93

Operating cash flow 245 265 444 477

Cash conversion, % 105.6 144.8 67.4 74.1 Income taxes paid -22 -8 -92 -48

Free cash flow before financial items 223 257 352 429 Cash conversion, % 96.1 140.4 53.4 66.6 Net financial items paid -21 -21 -94 -88

Free cash flow after financial items 202 236 258 341

Cash conversion, % 87.1 129.0 39.2 53.0 Acquisitions and divestments of companies -100 -9 -785 -28 Received/paid restructuring and other non-recurring items -7 69 -18 15 Shareholder transactions 1 0 -129 -73

Net cash flow 96 296 -674 255

Cash conversion, % 41.4 161.7 -102.3 39.6 Other items -83 -19 -145 -191

Net debt closing -3,691 -2,872 -3,691 -2,872

Cash flow October – December 2017

Capex was high during the quarter, impacted by timing effects

of maintenance capex and some expansion projects in Nordic

and France supporting business growth. Divestments were

related to non-core assets in France. Depreciation increased to

last year following higher capex and recent acquisitions. Cha-

nges in net customer receivables and other operating capital

employed were in line with Q4 2016 and impacted by normal

seasonal effects. The increase of income tax payments were

mainly related to recent acquisitions.

The outflow from acquisitions was related to recent acquisitions

and the investment of MSEK 49 in e-health provider Doctrin

AB. Received/paid restructuring and other non-recurring items

in the quarter were mainly related to the ongoing projects in

France and settlement of items from prior periods.

Other items affecting net debt were mainly related to changes in

exchange rates and some new finance leases. The change to Q4

2016 was mainly related to changes in exchange rates.

Cash flow January – December 2017

Capex was mainly maintenance related and in line with 2016

due to higher capex during Q4 2017. Divestments were related

to some non-core assets in France. Depreciation increased

compared to last year following higher capex during 2016 and

2017 and recent acquisitions. The change in net customer

receivables was impacted by higher activity and a slightly higher

DSO. The increase of income tax payments were mainly related

to recent acquisitions and higher tax installments in France.

The outflow from acquisitions was mainly related to the seven

acquisitions made during 2017 and the investment of in total

MSEK 62 in e-health provider Doctrin AB. The outflow was

partly offset by proceeds from the divestment of the hospital in

Weissenburg (Germany). Received/paid restructuring and other

non-recurring items were mainly related to the ongoing

development projects in France including divestments proceeds

and settlement of items from prior periods. Shareholder

transactions mainly comprised the dividend paid.

The change in other items affecting net debt compared with last

year was mainly related to changes in exchange rates.


Net capex and in % of net sales (RTM) Operating CF and cash conversion (RTM) Free CF after fin. items and cash conv. (RTM)

0

1

2

3

4

5

0

100

200

300

400

500

Q4 Q1 Q2 Q3 Q4

2016 2017

Net capital expenditure

In % of sales

MSEK %

50

70

90

110

130

150

200

300

400

500

600

700

Q4 Q1 Q2 Q3 Q4

2016 2017

Operating cash flow

Cash conversion, %

MSEK %

30

40

50

60

70

80

0

100

200

300

400

500

Q4 Q1 Q2 Q3 Q4

2016 2017

Free cash flow after fin. items

Cash conversion, %

MSEK %


Capital employed and financing

2017

2016

Capio Group 31 Dec 31 Dec

Operating fixed assets (excl. real estate) 1,640 1,414

Net customer receivables 1,474 1,263

Other operating assets and liabilities -2,106 -1,934

Operating capital employed 1 1,008 743

In % of net sales 6.6 5.3

Operating real estate 771 811

Operating capital employed 2 1,779 1,554

In % of net sales 11.6 11.0

Other capital employed 7,668 6,790

Capital employed 9,447 8,344

Return on capital employed, % 7.0 7.7

Net debt 3,691 2,872

Financial leverage 3.3 2.7

Equity 5,756 5,472

Total financing 9,447 8,344

Capital employed as of December 31, 2017

The increase in operating fixed assets compared with December

31, 2016 was mainly related to consolidation of the recent acq-

uisitions. The increase in net customer receivables was mainly

due to higher activity in December 2017 compared with

December 2016, effects from acquisitions made and a slightly

higher DSO. The change in other operating assets and liabilities

was mainly due to acquisitions. The decrease of operating real

estate was impacted by divestments of non-core assets in

France.

Compared with December 31, 2016, other capital employed was

impacted by effects from completed acquisitions, increasing

goodwill and acquisition related intangible fixed assets by

MSEK 1,011. The return on capital employed was 7.0% (7.7 as

of December 31, 2016), negatively impacted by effects from

acquisitions (the seven acquisitions during 2017 were not yet

fully contributing to the RTM EBITA).

Financing as of December 31, 2017

Net debt increased compared with December 31, 2016, mainly

impacted by the net effect from acquisitions and divestments of

MSEK 785 and the dividend paid of MSEK 127. The visible

financial leverage increased from 2.7x to 3.3x compared with

December 31, 2016, impacted by acquisitions not yet fully

contributing to the RTM EBITDA.

The financing facility that was set in place in conjunction with

the IPO contains two financial covenants; one covenant with a

maximum financial leverage and one covenant with a minimum

interest cover. As of December 31, 2017 Capio was in compl-

iance with and had satisfactory headroom under both covenants.


Operating capital employed and in % of net sales

Capital employed and ROCE

Net debt and financial leverage

9

10

11

12

13

14

1,300

1,400

1,500

1,600

1,700

1,800

Q4 Q1 Q2 Q3 Q4

2016 2017

Operating capital employed

In % of net sales

MSEK %

5

6

7

8

9

10

5,000

6,000

7,000

8,000

9,000

10,000

Q4 Q1 Q2 Q3 Q4

2016 2017

Capital employed

Return on capital employed

MSEK %

2.0

2.5

3.0

3.5

4.0

2,000

2,500

3,000

3,500

4,000

Q4 Q1 Q2 Q3 Q4

2016 2017

Net debt

Financial leverage

MSEK x


Significant events during the period

Acquisitions, January – December 2017

Acquisition of the German eye specialist clinic Augenklinik Universitätsallee (Germany)

As announced on March 24, 2017, Capio has acquired 100% of

the shares in Medizinisches Versorgungszentrum Universitäts-

allee GmbH, including subsidiaries (“Augenklinik Universitäts-

allee”). The clinic is located in Bremen and specialized in opht-

halmology and offers complex treatments of all parts of the eye,

including cataract surgery. Net sales in 2016 were MEUR 9.6

(MSEK 91). The acquisition of Augenklinik Universitätsallee

represents a new specialty for Capio in Germany and streng-

thens the healthcare offering of the German operations. Enter-

prise value was approximately MEUR 10, corresponding to

about MSEK 95. The acquisition also includes an agreed

possible future earn-out of maximum MEUR 3 based on the

future financial performance. The acquisition is included in

Capio from April 1, 2017. The acquisition contributed positively

to Capio’s earnings during 2017.

Acquisition of the Swedish healthcare group Backa Läkarhus (Sweden)

As announced on January 3, 2017, Capio has acquired 100% of

the shares in Backa Läkarhus AB (”Backa”). Backa now

operates ten primary care centers and nine rehabilitation centers

in Region Västra Götaland, and one light A&E center in Region

Halland. In total, Backa has c. 80,000 listed patients, and in

2016 net sales were MSEK 370. Enterprise value was MSEK

300 and yearly synergy effects of in total approximately MSEK

10 are expected to be realized in 2017 and 2018. The acquisition

of Backa complements and strengthens Capio’s presence and

medical offering within primary care in the western parts of

Sweden. The acquisition is included in Capio from March 1, 2017.

The acquisition contributed positively to Capio’s earnings

during 2017.

Closing of the acquisition of the Danish hospital group CFR Hospitaler (Denmark)

In December 2016, Capio agreed to acquire 70% of the shares in

CFR Hospitaler A/S (“CFR”) and the acquisition was closed

during January 2017. Enterprise value was MDKK 199 (MSEK

253) for 70% of CFR and Capio has the option to acquire (and

the non-controlling interest has an option to sell) the remaining

30% of the shares after two years. The acquisition is included in

Capio to 100% from January 1, 2017, without recognition of any

non-controlling interest as the probability is high that the option

will be exercised. Estimated enterprise value for 100% of CFR

is MDKK 344 (MSEK 443). The acquisition contributed

positively to Capio’s earnings during 2017.

Selected financials for acquisitions closed as of December 31, 2017 CFR Backa Other4 Total

Share of voting rights and equity, % 701 100

Date of consolidation January 1 March 1

Capio segment Nordic Nordic

Country of operation Denmark Sweden

Enterprise value 4432 300 240 983

Yearly net sales (2016) 366 370 258 994

Contribution to net sales since consolidation 398 325 131 854

Contribution to operating result (EBIT) since consolidation 45 16 9 70

Goodwill 3543 222 1565 732

Acquisition related intangible assets 1133 100 61 274

1 The acquired share is 70%, with an option for Capio to acquire (and the non-controlling interest has an option to sell) the remaining 30% after two years. Since it is highly probable that the option to acquire the remaining shares will be exercised, the company is consolidated to 100% from January 1, 2017, without recognition of any non-controlling interest.

2 Estimated enterprise value for 100% of the shares in CFR Hospitaler A/S.

3 Goodwill and acquisition related intangible assets related to 100% of the shares.

4 Including the acquisitions of Augenklinik Universitätsallee, Globen, OPA Privathospital, Orbita and Viborg Privathospital. The acquired share for Orbita is 51%, with an option for Capio to acquire (and the non-controlling interest has an option to sell) the remaining 49% after four years. Since it is highly probable that the option will be exercised, Orbita is consolidated to 100% from October 2, 2017.

5 Including negative goodwill of MSEK 5 recognized as a gain in profit and loss under other non-recurring items.

Purchase price allocations are still preliminary. For more information about the consolidated acquisitions refer to note 5.

Other significant events, January – December 2017 Tariffs for healthcare reimbursement in France 2017

On March 8, 2017 the French government announced that tariffs

to reimburse healthcare were being decreased by 2.09% from

March 1, 2017, compared to 2016 tariff levels. The price

reduction was in line with Capio’s expectations for the French

market for 2017. Capio’s impact of the price reduction,

calculated based on the price change per treatment and last

year’s case mix, is in line with the 2.09% price reduction

communicated earlier. The new prices are valid until February

28, 2018.


Other events during the period

Capio continues to invest in digital healthcare

As announced on December 11, 2017, Capio has further

strengthened its involvement in the development of digital

healthcare solutions by investing MSEK 49 in the new share

issue of MSEK 100 that was announced by the e-health provider

Doctrin on the same day. By investing, Capio is participating in

the development of new digital applications based on artificial

intelligence, increasing efficiency in healthcare provision and

improving patient experience. Capio has previously invested

MSEK 13 in Doctrin and following the new share issue, the

Group’s total investment is MSEK 62. The minority share is not

expected to have any significant financial impact for the Group in 2018.

Acquisition of Viborg Privathospital (Denmark)

As announced on October 16, 2017, Capio has acquired Viborg

Privathospital and MR Scanner Aarhus in an asset deal. The

clinic in the city of Viborg is primarily specialized in orthop-

edics and general surgery, while the operations at MR Scanner

Aarhus comprise radiological examinations. Total net sales in

2017 were about MDKK 36. The acquisition is complementary

to Capio’s existing operations on Jutland and some synergies are

expected with the units in Skørping and Aarhus. The purchase

price was MDKK 24. The acquisition is included in Capio from

November 1, 2017, and has not significantly impacted the Group’s earnings in 2017.

Acquisition of a Norwegian eye specialist clinic (Norway)

As announced on September 29, 2017, Capio has acquired 51%

of the shares in Orbita Øyelegesenter AS, including subsidiaries

(“Orbita”) with an option for Capio to acquire (and the non-

controlling interest has an option to sell) the remaining 49% of

the shares after four years. The clinic is specialized in

ophthalmology and offers a broad range of eye treatments,

including cataract and strabismus surgery. The acquisition of

Orbita represents a new specialty for Capio in Norway and

strengthens the healthcare offering of the Norwegian operations.

Net sales in 2017 were about MNOK 20. The acquisition is

included in Capio from October 2, 2017 to 100%, since the

probability is high that the option to buy remaining 49% of the

shares will be exercised. The acquisition has not significantly

impacted the Group’s earnings in 2017.

Acquisition of a Danish orthopedic specialist clinic in Aarhus (Denmark)

As announced on July 3, 2017, Capio has acquired 100% of the

shares in GHP OPA Privathospital Aarhus A/S (“OPA Privat-

hospital”). The clinic is primarily specialized in orthopedic

surgery and is well-known for spine surgery, children orthop-

edics and sports injuries. The acquisition strengthens Capio’s

orthopedic offering in Denmark and expands its footprint to four

out of five Danish health regions. In 2016, OPA Privathospital

had net sales of MDKK 29. The acquisition is included in Capio

from June 30, 2017 and has not significantly impacted the Group’s earnings in 2017.

Sale of shares in Capio AB (publ) by Nordic Capital

On May 11, 2017 Nordic Capital divested its total remaining

shareholding in Capio AB of 26,605,644 shares (18.85% of the

votes) to institutional investors.

Acquisition of the Swedish eye specialist clinic Globen Ögonklinik (Sweden) As announced on April 24, 2017, Capio has acquired 100% of

the shares in Globen Ögonklinik (PanSyn Sweden AB, including

subsidiaries) (“Globen”). The clinic is specialized in ophthal-

mology and offers complex eye treatments, including cataract

surgery, RLE (Refractive Lens Exchange) and refractive laser

treatments. Net sales in 2016 were MSEK 75. The acquisition

further strengthens Capio’s healthcare offering within ophthal-

mology and expands the Group’s footprint in the Nordics.

Enterprise value was MSEK 75 and the acquisition is included

in Capio from May 31, 2017. The acquisition has not significan-

tly impacted the Group’s earnings in 2017.

Psychiatric contract in Stockholm (Sweden)

In September 2016, it was announced that Capio had been

awarded a new contract and lost one of the current contracts in

Stockholm. Capio appealed the lost contract and the current

contract was extended. In April 2017, the Administrative Court

rejected the appeal and Capio has decided to end the process and

not appeal further. Hence, the psychiatric contract was handed

over to a new provider from February 1, 2018. The lost contract

is not expected to significantly impact the Group’s earnings development going forward.

Capio establishes a Swedish Commercial Paper Program

As announced on March 20, 2017, Capio has established an

MSEK 2,000 Swedish Commercial Paper Program with four

banks, of which DNB is acting as arranger and dealer and SEB,

Danske Bank, and Nordea are acting as dealers.

The Commercial Paper Program is mainly used for short-term

financing of working capital needs and is a complement to the

Group´s MEUR 500 Multicurrency Term and Revolving

Facilities Agreement that was established in connection with the

IPO in 2015.

Divestment of Klinik an der Weissenburg (Germany)

On February 28, 2017, Capio divested the hospital in Weissen-

burg, including the rehabilitation and nursing activities, as it was

not part of the core business of Capio Germany. Enterprise value

was MSEK 32 (MEUR 3.3) and in 2016 the hospital contributed

MSEK 67 to the Group’s net sales. The divestment has not significantly impacted the Group’s earnings development 2017.

Sale of shares in Capio AB (publ) by Apax Europe

On February 24, 2017 Apax Europe divested its total remaining

shareholding in Capio AB of 15,176,793 shares (10.75% of the

votes) to institutional investors.


Significant events after the period

At the release of this full year report there were no significant

events after the period to be reported.

Other events after the period

Amend and extend of Revolving Credit Facility As announced on January 17, 2018, Capio has completed an

amendment and extension of its MEUR 235 revolving credit

facility (RCF), which is part of the total Group financing facility

of MEUR 500. The agreement includes a 2.5 year extension as

well as an increase of the RCF of MEUR 108. All other terms

have remained unchanged. The agreement will not significantly

impact the Group’s financial items in 2018.

Capio awarded contract to run specialist care in Motala In January 2018, it was announced that Capio has been awarded

a new contract to run the orthopedic, general surgery and anesth-

esia operations at the hospital in Motala, Sweden. Subject to the

appeal period, expiring on February 9, Capio is expected to sign

a four year agreement with Region Östergötland, with an option

for the region to extend the contract for up to another four years,

effective from October 1, 2018. The agreement is not expected

to significantly impact the Group’s earnings in 2018.

Risks and uncertainties

Political, operational and financial risks

The Group is exposed, through its international operations, to a

variety of risks that may give rise to fluctuation in profit/loss,

other comprehensive income and cash flow. Key areas of risk

encompass political, operational and financial risks. Various

policies govern the management of key risks. Refer to the Capio

Annual Report 2016 for a further description of risks and risk

management.

Seasonal variations

The Group’s net sales and operating result fluctuate across the

year, mainly due to lower elective (planned) activity during the

summer period and lower activity during the holiday season at

the end of the year. Operations are also impacted by e.g. Easter

holiday and bank holidays, whichever could occur in different

months/quarters in different years. The Group’s cash flow is

normally stronger in the second half of the year, impacted by

some seasonal effects including improvements in working

capital. The above factors should be taken into consideration

when making assessments on the basis of interim financial

information.


Condensed financial reports

Condensed statement of comprehensive income – Capio Group

OCT - DEC

JAN - DEC

2017 2016 2017 2016

Net sales 4,077 3,725 15,327 14,069

Direct costs -3,340 -3,079 -12,763 -11,697

Gross result 737 646 2,564 2,372

Administrative expenses -505 -463 -1,905 -1,728

EBITA 232 183 659 644

Amortization on surplus values -28 -19 -107 -75

Restructuring and other non-recurring items and acquisition related costs 1 -11 -12 -11

Operating result (EBIT) 205 153 540 558

Net interest -21 -19 -78 -75

Other financial items -7 -5 -24 -21

Profit after financial items 177 129 438 462

Income tax -21 7 -66 -55

Profit for the period 156 136 372 407

EBITDA 348 289 1,114 1,061

Other comprehensive income that will be reclassified into profit/loss:

Hedge effect in foreign investment -6 -3 -16 30

Translation differences 111 -20 116 115

Revaluation reserve, convertible debenture loans - 0 - 10

Income taxes related to other comprehensive income - 0 - -2

Other comprehensive income that will be reclassified into profit/loss, net of income tax 105 -23 100 153

Other comprehensive income that will not be reclassified into profit/loss:

Revaluation of defined benefit plans -47 -32 -66 -27

Income taxes related to other comprehensive income 10 6 13 5

Other comprehensive income that will not be reclassified into profit/loss, net of income tax -37 -26 -53 -22

Total comprehensive income for the period, net of income tax 224 87 419 538

Profit attributable to:

Parent Company shareholders 155 135 370 404

Non-controlling interest 1 1 2 3

156 136 372 407

Total comprehensive income attributable to:

Parent Company shareholders 222 86 418 535

Non-controlling interest 2 1 1 3

224 87 419 538

Earnings per share1:

Earnings per share before dilution, SEK 1.10 0.96 2.62 2.86

Earnings per share after dilution, SEK 1.09 0.96 2.62 2.86

1 Refer to note 2 for calculation of earnings per share (before and after dilution).


Condensed financial reports (cont.)

Condensed balance sheet – Capio Group

2017

2016

31 Dec 31 Dec

Intangible assets 8,210

7,105

Tangible fixed assets 2,465

2,358

Financial fixed assets 712 629

Total fixed assets 11,387

10,092

Inventories 267

248

Accounts receivables - trade 889

712

Short-term investments and interest-bearing receivables 2

2

Cash and cash equivalents 283

321

Other current assets 1,219

1,157

Total current assets 2,660 2,440

Total assets 14,047

12,532

Equity attributable to Parent Company shareholders 5,731

5,443

Equity attributable to non-controlling interest 25 29

Total equity 5,756

5,472

Provisions for employee benefits 376

365

Deferred income tax liabilities 608

600

Long-term liabilities, interest-bearing 3,203

3,162

Long-term liabilities and provisions, non-interest-bearing 367 103

Total long-term liabilities and provisions 4,554

4,230

Current liabilities, interest-bearing 832

90

Accounts payable – trade 852

795

Current income tax liabilities 2

27

Accrued expenses and prepaid income 1,586

1,437

Other current liabilities 465

481

Total current liabilities 3,737 2,830

Total liabilities, provisions and shareholders’ equity 14,047

12,532



Condensed statement of cash flow – Capio Group

OCT - DEC

JAN - DEC

2017 2016 2017 2016


Reversal of depreciations/amortizations and impairments 143 127 567 499

Items not affecting cash flow1 2 -1 -15 -28

Interest received and paid -21 -23 -94 -93

Taxes paid -22 -8 -92 -48

Cash flow from operating activities before changes in working capital 307 248 906 888

Change in net working capital 165 189 -150 -90

Cash flow from operating activities 472 437 756 798

Acquisition of companies -45 -5 -703 -34

Divestment of companies 1 1 33 24

Payment to non-controlling interest -1 0 -8 -2

Acquisition/divestment of financial fixed assets -49 0 -62 14

Investments in tangible and intangible fixed assets -253 -143 -525 -465

Divestments of tangible fixed assets 4 4 48 12

Cash flow from investment activities -343 -143 -1,217 -451

Increase/decrease in external loans 35 -19 737 84

Amortizations -58 -25 -193 -146

Dividend - 0 -127 -71

Transaction costs for the IPO and new share issue - -6 - -8

Cash flow from financing activities -23 -50 417 -141

Cash flow from operations 106 244 -44 206

Currency differences in cash and cash equivalents 4 2 6 -3

Change in cash and cash equivalents 110 246 -38 203

Opening balance, cash and cash equivalents 173 75 321 118

Closing balance, cash and cash equivalents 283 321 283 321

1 Related to capital gains.



Changes in shareholders’ equity – Capio Group

Share

capital

Other contributed

capital Other

reserves Translation

reserve Retained earnings

Non-controlling

interest

Share-holders'

equity

Opening balance at January 1, 2016 72 710 -133 234 4,098 20 5,001

Profit for the year 404 3 407

Other comprehensive income -14 145 131

Total comprehensive income 0 0 -14 145 404 3 538

Dividend -71 -71

Dividend to non-controlling interest -2 -2

Change in non-controlling interest 6 6

Total transactions with shareholders 0 0 0 0 -73 6 -67

Closing balance at December 31, 2016 72 710 -147 379 4,429 29 5,472

Share

capital

Other contributed

capital Other

reserves Translation

reserve Retained earnings

Non-controlling

interest

Share-holders'

equity

Opening balance at January 1, 2017 72 710 -147 379 4,429 29 5,472

Reclassification1 8 147 -155

Profit for the year 370 2 372

Other comprehensive income 101 -53 -1 47

Total comprehensive income 0 0 0 101 317 1 419 Dividend -127 -127

Dividend to non-controlling interest -2 -1 -3

Change in non-controlling interest -1 -4 -5

Total transactions with shareholders 0 0 0 0 -130 -5 -135

Closing balance at December 31, 2017 72 718 0 480 4,461 25 5,756

1 Reclassification is mainly related to historical actuarial gains and losses from defined benefit plans.


Parent Company

Condensed statement of comprehensive income – Parent Company

OCT - DEC JAN - DEC

2017 2016 2017 2016

Net sales 7 6 26 26

Gross result 7 6 26 26

Administrative expenses -12 -8 -43 -33

Operating profit/loss -5 -2 -17 -7

Financial items 146 75 138 73

Profit/loss after financial items 141 73 121 66

Income tax 0 - 0 -

Profit/loss for the period 141 73 121 66

Other comprehensive income - - - -

Total comprehensive income for the period, net of income tax 141 73 121 66

Condensed balance sheet – Parent Company

2017

2016

31 Dec 31 Dec

Fixed assets 4,074 4,012

Current assets 854 923

Total assets 4,928 4,935

Equity 4,762 4,768

Liabilities 166 167

Total equity and liabilities 4,928 4,935

The Group’s Parent Company, Capio AB (publ), is not involved

in any operating activities. It only provides group management

functions.


The Parent Company’s net sales and gross result in the quarter

derive from management fees charged to subsidiaries. The

administrative expenses in the quarter were mainly related to

personnel costs.

Financial items in the quarter were related to a group contribu-

tion received (MSEK 148) and to interest costs for the conver-

tible debenture loans issued during the third quarter 2016.


The Parent Company’s net sales and gross result in 2017 derive

from management fees charged to subsidiaries. The

administrative expenses were mainly related to personnel costs.

Financial items were related to a group contribution received

(MSEK 148) and to interest costs for the convertible debenture

loans issued during the third quarter 2016.

As of December 31, 2017

The Parent Company’s fixed assets as of December 31, 2017

amounted to MSEK 4,074 (4,012 as of December 31, 2016) and

mainly comprised shares in subsidiaries. The increase compared

to December 31, 2016 was mainly explained by an investment in

Doctrin AB. Current assets as of December 31, 2017 amounted

to MSEK 854 (923 as of December 31, 2016) and mainly

comprised of cash and cash equivalents and a receivable related

to the group contribution received. The change in current assets

compared to December 31, 2016 was mainly explained by the

group contribution received (MSEK 148), the payment of

dividend to shareholders during the second quarter 2017 (MSEK

-127) and the investment in Doctrin AB of MSEK 62.

Shareholders’ equity as of December 31, 2017 amounted to

MSEK 4,762 (4,768 as of December 31, 2016). The change

compared to December 31, 2016 was mainly a net of the

comprehensive income for the period and the dividend paid. The

Parent Company’s liabilities amounted to MSEK 166 as of

December 31, 2017 (167 as of December 31, 2016) and were

mainly related to the convertible debenture loans and personnel

related accruals.


Notes

1. Accounting principles

All amounts in the full year report are stated in millions of

Swedish kronor (MSEK) if not else stated.

This report has been prepared in accordance with IAS 34

Interim Financial Reporting and applicable rules in the Swedish

Annual Accounts Act. Capio’s consolidated financial statements

are prepared in accordance with International Financial

Reporting Standards (IFRS) as endorsed by the European Union,

the Swedish Annual Accounts Act and the Swedish Financial

Reporting Board’s standard RFR 1 Supplementary Accounting

Rules for Groups. Disclosures in accordance with IAS 34.16A

appear in addition to the interim financial statements also in

other parts of the interim report. The applied accounting

principles are available in Capio’s Annual Report 2016 and also

on the Group’s website www.capio.com. The Parent Company’s

financial statements are prepared in accordance with chapter

nine of the Swedish Annual Accounts Act and the Swedish

Financial Reporting Board’s standard RFR 2 Accounting for

Legal Entities.

Effects of amended and revised IFRS 2017 or later

A number of newly issued and changed IFRS have yet to be

made effective and have therefore not been applied in the

Group’s consolidated financial statements. IFRS that have the

potential to affect the Group’s consolidated financial statements

are listed below.

IFRS 9 Financial Instruments

IFRS 9 encompasses the accounting standards for financial

assets and liabilities, and replaces IAS 39 Financial Instruments:

Recognition and Measurement. IFRS 9 will be applied for

annual periods beginning on or after January 1, 2018. The

implementation of IFRS 9 will, in summary, cause the following

changes to the classification and measurement of financial

instruments:

Holdings of equity instruments have historically been reported

at cost, but will in accordance with IFRS 9, be valued at their

fair value through profit and loss or other comprehensive

income. The revaluation of holdings to fair value will have no

effect since the reported value does not deviate significantly

from the fair value. In accordance with IFRS 9, a credit risk

reserve should be booked based on expected credit losses. The

implementation of a model that takes into account the expected

credit loss will not result in any change in the value of the

reserve. This is an effect of the fact that Capio historically has

included a variable of expected credit losses in the reserve.

Based on the above the Group can conclude that the total effect

from IFRS 9 in equity as of January 1, 2018 will be MSEK 0.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 will be effective for annual periods beginning on or

after January 1, 2018 and replaces all existing requirements with

regards to revenue recognition with a new model for the

recognition of revenue. The standard is based on the principle

that revenue should be recognized when the control over

delivered goods or services has been transferred from the seller

to the customer. The Group has chosen to adopt the new

standard as of January 1, 2018 in accordance with the transition

option of modified retrospective application. During 2017, the

Group has evaluated the impact from the new accounting

principle on the consolidated financial statements. The

evaluation has been made by identifying and analyzing essential

customer contracts for the Group companies based on the five-

step model presented in IFRS 15. Capio is applying the same

business model in all segments with minor differences and the

single most important performance obligation is to provide

healthcare services to patients. Hence, the identified effect of

implementing IFRS 15 is the same independent of segment. As

part of our performed work we have concluded that the main

revenue streams are outpatients, inpatients and other. Other

revenue is mainly small services performed and delivered in

association to the medical care. Currently the revenue for

outpatients is recognized at the point in time when the

healthcare is provided and for inpatients the revenue is

recognized over time. Revenue is recognized to the amount that

is expected to be received in exchange for the delivered

healthcare services. The transaction price is based on tariffs (fee

for services or bundled payments) or capitation (fixed

fee/patient) for the services performed for all segments. For

contracts that include price adjustments such as production caps,

service guarantees or reimbursements, revenue is recognized

initially when there is no risk for revenue adjustment in the next

period. Based on the above the Group can conclude that IFRS

15 will not cause any quantifiable effect in equity as of January

1, 2018. However, there will be an increase with regards to the

disclosure requirements in annual reports as well as in interim

reports from January 1, 2018.

IFRS 16 Leases

IFRS 16 replaces IAS 17 and will be effective for annual periods

beginning on or after January 1, 2019. The Group has significant

lease agreements for properties where the healthcare business is

conducted, which means the implementation of IFRS 16 will

have a significant effect on the Group’s consolidated financial

statements. The Group is currently analyzing the potential effect

of IFRS 16.

Other significant estimates

For critical estimates and assessments, provisions and

contingent liabilities refer to Capio’s Annual Report 2016. If no

significant events have occurred relating to the information in

the 2016 Annual Report, no further comments are made in the

full year report.

http://www.capio.com/


Notes (cont.)

2. Earnings per share

OCT - DEC

JAN - DEC

BEFORE DILUTION 2017 2016 2017 2016

Average number of outstanding shares, Number1 141,159,661 141,159,661 141,159,661 141,159,661

Profit for the period attributable to Parent Company shareholders net of income tax, MSEK 155 135 370 404

Adjusted profit for the period attributable to Parent Company shareholders net of income tax, MSEK2 179 161 465 467

Earnings per share before dilution, SEK2 1.10 0.96 2.62 2.86

Adjusted earnings per share before dilution, SEK2 1.27 1.14 3.29 3.31 1 Total number of outstanding shares as of December 31, 2017 was 141,159,661 (all common shares). 2 Refer to definitions on page 34.

OCT - DEC

JAN - DEC

AFTER DILUTION 2017 2016 2017 2016

Average number of outstanding shares, Number1 144,094,983 143,990,437 144,094,983 142,575,049

Profit for the period attributable to Parent Company shareholders net of income tax, MSEK 157 138 378 408

Adjusted profit for the period attributable to Parent Company shareholders net of income tax, MSEK2 181 164 473 471

Earnings per share after dilution, SEK2 1.09 0.96 2.62 2.86

Adjusted earnings per share after dilution, SEK2 1.26 1.14 3.28 3.30 1 Average number of outstanding shares after dilution including effects from the convertible debenture loans issued during the third quarter 2016. 2 Refer to definitions on page 34.

Reconciliation of reported and adjusted profit

OCT - DEC

JAN - DEC

BEFORE DILUTION, MSEK 2017 2016 2017 2016

Profit for the period attributable to Parent Company shareholders net of income tax 155 135 370 404

Amortization on surplus values 28 19 107 75

Restructuring and other non-recurring items and acquisition related costs -1 11 12 11

Income tax related to adjustments -3 -4 -24 -23 Adjusted profit for the period attributable to Parent Company shareholders net of income tax 179 161 465 467

OCT - DEC

JAN - DEC

AFTER DILUTION, MSEK 2017 2016 2017 2016

Profit for the period attributable to Parent Company shareholders net of income tax 157 138 378 408

Amortization on surplus values 28 19 107 75

Restructuring and other non-recurring items and acquisition related costs -1 11 12 11

Income tax related to adjustments -3 -4 -24 -23 Adjusted profit for the period attributable to Parent Company shareholders net of income tax 181 164 473 471


Notes (cont.)

3. Restructuring and other non-recurring items and acquisition related costs

OCT - DEC

JAN - DEC

MSEK 2017 2016 2017 2016

Divestment of operations1 -2 0 15 27

Restructuring projects including redundancies2 -1 -4 -10 -22

Impairments2 0 4 -5 -1

Other3 6 0 5 -1

Acquisition related costs4 -2 -11 -17 -14

Restructuring and other non-recurring items and acquisition related costs 1 -11 -12 -11

1 Divestment of operations in 2017 were mainly related to a capital gain from the divestment of the hospital in Weissenburg (Germany). Divestments of operations in 2016 were mainly related to ongoing structural projects in the French segment, i.e. the ongoing constructions and refurbishments of hospital facilities, whereby the Group divested the rehabilitation business in Capio Centre Bayard that resulted in a capital gain of MSEK 27.

2 Restructuring and impairment costs in 2017 were mainly related to the ongoing structural projects in the French segment, i.e. the ongoing constructions and refurbishments of hospital facilities as well as the upgrading of support system supporting the medical agenda including some redundancies as part of the ongoing actions. Main items that impacted 2017 were related to the ongoing projects in Lyon, Toulouse, La Rochelle and the upgrade of support systems, impairments and redundancies costs, as part of the ongoing actions, amounting to MSEK 53. Total restructuring costs as part of the ongoing actions were offset by a capital gain, related to a divestment of a property in France (MSEK 54). Restructuring items also include costs for reorganization within the Nordic and German segments amounting to MSEK 15. The activities are estimated to generate good cost savings from 2018 and beyond.

Restructuring and impairment costs in 2016 were also related to the structural projects in the French segment and mainly related to the transaction in Lyon whereby the Group divested the rehabilitation business in Capio Centre Bayard and acquired the surgery business of the Clinique du Grand Large (the divestment resulted in a capital gain of MSEK 27). The upgrade of support systems, impairments and redundancies costs amounted in 2016 to MSEK 78, almost offset by a capital gain related to a divestment of a property in France (MSEK 75). In addition restructuring items included some effects related to the Nordic and German segment mainly consisting of closure costs and redundancies.

3 As of June 30, 2017, the Group acquired “OPA Privathospital” in Denmark that resulted in a gain (negative goodwill) of MSEK 5. Remaining items 2017 mainly relate to non-recurring external and staff items in Germany and Sweden.

4 Acquisition related costs 2017 amounted to MSEK 17 and refers to transaction cost in connection with the Group’s acquisition of operations.

4. Financial instruments

In terms of financial assets and liabilities fair value is deemed to

be approximately equal to their book values. Derivatives are

reported as level 2 and used for the purpose of hedging interest

rates. The derivatives were valued using the mid-point of the

yield curve prevailing on the reporting date and represent the net

present value of the difference between the contracted rate and

the valuation rate. Any change in the fair

value of the interest rate cap transactions is recognized in the

income statement and amounted to MSEK -2 as of December

31, 2017. The table discloses the portion of the market value

arising from future changes in market interest rates.

31 Dec

2017 2016

Interest rate caps (Options) -2 -2


Notes (cont.)

5. Acquisitions and divestments of operations

Acquisitions during 2017

CFR Hospitaler

A/S

Backa Läkarhus

AB

Other4 Total

Share of voting rights and equity % 701 100

Acquired net assets2:

Capital employed 1 -12 30 19

Net debt -9 49 7 47

Acquired net assets (excluding acquisition related intangible assets) -8 37 37 66

Acquisition related intangible assets 1133 100 61 274

Deferred income tax -25 -22 -11 -58

Goodwill 3543 222 1565 732

Total purchase price 434 337 243 1,014

Outstanding purchase price less acquired cash -327

Payment related to acquisition from previous years 16

Cash flow effect of acquisitions 703

Contribution to Group’s net sales and operating result:

Net sales 398 325 131 854


1 The acquired share is 70%, with an option for Capio to acquire (and the non-controlling interest has an option to sell) the remaining 30% after two years. Since it is highly probable that the option to acquire the remaining shares will be exercised, the company is consolidated to 100% from January 1, 2017, without recognition of any non-controlling interest.

2 Purchase price allocations are still preliminary.

3 Goodwill and acquisition related intangible assets related to 100% of the shares.

4 Including the acquisitions of Augenklinik Universitätsallee, Globen, OPA Privathospital, Orbita and Viborg Privathospital. The acquired share for Orbita is 51%, with an option for Capio to acquire (and the non-controlling interest has an option to sell) the remaining 49% after four years. Since it is highly probable that the option will be exercised, Orbita is consolidated to 100% from October 2, 2017.

5 Including negative goodwill of MSEK 5 recognized as a gain in profit and loss under other non-recurring items.

If the acquisitions in 2017 had taken place as per January 1, 2017, the full year net sales pro forma effect would have been MSEK 1,043.

Divestments during 2017

Capio Deutsche Klinik

Weissenburg GmbH

Divested net assets:

Capital employed 17

Net debt 4

Divested net assets 21

Capital gain from divested companies 17

Less cash and cash equivalents in divested companies -4

Outstanding sales price -1

Cash flow effect of divestments 33


Notes (cont.)

6. Segments

Capio organizes its business in three operational segments: Capio Nordic (Sweden, Norway, and Denmark since January 2017),

Capio France and Capio Germany. Each segment provides a wide range of healthcare services and the organization is structured to

facilitate the provision of healthcare at the most efficient care level for each patient. Further information about the segments are

found in Capio Annual Report 2016 (Business overview). The units in the segments are consolidated in accordance with the same

principles applied for the Group as a whole. Transactions between Group companies and business areas are conducted on a strictly

commercial basis. Other in this context relates to the Parent Company and a number of holding companies. Within Capio Nordic, a

customer relationship based on one contract corresponded to a total net sales of MSEK 522 during the fourth quarter 2017 and

MSEK 1,881 during 2017 (Oct-Dec 2016: MSEK 464; Jan-Dec 2016: MSEK 1,763), which is equivalent to more than 10% of the

Group’s net sales.

OCT - DEC

JAN - DEC

Net sales and organic sales growth 2017 % 2016 % 2017 % 2016 %

Capio Nordic 2,324 4.8 2,009 4.3 8,695 4.1 7,584 3.8

Capio France 1,434 2.7 1,394 0.2 5,435 0.4 5,313 2.4

Capio Germany 319 -2.3 322 5.5 1,197 0.0 1,172 4.0

Other 0 0 0 0

Eliminations 0 - 0 -

Capio Group 4,077 3.4 3,725 2.9 15,327 2.4 14,069 3.3

EBITDA and margin

Capio Nordic 185 8.0 146 7.3 632 7.3 522 6.9

Capio France 148 10.3 123 8.8 471 8.7 518 9.7

Capio Germany 35 11.0 43 13.4 98 8.2 108 9.2

Other -20 -23 -87 -87


Capio Group 348 8.5 289 7.8 1,114 7.3 1,061 7.5

EBITA and margin

Capio Nordic 146 6.3 108 5.4 459 5.3 371 4.9

Capio France 82 5.7 65 4.7 226 4.2 283 5.3

Capio Germany 27 8.5 36 11.2 68 5.7 83 7.1

Other -23 -26 -94 -93


Capio Group 232 5.7 183 4.9 659 4.3 644 4.6

Operating result (EBIT) and margin

Capio Nordic 107 4.6 86 4.3 362 4.2 304 4.0

Capio France 95 6.6 62 4.5 216 4.0 280 5.3

Capio Germany 22 6.9 31 9.6 57 4.8 64 5.5

Other -19 -26 -95 -90


Capio Group 205 5.0 153 4.1 540 3.5 558 4.0

Capital expenditure and in % of net sales

Capio Nordic -75 3.2 -45 2.2 -180 2.1 -169 2.2

Capio France -155 10.8 -81 5.8 -288 5.3 -249 4.7

Capio Germany -14 4.4 -9 2.8 -43 3.6 -35 3.0

Other -9 -7 -14 -11


Capio Group -253 6.2 -142 3.8 -525 3.4 -464 3.3

Assets

Capio Nordic 6,218 4,903 6,218 4,903

Capio France 6,862 6,644 6,862 6,644

Capio Germany 1,484 1,368 1,484 1,368

Other 3,980 3,259 3,980 3,259

Eliminations -4,497 -3,642 -4,497 -3,642

Capio Group 14,047 12,532 14,047 12,532

Liabilities

Capio Nordic 3,746 2,523 3,746 2,523

Capio France 3,690 3,669 3,690 3,669

Capio Germany 1,074 984 1,074 984

Other 4,278 3,526 4,278 3,526

Eliminations -4,497 -3,642 -4,497 -3,642

Capio Group 8,291 7,060 8,291 7,060


Notes (cont.)

7. Pledged assets

2017 2016

For own debts and provisions 31 Dec 31 Dec

Shares in subsidiaries 124 124

Cash and cash equivalents 20 10

Property mortgages 1,254 1,233

Endowment insurance 39 38

Total 1,437 1,405

8. Contingent liabilities

2017 2016

31 Dec 31 Dec

Guarantee and other commitments 23 22

Total 23 22

9. Non IFRS financial measures

Capio’s financial model

In order to support Capio’s strategy and managers at all levels,

Capio has developed a financial model that links relevant Key

Performance Indicators (KPI) with their corresponding financial

impact. As the model is based on the relation between quality,

productivity and financial outcomes, the financial model

supports the Group’s understanding of what creates good

healthcare and increased quality. This allows Capio to

continuously refine its healthcare processes, enabling improved

quality in healthcare provided to patients, and concurrently,

improved financial results.

Financial statements

The Group’s income statement is presented in a functional

format in order to measure the productivity from the use of

resources in relation to the production of healthcare. To

financially measure productivity, direct costs are subtracted

from net sales in order to obtain the gross result (and gross

margin). Thereafter administrative expenses (overhead costs) are

subtracted from gross result in order to obtain the operating

result (and operating margin). Gross result is the key measure

for productivity, indicating whether the Group performs

healthcare operations efficiently. Operating results adds

information as to whether the Group’s operating structure is

efficient.

The Group’s income statement includes certain restructuring and

other non-recurring items and is adjusted from the Group's

definition of EBITA. These items are mainly related to

structural effects incurred over the prior years as a consequence

of preparing the Group for the IPO made in 2015 and the still

ongoing program in France whereby a large part of the hospital

properties are being modernized. Since this project is carried out

during a relatively limited period of time (just over 5 years)

compared to a normal cycle (the useful life of a hospital is

normally 30 years) and since it covers a considerable part of the

business, the Group has made the assessment that effects related

to the project are to be considered as restructuring and other

non-recurring items. In addition, the Group also assesses the

effects from divested and discontinued operations outside the


Notes (cont.)

core business within the definition restructuring and non-

recurring items. Correction for acquisition-related expenses is

also made in the Group's definition of EBITA as acquisition

does not occur every quarter and transaction costs and other

acquisition-related costs may be material and thus affect the

comparison between year and quarter if corrections for these are

not made.

The balance sheet is also presented in an operational format,

tracking capital employed, net debt and equity, in order to track

and manage capital needs and resources throughout the Group.

Capio’s overall goal for operating capital management is to

strike a balance between optimizing operating capital in order to

generate cash flows, while making appropriate investments in

order to grow the business. The operating capital management

integrates all parts of the organization and requires clear and

efficient processes, such as the sales process and salary process.

Related to the Group’s operational balance sheet the cash flow is

also presented in an operational format, reconciling changes in

net debt.

To better support Capio’s financial model, the Group tracks and

presents financial measures which are not measures of financial

performance or liquidity under IFRS. Such non-IFRS financial

measures are defined on page 34 and in the following tables

reconciliations of IFRS measures and non-IFRS measures

(Additional Performance Measures, APM) are presented: The

presentation of all APMs is made to increase the understanding

of the Group's development as followed up by Group

Management.

Specification of Income statement items

OCT - DEC

JAN - DEC

2017 2016 2017 2016

EBITA 232 183 659 644

whereof depreciation 116 106 455 417

EBITDA 348 289 1,114 1,061

whereof rent 205 185 800 726

EBITDAR 553 474 1,914 1,787

Reconciliation of IFRS and APM related to Balance sheet items

2017

2016

31 Dec 31 Dec

Total fixed assets, IFRS 11,387

10,092

whereof operating capital employed1 2,411

2,225

whereof other capital employed2 8,917

7,810

whereof net debt3 59

57

Total current assets, IFRS 2,660

2,440


2,025

whereof other capital employed2 119

92


323

Total long-term liabilities and provisions, IFRS 4,554

4,230

whereof operating capital employed1 86

81

whereof other capital employed2 1,265

987

whereof net debt3 3,203

3,162

Total current liabilities, IFRS 3,737

2,830


2,615

whereof other capital employed2 104

125


90

Operating capital employed1, APM 1,779

1,554

Other capital employed2, APM 7,668

6,790

Net debt3, APM 3,691

2,872

Equity 5,756

5,472

Reconciliation of IFRS and APM measures related to Cash flow items

OCT - DEC

JAN - DEC

2017 2016

2017 2016

Cash flow from operating activities, IFRS 472 437 756 798

Taxes paid 22 8 92 48

Interest received and paid 21 23 94 93

Restructuring items -26 -66 9 -15

Capital expenditure -253 -142 -525 -464

Divestments of fixed assets 36 4 48 6

Other adjustments -27 1 -30 11

Operating cash flow, APM 245 265 444 477


Notes (cont.)

OCT - DEC

JAN - DEC

2017 2016 2017 2016

Acquisition of companies -45 -5 -703 -34

Divestment of companies 1 1 33 24

Acquisition/divestment of financial fixed assets -49 - -62 14

Acquisition and divestments of companies and financial fixed assets, IFRS -93 -4 -732 4

Acquisition of non-controlling interest - - -4 -

Divestment of financial fixed assets - - - -14

Acquired/divested net debt and paid costs acquisition -7 -5 -49 -18

Acquisition and divestments of companies, APM -100 -9 -785 -28

OCT - DEC

JAN - DEC

2017 2016 2017 2016

Investments in tangible and intangible fixed assets -253 -143 -525 -465

Divestments of tangible fixed assets 4 4 48 12

Investments and divestments, IFRS -249 -139 -477 -453 Items included in received/paid restructuring and other non-recurring items 32 1 - -5

Net capital expenditure, APM -217 -138 -477 -458

OCT - DEC

JAN - DEC

2017 2016 2017 2016

Interest received and paid, IFRS -21 -23 -94 -93

Paid borrowing costs included in net debt - 2 - 5

Net financial items paid, APM -21 -21 -94 -88

OCT - DEC

JAN - DEC

2017 2016 2017 2016

Taxes paid, IFRS -22 -8 -92 -48 Items included in received/paid restructuring and other non-recurring items - - - -

Income taxes paid, APM -22 -8 -92 -48


Signatures

The Board of Directors and the President and CEO hereby certify that the full year report gives a true and fair view of the

Parent Company’s and Group’s operations, financial position and profit/loss and describes the significant risks and uncertainties

facing the Parent Company and the companies included in the Group.

Capio AB (publ)

Gothenburg, February 6, 2018

Michael Wolf

Chairman

Thomas Berglund

President and CEO

Gunnar Németh

Gunilla Rudebjer Hans Ramel

Birgitta Stymne Göransson

Michael Flemming Pascale Richetta

Joakim Rubin

Kevin Thompson

Employee representative

Julia Turner

Employee representative

This full year report has not been subject to a review by the Company’s auditors.


Quarterly overview

Income statement by quarter – Group

2017 2016 FULL YEAR

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2017 2016

Net sales outpatients 2,153 1,820 2,025 1,982 1,815 1,561 1,802 1,771

7,980 6,949

In % of net sales 52.8 52.7 52.2 50.6 48.7 49.3 50.4 49.2

52.1 49.4

Net sales inpatients 1,674 1,422 1,609 1,682 1,659 1,380 1,539 1,600

6,387 6,178

In % of net sales 41.1 41.2 41.5 43.0 44.6 43.5 43.1 44.4

41.7 43.9

Net sales other 250 213 247 250 251 227 232 232

960 942

In % of net sales 6.1 6.2 6.4 6.4 6.7 7.2 6.5 6.4

6.3 6.7

Net sales 4,077 3,455 3,881 3,914 3,725 3,168 3,573 3,603 15,327 14,069

Total sales growth, % 9.4 9.1 8.6 8.6 6.1 3.7 3.8 3.6

8.9 4.3

Organic sales growth, % 3.4 2.2 0.5 3.3 2.9 2.6 4.0 3.7

2.4 3.3

Direct cost -3,340 -2,960 -3,262 -3,201 -3,079 -2,690 -2,958 -2,970

-12,763 -11,697

Gross result 737 495 619 713 646 478 615 633

2,564 2,372

Gross margin, % 18.1 14.3 15.9 18.2 17.3 15.1 17.2 17.6

16.7 16.9

Total overhead -505 -442 -477 -481 -463 -384 -443 -438

-1,905 -1,728

EBITA 232 53 142 232 183 94 172 195

659 644

Margin, % 5.7 1.5 3.7 5.9 4.9 3.0 4.8 5.4

4.3 4.6

Amortization on surplus values -28 -27 -27 -25 -19 -18 -19 -19

-107 -75 Restructuring and other non-recurring items and acquisition related cost 1 -8 -7 2

-11 -4 4 0

-12 -11

Operating result (EBIT) 205 18 108 209 153 72 157 176

540 558

Net interest -21 -19 -19 -19 -19 -20 -18 -18

-78 -75

Other financial items -7 -7 -6 -4 -5 -9 -3 -4

-24 -21

Profit after financial items 177 -8 83 186 129 43 136 154

438 462

Income tax -21 1 -13 -33 7 -9 -22 -31

-66 -55

Profit for the period 156 -7 70 153 136 34 114 123

372 407

EBITDAR 553 369 455 537

474 381 456 476

1,914 1,787

Margin, % 13.6 10.7 11.7 13.7 12.7 12.0 12.8 13.2

12.5 12.7

EBITDA 348 168 256 342

289 200 276 296

1,114 1,061

Margin, % 8.5 4.9 6.6 8.7 7.8 6.3 7.7 8.2

7.3 7.5


Quarterly overview (cont.)

Capital employed and financing by quarter – Group

2017

2016

31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar

Operating capital employed 1,779 1,767 1,669 1,594

1,554 1,614 1,472 1,566

In % of net sales 11.6 11.8 11.4 11.1

11.0 11.7 10.7 11.5

Other capital employed 7,668 7,470 7,481 7,285

6,790 6,921 6,734 6,603

Capital employed 9,447 9,237 9,150 8,879 8,344 8,535 8,206 8,169

Return on capital employed, % 7.0 6.6 7.1 7.7

7.7 7.5 7.7 7.3

Net debt 3,691 3,704 3,563 3,255

2,872 3,149 2,941 3,009

Financial leverage 3.3 3.5 3.3 2.9

2.7 3.0 2.8 3.0

Equity 5,756 5,533 5,587 5,624 5,472 5,386 5,265 5,160

Financing 9,447 9,237 9,150 8,879

8,344 8,535 8,206 8,169

Cash flow by quarter – Group

2017 2016 FULL YEAR

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2017 2016

Net debt opening -3,704 -3,563 -3,255 -2,872

-3,149 -2,941 -3,009 -2,936

-2,872 -2,936

EBITA 232 53 142 232

183 94 172 195

659 644

Capital expenditure -253 -109 -85 -78

-142 -111 -114 -97

-525 -464

Divestments of fixed assets 36 1 0 11 4 0 1 1 48 6


-138 -111 -113 -96

-477 -458

In % of net sales 5.3 3.1 2.2 1.7

3.7 3.5 3.2 2.7

3.1 3.3

Add-back depreciation 116 115 114 110 106 106 104 101 455 417

Net investments -101 7 29 43

-32 -5 -9 5

-22 -41

Change in net customer receivables -37 56 -54 -86

-39 110 13 -117

-121 -33

Other changes in operating capital employed 151 -189 10 -44 153 -262 80 -64 -72 -93

Operating cash flow 245 -73 127 145

265 -63 256 19

444 477

Cash conversion, % 105.6 -137.7 89.4 62.5

144.8 -67.0 148.8 9.7

67.4 74.1

Income taxes paid -22 -33 -31 -6 -8 -11 -23 -6 -92 -48

Free cash flow before financial items 223 -106 96 139

257 -74 233 13

352 429

Cash conversion, % 96.1 -200.0 67.6 59.9

140.4 -78.7 135.5 6.7

53.4 66.6

Net financial items paid -21 -27 -21 -25 -21 -24 -19 -24 -94 -88

Free cash flow after financial items 202 -133 75 114

236 -98 214 -11

258 341

Cash conversion, % 87.1 -250.9 52.8 49.1

129.0 -104.3 124.4 -5.6

39.2 53.0

Acquisitions/divestments of companies -100 -5 -182 -498

-9 -16 1 -4

-785 -28 Received/paid restructuring and other non-recurring items -7 -3 -14 6

69 -32 -15 -7

-18 15

Shareholder transactions 1 -2 -128 0 0 -2 -71 0 -129 -73

Net cash flow 96 -143 -249 -378

296 -148 129 -22

-674 255

Other items -83 2 -59 -5 -19 -60 -61 -51 -145 -191

Net debt closing -3,691 -3,704 -3,563 -3,255

-2,872 -3,149 -2,941 -3,009

-3,691 -2,872



Income statement overview by quarter – Segment

2017

2016

FULL YEAR

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2017 2016

Capio Nordic

Net sales 2,324 2,007 2,211 2,153

2,009 1,721 1,950 1,904

8,695 7,584


6.0 4.3 5.1 3.4

14.6 4.7


4.3 3.3 4.7 3.0

4.1 3.8

EBITDAR 300 266 254 260

245 224 233 210

1,080 912

Margin, % 12.9 13.3 11.5 12.1

12.2 13.0 11.9 11.0

12.4 12.0

EBITDA 185 153 142 152

146 127 137 112

632 522

Margin, % 8.0 7.6 6.4 7.1

7.3 7.4 7.0 5.9

7.3 6.9

EBITA 146 107 97 109

108 88 98 77

459 371

Margin, % 6.3 5.3 4.4 5.1

5.4 5.1 5.0 4.0

5.3 4.9

Capio France

Net sales 1,434 1,188 1,379 1,434

1,394 1,196 1,336 1,387

5,435 5,313

Total sales growth, % 2.9 -0.7 3.2 3.4

5.3 3.4 2.5 5.6

2.3 4.2

Organic sales growth, % 2.7 -0.8 -1.1 0.7

0.2 2.2 2.0 5.1

0.4 2.4

EBITDAR 232 111 208 250

203 162 220 247

801 832

Margin, % 16.2 9.4 15.1 17.4

14.6 13.5 16.5 17.8

14.7 15.7

EBITDA 148 29 124 170

123 82 143 170

471 518

Margin, % 10.3 2.4 9.0 11.9

8.8 6.9 10.7 12.2

8.7 9.7

EBITA 82 -31 64 111

65 22 85 111

226 283

Margin, % 5.7 -2.6 4.6 7.7

4.7 1.8 6.4 8.0

4.2 5.3

Capio Germany

Net sales 319 260 291 327

322 251 287 312

1,197 1,172

Total sales growth, % -0.9 3.6 1.4 4.8

10.3 1.2 2.1 -3.7

2.1 2.4

Organic sales growth, % -2.3 2.4 -4.6 4.6

5.5 -0.3 8.6 1.7

0.0 4.0

EBITDAR 38 11 16 50

47 11 24 42

115 124

Margin, % 11.9 4.2 5.5 15.3

14.6 4.4 8.4 13.5

9.6 10.6

EBITDA 35 6 12 45

43 8 19 38

98 108

Margin, % 11.0 2.3 4.1 13.8

13.4 3.2 6.6 12.1

8.2 9.2

EBITA 27 -2 4 39

36 2 13 32

68 83

Margin, % 8.5 -0.8 1.4 11.9

11.2 0.8 4.5 10.2

5.7 7.1

Other

Net sales 0 0 0 0

0 0 0 0

0 0

EBITDAR -17 -19 -23 -23

-21 -16 -21 -23

-82 -81

EBITDA -20 -20 -22 -25

-23 -17 -23 -24

-87 -87

EBITA -23 -21 -23 -27

-26 -18 -24 -25

-94 -93

Eliminations

Net sales - - - -

- - - -

- -

EBITDAR - - - -

- - - -

- -

EBITDA - - - -

- - - -

- -

EBITA - - - -

- - - -

- -

Capio Group

Net sales 4,077 3,455 3,881 3,914

3,725 3,168 3,573 3,603

15,327 14,069


6.1 3.7 3.8 3.6

8.9 4.3


2.9 2.6 4.0 3.7

2.4 3.3

EBITDAR 553 369 455 537

474 381 456 476

1,914 1,787

Margin, % 13.6 10.7 11.7 13.7

12.7 12.0 12.8 13.2

12.5 12.7

EBITDA 348 168 256 342

289 200 276 296

1,114 1,061

Margin, % 8.5 4.9 6.6 8.7

7.8 6.3 7.7 8.2

7.3 7.5

EBITA 232 53 142 232

183 94 172 195

659 644

Margin, % 5.7 1.5 3.7 5.9

4.9 3.0 4.8 5.4

4.3 4.6



Capital employed by quarter – Segment

2017

2016

31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar

Capio Nordic Capital employed 3,509 3,680 3,596 3,492

2,932 3,138 2,903 2,763


12.7 11.5 12.2 11.7

Capio France

Capital employed 4,455 4,364 4,375 4,191

4,239 4,371 4,222 4,184


6.7 6.6 6.8 6.9

Capio Germany


1,109 1,092 1,061 1,048


7.5 7.2 7.4 6.8

Other

Capital employed 249 8 0 101

64 -66 20 174

Eliminations

Capital employed - - - -

- - - -

Capio Group


8,344 8,535 8,206 8,169


7.7 7.5 7.7 7.3

Net capital expenditure by quarter – Segment

2017

2016

FULL YEAR

Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2017 2016

Capio Nordic


-45 -28 -51 -44

-180 -168

In % of net sales Nordic 3.2 1.8 1.4 1.7

2.2 1.6 2.6 2.3

2.1 2.2

Capio France


-76 -70 -57 -41

-241 -244

In % of net sales France 8.4 4.9 2.8 1.7

5.5 5.9 4.3 3.0

4.4 4.6

Capio Germany


-10 -10 -5 -10

-43 -35

In % of net sales Germany 4.4 4.2 4.8 1.2

3.1 4.0 1.7 3.2

3.6 3.0

Other


-7 -3 0 -1

-13 -11

Capio Group


-138 -111 -113 -96

-477 -458

In % of net sales Group 5.3 3.1 2.2 1.7

3.7 3.5 3.2 2.7

3.1 3.3


Definitions

Key performance indicators

Number of outpatients Number of patient visits for patients

with length of stay shorter than 24 hours.

Number of inpatients Number of patient visits for patients with

length of stay longer than 24 hours.

Average length of stay (AVLOS) Average length of an

inpatient stay measured in number of days. AVLOS presented

excludes psychiatry, rehabilitation, nursing and eating disorder

patients. AVLOS in France has also been adjusted for the effect

from the transfer between in- and outpatient treatments. These

adjustments have been made in order to show a comparable

AVLOS between segments and over time.

Number of employees Number of employees as full-time

equivalents on average during the year.

Income statement

Total sales growth, % Increase in net sales for the period as a

percentage of the previous year’s net sales.

Organic sales growth, % Increase in net sales for the period,

adjusted for acquisitions/divestments and changes in exchange

rates, as a percentage of the previous year’s net sales adjusted

for divestments.

EBITDAR EBITDA adjusted for rent of premises.

EBITDA EBITA adjusted for depreciations and impairments

related to operating fixed assets.

EBITA Operating result before amortizations of group surplus

values, restructuring and other non-recurring items and

acquisition related costs. Capio’s definition of EBITA may be

different from the definition in other companies.

Restructuring and other non-recurring items consist of items

relating to restructuring or integration of acquired businesses,

structural projects and effects from divested and discontinued

operations outside the core business.

Operating result (EBIT) Operating result before interest and

income tax.

Adjusted profit/loss for the period Profit/loss for the period

attributable to parent company shareholders adjusted for

amortization of group surplus values, restructuring and other

non-recurring items, acquisition related costs and write-off of

capitalized borrowing costs, net of income tax.

Earnings per share (before dilution) Profit/loss for the period

attributable to parent company shareholders in relation to the

average number of outstanding common shares during the

period. Refer to note 2 for calculation of earnings per share

before dilution.

Earnings per share (after dilution) Profit/loss for the period

attributable to parent company shareholders, excluding the net

cost of outstanding convertible debenture loans issued during

the third quarter 2016, in relation to the average number of

shares including effects from the convertible debenture loans.

Refer to note 2 for calculation of earnings per share after

dilution.

Adjusted earnings per share (before dilution) Adjusted

profit/loss for the period attributable to parent company

shareholders in relation to the average number of outstanding

common shares during the period. Refer to note 2 for calculation

of adjusted earnings per share before dilution.

Adjusted earnings per share (after dilution) Adjusted

profit/loss for the period attributable to parent company

shareholders, excluding the net cost of outstanding convertible

debenture loans issued during the third quarter 2016, in relation

to the average number of shares including effects from the

convertible debenture loans. Refer to note 2 for calculation of

adjusted earnings per share after dilution.

Capital employed and financing

Net customer receivables and DSO Accounts receivables and

accrued production less bad debt provision and advances from

customers. DSO, Days sales outstanding, average number of

days outstanding on net sales, at balance sheet date.

Operating capital employed Operating capital employed

consists of non-interest bearing operating assets and liabilities,

mainly operating fixed assets, net customer receivables, supplier

payables and other operating assets and liabilities.

Other capital employed Other capital employed consists of

acquisition related surplus values (real estate, goodwill,

trademark and other surplus values), tax assets and liabilities

and other non-operating capital employed items.

Capital employed Capital employed includes all non-interest

bearing assets and liabilities as well as provisions for employee-

benefits.

Return on capital employed RTM EBITA as a percentage of

capital employed.

Net debt The Group’s interest-bearing assets and liabilities

adjusted for cash and cash equivalents.

Financial leverage Financial leverage is the closing balance of

net debt in relation to RTM EBITDA.

Cash flow Net capital expenditure Investments in fixed assets, net of

divestments of fixed assets excluding items classified as non-

operating, for the period.

Net investments Investments in fixed assets, net of divestments

of fixed assets, depreciations and impairments, excluding items

classified as non-operating, for the period.

Operating cash flow Operating cash flow relates to EBITA

adjusted for net investments and changes in working capital.

Free cash flow before financial items Corresponds with

operating cash flow less income taxes paid.

Free cash flow after financial items Corresponds with free

cash flow before financial items less net financial items paid.

Cash conversion Cash conversion in % is defined as the cash

flow in relation to EBITA.

Acquisitions and divestments of companies in the operational

cash flow statement relate to the total net debt impact.

Other

RTM Rolling 12 months.


Presentation of the full year report

Investors, analysts and media are invited to participate in a telephone conference on February 7, 2018 at 09.30 am (CET). President

and CEO Thomas Berglund and CFO Olof Bengtsson will present the report and answer questions. The telephone conference will be

audio casted live on www.capio.com. To participate in the telephone conference, please register at www.capio.com and dial in five

minutes prior to the start of the conference call.

Sweden: +46 8 566 426 93

UK: +44 20 3008 9804

US: +1 855 753 2237

Finland: +35 898 171 04 93

France: +33 170 75 07 12

Prior to the start of the telephone conference, presentation slides will be available at www.capio.com.

A recorded version of the audio cast will be available at www.capio.com during the afternoon (CET).

Financial calendar

May 3, 2018, Interim report January – March 2018

May 3, 2018, Annual General Meeting 2018

July 20, 2018, Interim report January – June 2018

October 30, 2018, Interim report January – September 2018

Capio’s annual general meeting will be held on Thursday, May 3, 2018 in Gothenburg, Sweden. The venue for the AGM is Chalmers

Kårhus, Chalmersplatsen (hall RunAn). The Capio Annual Report 2017 will be available on www.capio.com in April 2018 (week

commencing April 9, 2018).

For further information

Thomas Berglund, President and CEO

Telephone: +46 733 88 86 00 E-mail: [email protected]

Olof Bengtsson, CFO


Kristina Ekeblad, Investor Relations Manager


Henrik Brehmer, SVP Group Communication and Public Affairs


For further information regarding Capio’s IR activities, refer to www.capio.com.

This is information that Capio AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information

was submitted for publication, through the agency of the contact person Henrik Brehmer set out above, at 08.00 (CET) on February

7, 2018.

0BAbout Capio

Capio AB (publ) is a leading, pan-European healthcare provider offering a broad range of high quality medical, surgical and

psychiatric healthcare services through its hospitals, specialist clinics and primary care units. Capio operates in five countries;

Sweden, Norway, Denmark, France and Germany. In 2017, Capio’s 13,314 employees (average full-time equivalents)

provided healthcare services during 5.1 million patient visits across the Group’s facilities, generating net sales of MSEK

15,327. Capio operates across three geographic segments: Nordic (57% of Group net sales 2017), France (35% of Group net

sales 2017) and Germany (8% of Group net sales 2017). For more information about Capio, please see www.capio.com.

http://www.capio.com/

http://edge.media-server.com/m/p/6sbgu4bq

http://capio.com/en/investors/financial-reports/interim-reports/

http://capio.com/en/investors/financial-reports/interim-reports/

http://www.capio.com/investors

http://media.ne.cision.com/l/ewcdzuqo/www.capio.com/


A reliable, long-term partner for public healthcare

Read more about Capio’s role

in society in Capio Annual

Report 2016 pages 24-35.

VALUES Quality. Compassion. Care

MISSION Cure. Relief. Comfort

VISION The best achievable quality of life for every patient

By delivering high-quality healthcare with responsible and efficient use of resources, Capio is aiming to be the

preferred choice of healthcare provider, the best place to work, and an attractive long-term investment.

Capio AB (publ)

Box 1064

SE-405 22 Gothenburg,

Sweden

Visiting address: Lilla

Bommen 5

Telephone: +46 31 732 40 00

E-mail: [email protected]

www.capio.com

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