Time to speed up!
Stockholm
March 15, 2016
Thomas Berglund. CEO
Back on Nasdaq Stockholm June 30, 2015
after 8+ years being privately owned
Giving
• Long-term corner stone investors
• Increased transparency
• Financing for expansion
With a clear strategy
• Modern Medicine giving Rapid Recovery to patients
• Modern Management empowering people making change happen
• Market Leadership by content – and step by step – by size
Respected as a long-term innovative partner
to a sensitive public healthcare sector
2
The European challenge is not going to ease
– demographic squeeze is driving need and costs...
Women
Men
X%
As the population structure develops
towards a larger share being elderly…
Population pyramid of EU 1960-2050
Women
80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
2050
2040
2030
2020
2010
2000
1990
1980
1970
1960
Sweden
France
Share of population
Men
Germany
United Kingdom
Norway
OECD
…the required healthcare expenditures
will continue to increase, while there will
be fewer people financing the healthcare
Total expenditure on health, GDP
Percentage
Prognosis1
20
29%
27%
25%
21%
19%
18%
16%
15%
15
10
5
http://population
pyramid.net/
Source: World Bank
0
1960 70
80
90 2000 10
20 2030
Source: OECD Health data 2014
Year
Pressure to provide “quality healthcare with higher productivity” as fewer people
have to pay for an increasingly large share of the population
1 Future development based on extrapolation of historic OECD average CAGR from 2002-12
3
Large gaps and slow implementation create
…with large performance gaps between countries
opportunities
Historic implementation of modern
medicine is a slow process…
Best-practice
proven
Best-practice
AVLOS
Days
Knee
prosthesis
2
Acute
myocardial
infarction
2
Inguinal
hernia (open
surgery)
0
Tonsillect
-omy
0
>15
2.4
4.0
4.4
5.3 6.62 8.8
9.8 12.5
>15
~3 4.0 4.1
6.7 6.8 7.6 8.0 8.4
17 YEARS1
Share of
ambulatory
surgery
%
80
14
43 46
64 66 68
75
Best-practice
implemented
90
4 21 30 38
51 57
85
Use Capio’s know-how to transfer knowledge and speed up change
Source:
AVLOS – Sweden: Socialstyrelsen; Norway: Helsedirektoratet; France: ATIH; Germany: Federal Statistical Office's DRG browser; Finland: Eurostat ; UK: Health and Social Care Information
Centre; Spain: Eurostat; Best-practice - knee prosthesis: North Wales knee clinic; Best-practice - AMI: US Healthcare costs and utilization project
Ambulatory surgery – All countries excluding Germany: Eurostat; Germany: German association of ambulatory surgery; Best-practice - Inguinal hernia: NHS; Best-practice - Tonsillectomy: US
agency for healthcare research and quality
4
1 Goodman et al. 1997; 2 For Norway 2011 data and only reported as aggregated data for knee and hip prosthesis
The Swedish healthcare system has its
challenges
Sweden has not yet met its target thresholds for waiting times, in particular outside of the Stockholm region
Performance on target levels for waiting times (‘vårdgarantiuppfyllelse’); Share of patients who have waited > 90 days
Nation-wide
Specialist care - visits
15%
12%
14%
11%
11%
6%
2011
2012
8%
Stockholm
Specialist care – surgeries and procedures
17%
17%
16%
15%
15% 14% 14%
12%
10%
8%
21%
12%
5%
2013
2014
2011
2012
2013
2014
Source: SKL (vantetider.se)
Long waiting times and an experienced lack of resources drive need for
increased productivity in the Swedish healthcare system
5
Partly explained by low staff productivity
Swedish development of population, patients and resources
• Inpatient growth in line with
population growth
• Outpatient growing faster
• Doctor growth in line with
population growth
• Help nurses and especially
nurses outgrowing population
Source: SCB
Estimated annual consultations per doctor
(2012)
• Annual consultations per
doctor lower than in similar
countries
• Clinical staff burdened by
non-clinical tasks and old
fashioned administration –
too little time spent with
patients!
Source: OECD
A doctor treating more patients becomes a more skilled doctor
6
Private healthcare provision in Capio markets
Summary of market outlook, 2013-18E, EUR billions
Capio-relevant markets and segments
%
SWEDEN
NORWAY
Private primary
and specialist care
1998
FRANCE
Private specialist healthcare
(shares also incl. primary care)
2013
13%
7%
Private provider market share
Percent
Additional market growth from Capio market mix
Percent
2004
2013
7%
6%
GERMANY
MSO private hospital care1
(shares incl. all private hospitals)
2000
2013
23%
23%
Private hospitals
(shares by general hospitals)
1995
5%
+~2% p.a.
+5-8% p.a.
2.7
3.4-3.9
2013
2018E
+0-1% p.a.
+3-5% p.a
0.9
1.1-1.2
2013
2018E
+1-2% p.a.
2013
~16%
+6-7% p.a. 2
16
16-17
15
2013
2018E
2013
+0-1% p.a.
20
2018E
n/a
Source: Capio market assessments
1 Private and public MSO Hospital care market in France is estimated at EUR 65 billions in 2013
2 Refers to forecast 2012-2018E
Private providers are an important part of the solution
7
More time to focus the business itself – after a
prolonged IPO process – and political rhetoric
We want to speed up organic development
– and acquisitions
8
The Capio Model – our way of driving the business
Do we really need a complicated model?
9
Healthcare needs to be anchored in strong
values
Behaviour
Values
Everything we do,
should be defendable on the tabloids front pages
10
A patient is not just a diagnose – quality
means different things to each patient group
What is quality to you?
11
Quality corner stones helps us to think in a
structured way
The right quality combination best for the patient
– speeds up growth
12
The Wheel makes the company move
Empowered managers and co-workers to drive change
13
QPIs (Quality Performance Indicators)
Are we proud?
Making quality measurable and tangible
14
There is a link from QPIs to resources KPIs
Quality drives Productivity
15
KPIs transform into money ($)
A reporting package helps!
P&L, BS and CF
– a reflection of our daily work to make patients well
16
The basis for improving performance is to
understand where we are in all 600 profit
centers
• Quality - QPI
• Productivity - KPI
• Financials – P&L
We only measure what somebody is responsible for!
17
Too obvious?
Not for us being specialists in healthcare! 
18
Organic development is the base –
acquisitions to give additional leverage
Acquisitions in the
• Nordics
- Proximity care
- Specialist care
• France
- build star networks around
existing hubs
- establish new hubs
• Germany
- Specialist clinics
- A larger platform
19
Today we want to illustrate how we work in
three of our businesses
• France – participate in
transformation of French
healthcare
• Capio S:t Göran – the acute
hospital shaping the future of
healthcare in Stockholm
• Proximity care in Sweden –
speeding up productivity
• To start: What is actually Modern
Medicine?
20