Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Investor Presentation (December 2021)
40 slides from Terveystalo Oy Class A's investor presentation, December 2021
Slide 1: Terveystalo - Leading Nordic platform for health and wellbeing
Terveystalo - Leading Nordic platform for health and wellbeing December 2021 President & CEO Ville Iho 1 FOOTER
Slide 2: Terveystalo – A leading Nordic platform for health and wellbeing
Terveystalo – A leading Nordic platform for health and wellbeing 6.9 26% 1.2 309 Service portfolio • Occupational health services Mill. Share of Mill. Locations • Primary and secondary Customer remote visits Individual health care visits in 2020 in 2020 customers in 2020 • Wellbeing services • Diagn
Slide 3: Financial targets
Financial targets Growth At least 5% annual growth in revenue Profitability An adjusted EBITA margin of 12–13% Indebtedness Interest-bearing Net debt/Adjusted EBITDA not to exceed 3.5 times Dividend Distribute at least 40% of net profit as dividends 3 21.12.2021 annually
Slide 4: Terveystalo as an investment
Terveystalo as an investment 1 2 3 Scalable business model Strong track record in Growing addressable with leading digital accelerating growth and market, driven by several capabilities and high creating value through factors operating leverage M&A 4 5 6 Strong balance sheet and Expansion to Swedish
Slide 5: The Finnish healthcare market - unique characteristics incubate unique capabilities
1 The Finnish healthcare market - unique characteristics incubate unique capabilities Private provision is an established and growing component of the Finnish market Long Tradition 40% Public provision Public funding, of Private of all primary care outpatient visits are and funding private provision
Slide 6: Terveystalo is the leading company in occupational health care
1 Terveystalo is the leading company in occupational health care The Finnish OHC consists of business case To which Terveystalo has developed leading driven and legally required elements digital solutions Health & Safety Preventive care Legally required AI Based tools detect individuals at risk Prim
Slide 7: We have grown profitably with industry leading margins, outpacing market growth significantly
1 We have grown profitably with industry leading margins, outpacing market growth significantly TERVEYSTALO CAGR 2015-2020 TERVEYSTALO’S ADDRESSABLE MARKET 2015-2020E, €BN Terveystalo CAGR w/o large M&A1 2015-2020 160 1 200 Total market +1.4% CAGR 4.2 4.1 140 1 031 4.0 4.0 +14% 986 1 000 3.8 3.9 115
Slide 8: Terveystalo’s addressable market grows through market expansion from EUR 4 to 10bn
1 Terveystalo’s addressable market grows through market expansion from EUR 4 to 10bn Healthcare markets, EUR bn, estimate Multiple growth avenues mid to long term ~30 Private provision market Organic and in-organic growth in 6 in total EUR 10bn occupational health in the Swedish and neighbouring m
Slide 9: Our leading capabilities and platform can be leveraged for growth in different markets
2 Our leading capabilities and platform can be leveraged for growth in different markets Private health Finland Public health Finland Feelgood Sweden ~75% of revenue ~20% of revenue ~5% of revenue • Over 300 clinics and 24/7 digital services • Operations in public infrastructure • 120 locations and
Slide 10: Our world class applications have 1.7 million registered users
2 Our world class applications have 1.7 million registered users 1.7 million users in digital services 0.5 million onboardings in Terveystalo app a leader in the end user digital solutions in the Finnish market >50% of our professionals use Terveystalo Pro app on a monthly basis, 25% daily Self-serv
Slide 11: Operating leverage is a key driver of profitability improvement
2 Operating leverage is a key driver of profitability improvement Existing infrastructure with Significant share of fixed costs significant capacity Capacity % of Revenue Digital health Key driver of services profitability Variable Appointment improvement Rooms costs Materials and services 4
Slide 12: Strong track record in accelerating growth and creating value through M&A in our platform
3 Strong track record in accelerating growth and creating value through M&A in our platform Projected cost synergies exceeded by 9% in healthcare acquisitions,(1 significantly reducing pre-synergy acquisition multiples(2 from ~13x EBITDA to post ~6x EBITDA 1) Comparing budgeted expected cost synergi
Slide 13: We have developed our platform over 20 years and successfully integrated >200 acquisition targets
3 We have developed our platform over 20 years ~14 800 healthcare professionals, and successfully integrated >200 acquisition > 520 locations targets Acquisition of Pulssi Acquired by EQT Expansion into Dental Services Acquisition of Diacor Acquisition of Attendo health care Acquisition of Feelgood,
Slide 14: Strong cash flow funds our growth, further investments and supports increasing dividend
4 Strong cash flow funds our growth, further investments and supports increasing dividend 174 Dividend distribution 144 at least 40% of Operating cash flow earnings 101 Free cash flow Investments to 70 generation growth 60 65 58 M&A to support strategy execution 2014 2015 2016 2017 2018 2019* 2020 1
Slide 15: We expand to Swedish markets with highly complementary Feelgood acquisition
5 We expand to Swedish markets with highly complementary Feelgood acquisition Two industry leading platforms complement each other in terms of people, culture, competences, service offering and geographical network. • >32,000 corporate customers • >1.5 mill. employees covered by OHC • > 400 units in
Slide 16: Expansion to Swedish market is a proof point of the scalability of our digital platform
5 Expansion to Swedish market is a proof point of the scalability of our digital platform TERVEYSTALO DIGITAL SUITE Occupational Solutions for Consumer solutions Care Guidance Health Employers professionals Oma Terveys Terveystalo.com Terveystalo app Suunta PRO app Etydi AI Booking system TT web ser
Slide 17: Further opportunity to expand the service portfolio towards integrated care-chains
5 Further opportunity to expand the service portfolio towards integrated care-chains Occupational care provider Treatment Occupational health care, Phone call completed Visit nurse / coordinator (Physically / Over video) primary care and specialty • • Leadership training Wellbeing programs care are
Slide 18: We are the most attractive employer in our industry
6 We are the most attractive employer in our industry Terveystalo is the most attractive employer among professionals and students alike in the hospital and health sector in Finland 18 FOOTER
Slide 19: Driving net positive impact on society
Driving net positive impact on society Corporate responsibility is in our core from operations to finance • The interest rate margin of our EUR 410 million financing agreement considers how we meet our annual targets for customer satisfaction, employee job satisfaction and wellbeing, and reduction i
Slide 20: Q&A
Q&A 20 FOOTER ia Terveystalo
Slide 21: Q3 2021
Q3 2021 21 FOOTER
Slide 22: Q3/21: Revenue growth in double digits, strong profitability, digital continues to grow
Q3/21: Revenue growth in double digits, strong profitability, digital continues to grow +13.7% EUR 31.5m 261,500 EUR 0.13 revenue increased Adj. EBITA Digital appointments* 2. dividend for 2020 to EUR 273.1m GROWTH IN DIGITAL IN TOTAL DIVIDENDS FOR 2020 CHANNELS CONTINUED, EUR 0.26 PER SHARE +32% VS
Slide 23: Strong revenue growth y-o-y and vs. Q3/19
Strong revenue growth y-o-y and vs. Q3/19 Q3/21 revenue distribution compared to Q3/19 ja Q3/20, M€ +16.7% +13.7% 300 Q3/21 vs. Q3/19 Q3/21 vs. Q3/20 273 240 +100 % 14 250 234 +100 % 23 0 0 +45% 14 +65% 16 21 20 +3% 21 -1% 29 200 -5% 37 -20% 31 150 79 68 +16% 74 +6% 100 +14% +9% 50 95 99 108 0 Q3 20
Slide 24: Strong trend in well-being and digital visits continues
Strong trend in well-being and digital visits continues Well-being sales, MEUR Digital visits, thousands +22% 30 10% +405% 300 32% 25 250 20 200 15 150 10 100 5 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2019 2019 2
Slide 25: Strong demand is back, growth restricted by supply
Strong demand is back, growth restricted by supply Doctor appointment booking rate, % 100 96 95 92 92 93 92 89 88 90 90 85 85 85 80 75 75 70 65 60 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 25 FOOTER
Slide 26: Customer steering and smart resource management are keys to increasing supply
Customer steering and smart resource management are keys to increasing supply Customer with a need Customer steering Supply – Smart Resource management Improve profitability by optimizing Physician customer flows with ‘System layers’ Expand the “bottlenecks” through appointments Other Smart resource
Slide 27: 24/7 chat visits enable serving more customers and increasing access to care at low threshold
24/7 chat visits enable serving more customers and increasing access to care at low threshold Chat-visits– five folded number of visits since Jan/2019 Indexed Compound growth +144% 700 600 500 +494% 400 300 200 100 0 27 FOOTER Jan Feb Mar AprMay Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar AprMay Jun Jul
Slide 28: Development of digital platform delivers results - assists in balancing demand and supply
Development of digital platform delivers results - assits in balancing demand and supply +54% vs. 1-9/20 +64% vs. 1-9/20 +19% vs. 1-9/20 Growth in visits to Growth in conversion rate of Growth in self-service rate terveystalo.com web bookings (bookings) Investments in usability, Google Improvement i
Slide 29: The number of Covid-19 tests all time high in August
The number of Covid-19 tests all time high in August Covid-19 tests per week Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 14000 12000 10000 8000 6000 4000 2000 0 Source: https://avoinraportointi.terveystalo.com/korona/ 29 Note: Reporting does not include corporate co-operations.
Slide 30: EBITA grew slightly y-o-y and 29% vs. Q3/19
EBITA grew slightly y-o-y and 29% vs. Q3/19 Revenue, MEUR and Adjusted EBITDA-% Adjusted EBITA, MEUR and % +16.7% +29.1% +13.7% +1.9% 279,7 278,7 275,3 273,1 39,3 38,2 267,8 270,3 258,6 257,4 234,0 240,2 32,4 32,3 30,9 31,5 209,2 19,2 19,5 19,1 29,5 17,9 17,8 25,9 17,0 17,7 16,4 24,4 15,8 22,9 14,8
Slide 31: COVID-19 related services still impacted personnel costs, cost savings lowered costs in Q3/20
COVID-19 related services still impacted personnel costs, cost savings lowered costs in Q3/20 M€ 7-9/2021 7-9/2020 Change % 1-9/2021 1-9/2020 Change % 2020 Revenue 273,1 240,2 13,7 827,1 706,7 17,0 986,4 Other operating income -112,2 -108,1 3,7 -352,9 -324,7 8,7 2,7 Purchase of materials -7,3 -7,4 -
Slide 32: Indebtedness below target
Indebtedness below target Net debt/Adjusted EBITDA (LTM)* Operational efficiency is reflected in the negative net working capital 4,6 7 7 4,1 6 6 6 6 7 -23,5% 6 8 7 8 3,5 3,4 3,4 122 129 3,1 3,2 110 101 101 102 100 99 95 109 3,0 83 2,7 2,7 2,6 -58 -59 -58 -52 -61 -57 -59 -47 -70 -70 -73 -174 -176 -1
Slide 33: Second dividend for 2020 and launch of share payback program
Second dividend for 2020 and launch of share payback program Share buyback program Second dividend for financial year 2020 • The purpose of the share buyback program is • The Board of Directors resolved to pay a to optimize the Company's capital structure second dividend of EUR 0.13 for the through
Slide 34: Outlook
Outlook Outlook – The next 6 months vs. last 6 months Market • The market environment has normalized, and demand for health services is currently strong, but varies by service and environment could be restricted by supply. • Demand for COVID-19 related services is expected to remain active, despite
Slide 35: Appendix
Appendix 35 FOOTER
Slide 36: Key figures
Key figures Terveystalo Group, EUR million 7-9/ 7-9/ Change, % 1-9/ 1-9/ Change % 2020 2021 2020 2021 2020 Revenue 273,1 240,2 13,7 827,1 706,7 17,0 986,4 Adjusted EBITDA * 1) 48,6 46,1 5,4 146,9 108,3 35,7 162,8 Adjusted EBITDA, % * 1) 17,8 19,2 - 17,8 15,3 - 16,5 EBITDA 1) 46,2 45,5 1,5 143,6 104,
Slide 37: Feelgood AB – key figures
Feelgood AB – key figures SEK, thousand Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Revenue 204,393 213,110 138,429 220,230 208,448 185,825 125,102 204,733 193,469 206,243 EBITDA 24,371 28,626 -1,612 34,157 24,155 18,486 -464 38,926 20,775 27,167 EBIT 12,921 16,570 -13,704 21,594 11,
Slide 38: Jan-Sep/21 revenue grew 17% y-o-y, and 9% vs. 2019
Jan-Sep/21 revenue grew 17% y-o-y, and 9% vs. 2019 1-9/21 revenue breakdown, % 1-9/2021 revenue breakdown, M€ 17% 2% 900 827 +100 % 800 +51 % 14 707 69 27% 700 0 4% 64 46 62 88 42% 600 90 -2 % 500 244 +15 % 400 212 300 200 +17 % 298 349 100 29% 0 1-9/2020 1-9/2021 Corporate Public Corporate Staffing
Slide 39: Jan-Sep/21 revenue grew 17% y-o-y, and 9% vs. 2019
Jan-Sep/21 revenue grew 17% y-o-y, and 9% vs. 2019 LTM revenue breakdown, % 1-9/2021 revenue breakdown, M€ 17% 1% 900 827 +100 % 800 +51 % 14 707 69 27% 0 64 700 46 4% 62 88 42% 600 90 -2 % 500 244 +15 % 400 212 300 200 +17 % 298 349 30% 100 0 1-9/2020 1-9/2021 Corporate Public Corporate Staffing Pr
Slide 40: Q3/21 revenue by payor group
Q3/21 revenue by payor group Q3/21 revenue by payor group*, % Q3/2021 revenue split, M€ 31.7 % 5% 300 273 +100 % 14 240 250 23 16 0 +45% 21 27% 20 40% 200 31 +3 % 29 -5 % 150 79 74 +6 % 100 50 99 +9 % 108 29% 0 Q3 2020 Q3 2021 Corporate Public Corporate Staffing Private Sweden and others Private Ser