Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q2 2020 Earnings Presentation
30 slides from Terveystalo Oy Class A's earnings presentation, Aug 6, 2020
Slide 1: COVID-19 impacted the business heavily in Q2, normalization of volumes has begun
COVID-19 IMPACTED THE BUSINESS HEAVILY IN Q2, NORMALIZATION OF VOLUMES HAS BEGUN CEO Ville Iho CFO Ilkka Laurila terveystalo.com
Slide 2: Q2 in brief
Q2 in brief Terveystalo business was heavily impacted by the Covid-19 situation during Q2. Adapting the operations to the dynamic demand situation continued throughout the quarter. Demand has been recovering as we expected since the restrictions were gradually lifted in May-June. Demand continued to
Slide 3: COVID-19 impact on revenue
COVID-19 impact on revenue • The duration and magnitude of the effects will strongly depend on the evolution of the epidemic situation and its effects on consumer behavior and employment • A diverse customer base and range of services together with good preparedness of the organization enable scalin
Slide 4: Q2 revenue fell sharply due to Covid-19 related restrictive measures
Q2 revenue fell sharply due to Covid-19 related restrictive measures Demand recovered towards the end of Q2 Q2 Revenue by payor group, M€ 300 -19% • All operations had to be heavily adapted to the 259 epidemic situation, containment measures and 250 14 demand 22 209 200 38 14 • The revenue of wellbe
Slide 5: Impact of COVID-19 on business
Impact of COVID-19 on business Q1 Q2 H2 • Extensive restrictions on movement and assembly • Limitations of non-emergency oral health • Restrictions on the movement and assembly of people care and non-emergency ENT surgery were in full force from 13 March to 14 May 2020. • The recommendation for Regu
Slide 6: The decline in revenue and changes in the sales mix weakened profitability
The decline in revenue and changes in the sales mix weakened profitability, heavy cost mitigation softened the impact • Adjusted EBITA -66.0% to EUR 8.8 mill. (25.9) • Adjusted EBITA 4.2% (10.0) of revenue • Profit for the period EUR -1.5 mill. (10.3) • Earnings per share, EPS, EUR -0.01 (0.08). • C
Slide 7: New service solutions related to the COVID-19 strategy
We responded quickly to new demand by creating entirely new service solutions related to the COVID-19 strategy to enable a quick return to normal • Through risk assessment, testing and tracking, we enable companies to achieve maximum operational capacity and return to normal as quickly as possible •
Slide 8: Our Vision is to empower lifelong health and well-being
Our Vision is to empower lifelong health and well-being And therefore we fight for a healthier life, every day. Values Human being in the center ‘We take responsibility for the health and well-being of our fellow human beings, for the opportunity to live a good life, We work together to help the cus
Slide 9: Evalua
EVALUA Simo Taimela, Managing Director terveystalo.com
Slide 10: Evalua Sante Q
Evalua Sante® Q Enhancing employee vitality, health and work ability by an online questionnaire and guidance by artificial intelligence-based algorithms to personalised evidence-informed interventions Simo Taimela Willem van Mechelen Director, Adjunct Professor Director, Professor simo.taimela@evalu
Slide 11: Evalua in nutshell
Simo Taimela Adjunct professor with 25+ years in Evalua in nutshell research and health technology industry • Part of Terveystalo Group since November 2019 Willem van Mechelen Occupational physician and • Specialised in health risk appraisals and related epidemiologist, professor with 30+ years expe
Slide 12: What is the problem?
What is the problem? Strategic target of client Tactic to meet strategic Operative means companies target Identify individuals with care needs and/or Secure optimal labor Take good care of work-related problems (work disability risk productivity of workforce employees factors) and intervene accordin
Slide 13: Evalua services overview
Evalua services overview The EVALUA Sante® Q • Relevant contents • Evidence-based advice for self-help • Action plan guiding towards personalised interventions Evidence-informed guidance towards interventions • Client-specific intervention offering Benchmark group reports • Support for management de
Slide 14: Sante Q predictive ability
Sante Q predictive ability Mean SA Days per Sante Q category 16 Analysis on +22 000 employees from different industries 14 12 and occupational groups, who had responded to the 10 Sante Q; registry data was available of sickness absence 8 days and permanent work disability, 6 4 resulting in: 2 0 No f
Slide 15: Sante Q cost savings
Sante Q cost savings In a randomised controlled trial, where targeted health SA days in 12 months services were offered to those at `Work Disability Risk´, 35 there was during 12-month follow-up: 30 25 • 35% less sickness absence days1 20 • 180€ saving in healthcare costs per person2 15 10 A separat
Slide 16: Current solution for the problem
Current solution for the problem Strategic target of Tactic to meet Operative means Tools client companies strategic target Identify individuals with work The EVALUA Sante Q + Secure optimal Take good care of disability risk factors and Targeted Health Check-up + labor productivity employees interve
Slide 17: Future opportunities
Future opportunities New clients New countries Surveys for occupational hazards Surveys for occupational well-being Design of effective interventions Etc. Additional contents
Slide 18: Summary
Summary • A pleasant user experience and individualized tips and advice on how to take care of one’s own work ability, health, well- being and vitality. • Respondents are guided to different interventions based on individual needs and preferences. • Seamless coordination with OHS interventions, heal
Slide 19: Financial performance
FINANCIAL PERFORMANCE Ilkka Laurila, CFO terveystalo.com
Slide 20: Decline in revenue, changes in sales mix and investments in digitalisation weakened profitability
Decline in revenue, changes in sales mix and investments in digitalisation weakened profitability Revenue, Adjusted EBITDA * **, % Adjusted EBITA* **, M€ and % 300 30 35 30 270,3 32,4 32,3 267,8 258,6 257,4 250 234,0 25 30 27,1 25 25,9 209,2 25 24,4 197,9 22,9 200 189,0 17,9 17,7 20 20 16,4 17,0 20,
Slide 21: Investments in service development and digitalisation increased personnel and IT costs
Investments in service development and digitalisation increased personnel and IT costs, PPE procurement increases costs of materials M€ 4-6/2020 4-6/2019 Change, % 1-6/2020 1-6/2019 Change, % 2019 Revenue 209.2 258.6 -19.1 466.5 526.4 -11.4 1 030.7 Other operating income 0.5 0.4 36.3 1.4 0.7 91.5 2.
Slide 22: Liquidity at a good level
Liquidity at a good level m€ 30.6.2020 30.6.2020 31.12.2019 • Cash and cash equivalents EUR 90.2 mill. (42.6). In addition, 40 mill. in undrawn loan facilities. ASSETS Property, plant and equipment 69.3 68.8 69.5 • Terveystalo agreed on additional financing of EUR 40 mill. Right of use assets 180.1
Slide 23: Leverage ratio below target
Leverage ratio below target Net debt/adjusted EBITDA Operational efficiency is reflected in the (last 12 months)* negative net working capital 4,6 150 4,1 6 6 6 6 6 3,8 100 6 8 3,5 3,4 5 3,1 3,2 50 90 110 101 101 102 100 83 73 0 -33 -51 -58 -59 -58 2,0 -50 -70 -73 -86 -147 -174 -166 -165 -100 -176 -
Slide 24: The share of intangible investments continue to grow
The share of intangible investments continue to grow (excluding M&A) Gross capex, M€ and %- of revenue Net capex, M€ and %- of revenue 44 45 4,5 4,4 4,3 4,3 4,3 4,3 4,2 4,3 50 4,0 46 4,1 4,5 45 4,1 4,5 45 41 39 3,7 4,0 40 3,7 3,7 38 8 4,0 41 40 11 40 38 4 3,5 35 12 3,5 18 19 30 31 16 3,0 30 28 14 3,
Slide 25: Capital Market Day on 2 September 2020
CAPITAL MARKET DAY ON 2 SEPTEMBER 2020 https://terveystalo.videosync.fi/2020- 09-02-cmd 25 6.8.2020
Slide 26: Q&A
Q&A terveystalo.com
Slide 27: Slide 27
Slide 28: Outlook
Outlook • In the short term, the market environment is still uncertain due to the changes in consumer behavior related to the COVID-19 pandemic, and predicting demand is challenging in the short term. For demand to recover to the normal level in the second half of 2020, it would be necessary that no
Slide 29: Key Figures
Key Figures 4–6/ 4–6/ Change, 1–6/ 1–6/ Terveystalo Group, EUR million Change, % 2019 2020 2019 % 2020 2019 Revenue 209.2 258.6 -19.1 466.5 526.4 -11.4 1,030.7 Adjusted EBITDA * 1) 24.0 40.9 -41.4 62.2 88.7 -29.9 176.3 Adjusted EBITDA, % * 1) 11.5 15.8 – 13.3 16.9 – 17.1 EBITDA 1) 23.2 38.7 -40.2 59
Slide 30: terveystalo.com #terveystalo
terveystalo.com #terveystalo