Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q1 2020 Earnings Presentation
20 slides from Terveystalo Oy Class A's earnings presentation, May 6, 2020
Slide 1: The exceptional measures impact the business heavily in the short term
THE EXCEPTIONAL MEASURES IMPACT THE BUSINESS HEAVILY IN THE SHORT TERM CEO Ville Iho CFO Ilkka Laurila terveystalo.com
Slide 2: Q1 in brief
Q1 IN BRIEF Exceptional measures have a significant impact on business in the short term, we have adjusted operations e.g. by multiplying the service capacity of remote appointments Q1 revenue decreased mainly due to expired outsourcing agreements, profitability was further weakened by changes in th
Slide 3: COVID-19 impact on revenue
COVID-19 impact on revenue • The duration and extent of the containment measures have a significant impact on the speed of recovery • Changes in employment or consumer confidence may be reflected in underlying demand • A diverse customer base and range of services enable scaling according to demand
Slide 4: COVID-19 restrictions, risks and mitigation
COVID-19 restrictions, risks and mitigation Q1 Q2 • Extensive restrictions on movement and assembly • Gradual dismantling of restrictions on movement and assembly from • Limitations of non-emergency oral health care and non-emergency 14 May onwards Regulatory ENT surgery • ENT surgery can be perform
Slide 5: We test extensively and support companies in a controlled return to normal
We test extensively and support companies in a controlled 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 • ~12,000 samples analyzed • Proportion of confirmed COVID-19 cases 3.8% •
Slide 6: Q1 revenue decreased mainly due to expired outsourcing agreements
Q1 revenue decreased mainly due to expired outsourcing agreements Exceptional measures have a significant impact on business in the short term Q1 Revenue by payor group, M€ 300 -4% • Q1 The decrease in revenue mainly due to 268 termination of outsourcing agreements at the 257 14 end of 2019. 250 22
Slide 7: Decline in revenue, changes in sales mix and investments weakened profitability
Decline in revenue, changes in sales mix and investments in digitalisation weakened profitability • Adjusted EBITA -29.4% EUR 22.9 mill. (32.4) • Adjusted EBITA 8.9% (12.1) of revenue. • Profit for the period EUR 8.8 (17.2) mill., earnings per share EUR 0.07 (0.14). • The Board of Directors proposes
Slide 8: Outlook
Outlook • In the short term, the market environment is very uncertain because of the exceptional measures to control the COVID-19 epidemic. This decreases demand for Terveystalo’s services in the short term. The improvement of demand in the second half of 2020 would require gradual lifting of the re
Slide 9: We are fighting for a healthier life
We are fighting for a healthier life We act for a healthier, better life for all. It means that we do not only tailor the care for our customers, we strive to build a healthier society. 9
Slide 10: Financial performance
FINANCIAL PERFORMANCE terveystalo.com
Slide 11: 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 25,6 25,9 25 24,4 197,5 189,0 197,9 22,9 200 17,9 17,7 20 20 16,4 17,
Slide 12: 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€ 1-3/2020 1-3/2019 Changes, % 2019 Revenue 257.4 267.8 -3.9 1 030.7 Other operating income 0.9 0.4 142.7 2.1 Purchase of materials -9.2 -8.5 8.7 -32.0 Change in inve
Slide 13: Liquidity at a good level
Liquidity at a good level m€ 31.12.2020 31.3.2019 31.12.2019 • Cash and cash equivalents EUR 51.5 mill. (56.9). ASSETS EUR 40 mill. undrawn facilities + € 8 mill. account Property, plant and equipment 70.4 64.5 69.5 limit. Capacity to agree on additional funding Right-of-use assets 187.0 209.7 193.2
Slide 14: Indebtedness below target
Indebtedness 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 3.5 6 5 3.1 3.2 50 90 110 101 101 102 100 72 73 0 -38 -33 2.1 -51 -58 -59 -58 2.0 -50 -70 -73 -147 -174 -166 -165 -100 -176 -17
Slide 15: 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 4.5 45 4.5 3.9 45 41 3.7 4.0 40 3.6 3.7 3.7 38 8 4.0 41 11 40 38 3.5 35 3.5 19 12 18 30 14 29 30 31 16 3.0 30 27 28 3
Slide 16: Financial reporting, IR events and roadshows
Financial reporting, IR events and roadshows Financial reporting Upcoming IR events • Half-Year Report for January-June 2020 on • Q1 investor call w. Danske Bank 7 May Thursday, 6 August 2020 • UBS Pan European Small and Mid-Cap • Interim report for January-September 2020 virtual Conference 2020 13
Slide 17: Q&A
Q&A terveystalo.com
Slide 18: Slide 18
Slide 19: Key Figures
Key Figures Terveystalo Group, EUR mill. 1-3/2020 1-3/2019 Change, % 2019 Revenue 257.4 267.8 -3.9 1,030.7 Adjusted EBITDA, * 1) 38.2 47.8 -20.1 176.3 Adjusted EBITDA, % * 1) 14.8 17.9 - 17.1 EBITDA 1) 2) 35.9 47.1 -23.8 171.2 EBITDA, % 1) 13.9 17.6 - 16.6 Adjusted EBITA * 1) 22.9 32.4 -29.4 115.1 A
Slide 20: terveystalo.com #terveystalo
terveystalo.com #terveystalo