Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q4 2017 Earnings Presentation
22 slides from Terveystalo Oy Class A's earnings presentation, Feb 28, 2018
Slide 1: A Strong Position in Private Healthcare Boosts Growth
A STRONG POSITION IN PRIVATE HEALTHCARE BOOSTS GROWTH TERVEYSTALO Q4 AND FULL YEAR 2017 RESULT CEO Yrjö Närhinen CFO Ilkka Laurila terveystalo.com #terveystalo 28.2.2018
Slide 2: Terveystalo in 2017
Terveystalo in 2017 Revenue by customer group Revenue EUR 689.5 million (+26.1%) ~9,000 healthcare professionals (+25.8%) 9.2 % 1.2 million Corporate individual customers (+20%) Private 36.8 % 54.0 % 3.3 million Public doctor visits (+22%) ~600,000 Oma Terveys personal health portal users (+25%) 2 2
Slide 3: 2017 Highlights
2017 Highlights • Acquisitions and organic growth boosted revenue and market share • Growth in all customer groups • Increased operational efficiency and successful, timely integrations improved profitability • The IPO and the costs associated with acquisitions affect the comparability y-o-y • The I
Slide 4: Acquisitions and organic growth boosted revenue growth
Acquisitions and organic growth boosted revenue growth 2017 revenue by customer group, M€ Growth in all customer groups +26% 700 690 Revenue growth driven by acquisitions and 64 supportive market fundamentals: +5.2 % 600 547 • Corporate: Growth driven by the acquisitions, 500 61 254 +29.7 % new OH c
Slide 5: Increased operational efficiency and successful, timely integrations improved profitability
Increased operational efficiency and successful, timely integrations improved profitability • Adjusted EBITDA* grew by 26.7 per cent to EUR 92.4 million (13.4% of revenue) • Adjusted EBITA* grew by 28.5 per cent to EUR 73.0 million (10.6% of revenue) • Adjusted net profit** grew by 45 per cent to EU
Slide 6: Market review
Market review • The recovering Finnish economy, improved employment rate, and increased consumer confidence all contributed to strong demand in corporate and private customer groups in the review period. • Sote reform progresses, framework established; According to the Government's proposal, freedom
Slide 7: Equity repayment proposal
Equity repayment proposal • The Board of Directors proposes to the Annual General Meeting that an equity repayment of EUR 0.06 per share totaling EUR 7.7 million be distributed from the invested non-restricted equity reserve for 2017. (corresponding to an annual yield* of approximately 3 per cent as
Slide 8: Outlook for 2018
Outlook for 2018 • The continuing improvement of the domestic economy supports corporate and private customer business. • Healthcare and social welfare reform will change the environment for all healthcare companies and create new opportunities, especially for those who invest in meeting the new nee
Slide 9: Financials
FINANCIALS CFO Ilkka Laurila
Slide 10: Q4 Highlights
Q4 Highlights Q4 revenue by customer group, M€ Revenue growth strongest in corporate +30% accounts, very strong EBITDA 200 190 development +12,7 % 17 • Revenue grew 29.7 per cent to 150 146 15 +29.4 % 67 189.9 Million euros (146.4) • Adjusted EBITDA* grew by 39.2 per 100 52 cent to 29.1 Million euro
Slide 11: Very strong EBITDA development
Very strong EBITDA development M€ 10-12/2017 10-12/2016 Change 2017 2016 Change Revenue 189.9 146.4 29.7 % 689.5 547.0 26.1 % Other operating income 0.5 5.3 -90.8 % 2.1 7.1 -70.4 % Materials and services -89.1 -69.7 27.8 % -324.3 -259.3 25.0 % Employee benefit expenses -48.1 -40.3 19.4 % -189.5 -155
Slide 12: Capacity in existing infrastructure and fixed costs create scale benefits
Capacity in existing infrastructure and large proportion of fixed and semi-fixed costs create significant scale benefits Adjusted operating costs, share of revenue, M€ +26% Variable costs 691 Reception Imaging +26.7% 549 324 Staff Appointment Semi-fixed 256 Rooms costs +20.8% 186 Admin Digital 154 +
Slide 13: Profitability stable, synergies realized according to plan
Profitability stable, synergies realized according to plan Adjusted EBITA, M€ and % EBITA, M€ and % 80 14% 60 12% 70 9.6 % 12% 10.6 % 50 10% 10.4 % 10.0 % 8.4 % 60 8.8 % 10% 40 6.8 % 7.1 % 8% 50 8% 40 30 6% 73,0 6% 52.7 48.8 30 56,8 20 42.5 4% 50.7 4% 20 41.5 32.3 10 2% 10 2% 0 0% 0 0% 2014 2015 201
Slide 14: Balance sheet: Equity strengthened, net debt decreased
Balance sheet: Equity strengthened, net debt decreased • Total assets amounted to EUR 902.3 million In millions of euro 31.12.2017 31.12.2016 (734.1) on 31 December 2017. ASSETS Property, plant and equipment 92.1 65.5 • The increase of EUR 168.2 million was mainly Goodwill 583.3 449.1 attributable t
Slide 15: Positive net working capital development - Improved operational efficiency
Positive net working capital development - Improved operational efficiency In millions of euro 10-12/2017 10-12/2016 2017 2016 Cash at the beginning 5.7 4.2 39.1 16.6 Profit before income taxes 4.4 7.1 3.9 9.5 Adjustments for non-cash and financial items 20.6 11.6 64.2 57.2 Cash flows from Changes i
Slide 16: Key Figures
Key Figures Terveystalo Group, In millions of euro 10-12/2017 10-12/2016 Change, % 1-12/2017 1-12/2016 Change, % Revenue 189.9 146.4 29.7 689.5 547.0 26.1 Adjusted EBITDA (* 29.1 20.9 39.2 92.4 72.9 26.7 Adjusted EBITDA margin (%) (* 15.3 14.3 1,1%-p 13.4 13.3 0,1 %-p Adjusted EBITA (* 23.9 16.7 42.
Slide 17: We develop quality and customer experience through digitalisation
WE DEVELOP QUALITY AND CUSTOMER EXPERIENCE THROUGH DIGITALISATION
Slide 18: Digitalization and consumer behavior change the healthcare market
Digitalization and consumer behavior change the healthcare market 2015 2020 Same service Targeted for all service Place and Symptom Holistic Digital time-bound focused Limited Proactive Partner Passive resources network The customer is responsible for Knowledge-based support his / her own health
Slide 19: Customer experience and quality management
Measurable Efficiency effectiveness CUSTOMER EXPERIENCE and of care profitability AND QUALITY MANAGEMENT ARE AT THE CORE OF Customer OUR STRATEGY Experience & Quality Superior service experience 19 28.2.2018
Slide 20: Use of Digital Services grows rapidly
Use of Digital Services grows rapidly – Terveystalo is one of the largest providers of on-demand health care services in the world 600 000 personal health 70 000 personal health 15 000 Chat visits portal users plans Personal health plans, thousands Video and Chat visits Oma Terveys users, thousands
Slide 21: We want to improve comparability, transparency, and quality in the healthcare sector
We want to improve comparability, transparency, and quality in the healthcare sector Terveystalo plays a significant role in ensuring the availability of Finnish health services: • 1.2 million individual customers, • 180 clinics, • 700 000 occupational healthcare end customers, 30% of Finland's work
Slide 22: Thank you
Thank you terveystalo.com #terveystalo