Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — FY2024 Earnings Presentation
21 slides from Terveystalo Oy Class A's earnings presentation, 2025
Slide 1: Terveystalo Group Q4 & FY 2024 Results
Terveystalo Group Q4 & FY 2024 Results Ville Iho, President & CEO Juuso Pajunen, CFO
Slide 2: Agenda
Agenda Ville Iho, President & CEO 2024 Financial & operational highlights Strategic overview and dividend proposal Q4 highlights Juuso Pajunen, CFO Q4 & FY 2024 Financial performance analysis Outlook & guidance Q&A 2
Slide 3: Q4 2024 highlights
Q4 2024 highlights Revenue (MEUR) EPS (EUR) 354 0.15 +3.4% y-o-y +130% y-o-y Adj. EBITA (MEUR) Adj. EBITA margin 47.1 13.3% +19.1% y-o-y +1.8%-p. y-o-y NPS, appointments Operating cash flow (MEUR) 88 89 +1.2% y-o-y +47% y-o-y 3
Slide 4: We have delivered strong results in a challenging macro environment
We have delivered strong results in a challenging macro environment Stable growth, driven by Group profitability target Record high customer Healthcare services reached ahead of schedule, satisfaction, professional strong financial position engagement, and medical Revenue, EURm 6% quality 1,500 63%
Slide 5: We have a structurally stronger foundation with a lower risk profile
We have a structurally stronger foundation with a lower risk profile WE HAVE SUCCESSFULLY IMPROVING PERFORMANCE DECREASED OUR RISK PROFILE 12.8 LTM adjusted EBITA-% 12.3 ✓ Appointments are more profitable, 11.4 decreasing the risk to our margins 10.5 ✓ Less exposure to legacy outsourcing business 9.
Slide 6: Each of our three business areas have a clear improvement agenda
Each of our three business areas have a clear improvement agenda Business Area Healthcare Services Portfolio Businesses Sweden 2024 Revenue EUR 1,043 mill. EUR 239 mill. EUR 82 mill. 2024 Adj. EBITA margin 15,5% 4,3% -2,5% Share of total revenue* 78% 18% 6% Turnaround and selective, Profitable growt
Slide 7: The updated financial targets and dividend policy emphasize profitable growth and shareholder value
The updated financial targets and dividend policy emphasize profitable growth and shareholder value Mid-term financial targets Profitable Moderate Attractive growth leverage ratio dividends Dividend proposal 10% <2.5x 80%+ EUR 0.48 (0.30) per share EPS to grow on Net debt to EBITDA A dividend payout
Slide 8: Our investments in digital technology enhance productivity, medical quality, and supply of services
Our investments in digital technology enhance productivity, medical quality, and supply of services Productivity increase potential Fivefold productivity Increase in care compliance in transactional processes potential in chat appointments ~1.3x higher EBITA -15% -40% # potential # # Compliance +400
Slide 9: Accelerating our strategic agenda: Five key areas for growth
Accelerating our strategic agenda: Five key areas for growth Engaged Superior customer Organic Efficiency Optimized team value through growth business portfolio integrated care 9
Slide 10: Financial performance
Financial performance Juuso Pajunen, CFO 10
Slide 11: Q4: Revenue growth was driven by strong supply, improved sales mix, successful commercial actions
Q4: Revenue growth was driven by strong supply, improved sales mix, successful commercial actions, strong flu season Healthcare services Portfolio businesses -0,3 -4,3 9,7 -4,2 -0,4 -1,7 353,9 -4,2 -0,3 17,2 342,4 • Outsourcing declined due to the planned contraction of the outsourcing • Growth driv
Slide 12: Q4: Strong profit growth continued in Healthcare services
Q4: Strong profit growth continued in Healthcare services Adj. EBITA (MEUR) In Healthcare services, EBITA was influenced by several factors: • Continued operational efficiency +19% • A robust sales mix coupled with successful commercial initiatives -1,3 -1,4 47,1 • Enhanced supply and demand driven
Slide 13: Q4: Finland saw a continued improvement in sales mix, while Sweden faced headwinds
Q4: Finland saw a continued improvement in sales mix, while Sweden faced headwinds Healthcare services Portfolio businesses Sweden MEUR 10% 300 281 255 250 16% -16% 200 80 175 67 157 13% 57 -16% 150 60 23 30 27 19 22 100 40 21 3% 17 20 9% 75 82 5% 50 20 13 10 13 23 24 10 1% 8 0 0 0 Q4 2023 Q4 2024 Q
Slide 14: FY 2024: Robust organic revenue growth and substantial profit improvement in Healthcare services
FY 2024: Robust organic revenue growth and substantial profit improvement in Healthcare services 2024 REVENUE 2 0 2 4 A D J . E B I TA +4% +36% 24.7 1.8 -8.3 -11.6 --4.2 1,340.0 1,6 -5,7 171,0 -4.5 -10.7 -1.2 -3,4 1,286.4 67.8 53,0 125,6 Healthcare Portfolio services businesses Appointments Diagnost
Slide 15: We invest in organic and disciplined inorganic growth
We invest in organic and disciplined inorganic growth 59 CAPEX (MEUR) • Our investment strategy prioritises organic growth and disciplined inorganic expansion. 43 30 41 • We will focus on digital investments to improve 40 user experience and productivity for healthcare 34 33 professionals. 21 4,7 •
Slide 16: A strong financial position supports our strategy execution
A strong financial position supports our strategy execution Strong profit growth has led to significant cash flow conversion and deleveraging Operating cash flow (LTM) 224 3,8 Net debt to adj.EBITDA 190 196 3,1 3,2 174 171 3,0 3,0 150 152 158 2,5 141 143 2,1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2
Slide 17: We start the year from a stronger position than ever before
We start the year from a stronger position than ever before Stable growth, driven by Group profitability target Strong financial position Healthcare services reached ahead of schedule Revenue, EURm 6% 63% EURm EURm 1,500 1,340 -34% 1,259 1,286 200 171 14 3,5 3,2 14 1,250 12,8% 13 3,0 3,0 12 1,000 15
Slide 18: Guidance for 2025
Guidance for 2025 Terveystalo has updated the structure of the guidance and communicates expectations on revenue and adjusted EBIT margin (previously revenue and adjusted EBITA margin). Terveystalo expects its full-year 2025 revenue to grow (2024: EUR 1,340 million) and adjusted EBIT to be 10.7–11.8
Slide 19: Q&A
19 Q&A Terveystalo
Slide 20: terveystalo.com
Terveystalo MEANINGFUL MATTERS
Slide 21: The legacy outsourcing contract portfolio shrinks as old contracts expire or are terminated
The legacy outsourcing contract portfolio shrinks as old contracts expire or are terminated CO N T R AC T VA LU E , O U T S O U R C I N G CO N T R AC T S , M € ¹ 120 80 75 50 30 10 10 2022 2023 2024 2025 2026 2027 2028 21 1) ROUNDED FIGURES