Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q1 2024 Earnings Presentation
18 slides from Terveystalo Oy Class A's earnings presentation, April 2024
Slide 1: Terveystalo Group Q1 2024 Results
Terveystalo Group Q1 2024 Results Ville Iho, President & CEO Juuso Pajunen, CFO 1
Slide 2: Welcome
Welcome Ville Iho, President & CEO • Q1 2024 Financial & operational highlights Juuso Pajunen, CFO • Q1 2024 Financial performance analysis • Outlook & Guidance 2
Slide 3: Q1 2024 in plan
Q1 2024 in plan The strong performance of Healthcare Services drove topline and margin growth The independent profitability measures of the Portfolio Businesses are delivering results The challenging market is reflected in the Sweden segment performance; the full impact of the profit improvement pro
Slide 4: Q1 2024 highlights
Q1 2024 highlights Revenue (MEUR) EPS (EUR) 350.2 0.19 +2.7% y-o-y +112% y-o-y Adj. EBITA (MEUR) Adj. EBITA margin 47.2 13.5% +29.5%-p y-o-y NPS, appointments Operating cash flow (MEUR) 86.4 49.2 4
Slide 5: Marked improvement in Healthcare services drove the Group performance
Marked improvement in Healthcare services drove the Group performance Healthcare services Portfolio businesses Sweden 7% MEUR 268 250 -9% -10% 16,1% 71 26 65 23 7,2% 12,6% 5,3% 4,1% 0,3% Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Revenue Adj. EBITA margin 5
Slide 6: Effective care in Occupational health
Clinical Effective care in Quality Highlight Occupational health Mental health Less human suffering and Effective prevention and Cost savings and return on a clear reduction in long, care paths for investment for the employer mental health-related mental health issues sickness absences 6
Slide 7: Our focus going forward
1,296 10.5 1,286 1,279 9.8 1,275 1,271 Our focus going 1,259 9.1 forward 8.4 8.1 8.4 We continue our determined journey towards a 12% EBITA margin in 2025 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 LTM revenue LTM adjusted EBITA-% 7
Slide 8: Financial performance
Financial performance Juuso Pajunen, CFO 8
Slide 9: Continued margin recovery in Q1
Continued margin recovery in Q1 Adj. EBITA +30% , EPS +112%, Net Debt / EBITDA down to 2.7x – efficiency improvements and solid cashflow visible throughout Adj. EBITA% at 13.5% supported especially by Healthcare services’ 7% topline growth, driven by a stronger sales mix and successful commercial ac
Slide 10: Q1: Improved sales mix and successful commercial actions driving the revenue growth
Q1: Improved sales mix and successful commercial actions driving the revenue growth Healthcare services Portfolio businesses 1,2 -0,5 -3,7 3,0 -1,9 0,0 -2,5 350,2 13,9 341,1 • Increased • WD-adj. appointment volume macro -1% y-o-y, growth driven by • Outsourcing declined due to the uncertainty impro
Slide 11: Q1: Strong profit development in Healthcare services and Portfolio businesses
Q1: Strong profit development in Healthcare services and Portfolio businesses • In Healthcare services, EBITA was impacted by: Adj. EBITA(MEUR) • Improved operational efficiency throughout services due to the +29,5 % profit improvement program 0,5 47,2 -1,8 0,2 • Strong sales mix improvement 11,8 •
Slide 12: Q1: Sales mix improved in Finland, headwinds in Sweden
Q1: Sales mix improved in Finland, headwinds in Sweden Healthcare services Portfolio businesses Sweden MEUR 7% 300 80 -9% 30 -10% 268 71 250 16,1% 70 26 250 65 25 23 60 25 200 5,3% 20 50 24 149 164 4,1% 150 12,6% 40 15 7,2% 22 30 19 100 10 80 20 78 15 13 50 5 10 0,3% 23 24 9 9 0 0 0 Q1 2023 Q1 2024
Slide 13: We maintained strong cash flow, solid balance sheet and credit profile
We maintained strong cash flow, solid balance sheet and credit profile OPERATING CASH FLOW (LTM), MEUR NET DEBT/ADJUSTED EBITDA (LTM) GROSS CAPEX (LTM), MEUR 189 3,8 176 174 171 152 158 3,1 3,2 150 143 3,0 3,0 141 2,7 2,5 2018 2019 2020 2021 2022 2023 Q1/2024 -48 -48 -41 -40 -54 -59 -58 -58 -53 • Ne
Slide 14: Narrowing the range of our guidance for 2024
Narrowing the range of our guidance for 2024 • Terveystalo estimates its revenue for 2024 to grow (2023: EUR 1,286 million) and its adjusted EBITA margin to be between 10.5% and 11.5% (9.8% in 2023). • The estimates are based on the first quarter of 2024 projections for inflation, consumer demand an
Slide 15: terveystalo.com
Terveystalo MEANINGFUL MATTERS
Slide 16: Appendix
Appendix Terveystalo
Slide 17: The outsourcing contract portfolio shrinks as old contracts expire or are terminated
The outsourcing contract portfolio shrinks as old contracts expire or are terminated CONTRACT VALUE, OUTSOURCING CONTRACTS, M€¹ 120 80 70 50 30 10 10 2022 2023 2024 2025 2026 2027 2028 17 1) ROUNDED FIGURES
Slide 18: Key figures
Key figures EUR mill. unless stated otherwise 1-3/2024 1-3/2023 Change, % 2023 Revenue 350.2 341.1 2.7 1 286.4 Adjusted EBITA * 1) 47.2 36.5 29.5 125.6 Adjusted EBITA, % * 1) 13.5 10.7 - 9.8 EBITA 1) 43.0 27.0 59.0 104.4 EBITA, % 1) 12.3 7.9 - 8.1 Operating profit (EBIT) 35.7 19.1 87.2 -14.7 Operati