Terveystalo Oy Class A · OMXHEX:TTALO

Terveystalo Oy Class A — Debt Investor Presentation (February 2022)

39 slides from Terveystalo Oy Class A's debt investor presentation, Feb 16, 2022

  1. Slide 1: Growing as a stronger business

    Terveystalo Growing as a stronger business ILKKA LAURILA, CFO 16 FEB 2022 1 FOOTER

  2. Slide 2: Terveystalo – A leading Nordic platform for health and wellbeing

    Terveystalo – A leading Nordic platform for health and wellbeing 8.0 25% 1.3 ~360 Service portfolio • Occupational health services Mill. • Primary and secondary Mill. Share of Locations in Customer remote visits Individual health care visits in 2020 in 2021 Finland customers in • Wellbeing services

  3. Slide 3: Terveystalo Group structure

    Terveystalo Group structure • The Group’s operative business activities are mainly carried out by: • Suomen Terveystalo Oy, • Terveystalo Julkiset Palvelut Oy, • Terveystalo Kuntaturva Oy in Finland • and by Feelgood Företagshälsovård AB in Sweden. • Terveystalo Healthcare Oy is the Group’s procurem

  4. Slide 4: Commercial paper program of EUR 100 million is a new source of funding

    Commercial paper program of EUR 100 million is a new source of funding to TTALO • Terveystalo has signed an agreement for a domestic commercial paper program. • Program size EUR 100 million. • The company may issue commercial papers with a maturity of less than one year. • The financing arrangement

  5. Slide 5: Financial targets

    Financial targets  Growth At least 5% annual growth in revenue  Profitability An adjusted EBITA margin of 12–13%  Indebtedness Interest-bearing Net debt/Adjusted EBITDA not to exceed 3.5 times  Dividend Distribute at least 40% of net profit as dividends 5 15.2.2022 annually

  6. Slide 6: Growing as a stronger business

    Growing as a stronger business Good underlying demand despite Omicron surge Strong finish to Record high Covid-19 testing activity the year 2021 Supply bottlenecks compensated by ramping up digital offering All financial targets were achieved Strong core business Record high customer and employee sa

  7. Slide 7: Continued progress against financial and strategic objectives

    Continued progress against financial and strategic objectives 2021 REVENUE +17% 12% ADJ. EBITA NET DEBT/ THE PREFERRED CHOICE BY CUSTOMERS Y-O-Y MARGIN EBITDA 2,5 AND PROFESSIONALS CAGR +14% CAGR 1 155 141 3,8 1 031 986 +18% 115 3,0 NPS 83 88 102 2,8 2,7 RECORD HIGH CUSTOMER 745 73 12 12 2,5 SATISFA

  8. Slide 8: Strong operational performance to meet record high underlying demand

    Strong operational performance to meet record high underlying demand WE WORK HARD TO RAMP UP THE SUPPLY TO DIGITAL APPOINTMENTS FURTHER IMPROVE DOCTOR APPOINTMENT MEET HIGH DEMAND PRODUCTIVITY AND ACCESS TO CARE BOOKING RATE, % 100 96 96 DIGITAL VISITS, THOUSANDS +363% 95 92 92 93 20% 92 300 89 90 9

  9. Slide 9: Covid-19 related services gave a further boost to the business

    Covid-19 related services gave a further boost to the business RECORD HIGH TESTING ACTIVITY IN Q4 • Terveystalo has gained market share in a 16000 highly competitive market. 14000 • However, the unit prices of the tests have 12000 decreased due to the competition and the 10000 trend is expected to c

  10. Slide 10: Opportunities for value creating capital allocation have improved

    Opportunities for value creating capital allocation have improved OUR DIVIDEND POLICY IS TO DISTRIBUTE AT 0,28 0,28 72% LEAST 40% OF EARNINGS PER SHARE IN 0,26 0,26 DIVIDENDS 0,24 • A dividend of EUR 0.28 (0.26) per share is 0,22 0,20 proposed, corresponding 44% (72%) of 0,20 44% earnings 0,18 37% •

  11. Slide 11: Financial performance

    Financial performance 11 FOOTER

  12. Slide 12: Growing as a stronger business also means stronger financials

    Growing as a stronger business also means stronger financials Full year 2021 revenue EUR 1,155 million, + 17% y-o-y Strong revenue growth and profitability – financial Full year 2021 Adj. EBITA EUR 141 million, +38.4% y-o-y and targets achieved 12.2% of revenue Disciplined financial strategy Net deb

  13. Slide 13: All financial targets exceeded in 2021

    All financial targets exceeded in 2021 Growth Profitability Capital structure Dividend Target Annual revenue growth Adjusted EBITA margin The target is to The net debt/adjusted of at least 5% through of at least 12–13% in distribute a minimum of EBITDA ratio of 3.5x or organic growth and the medium

  14. Slide 14: Strong operational performance

    Strong operational performance 8 mill. 1 mill. 83 NPS 32 eNPS Customer visits Digital appointments appointments RECORD HIGH RECORD HIGH +16% VS. 2020 +48% VS. 2020 CUSTOMER EMPLOYEE SATISFACTION SATISFACTION 1.3 mill. 1.5 mill. 1.7 mill. >500,000 individual End customers of Registered users of our C

  15. Slide 15: Strong growth in core business in 2021

    Strong growth in core business in 2021 2021 REVENUE BREAKDOWN, % 2021 REVENUE BREAKDOWN, M€ +17% 3% 1 155 37 986 94 0 +39% 88 68 26% 83 121 +5% 42% 121 -0,2% 333 295 +13% +15% 482 419 29% 2020 2021 Corporate Public Corporate Outsourcing Service sales, OH and others Private Sweden and others Private

  16. Slide 16: High growth continued in Q4

    High growth continued in Q4 Q4/21 revenue distribution compared to Q4/19 ja Q4/20, M€ +21% +17% 350 Q4/21 vs. Q4/19 Q4/21 vs. Q4/20 328 23 300 270 280 25 +60% 0 +14% 16 0 22 24 250 +5% +9% 23 22 33 -11% 31 +9% 37 200 89 79 +13% 83 +7% 150 100 +15% +9% 116 121 133 50 0 Q4 2019 Q4 2020 Q4 2021 Corpora

  17. Slide 17: Profitability reached our targeted level

    Profitability reached our targeted level REVENUE, MEUR AND ADJUSTED EBITDA*-% ADJUSTED EBITA*, MEUR AND % +21.2% 17.1% +29.7% 6.6% 327.5 41.9 39.3 38.2 270.3 279.7 278.7 275.3 273.1 267.8 258.6 257.4 240.2 32.4 32.3 30.9 31.5 234.0 19.2 19.5 19.1 29.5 17.9 17.0 17.7 209.2 17.8 18.1 15.8 16.4 25.9 14

  18. Slide 18: COVID-19 related services increased personnel costs

    COVID-19 related services increased personnel costs, cost savings in place in the comparison period M€ 10-12/2021 10-12/2020 Change % 2021 2020 Change % Revenue 327.5 279.7 17.1 1 154.6 986.4 17.1 Other operating income 1.2 0.8 61.6 3.4 2.7 25.3 Purchase of materials -10.4 -9.6 8.9 -34.8 -35.5 -1.9

  19. Slide 19: Strong trend in well-being and digital visits continued

    Strong trend in well-being and digital visits continued WELL-BEING SALES, MEUR DIGITAL VISITS, THOUSANDS +20% +363% 30 9% 20% 300 25 250 20 200 15 150 10 100 5 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2

  20. Slide 20: We continue to invest in our digital platform

    We continue to invest in our digital platform GROSS CAPEX, MEUR AND %- OF REVENUE NET CAPEX, MEUR AND %- OF REVENUE 4,5 48 4,3 4,3 4,3 4,4 47 46 4,1 4,1 4,2 4,1 4,1 45 3,9 3,9 45 3,9 3,9 44 41 40 3,5 41 3,7 41 5 38 38 3,4 41 39 3,5 37 8 38 38 37 3 19 35 11 4 3,7 18 25 35 16 12 5 5 5 18 21 6 3,4 17 2

  21. Slide 21: Disciplined financial strategy and growing financial strength

    Disciplined financial strategy and growing financial strength – capacity to invest in growth NET DEBT/ADJUSTED EBITDA (LTM) NET DEBT/ADJUSTED EBITDA (LTM), EXCL. IFRS16 4,6 3,3 3,2 3,1 3,1 4,1 3,0 2,8 2,8 -15,4% 3,5 2,6 3,4 3,4 -16,7% 3,1 3,2 2,3 2,3 2,3 3,0 2,2 2,7 2,7 2,6 2,5 Q1 Q2 Q3 Q4 Q1 Q2 Q3

  22. Slide 22: Feelgood has been consolidated since the end of June 2021

    Feelgood has been consolidated since the end of June 2021 MEUR 31.12.2021 31.12.2020 • Cash and cash equivalents EUR 38.1 (77.1) million ASSETS • Total assets EUR 1 448.6 (1 361.0) million Property. plant and equipment 72.0 67.6 172.5 172.4 • Equity attributable to owners of the parent company Right

  23. Slide 23: Debt maturity profile

    Debt maturity profile. Funding mainly based on Term loans from financial institutions MEUR Loans from financial institutions 220 212 • Commercial paper program is a 200 new source of funding to 180 TTALO 160 140 120 119* • Cash and cash equivalents at 100 the end of the financial period 80 amounted

  24. Slide 24: Strong cash flow funds our growth, further investments and increasing dividend

    Strong cash flow funds our growth, further investments and increasing dividend OPERATING CASH FLOW 195 174 Dividend distribution 144 at least 40% of earnings 101 Free cash flow Investments to 70 generation growth M&A to support strategy execution 2017 2018 2019 2020 2021 24 2017-2018 CASH FLOW NOT F

  25. Slide 25: Outlook

    Outlook Outlook – The next 6 months vs. last 6 months Market • The market environment has normalized and the demand for health services is broad and very solid. However, growth is environment restricted by supply. • The demand for services related to COVID-19 is expected to remain good. However, pre

  26. Slide 26: More opportunities for growth

    More opportunities for growth 26 FOOTER

  27. Slide 27: We have grown profitably in our core business, outpacing market growth

    We have grown profitably in our core business with industry leading margins, outpacing market growth significantly TERVEYSTALO CAGR 2015-2021 TERVEYSTALO’S ADDRESSABLE MARKET 2015-2020, €BN 160 1 155 1 200 Total market +1.4% 141 CAGR 4.2 4.1 1 031 4.0 4.0 140 +15% 986 1 000 3.8 3.9 115 120 1.1 1.2 1

  28. Slide 28: Expansion to Sweden offers more opportunities for capital allocation and growth

    Expansion to Sweden offers more opportunities for capital allocation and growth LARGER ADDRESSABLE MARKET MULTIPLE GROWTH AVENUES IN SWEDEN ~30 Private provision market  Organic and in-organic growth in in total EUR 11bn occupational health 7  Positive organic development, 3 acquisitions completed

  29. Slide 29: New opportunities to scale our proprietary digital suite

    New opportunities to scale our proprietary digital suite Digital health is already mainstream in our business Clear synergy potential in scaling our digital capabilities across our different markets 2 new growth areas emerging: Public sector demand for a white label digital suite In-bound demand fro

  30. Slide 30: Growing as a stronger business

    Growing as a stronger business Good underlying demand despite Omicron surge Strong finish to Record high Covid-19 testing activity the year 2021 Supply bottlenecks compensated by ramping up digital offering All financial targets were achieved Strong core business Record high customer and employee sa

  31. Slide 31: Q&A

    31 Q&A Terveystalo

  32. Slide 32: Terveystal

    Terveystal

  33. Slide 33: Appendix

    Appendix 33 FOOTER

  34. Slide 34: The issuer, Terveystalo Healthcare Holding Oy has a strong balance sheet

    The issuer, Terveystalo Healthcare Holding Oy has a strong balance sheet Tase 31.12.2021 EUR Milj. Vastaavaa Pysyvät vastaavat Sijoitukset saman konsernin yrityksiin 519 Vaihtuvat vastaavat 183 Vastaavaa yhteensä 702 Vastattavaa Oma pääoma 420 Vieras pääoma Pitkäaikainen vieras pääoma Lainat rahoitu

  35. Slide 35: The largest registered shareholders on December 31, 2021

    The largest registered shareholders on December 31, 2021 Name Number of shares % of shares Votes % of votes Varma Mutual Pension Insurance Company 22,151,945 17.30 22,151,945 17.30 Rettig Group AB 21,153,191 16.52 21,153,191 16.52 Pohjola Insurance Ltd 8,530,332 6.66 8,530,332 6.66 Hartwall Capital

  36. Slide 36: Key figures

    Key figures Terveystalo Group, MEUR 10-12/ 10-12/ Change, % 2021 2020 Change, % 2021 2020 Revenue 327.5 279.7 17.1 1,154.6 986.4 17.1 Adjusted EBITDA, * 1) 59.1 54.5 8.4 206.1 162.8 26.6 Adjusted EBITDA, % * 1) 18.1 19.5 - 17.8 16.5 - EBITDA 1) 58.2 53.7 8.3 201.8 158.3 27.4 EBITDA, % 1) 17.8 19.2 -

  37. Slide 37: Feelgood AB – key figures

    Feelgood AB – key figures SEK, thousand Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Revenue 204,393 213,110 138,429 220,230 208,448 185,825 125,102 204,733 193,469 206,243 EBITDA 24,371 28,626 -1,612 34,157 24,155 18,486 -464 38,926 20,775 27,167 EBIT 12,921 16,570 -13,704 21,594 11,

  38. Slide 38: Operational efficiency is reflected in the negative net working capital

    Operational efficiency is reflected in the negative net working capital NET WORKING CAPITAL 7 7 6 6 6 6 6 6 8 7 7 8 110 109 122 129 128 101 101 102 100 83 99 95 -58 -52 -57 -47 -59 -58 -61 -59 -70 -73 -70 -79 -174 -176 -166 -165 -179 -160 -159 -163 -173 -188 -183 -214 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q

  39. Slide 39: Full year revenue grew 17% y-o-y, and 21% vs. 2019

    Full year revenue grew 17% y-o-y, and 21% vs. 2019 2021 revenue breakdown, % 2021 revenue breakdown, M€ 17,1% 3% 1 200 1 155 37 986 +100 % 94 1 000 0 +38,8 88 26% 68 83 % 121 800 +5,4 % 42% 121 -0,2 % 333 600 295 +12,8 % 400 419 +15,0 482 200 % 29% 0 2020 2021 Corporate Public Corporate Staffing Pri

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