Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q2 2024 Earnings Presentation
19 slides from Terveystalo Oy Class A's earnings presentation, July 2024
Slide 1: Terveystalo Group Half-Year 2024 Results
Terveystalo Group Half-Year 2024 Results Ville Iho, President & CEO Juuso Pajunen, CFO 1
Slide 2: Welcome
Welcome Ville Iho, President & CEO • Q2 2024 Financial & operational highlights Juuso Pajunen, CFO • Q2 & H1 2024 Financial performance analysis • Outlook & Guidance 2 FOOTER
Slide 3: Strongest second quarter ever
Strongest second quarter ever The strong performance of Healthcare Services drove topline and margin growth Marked improvement in Portfolio Businesses, performance measures are delivering results The turnaround in Swedish business is progressing according to plan and the full run-rate impact is to b
Slide 4: Q2 2024 highlights
Q2 2024 highlights Revenue (MEUR) EPS (EUR) 340.1 0.11 +5.5% y-o-y +90.8% y-o-y Adj. EBITA (MEUR) Adj. EBITA margin 42.5 12.5% +49.1% y-o-y +3.7%-p. y-o-y NPS, appointments Operating cash flow (MEUR) 86.4 44.4 +0.7% y-o-y +71.4% y-o-y 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 11% MEUR 261 235 -9% 15,0% 69 63 -10% 25 22 4,9% 6,3% 3,0% 10,0% -0,7% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Revenue Adj. EBITA margin 5
Slide 6: Sequenced turn-around of our business portfolio offers multiple paths to value creation
Sequenced turn-around of our business portfolio offers multiple paths to value creation Healthcare services Portfolio businesses Sweden Group €994m €255m €88m €1,313m Revenue Revenue Revenue Revenue LTM Q2-24 14% LTM Q2-24 4% LTM Q2-24 0% LTM Q2-24 Adj. EBITA % Adj. EBITA % Adj. EBITA % LTM Q2-24 LT
Slide 7: Save the Date – Capital Markets Day
Save the Date – Capital Markets Day To be held in Helsinki & online 4 December 2025 7
Slide 8: Financial performance
Financial performance Juuso Pajunen, CFO 8
Slide 9: Continued margin recovery in Q2
Continued margin recovery in Q2 Performance improvement continued for fifth quarter in a row – Adj.EBITA +49%, EPS +91%, Net Debt / Adj. EBITDA at 2.5 Strong performance in Finnish segments, Sweden profit improvement program progressing as planned but not yet visible in figures Guidance updated – Ad
Slide 10: Q2: Strong supply, improved sales mix, and successful commercial actions drove revenue growth
Q2: Strong supply, improved sales mix, and successful commercial actions drove revenue growth Healthcare services Portfolio businesses 1,3 -2,1 -1,3 6,1 -1,2 1,3 340,1 -2,5 0,5 19,4 322,4 • Ended • Outsourcing declined due to the customer planned contraction of the outsourcing contracts portfolio. a
Slide 11: Q2: Strong profit development in Healthcare services and Portfolio businesses
Q2: Strong profit development in Healthcare services and Portfolio businesses • In Healthcare services, EBITA was impacted by: Adj. EBITA(MEUR) • Continued operational efficiency also in low-demand months +49% • Strong sales mix 1,0 -1,7 42,5 1,1 • Successful commercial actions 15,8 • Continued cost
Slide 12: Q2: Sales mix improved in Finland, headwinds in Sweden
Q2: Sales mix improved in Finland, headwinds in Sweden Healthcare services Portfolio businesses Sweden MEUR -9% -10% 11% 69 25 300 70 25 261 63 22 250 235 60 23 20 15% 21 50 200 5% 160 40 15 137 150 22 30 20 6% 3% 10 100 20 10% 79 15 13 50 76 5 10 10 8 -1% 0 23 23 0 0 Q2 2023 Q2 2024 Q2 2023 Q2 2024
Slide 13: H1: Topline growth, strong profit development in Healthcare services
H1: Topline growth, strong profit development in Healthcare services H1 REVENUE H1 ADJ. EBITA +4% +38% 9,1 2,5 -2,6 -5,0 690,4 1,6 -3,5 89,7 -3,1 1,2 -5,0 1,0 0,9 663,4 33,3 27,6 64,9 Healthcare Portfolio services businesses 64,9 Appointments Diagnostics Outsourcing Staffing Dental Sweden Other H1/2
Slide 14: Record strong LTM EBITA converted to strong cash flow
Record strong LTM EBITA converted to strong cash flow OPERATING CASH FLOW (LTM), MEUR NET DEBT/ADJUSTED EBITDA (LTM) GROSS CAPEX (LTM), MEUR 190 3,8 176 174 171 158 3,1 3,2 150 152 3,0 3,0 141 143 2,5 2,5 2018 2019 2020 2021 2022 2023 Q2/2024 -41 -40 -38 -53 -48 -48 -59 -58 -58 • Net debt amounted t
Slide 15: We have raised our guidance for 2024
We have raised our guidance for 2024 • Terveystalo expects its full-year 2024 revenue to grow (2023: EUR 1,286 million) and adjusted EBITA to be 11.5– 12.5 percent of revenue (2023: 9.8 percent). • The estimates are based on the second quarter of 2024 projections for inflation, consumer demand and e
Slide 16: terveystalo.com
Terveystalo MEANINGFUL MATTERS terveystalo.com
Slide 17: Appendix
Appendix 17
Slide 18: 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 18 1) ROUNDED FIGURES
Slide 19: Key figures
Key figures EUR mill. unless stated otherwise 4-6/2024 4-6/2023 Change, % 1-6/2024 1-6/2023 Change, % 2023 Revenue 340.1 322.4 5.5 690.4 663.4 4.1 1,286.4 Adjusted EBITA * 1) 42.5 28.5 49.1 89.7 64.9 38.1 125.6 Adjusted EBITA, % * 1) 12.5 8.8 - 13.0 9.8 - 9.8 EBITA 1) 32.1 25.0 28.5 75.1 52.0 44.4 1