Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q3 2024 Earnings Presentation
21 slides from Terveystalo Oy Class A's earnings presentation, October 2024
Slide 1: Terveystalo Group Q3 2024 Results
Terveystalo Group Q3 2024 Results Ville Iho, President & CEO Juuso Pajunen, CFO 1
Slide 2: Welcome
Welcome Ville Iho, President & CEO • Q3 2024 Financial & operational highlights Juuso Pajunen, CFO • Q3 2024 Financial performance analysis • Outlook & Guidance 2 FOOTER
Slide 3: Strong earnings growth driven by improved operational efficiency
Strong earnings growth driven by improved operational efficiency The robust performance of Healthcare Services contributed significantly to both revenue and margin growth Notable progress in Portfolio Business profitability was reflected in the EBITA margin The turnaround of the Swedish business is
Slide 4: Q3 2024 highlights
Q3 2024 highlights Revenue (MEUR) EPS (EUR) 295.8 0.12 +5.4% y-o-y +4x y-o-y Adj. EBITA (MEUR) Adj. EBITA margin 34.3 11.6% +62.2% y-o-y +4.1%-p. y-o-y NPS, appointments Operating cash flow (MEUR) 86.8 41.3 +1.2% y-o-y +16.0% y-o-y 4
Slide 5: Significant improvement in Healthcare services contributed positively to the Group's overall performance
Significant improvement in Healthcare services contributed positively to the Group's overall performance Healthcare services Portfolio businesses Sweden 11% MEUR 232 209 -10% 61 14,7% 54 -10% 16 5,7% 14 3,0% 9,8% -13,3% -21,0% Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Revenue Adj. EBITA margin
Slide 6: Our business portfolio's turnaround is on track
Our business portfolio's turnaround is on track Successful profit improvement program boosts margins in Finland Healthcare Portfolio Sweden Group services businesses • LTM revenue • LTM revenue • LTM revenue • LTM revenue €1,014 mill. €249 mill. €86 mill. €1,329 mill. • LTM adj. EBITA • LTM adj. EBI
Slide 7: We are moving decisively from a turnaround to building a great company
We are moving decisively from a turnaround to building a great company 1,329 12.3 1,313 Alpha program completed successfully 11.4 1,296 10.5 1,286 Profitability target achieved one year ahead of 1,279 schedule 1,275 9.8 1,271 1,259 9.1 8.4 8.4 Medical quality and customer satisfaction 8.1 consistent
Slide 8: We deliver exceptional value to our customers by offering comprehensive and integrated care
We deliver exceptional value to our customers by offering comprehensive and integrated care Fluent, caring and effective Prevention Primary care Specialist care Customer value Customer value Customer value Engaged and in control of a Fastest access to care and Proven and superior medical healthy fut
Slide 9: Capital Markets Day
Capital Markets Day To be held in Helsinki & online 4 December 2024 9
Slide 10: Financial performance
Financial performance Juuso Pajunen, CFO 10
Slide 11: Continued margin expansion in Q3
Continued margin expansion in Q3 Performance improvement has continued for the sixth consecutive quarter, with Adjusted EBITA increasing by 62% y-o-y, EPS quadrupling, and Net Debt to Adjusted EBITDA standing at 2.3. The Finnish segments have shown strong performance, while Sweden's profit improveme
Slide 12: Q3: Revenue growth driven by strong supply, improved sales mix and early flu season
Q3: Revenue growth was driven by strong supply, improved sales mix, successful commercial actions, and an early flu season start Healthcare services Portfolio businesses -0,4 -1,3 5,9 -2,4 -0,7 -1,6 -1,5 295,8 0,1 • Outsourcing declined due to the planned contraction of the outsourcing • Growth driv
Slide 13: Q3: Strong profit growth in the Healthcare services and Portfolio businesses
Q3: Strong profit growth in the Healthcare services and Portfolio businesses Adj. EBITA(MEUR) In Healthcare services, EBITA was influenced by several factors: +62% • Ongoing operational efficiency and cost control measures 34,3 • A robust sales mix coupled with successful commercial initiatives 1,3
Slide 14: Q3: Finland saw an improvement in sales mix, while Sweden faced ongoing challenges
Q3: Finland saw an improvement in sales mix, while Sweden faced ongoing challenges Healthcare services Portfolio businesses Sweden MEUR 11% 250 232 209 200 80 -10% 15% 140 150 122 61 60 6% 54 -10% 20 20 100 19 16 14 40 15 20 3% 17 10 50 68 10% 72 20 -13% 12 11 5 -21% 19 20 9 7 0 0 0 Q3 2023 Q3 2024
Slide 15: YTD: Robust organic revenue growth and substantial profit improvement in Healthcare services
YTD: Robust organic revenue growth and substantial profit improvement in Healthcare services 1-9/2024 REVENUE 1-9/2024 ADJ. EBITA +4.5% +44% 15,0 2,1 -4,0 -7,4 -3,8 986,1 2,9 -4,4 124,0 -2,8 -6,5 -0,9 1,8 944,0 50,6 41,2 86,1 Healthcare Portfolio services businesses 1-9/2023 Other Other 1-9/2024 App
Slide 16: Robust LTM EBITA development resulting in substantial cash flow conversion
Robust LTM EBITA development resulting in substantial cash flow conversion OPERATING CASH FLOW (LTM), MEUR NET DEBT/ADJUSTED EBITDA (LTM) GROSS CAPEX (LTM), MEUR 190 196 3,8 174 171 158 3,1 3,2 150 152 3,0 3,0 141 143 2,5 2,3 2018 2019 2020 2021 2022 2023 Q3/2024 -41 -40 -38 -37 -53 -48 -48 -58 -58
Slide 17: Narrowing our guidance range for 2024
Narrowing our guidance range for 2024 • Terveystalo expects its full-year 2024 revenue to grow (2023: EUR 1,286 million) and adjusted EBITA to be 12–12.5 percent of revenue (2023: 9.8 percent). • The estimates are based on the third quarter of 2024 projections for inflation, consumer demand and empl
Slide 18: terveystalo.com
Terveystalo MEANINGFUL MATTERS
Slide 19: Appendix
Appendix Terveystalo
Slide 20: 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 75 50 30 10 10 2022 2023 2024 2025 2026 2027 2028 20 1) ROUNDED FIGURES
Slide 21: Key figures
Key figures EUR mill. unless stated otherwise 7-9/2024 7-9/2023 Change, % 1-9/2024 1-9/2023 Change, % 2023 Revenue 295.8 280.5 5.4 986.1 944.0 4.5 1 286.4 Adjusted EBITA * 1) 34.3 21.1 62.2 124.0 86.1 44.0 125.6 Adjusted EBITA, % * 1) 11.6 7.5 - 12.6 9.1 - 9.8 EBITA 1) 32.5 18.4 76.4 107.5 70.4 52.8