Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q4 2021 Earnings Presentation
31 slides from Terveystalo Oy Class A's earnings presentation, February 2022
Slide 1: Terveystalo Q4/FY 2021 results: Growing as a stronger business
Terveystalo Q4/FY 2021 results: Growing as a stronger business VILLE IHO, PRESIDENT & CEO ILKKA LAURILA, CFO 1 FOOTER
Slide 2: 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
Slide 3: 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 +18% 141 3,8 1 031 986 115 3,0 88 102 2,8 2,7 RECORD HIGH CUSTOMER 745 73 12 12 2,5 SATISFACTION 6
Slide 4: 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
Slide 5: 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
Slide 6: 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% •
Slide 7: Financial performance
Financial performance ILKKA LAURILA, CFO 7 FOOTER
Slide 8: 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
Slide 9: All financial targets exceeded in 2021
All financial targets exceeded in 2021 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 to long 40% of net profit as less acquisitions t
Slide 10: Strong operational performance
Strong operational performance RECORD HIGH RECORD HIGH +16% VS. 2020 +48% VS. 2020 CUSTOMER EMPLOYEE SATISFACTION SATISFACTION 230,000 IN 2020 +8% VS. 2020 THE FIGURES DO NOT INCLUDE SWEDEN UNLESS OTHERWISE STATED 10
Slide 11: 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 68 0 88 26% 83 121 42% 121 333 295 419 482 29% 2020 2021 Corporate Public Corporate Outsourcing Service sales, OH and others Private Sweden and others Private Staffing Sweden and other
Slide 12: 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 0 0 16 22 24 250 23 22 33 37 31 200 89 79 83 150 100 116 121 133 50 0 Q4 2019 Q4 2020 Q4 2021 Corporate Private Outsourcing Staffing services Serv
Slide 13: 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
Slide 14: COVID-19 related services increased personnel costs, cost savings in place in the comparison period
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
Slide 15: 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
Slide 16: 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
Slide 17: Disciplined financial strategy and growing financial strength – capacity to invest in growth
Disciplined financial strategy and growing financial strength – capacity to invest in growth NET DEBT/ADJUSTED EBITDA (LTM) OPERATIONAL EFFICIENCY IS REFLECTED IN THE NEGATIVE NET WORKING CAPITAL 4,6 7 7 6 4,1 6 6 6 6 6 8 7 8 7 3,5 3,4 3,4 -16,7% 110 109 122 129 128 3,2 101 101 102 100 83 99 95 3,1
Slide 18: 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 Investments to 70 growth M&A to support strategy execution 2017 2018 2019 2020 2021 18 2017-2018 CASH FLOW NOT FULLY COMPARABLE DUE TO IFR
Slide 19: 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
Slide 20: More opportunities for growth
More opportunities for growth VILLE IHO, PRESIDENT AND CEO 20 FOOTER
Slide 21: We have grown profitably in our core business with industry leading margins, outpacing market growth significantly
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
Slide 22: 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
Slide 23: 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
Slide 24: 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
Slide 25: Q&A
Q&A 25
Slide 26: Terveystalo – Kohti parempaa
Terveystala Kohti parempaa.
Slide 27: Appendix
Appendix Terveystalo
Slide 28: 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 94 1 000 0 88 26% 68 83 121 800 42% 121 333 600 295 400 419 482 200 29% 0 2020 2021 Corporate Public Corporate Staffing Private Sweden and others Private Service sales,
Slide 29: 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
Slide 30: 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 -
Slide 31: 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,