Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q1 2022 Earnings Presentation
27 slides from Terveystalo Oy Class A's earnings presentation, 2022
Slide 1: Terveystalo Q1/2022 results: Strong growth continued in a shifting demand environment
Terveystalo Q1/2022 results: Strong growth continued in a shifting demand environment VILLE IHO, PRESIDENT & CEO ILKKA LAURILA, CFO 1 FOOTER
Slide 2: Strong growth continued in a shifting demand environment
Strong growth continued in a shifting demand environment Good underlying demand despite Omicron surge Strong start to Revenue growth +18.3% y-o-y (Feelgood 8.0 %-points of the growth) the year 2022 Covid-19 testing activity was still at a high level Supply bottlenecks compensated by ramping up digit
Slide 3: Revenue growth in double digits, digital continues to grow
Revenue growth in double digits, digital continues to grow GROWTH IN DIGITAL RECORD HIGH CUSTOMER CHANNELS CONTINUED, SATISFACTION +53% Y-ON-Y REVENUE GROWTH +2% y-o-y, CONTINUED, Adj. EBITA margin 11.8% BUT CONTINUES TO BE (13.7%) RESTRICTED BY SUPPLY CHANGES IN SALEX MIX REVENUE GROWTH 10.3% AND I
Slide 4: Latest acquisitions supporting strategy delivery
Internationally scalable Cost synergies & scale Growth in new services Capabilities that support our Segments where we have a small Niche players in specialized fields strategy delivery market share, such as dental, physiotherapy, mental health Expanding the markets Occupational health: Vantaan Työt
Slide 5: Expansion to Sweden offers more opportunities for capital allocation and growth
Expansion to Sweden offers more opportunities for capital allocation and growth MULTIPLE GROWTH AVENUES IN SWEDEN NÄMNDEMANSGÅRDEN, A LEADER IN ADDICTION TREATMENT IN SWEDEN* ❑ Organic and in-organic growth in occupational health ❑ The acquisition is part of Feelgood's growth ❑ Positive organic deve
Slide 6: Digital appointments improve productivity and access to care
Digital appointments improve productivity and access to care DIGITAL APPOINTMENTS IMPROVE NUMBER OF DIGITAL APPOINTMENTS PRODUCTIVITY CONTINUES TO GROW Terveystalo offers 3 types of digital DIGITAL VISITS, THOUSANDS +201% appointments: 400 20% • Pre-booked video appointments 350 (31% of all digital
Slide 7: Terveystalo's scalable digital platform ensures high efficiency
Terveystalo’s scalable digital platform ensures high efficiency Traditional model Terveystalo’s proprietary smart platform Customers Customers Terveystalo’s Smart system with advanced digitalization steers the customers to the right service Bottleneck Digital Physician appointments appointments Phys
Slide 8: A digital platform for public sector customers launched
A digital platform for public sector customers launched Digital health is already mainstream in our business, and we have identified opportunities to further scale our proprietary digital suite in the short term: ✓ Public sector demand for a white label digital suite ✓ Clear synergy potential in sca
Slide 9: Financial performance
Financial performance ILKKA LAURILA, CFO 9 FOOTER
Slide 10: Strong growth and financial strength continued
Strong growth and financial strength continued Revenue growth +18.3% y-on-y to EUR 329.7 (278.7) million (Feelgood 8.0%- points of the growth) Strong revenue growth, Q1/22 Adj. EBITA +2 % y-on-y to EUR 38.9 (38.2) million, profitability impacted by sales 11.8% (13.7%) of revenue mix changes and reso
Slide 11: Broad-based revenue growth in Q1/22
Broad-based revenue growth in Q1/22 Q1/2022 REVENUE BREAKDOWN, % Q1/2022 REVENUE BREAKDOWN, M€ +18% 7% 330 22 279 27 0 23 23 21 32 25% 42% 29 86 82 123 139 26% Q1/2021 Q1/2022 Corporate Public Corporate Outsourcing Service sales, OH and others Private Sweden and others Private Staffing Sweden and ot
Slide 12: Covid-testing volumes decreasing as expected
Covid-testing volumes decreasing as expected TESTING ACTIVITY ON DOWNWARD TREND • Terveystalo has gained market share in a 16000 highly competitive market. 14000 12000 • However, the unit prices of the tests have 10000 decreased due to the competition and the 8000 trend is expected to continue. Test
Slide 13: Profitability impacted by sales mix and increased costs
Profitability impacted by sales mix and increased costs REVENUE, MEUR AND ADJUSTED EBITDA*-% ADJUSTED EBITA*, MEUR AND % +28.1% +18.3% +69.9% +2.0% 327.5 329.7 41.9 39.3 38.2 38.9 270.3 279.7 278.7 275.3 273.1 267.8 258.6 257.4 240.2 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
Slide 14: COVID-19 related services, acquisitions and new businesses increased costs
COVID-19 related services, acquisitions (incl. Feelgood) and new businesses increased costs M€ 1-3/2022 1-3/2021 Change % 2021 Revenue 329.7 278.7 18.3 1 154.6 Other operating income 0.5 0.5 -9.4 3.4 Purchase of materials -11.4 -8.8 29.3 -34.8 Change in inventories 0.2 0.0 727.5 -0.6 External servic
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 +25% +201% 9% 30 400 20% 350 25 300 20 250 15 200 150 10 100 5 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2019 2019 2019 2020 2020 2020 2020 2021 20
Slide 16: Strong cash flows together with solid balance sheet and credit profile
Strong cash flows together with solid balance sheet and credit profile OPERATING CASH FLOW (LTM), MEUR NET DEBT/ADJUSTED EBITDA (LTM) GROSS CAPEX (LTM), MEUR 250 6 5,2 195 189 5 200 175 4,2 157 153 3,8* 145 144 142 4 150 127 3,1 3 3 2,8 2,5 2,6 100 2 50 1 0 0 2015 2016 2017 2018 2019 2020 2021 Q1/20
Slide 17: Disciplined financial strategy and growing financial strength
Disciplined financial strategy and growing financial strength NET DEBT, MEUR AND NET DEBT / ADJ. EBITDA (LTM) EQUITY RATIO, % AND GEARING, % 700 5 4,6 4,5 600 576 573 568 120% 4,1 548 109% 111% 531 530 537 4 108% 528 529 519 510 101% 491 Gearing 96% 96% 96% 500 477 100% 3,5 3,5 3,4 3,4 87% 87% 86% 8
Slide 18: Financial targets and outlook
Financial targets and outlook Financial targets Outlook – The next 6 months vs. last 6 months Market • The market environment has normalized and the demand for health environm services is very strong and broad based. However, growth is restricted by ent supply. Growth • The demand for services relat
Slide 19: Strong growth continued in a shifting demand environment
Strong growth continued in a shifting demand environment Good underlying demand despite Omicron surge Strong start to Revenue growth +18.3% y-o-y (Feelgood 8.0 %-points of the growth) the year 2022 Covid-19 testing activity was still at a high level Supply bottlenecks compensated by ramping up digit
Slide 20: Q&A
Q&A 20
Slide 21: Terveystalo: Kohti parempaa
Terveystala Kohti parempaa.
Slide 22: Appendix
Appendix Terveystalo
Slide 23: Feelgood has been consolidated since the end of June 2021
Feelgood has been consolidated since the end of June 2021 • Equity attributable to owners of the parent company EUR MEUR 31.3.2022 31.3.2021 631.7 (579.1) million ASSETS • Net debt EUR 536.8 (477.1) million Property. plant and equipment 73,9 67 • Net debt / adjusted EBITDA 2.6 (2.7) Right of use ass
Slide 24: 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 4,5 4,3 4,3 54 4,4 4,4 4,1 4,1 4,2 4,3 3,9 3,9 4,1 4,1 3,7 48 3,9 3,9 54 45 46 3,5 3,4 41 3,5 4 41 47 40 38 44 45 38 37 29 41 3,7 5 35 41 39 18 19 25 8 38 38 37 3,4 3 16 11 4 35 18
Slide 25: Disciplined financial strategy and growing financial strength
Disciplined financial strategy and growing financial strength ADJ. EBITDA (LTM), MEUR NET DEBT, MEUR AND NET DEBT / ADJ. EBITDA (LTM) 250 700 5 4,6 4,5 206 209 576 573 201 600 568 199 4,1 548 200 531 528 529 530 537 4 510 519 176 178 491 167 500 477 161 163 3,5 3,5 156 3,4 3,4 150 3,2 141 3,1 150 3
Slide 26: Key figures
Key figures Terveystalo Group, MEUR 1-3/ 1-3/ Change, % 2021 2020 Change, % 2022 2021 Revenue 329.7 278.7 18.3 1.154.6 986.4 17.1 Adjusted EBITDA. * 1) 56.6 53.3 6.2 206.1 162.8 26.6 Adjusted EBITDA. % * 1) 17.2 19.1 - 17.8 16.5 - EBITDA 1) 56.0 53.2 5.2 201.8 158.3 27.4 EBITDA. % 1) 17.0 19.1 - 17.
Slide 27: 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,