Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q2 2021 Earnings Presentation
27 slides from Terveystalo Oy Class A's earnings presentation, Aug 12, 2021
Slide 1: Terveystalo Q2/2021 results: Strong growth in revenue and profit
Terveystalo Q2/2021 results: Strong growth in revenue and profit compared to lockdown-influenced reference period August 12, 2021 CEO Ville Iho CFO Ilkka Laurila
Slide 2: Revenue and profitability increased also compared to Q2/19
Revenue and profitability increased also compared to Q2/19, Q2/20 was a weak quarter due to Covid lockdown +32% EUR 29,5m 246,000 >112,000 revenue increased Adj. EBITA to EUR 275m REVENUE GROWTH STRONG GROWTH IN DIGITAL APPOINTMENTS COVID-19 TESTS CONTINUED, PROFITABILITY, EBITA MORE DURING Q2/21 DU
Slide 3: Revenue increased 32%, demand continued to pick up
Revenue increased 32%, demand continued to pick up • Revenue increased in all three main customer groups Q2/21 revenue by payer group, M€ also compared to Q2/19 31.6% • Outsourcing revenue decreased due to expired 300 contracts at the year-end 275 23 • Demand for well-being services remained strong:
Slide 4: Feelgood acquisition proceeds according to expectations
Feelgood acquisition proceeds according to expectations: Terveystalo now owns >97%, Feelgood delisted and compulsory redemption process started Stronger Nordic player Combining two leading occupational healthcare providers in the Nordics provides significant potential for value creation Brings ben
Slide 5: Next: Integration, value creation and synergies
Next: Integration, value creation and synergies Stronger service platform and larger customer base create opportunities for growth acceleration Cost synergies 12.2 MSEK Delisting Sharing best practices New services and leveraging our Procurement & IT Further value creation digital platform potenti
Slide 6: We are making progress with our growth strategy implementation
We are making progress with our growth strategy implementation Market and share growth Grow share of wallet Continued M&A The smartest platform The customer’s health Selective M&A in the industry partner Opportunity: increase conversion, Opportunity: Expand to new markets Opportunity: Further streng
Slide 7: Development of digital platform shows in results, ISO 13485 certificate
Development of digital platform shows in results, ISO 13485 certificate awarded for our software development +18 %vs. H1/20 +27 %vs. H1/20 +24 % vs. H1/20 Growth in visits to Growth in conversion rate of Growth in self-service rate terveystalo.com (bookings) web bookings Investments in usability, Go
Slide 8: Our new Children's Terveystalo concept well received
Our new Children’s Terveystalo concept well received • Children’s Terveystalo was launched in May to provide families with more holistic care in a child-friendly manner. • Remote appointments are a key element of the Children’s Terveystalo service package. • The concept well received by families: Sa
Slide 9: Terveystalo - Nightingale new subscription based well-being service
Terveystalo - Nightingale New subscription based well-being service to be launched in the autumn Holistic well-being measurement Digital lifestyle coaching package Regular measurements with Nightingale’s technology give A set of digital lifestyle coaching and research-based tools to information abou
Slide 10: Strong demand in publicly funded markets under the new SOTE model
There is strong demand in the publicly funded markets also under the new SOTE model SOTE reform approved Impacts on Terveystalo • The Government’s proposal on the reform of • Some of Terveystalo’s outsourcing agreements social and healthcare services was approved by for public services will need to
Slide 11: Outlook
Outlook Outlook – The next 6 months vs. last 6 months Market • The market environment is normalizing, but predicting demand continues to be challenging in the short term. environment • Demand for COVID-19 related services is expected to remain active during the second half of the year. • Demand for
Slide 12: Financial performance
Ilkka Laurila, CFO Financial performance 12
Slide 13: Q2/21 revenue increased also compared to Q2/19
Q2/21 revenue increased also compared to Q2/19 Q2/21 revenue by payer group compared to Q2/19 ja Q2/20, M€ +6,5% +31.6% 300 Q2/21 vs. Q2/19 Q2/21 vs. Q2/20 275 259 23 250 14 +63% 22 +63% 22 +2% 209 +11 % 30 200 38 -22 % 14 -3 % 20 150 +9 % 30 83 76 +44 % 58 100 +8 % +35 % 50 109 118 87 0 Q2 2019 Q2
Slide 14: H1/21 revenue grew 19% vs. H1/20 and 5% vs. H1/19
H1/21 revenue grew 19% vs. Q2/21 and 5% vs. Q2/19 H1/21 revenue by payer group, % H1/21 revenue by payer group, M€ 18,7% 600 554 +54 % 46 27% 500 467 43 30 5% 59 400 41 -1 % 43% 59 165 300 +20 % 138 200 +22 % 100 241 198 30% 0 H1 2020 H1 2021 Corporate Public Corporate Staffing services Private Priv
Slide 15: Strong trend in wellbeing and digital visits continues
Strong trend in wellbeing and digital visits continues WELLBEING SALES, M€ DIGITAL VISITS, THOUSANDS +37% +525% 30 41% 68% 250 25 200 20 150 15 100 10 5 50 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2019 2019 2019
Slide 16: Amount of Covid-tests decreased ~8% vs. Q1
Amount of Covid-tests decreased ~8% vs. Q1, testing expected to remain active in H2 Covid-19 tests per week 12 000 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 10 000 8 000 6 000 4 000 2 000 0 2020-11 2020-13 2020-15 2020-17 2020-19 2020-21 2020-23 2020-25 2020-27 2020-29 2020-31 2020-33 2020-35 2020-3
Slide 17: Profitability improved clearly from Q2/20, EBITA grew 14% vs. Q2/19
Profitability improved clearly from Q2/20, EBITA grew 14% vs. Q2/19 REVENUE MEUR, ADJUSTED EBITDA * ** % ADJUSTED EBITA* ** MEUR AND % +6,5% +13,9% 31.6% 235.2% 279,7 278,7 275,3 39,3 38,2 267,8 270,3 258,6 257,4 234,0 240,2 32,4 32,3 30,9 209,2 19,2 19,5 29,5 197,9 19,1 27,1 17,9 25,9 16,4 17,0 17,
Slide 18: Investments in digital services increased IT costs
Investments in digital services increased IT costs, COVID-19 related services increased personnel costs M€ 4-6/2021 4-6/2020 Change % 1-6/2021 1-6/2020 Change % 2020 Revenue 275,3 209,2 31,6 554,0 466,5 18,7 986,4 Other operating income 0,6 0,5 18,5 1,1 1,4 -22,4 2,7 Purchase of materials -8,4 -9,3
Slide 19: Feelgood has been consolidated since the end of June 2021
Feelgood has been consolidated since the end of June 2021 m€ 30.06.2021 30.06.2020 31.12.2020 • Cash and cash equivalents EUR 34.2 (90.2) million ASSETS 69,5 69,3 • Total assets EUR 1,419.0 (1,373.6) million Property. plant and equipment 67,6 Right of use assets 176,5 180,1 172,4 • Equity attributab
Slide 20: Indebtedness below target
Indebtedness below target NET DEBT/ADJUSTED EBITDA OPERATIONAL EFFICIENCY IS REFLECTED IN THE (LAST 12 MONTHS)* NEGATIVE NET WORKING CAPITAL 4,6 4,1 6 7 7 -20.6% 6 6 6 6 8 8 7 3,5 3,4 3,4 122 3,1 3,2 110 101 101 102 100 99 95 109 3,0 83 2,7 2,7 -58 -59 -58 -52 -61 -57 -59 -70 -73 -86 -174 -176 -166
Slide 21: Shares of intangible and tangible investments remained at same level
The shares of intangible and tangible investments remained at the same level as during Q2/20 (excluding M&A) GROSS CAPEX, MEUR AND %- OF REVENUE NET CAPEX, MEUR AND %- OF REVENUE 44 4,5 4,3 4,3 4,3 4,3 4,2 4,3 45 4,4 46 4,1 4,1 45 3,9 3,9 41 39 3,9 3,9 37 41 38 8 38 38 40 3,5 3,4 11 4 35 3,5 3,4 38
Slide 22: IR calendar in 2021
IR calendar in 2021 • 16 Aug: Investor meeting with OP • 23-24 Sep: Roadshow London-Paris with Carnegie • 28 Oct: Interim report for January-September 2021 • 29 Oct: Virtual Roadshow with Kepler Cheuvreux • 2 Nov: Investor meeting with Danske • 16 Nov: Jeffries London Healthcare conference 22
Slide 23: Q&A
‘f / \ Terveystalo Q&A
Slide 24: stald
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Slide 25: Key figures
Key figures Terveystalo Group, EUR million 4-6/ 4-6/ Change, % 1-6/ 1-6/ Change, % 2020 2021 2020 2021 2020 Revenue 275.3 209.2 31.6 554.0 466.5 18.7 986.4 Adjusted EBITDA * 1) 45.0 24.0 87.8 98.3 62.2 58.2 162.8 Adjusted EBITDA, % * 1) 16.4 11.5 - 17.8 13.3 - 16.5 EBITDA 1) 44.2 23.2 90.6 97.4 59.1
Slide 26: terveystalo.com #terveystalo
terveystalo.com #terveystalo
Slide 27: Q2/21 revenue by payor group
Q2/21 revenue by payor group Q2/21 revenue by payor group, % Q2/21 revenue by payor group, M€ 31,6% 300 275 +63% 23 27% 250 22 209 +11 % 30 200 14 -3 % 43% 20 150 30 83 +44 % 58 100 +35 % 50 118 87 30% 0 Q2 2020 Q2 2021 Corporate Public Corporate Staffing services Private Private Service sales, OH a