Terveystalo Oy Class A · OMXHEX:TTALO
Terveystalo Oy Class A — Q3 2019 Earnings Presentation
22 slides from Terveystalo Oy Class A's earnings presentation, October 2019
Slide 1: Strong organic growth, improved underlying profitability
STRONG ORGANIC GROWTH IMPROVED UNDERLYING PROFITABILITY CFO and Interim CEO Ilkka Laurila terveystalo.com #terveystalo
Slide 2: Q3 Highlights
Q3 HIGHLIGHTS Broad scale growth across all customer groups New processes and digital solutions improved access to care Profitability (EBITA margin) improved thanks to strong sales in private and corporate customer groups Strong cash flow from operating activities, investments in digitalisation cont
Slide 3: Q3: Strong organic growth and Attendo deal increased revenue significantly
Q3: Strong organic growth and Attendo deal increased revenue significantly Strong growth in all customer groups Q3 Revenue by payor group, M€ +46% 250 234 • Strong growth in preventive and well-being services within corporate customers, mental well-being services and digital services in particular i
Slide 4: Solid growth in all customer groups
Solid growth in all customer groups 1-9 2019 Revenue by payor group, % 1-9 Revenue by payor group, M€ +39% 800 760 29% 29% 700 153 600 547 67 +12.2% 500 59 +15.5% 224 400 194 300 +8.0% 200 293 317 100 42% 0 1-9 2018 1-9 2019 Corporate Private Public Corporate Public excl. Attendo 4 © Terveystalo Pri
Slide 5: Q3: Strong profitability
Q3: Strong profitability • Relative profitability improved thanks to strong sales in private and corporate customer groups. • Adjusted EBITA before IFRS 16 impact 24.0 million (14.8) • Adjusted EBITA %, before IFRS 16 impact 10.2% revenue (9.2 %) • Profit for the period* 10.4 million (16.0) *Figures
Slide 6: New solutions complement the traditional care chain and enable faster growth
New solutions complement the traditional care chain and enable faster growth Traditional value creation model (Fee-for-service business) Doctor appointments Other appointments Laboratory Imaging Availability is limiting factor Traditionally, patient enters Surgery assessment of care need through a d
Slide 7: Market outlook
Market outlook • The market environment remains favorable in spite of weakened consumer confidence. • Corporate customers keep up a steady demand and the relative share of preventive services is increasing, which will be further strengthened by the upcoming change in legislation concerning Kela reim
Slide 8: Digital appointment demo
DIGITAL APPOINTMENT DEMO Development Manager, Lauri Saarivuori & Head of Digital Health, Anette Kainu terveystalo.com #terveystalo
Slide 9: Financial performance
FINANCIAL PERFORMANCE terveystalo.com #terveystalo
Slide 10: Strong profitability despite the impact of Attendo
Strong profitability despite the impact of Attendo Revenue, Adjusted EBITDA*, % Adjusted EBITA*, M€ and % Before IFRS 16 impact (comparable) Before IFRS 16 impact (comparable) 300 30 35 30 267.8 32.1 258.6 250 234.0 25 30 27.1 25 25.6 25.5 197.9 25 23.9 24.0 200 183.6 189.9 197.5 189.0 20 20 16.4 20
Slide 11: Operating leverage still applies, the scale has changed post Attendo
Operating leverage still applies, the scale has changed post Attendo M€ 7-9/2019 7-9/2018 Change, % 1-9/2019 1-9/2018 Change, % 2018 Revenue 234.0 160.3 46.0 760.4 546.8 39.1 744.7 Other operating income 0.6 8.8 -92.9 1.4 17.5 -92.3 18.2 Materials and services -107.3 -76.1 41.0 -350.2 -257.8 35.8 -3
Slide 12: The impact of the Attendo deal and the adoption of IFRS is reflected in the balance sheet
The impact of the Attendo deal and the adoption of IFRS 16 is reflected in the balance sheet M€ 30.9.2019 30.9.2018 31.12.2018 • Total assets of the Group amounted to EUR ASSETS 1,358.8 (937.4) million. The growth was mainly Property, plant and equipment 86.3 81.0 83.6 attributable to the allocation
Slide 13: Deleveraging the balance sheet continues
Deleveraging the balance sheet continues Net debt/ adjusted EBITDA Operational efficiency is reflected in the (last 12 months) negative net working capital 3.8 150 3.3 3.2 6 3.0 100 6 6 6 5 6 5 2.5 50 82 90 110 101 101 72 73 2.1 2.0 0 -32 -33 -38 -51 -58 -70 -59 -50 -147 -174 -176 -166 -100 -119 -11
Slide 14: The share of intangible investments continue to grow (excluding M&A)
The share of intangible investments continue to grow (excluding M&A) Gross capex, M€ and %- of revenue Net capex, M€ and %- of revenue 4.3 4.3 4.3 4.3 4.3 4.3 4.2 45 4.0 41 4.5 45 4.0 4.5 3.9 41 40 3.7 38 4.0 40 3.6 3.7 3.7 38 4.0 35 31 31 3.5 35 31 12 3.5 30 31 16 29 30 30 29 14 3.0 30 28 14 3.0 6
Slide 15: Strong operating cash flow, IFRS visible in the operating cash flow and investing
Strong operating cash flow, IFRS 16 visible in the operating cash flow and cash flow from investing activities Q3 2019 Q3 2018 Cash flow, financing Operating cash flow 26.4 M€ -13.1 M€ Cash flow, investing 3.1 M€ IFRS 16 Cash flow, investing -13.6 M€ Operating cash flow 13.5 M€ Cash flow, financing
Slide 16: Corporate responsibility is one of our strategic focus areas
Corporate responsibility is one of our strategic focus areas • We see increasing investor interest for ESG themes • For 2019, we will publish our first Corporate responsibility report according to GRI • Terveystalo achieved a Prime status from ISS ESG, indicating that we meet the high responsibility
Slide 17: Financial reporting and IR events and roadshows
Financial reporting and IR events and roadshows Financial reporting Upcoming IR events • Terveystalo Plc Stock Exchange Release 11 October 2019 at 9:00 a.m. EEST • SEB Q3 Investor Lunch on • In 2020, Terveystalo Plc will publish financial reports as 1 November 2019 in Helsinki follows: • Carnegie He
Slide 18: Q&A
Q&A terveystalo.com #terveystalo
Slide 19: Q1: The Attendo deal had a significant impact on revenue
Q1: The Attendo deal had a significant impact on revenue Revenue split by customer group, % Revenue split by customer group, M€ +36% 300 268 30% 28% +265.9% 250 74 198 +12.6% 200 20 150 80 71 +6.9% 100 50 106 114 42% 0 Q1 2018 Q1 2019 Corporate Private Public Corporate Private Public 19 © Terveystal
Slide 20: Q1: Stable revenue growth in all payer groups, excluding the Attendo impact
Q1: Stable revenue growth in all payer groups, excluding the Attendo impact Q1 2019 Revenue split by payer group, excluding Attendo, % Q1 2019 Revenue split by payer group, excluding Attendo, M€ 11% 250 +6% 208 198 +9.6% 35% 200 22 20 +3.7% 150 71 73 +6.0% 100 54% 50 106 113 0 Q1 2018 Q1 2019 Corpor
Slide 21: IFRS 16 impact on reported figures
IFRS 16 impact on reported figures 1-9/2019 1-9/2019 1-9/2019 1-9/2018 EUR mill. Reported IFRS 16 impact Before IFRS 16 impact Reported Revenue 760.4 - 760.4 546.8 EBITDA 124.4 29.7 94.7 90.0 Adjusted EBITDA 128.5 29.7 98.8 76.4 Depreciation -66.8 -28.5 -38.3 -30.7 Adjusted EBITA 82.7 1.2 81.6 60.6
Slide 22: Key figures
Key figures EUR million 7–9/2019 7–9/2018 Change, % 1–9/2019 1–9/2018 Change,% 2018 Revenue 234.0 160.3 46.0 760.4 546.8 39.1 744.7 Adjusted EBITDA1) 2) 39.8 20.1 97.9 128.5 76.4 68.3 108.9 Adjusted EBITDA, %1) 2) 17.0 12.5 - 16.9 14.0 - 14.6 EBITDA1) 2) 38.6 27.6 40.1 124.4 90.0 38.2 116.6 EBITDA,