Terveystalo Plc: Terveystalo Group Interim Report January 1

Terveystalo Plc Interim report 16 May 2018 at at 9:00 a.m. EEST

CONTINUOUS SALES AND EARNINGS GROWTH 

Highlights of the review period January-March 2018

• Revenue increased by 23 per cent year-on-year to EUR 197.5 million (160.5)
• Adjusted* EBITDA increased by 29.1 per cent year-on-year to EUR 30.8 million (23.8)
• EBITDA increased by 57.6 per cent year-on-year to EUR 30.1 million (19.1)
• Adjusted* earnings before interest, taxes and amortization (EBITA) were 13.0 per cent (12.3 per cent) of revenue
• Earnings before interest, taxes and amortization (EBITA) were 12.6 per cent (9.4) of revenue
• Profit for the period amounted to EUR 31.3 million (5.9)
• Net debt decreased by 35.2 per cent to EUR 246.1 million (379.9)
• Net debt/Adjusted EBITDA 2.5, decreased from 4.8
• Operating cash flow amounted to EUR 18.4 million (6.4)
• Earnings per share** were EUR 0.24 (0.05)

 EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization

EBITA= Earnings Before Interest, Taxes, and Amortization *Adjustments are material items outside the ordinary course of business associated with acquisition-related expenses, restructuring-related expenses, gain on sale of assets, strategic projects including the IPO, new business operations, and other items affecting comparability. Adjustments totaled EUR 0.6 (4.7) million in January-March. ** The effects of share conversion and share split have been taken into account in the weighted average number of shares.

Yrjö Närhinen, CEO: "Strong topline and bottom line growth"

"The business momentum continued to be strong in the first quarter of 2018 - as a whole, revenue and profitability developed in line with our expectations and we increased our market share. The demand for Terveystalo's services was strong and grew faster than supply. However, regional and local differences are large and the competition has increased due to increased supply, especially in large Finnish cities.

Revenue grew 23 percent from the previous year to EUR 197.5 million and organic growth was strong and wide-spread. The Diacor acquisition in March 2017 continued to have a significant impact on revenue growth. Profitability also improved clearly; Adjusted EBITDA increased to 15.6 (14.8) percent of net sales, reflecting the operating leverage of the business and successful integrations. Our solvency strengthened and net debt to adjusted EBITDA declined to 2.5. A strong balance sheet allows for growth investments.

In April, the Finnish Tax Authority issued its tax audit report concluding that the audit did not cause any action. Due to the tax audit, we had only partially recognized deferred tax assets based on outstanding tax losses carried forward. After the audit, we recognized deferred tax assets related to outstanding tax losses carried forward for the period under review with a net profit effect of approximately EUR 13 million.

Terveystalo continued to pursue our strategy and promote discussion around value, quality and transparency in Healthcare by publishing the latest Quality and Responsibility Report for 2017 in April. We remain committed to continued efforts in increased transparency and customer focus. We see strong growth in digital services and continue to develop our offering to better meet our customers' needs. We want to make sure that healthcare services are available to everyone in Finland, either physically or, in the future and as applicable, digitally. In addition, we want our customers to feel that they always get value for their money in terms of the availability, quality, and effectiveness of the services. 24/7 General practitioner Chat and significant growth in acute clinic services are good examples of this. We see that the physical network requires, in addition to a broad set of services, a strong digital platform and we will continue to invest in these areas.

We are proud that Terveystalo is the most desired employer for physicians and students in Finland for the sixth consecutive year. Everything we do is based on genuine encounters with people every day. For these encounters, we want to be the best workplace for professionals in the future as well."

Outlook for 2018

The positive development of the domestic economy supports the corporate and private customer businesses. Healthcare and social welfare reform is important to Finland and would change the environment for all healthcare companies and create new opportunities, especially for those who invest in meeting the new needs created by the reform. Terveystalo expects its markets to continue to develop favorably.

Key figures

  (* Alternative performance measure. Additional information in note 14.  (** The weighted average number of shares takes into account the effect of the consolidation of shares and the share split. Comparison figures have been adjusted accordingly.  (***In consequence of concluded tax audit ROE's profit for the period (LTM) includes fully recognized deferred tax assets EUR 13.0 million relating to outstanding tax losses carried forward. Diacor is combined with figures for the comparative period for the balance sheet and personnel as of 31 March 2017.

Terveystalo follows the disclosure procedure enabled by the Finnish Financial Supervisory Authority and hereby publishes its Interim report attached as a PDF file to this stock exchange release. The Interim report is also available at: https://www.terveystalo.com/en/investors/Fina...formation/       

Briefings

Terveystalo will hold a Finnish-language result briefing and live webcast on May 16, 2018, starting at 11:00 a.m. EEST, at Terveystalo Piazza, Jaakonkatu 3B (3rd floor), 00100 Helsinki, Finland.

The English audiocast and conference call will be held at 12:30 Finnish time. You can follow the Finnish webcast at: https://terveystalo.videosync.fi/2018-05-16-q1-interim review  

The English audiocast is available at: https://terveystalo.videosync.fi/2018-05-16-q...conference . To ask questions, please join the telephone conference 5-10 minutes prior to the start time using your local number (FI: +358 (0)9 7479 0360, UK: +44 (0)330 336 9104, US: +1 929-477-0630) and the Participant Passcode 845931. If you are calling from another location, please use any of the numbers above.

Helsinki, May 16, 2018 Terveystalo Plc Board of Directors

For more information, please contact:

Ilkka Laurila, CFO Tel. +358 30 633 1757

Kati Kaksonen, Director, Investor Relations and Financial Communications Tel. +358 10 345 2034 Kati.kaksonen@terveystalo.com

Distribution:

Nasdaq Helsinki Oy Main media www.terveystalo.com

Terveystalo in brief

Terveystalo is a listed company on the Helsinki Stock Exchange. Terveystalo is the largest healthcare service company in Finland with net sales and network. The company offers versatile primary and secondary health care services for corporate and private customers and the public sector. The nationwide network covers 180 locations across Finland, complemented by 24/7 digital services.

In 2017, Terveystalo had approximately 1.2 million individual customers and approximately 3.3 million doctor visits. Nearly 9,000 healthcare professionals work in Terveystalo, about half of whom are private practitioners. Terveystalo's services carry the Key Flag symbol and the company is a member of the Association for Finnish Work. www.terveystalo.com

Attachment

• Terveystalo Q1 2018 Interim report.pdf