Terveystalo as an investment

In recent years, Terveystalo has made significant investments particularly in digitalization and the customer experience as well as clinical and operational quality. Investments in the intelligent service platform, strengthening health partnerships with customers and expanding through successful acquisitions have seen Terveystalo establish a very strong position in a growing market. Terveystalo expanded to the Swedish occupational health market in 2021 and the goal is to continue the company’s international expansion.

Why invest in Terveystalo?

The aging population and high rate of lifestyle diseases increase the demand for, and costs of, health care. People are also increasingly interested in investing in their health and well-being, which increases the demand for health services. In addition, public health care will continue to require the contribution of private health care providers to work through the treatment backlog and provide health care services efficiently and with high quality.  Treatment backlogs have been further increased by the COVID-19 pandemic.

The Finnish health care market grew at an average rate of 1.7% (CAGR) between 2016 and 2021. Terveystalo’s organic growth during the same period was three times as fast. Terveystalo’s target is annual revenue growth exceeding 5%.

Developing a scalable intelligent service platform is at the core of Terveystalo’s strategy. It consists of a physical network of clinics as well as digital services. The intelligent platform makes it possible to connect professionals with customers as efficiently as possible by providing the customer with the right service regardless of time, place, and channel, from the beginning to the end of the care path. In 2022, Terveystalo’s digital services had 2.5 million registered users. Terveystalo is in a strong position to take advantage of these capabilities also in other markets in a manner that creates value.  

Strategic and complementary acquisitions are an important component of Terveystalo’s growth strategy. Terveystalo has made over 200 acquisitions to expand its network of clinics as well as complement the range of services through expansion into new specialties and well-being services. Between 2015 and 2020, acquisitions and organic growth saw Terveystalo grow by approximately 14% (CAGR), which is ten times as high as the growth of the market. Terveystalo has strong competence in choosing acquisition targets and realizing synergies. For the major acquisitions made in 2017–2019, the synergies sought were exceeded by approximately 9% on average and these synergies saw the EV/EBITDA (LTM) multipliers of these acquisitions decrease from 13x to 6x. Good synergies have also been achieved with smaller acquisitions.

Terveystalo’s balance sheet is strong. Terveystalo’s target in terms of capital structure is a net debt/adjusted EBITDA ratio of at most 3.5 (2022: 3.2). The company may exceed its net debt target temporarily due to large acquisitions. Terveystalo’s strong balance sheet and cash flow return on investment enable the development and growth of business, both organically and through acquisitions. Terveystalo has distributed stable dividends, with the target of the dividend policy being to distribute at least 40% of the net profit for each financial period to shareholders (145% for 2022).

Terveystalo is the largest private health care provider in Finland and the clear market leader in occupational health in the Nordic region. The acquisition of Feelgood represents an important step in Terveystalo’s expansion and growth outside Finland. Our goal is to grow in the Swedish occupational health market both organically and through additional acquisitions. In the longer term, we see potential not only in the good growth opportunities in the Swedish occupational health market but also in expanding to other nearby occupational health markets and expanding the range of services in Sweden toward more integrated care chains.

For several years, surveys have shown that Terveystalo is the most attractive employer in its industry among both professionals and students.

The ability to attract and retain health care professionals is very important for Terveystalo’s growth and the execution of the company’s strategy. Terveystalo invests heavily in well-being at work, company culture and competence. Maintaining the company’s position as the most attractive employer in its industry is a core element of Terveystalo’s strategy.

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CEO review


Financial targets and their achievement

As long-term financial goals, Terveystalo has 5 percent annual revenue growth through organic growth and acquisitions and, in terms of profitability, an adjusted EBITA margin of 12–13 percent in the medium to long term.


Terveystalo’s strategy

Our purpose is to fight for a healthier life . Our vision is to use data and our Nordic expertise to create a world with fewer sick days and more healthy, happy years.


Trends influencing health care

The demand for healthcare services is increasing, among other things, due to the ageing population and growth in chronic diseases. At the same time, healthcare systems around the world face shortages of competent professionals. In addition, the COVID-19 pandemic has increased treatment backlogs. Digital services drive the renewal of health care and bring new solutions, but they also create new customer expectations. Increasing awareness of personal health and the overall trend towards healthier lifestyles make people more willing to increase spending on preventive care and well-being services.


Terveystalo's addressable markets

Terveystalo operates in Finland in occupational health, primary health care, specialty care and well-being services. In 2021, Terveystalo expanded into occupational health in Sweden with the acquisition of Feelgood, one of Sweden's leading occupational health companies.


Market outlook

These views are based on the expected development of demand for Terveystalo’s services within the next six months, compared with the past six months. The outlook was last updated in connection of Q4/2022 result on 10 February 2023.


Short-term risks and uncertainty factors

Terveystalo’s risk management is governed by the risk management policy approved by the Board. The policy defines goals, principles, organizations, responsibilities and practices for risk management. The management of financial risks complies with the Group’s financing policy approved by Terveystalo’s Board. The risks were last updated in connection with Q4/2022 report on 10 February 2023.