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.

Terveystalo's addressable market in Finland

In Finland, the total cost of health care is estimated at around EUR 15 billion. About 75 percent is publicly funded and provided. Privately provided health care accounts for just over a quarter, which includes publicly funded and privately provided (6 percent) and privately provided and funded (20 percent) health care. The privately provided market relevant to Terveystalo, approximately EUR 4.1 billion, includes primary health care, dental care, specialty care, occupational health care and child welfare services. Terveystalo's share of this entire market is about 25-30 percent.

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Finland has a unique occupational health system that covers 1.9 million Finns. Occupational health is associated with a statutory pension system. The system encourages employers to invest in occupational health to bring down pension costs. This has effects on public health as well as the total cost of health care. According to studies, companies that systematically invest in work ability management benefit manifold. One invested euro returns six euros as a result of lower sickness absence and pension costs. Terveystalo provides occupational healthcare services for over 25,000 companies in Finland, which have approximately 650,000 occupational health customers.

Between 2015 and 2020, Terveystalo's target market has grown by approximately 1.4 percent per year (CAGR). The COVID-19 pandemic had a negative impact on market growth in 2019-2021, but healthcare market growth is forecast to return to positive in 2022. The rapid aging of the population, the accumulated care debt during the pandemic, and the high incidence of lifestyle illnesses will increase the need for healthcare in the coming years.

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Terveystalo's addressable market in Sweden

In Sweden the total cost of health care is estimated at around EUR 30 billion. About 73 percent is publicly funded and provided. Privately provided health care accounts for just under a quarter and is around EUR 7 billion, which includes publicly funded and privately provided (19 percent of total healthcare market) and privately provided and funded (5 percent) health care. In Sweden, the privately produced and financed market consists largely of oral health services that are not paid for by the public sector for people over 23 years, as well as employer-financed occupational health care. The private healthcare market in Sweden is quite fragmented; the combined market share of the ten largest players is around 36 percent. Market growth has historically been faster than the Finnish market (approximately 6.2 percent CAGR 2015-2019).

In Sweden, the positive drivers of the private healthcare market are largely the same as in Finland, i.e. in addition to population aging and lifestyle illnesses, there are also lengthened care queues, somewhat growing use of voluntary health insurance, growing health and well-being awareness, the growing role of preventive care as well as development of health technology.

Terveystalo currently operates in the Swedish occupational health market (via Feelgood) and offers services within occupational health and safety in the workplace: risk assessments, ergonomics and physiotherapy, organization and leadership and harmful use. In addition, Terveystalo provides private health care and well-being services to its occupational care customers´ employees and their families through the digital service, Feelgood Plus. The size of the occupational health market in Sweden is approximately EUR 0.4 billion. The market has been fairly stable. Terveystalo is the third largest private provider of occupational health in Sweden with a market share of roughly 19 percent. The Swedish occupational health system differs from the Finnish system, e.g. in that it is less statutory services and occupational and private health services are in separate systems. However, employers' interest in providing wider occupational healthcare and medical services is growing in order to reduce sick leave and lengthen working lives. The Swedish occupational health market offers opportunities to develop practices, tools and services offered to customer companies. In Sweden, Terveystalo serves about 8,300 corporate customers with a total of about 825,000 occupational healthcare end-customers.

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