Debt finance

The objective of the Group’s capital management is to support business operations and to ensure competitive operating conditions with optimal capital structure, as well as to enable the implementation of the strategy. In addition to operative cash flows, the capital structure is managed by potential share issues, acquisition of treasury shares by increase or repayment of financial liabilities, possible conversions between equity and financial liabilities, as well as through operative decisions on investments and growth and potential disposals of assets in order to reduce liabilities. The development of the Group’s capital structure is monitored, amongst other things, with the following: change in net debt, ratio of net debt to operating margin, and the cash flow forecast.  

Terveystalo has not issued any bonds and Terveystalo currently has no credit ranking.

Key figures

  Q2/2023 2022 2021 2020 2019
Equity ratio, % 39.0 40.2 42.2 42.1 39.9
Net debt 601.7 566.6 519.0 490.9 548.2
Gearing, % 105.3 95.7 85.2 85.9 101.3
Net debt/adjusted EBITDA (last 12 months)  3.3 3.2 2.5 3.0 3.1
*) Adjustments are material items outside the ordinary course of business, associated with acquisition-related expenses, restructuring-related expenses, gain on sale of assets, impairment losses, and strategic projects and other items affecting comparability.

Financial liabilities

MEUR 30 June 2023 31 Dec 2022 31 Dec 2021
Loans from financial institutions 406.3 419.2 365.4
Hire purchase liabilities 5.6 8.0 13.3
Lease liabilities 201.8 179.8 178.5
Total 613.7 607.0 557.2

The net debt includes interest bearing liabilities less interest bearing receivables and cash and cash equivalents. The Group’s interest bearing liabilities were EUR 613.7 million at the end of Q2/2023. A significant part of the interest bearing liabilities consists of loans from financial institutions. 

The Group’s loan agreements include a covenant, based on which creditors can demand an immediate repayment of the loans if a certain covenant limit is breached. The covenant relates to the ratio between EBITDA and net debt. The Group has met all covenant terms and conditions during the reporting period and at the reporting date.

Maturity profile

Maturity profile for loans from financial institutions 30 June 2023.

The average maturity of Terveystalo's financial loans was 2.8 (1.7) years at the end of the second quarter of 2023, and the weighted average interest rate for the quarter was 3.6 (1.0) percent.

Loan agreements