Terveystalo as an investment

Terveystalo is listed on the Helsinki Stock Exchange and has a predominantly Finnish ownership. In terms of revenue and network, Terveystalo is the largest private health service provider in Finland. We offer a wide variety of primary health care, specialized care, and well-being services for corporate and private customers and the public sector. Our nationwide network covers over 300 clinics across Finland. The clinic network is supplemented by 24/7 digital services. In recent years, Terveystalo has made significant investments, particularly in digitalization and customer experience, as well as clinical and operational quality. Investments in intelligent service platform, efforts in strengthening the customer's health partnership as well as expanding through successful acquisitions have created a very strong position for Terveystalo in a growing industry. Terveystalo is the most profitable company in its industry, which will continue to strive for profitable growth both organically and through value-adding acquisitions. Terveystalo also wants to be a forerunner in terms of responsibility and sustainability.

Why to invest in Terveystalo?

 

1. The market for health and well-being is growing driven by several drivers

An aging population and a high rate of lifestyle diseases are increasing the demand and costs of health care. People are also increasingly interested in investing in their own health and well-being, which increases the demand for health services. In addition to this, public health care will continue to need the contribution of private actors in dismantling care queues and organizing health care efficiently and with high quality. The corona pandemic has further increased treatment queues in Finland as well.

The Finnish healthcare market has grown by an average of 2.1% (CAGR) in 2014-2019, and during the same period Terveystalo has been able to grow organically at almost three times the rate. Terveystalo targets 5% annual revenue growth through organic growth and acquisitions.

2. The most profitable company in the industry

In terms of revenue and network, Terveystalo is the largest private health service provider in Finland and the most profitable company in the industry. Our competitive advantages include a wide and comprehensive network, a scalable business model, integrated high quality care chains, strong customer base, and a broad range of digital services; together with our development-oriented culture, they attract the best talent in the field.

Terveystalo has been able to grow profitably and the adjusted EBITA between 2016-2020 increased by 16%. Terveystalo’s goal is to be the most profitable private health care operator in the Nordic countries and achieve adjusted EBITA-margin of  12-13% in the mid- and long-term. In 2020 EBITA-% was 10.3% and in Q1/2021 it improved to 13.7%.

3. The most intelligent service platform and health partnerships with customers are a strong foundation for profitable growth

The demand for novel health services, pricing models and operative models is growing, while the scarcity of health care professionals is increasing the need for more intelligent use of competence. Digital services transform health care and create new solutions, but they also create new expectations from customers.

At the core of Terveystalo's strategy is the further development of our scalable service platform. It consists of both our physical network and digital service platform, and helps the healthcare professionals and clients connect in the best possible way. Through the most intelligent platform in the industry, we are able to provide our customers with the right service regardless of time, place, and channel, from the beginning of the care path to its end. The intelligent platform guides growth, profitability, customer satisfaction, and commitment also in the future. We want to be the customer’s health partner by providing support and quality services proactively and holistically.

4. Strong balance sheet and cash flow generation enable stable dividend distribution, as well as investments in business development and expansion through acquisitions

Terveystalo's balance sheet is strong and cash flow has been steady from year to year. In terms of capital structure, Terveystalo aims for a net debt / adjusted EBITDA level of < 3.5x (Q1 / 2021 2.7x). However, indebtedness may temporarily exceed the target level, such as in conjunction with acquisitions. The company's strong balance sheet and cash flow generation enable it to develop and grow its business both organically and through acquisitions. Terveystalo has been a stable dividend payer and the company aims to distribute a minimum of 40% of net profit as dividends annually (72.0% in 2020).

5. Terveystalo aims to be a forerunner in responsibility in its industry  

Sustainability is a core value for Terveystalo. We have committed to promoting the principles of the UN Global Compact initiative and the goals of sustainable development. In addition to improving good health and well-being, our operations and partnerships aim to create resilient infrastructure and innovations for effective care and the availability of care. We promote ethical business throughout our supply chain and create added financial value and jobs. We take responsibility for the environment by promoting sustainable consumption and fighting climate change.

Read more about responsibility at Terveystalo