Strategic and Financial Targets

Strategic Targets

Medical quality at the core of strategy and operations

Maintaining high medical quality is a key driver of Terveystalo’s growth and profitability. Management believes that high medical quality not only contributes to the general wellbeing of individuals, but also to the positive care experience of individual customers, which in turn creates and maintains customer loyalty. At the center of the Company’s medical quality development is digitalization and the use of large quantities of medical and operational data generated by the Company. Digitalization enables the transformation from measuring medical data to efficiently managing medical quality.

Capitalize Finnish market growth opportunity through focus on diversified customer groups

The size of the Finnish healthcare market is substantial and expected to grow at attractive rates across all customer groups. Over the long term and excluding effect of acquisitions, the Company aims to grow at least in line with the market with respect to the corporate customer market, to further exceed historical market growth in the private customer market and to exceed market growth in the public customer market.

Provide customer-centric proactive care through the aid of digital tools and new channels for interaction

Terveystalo focuses on further developing its care experience and service quality through its proprietary digital tools. Terveystalo develops digital tools tailored to benefit physicians, customers, end-users and corporate customers in order to enable customer-centric delivery of care and provide new channels for increased interactions between the customer, Terveystalo’s healthcare professionals and the Company.

Capitalize on and further improve operational excellence to increase profitability and cash generation

Terveystalo continues to focus on operational efficiency at each of its organizational levels, from the corporate level through to the unit level, to implement measures that achieve efficiency gains and continued margin improvement. Management focuses on creating new, more efficient ways of working, and on identifying best working practices, which management seeks to execute in all of the Company’s clinics.

Continue to grow in existing and complementary services through organic initiatives and value-accretive acquisitions to offer an integrated care chain for our customers

Terveystalo’s growth strategy is founded on serving the needs of its broad and varied customer base. Terveystalo aims to develop further its wide offering of services along the care chain. To this end, Terveystalo aims to grow through growth initiatives, greenfield investments and bolt-on acquisitions that strengthen Terveystalo’s existing geographic network and service coverage along the care chain.


Terveystalo’s financial targets and dividend policy

The Board of Directors has adopted the following long-term financial targets for Terveystalo:

  • Growth: 6–8% annual growth in revenue in the long term through a combination of organic growth and bolt-on acquisitions;
  • Profitability: An Adjusted EBITA margin *) 12–13% of revenue in the medium to long term;
  • Capital Structure: Interest-bearing Net Debt / Adjusted EBITDA not to exceed 3 times. However, indebtedness may temporarily exceed the target level, for example, in conjunction with acquisitions; and
  • Dividend Policy: The aim is to distribute at least 30% of net profit as dividends annually. The proposed dividend shall take Terveystalo’s long-term development potential and financial position into account.

Any dividends to be paid in future years, their amount and the time of payment will depend on the Company’s future earnings, financial condition, cash flows, investment needs, solvency and other factors.

*) Earnings Before Interest, Taxes, Depreciation and Amortization