Good afternoon, everyone, and welcome to Terveystalo's first quarter 2021 results conference call and webcast. My name is Liisa-Maija Seppänen, and I've started here as a Investor Relations Manager this spring. Hopefully I will get to meet some of you later on. Today we have our CEO, Ville Iho, and CFO, Ilkka Laurila, who will go through the Q1 results. After the presentations, we will take the Q&A session and you can ask questions either via the teleconference lines or you can also post questions to the webcast throughout the presentations. Please, Ville, go ahead. Thank you, Liisa-Maija. I know this is a very busy day for most of you, so let's go straight to the business. Key takeaways from our first quarter. Main takeaway, obviously, is that this was a very strong start for Terveystalo for this year. Revenue grew with some 8% to almost EUR 280 million. Especially pleasing is the development with our profitability. Adjusted EBITA at EUR 38 million, and that's obviously a record Q1 for us. Some underlying drivers behind these nice numbers. First of all, NPS, our customer satisfaction today at a record high level. The latest figure is 84.3, and I said it's all-time high. The development has been positive for us for three years, basically, and now we are here at world-class figures. Obviously, Q1 was partly boosted by activity with COVID-related business, and more than 120,000 COVID tests conducted during Q1. Very important underlying factor is this continuous positive development, strong development with our digital offering and digital visits at 250,000 during Q1. Deep dive into our customer groups. This is again, across the board, a positive picture. All of our customer groups gained during Q1. Especially positive was corporate customers that was driven by preventive care and partly boosted by COVID-related testing activity. Private group grew. Early part of Q1 was slightly slower due to partly lockdown in Finland, but the latter part of Q1 was very strong for private customers. Public remains in our eyes to be positive. Demand was stable, slightly growing in all of the businesses except the staffing, which was still slightly supply restricted, but view on that business is still positive. A couple of underlying facts behind the growth. Well-being services are still growing strongly with double-digit figures are most probably continue to do so going forward. As already noted, volumes of digital appointments are still growing, and we continue investing in this part of our offering. As you all know, we updated our strategy last summer, basically, the value levers that we presented back then were threefold. We are building the smartest platform in the industry. With that one, we are winning in supply, we are winning in efficiency, we are winning in pricing, we are winning in smooth services for our customers, regardless of what channel they choose to use. The other lever, Customer Health Partner, we are strengthening the relationship with our customers with new type of offering and new type of more active dialogue, that's obviously to grow the share of wallet. With these two strong levers, we can then accelerate the growth with directed selective M&A. That's easier said than done. Anybody can talk the talk, but who can walk the walk? We are already in the implementation phase with all of the initiatives. A couple of KPIs just demonstrating that we are making headway in both the smart platform and health partner levers. We have been able to grow the volumes to our channels, and that has been regardless of the situation with better optimization of searches, et cetera. At the same time, we have been able to improve the conversion rates in our platform. More often than in the history, customers are finding the right services instantly and hence making the booking, and then they are in the care chain with Terveystalo. One KPI demonstrating the efficiency of the platform is a self-service rate, and that has been developing nicely during the year, and Q1 it's up by 18%. These are, of course, not only things that we are looking at when looking at the smart platform, but nice demonstrations that we are making good progress there. As to customers' health partner, as we have said, we are building a new type of relationship with the customers, building loyalty, and through that one, we are able to provide more precise services to our strong customer base. As one example of this development, we disclosed a new strategic partnership with Finnish health tech company, Nightingale. With the partnership we are offering through our platform to our customer base embedded Nightingale offering and coupling that with our own well-being related services. A new type of offering with a subscription model will be offered later during the year. This is obviously not the only thing that we are doing in this area. This is just one example and one first concrete step into this field, which is going to be for sure exciting. As I said when we are able to build a platform, when we are able to strengthen the relationship with our customer base, that can be then boosted with M&A. It has been, let's say, slow season for Terveystalo with M&A during COVID-19 for various reasons, but the pipeline, all in all, in M&A area is picking up and it is strong. We have some examples to demonstrate already during Q1 we were able to close deals in this area. Looking forward, we are doing M&A and acquisitions in three categories. We are still strengthening our scalable capabilities. One good example of this type of acquisition is Evalua, which we acquired some 1.5 Years ago. Now when the new capability related to medical questionnaires is in our portfolio, we are then able to first distribute new service to our customer base and through our strong channels. We are going to still grow in adjacencies and we have opportunities there. In our portfolio, we have still services where our market share is not as strong as in our core services. Take, for example, dental, physio, and mental health. In these areas, we see opportunities for continuing M&A activities. There are some new specialties that we see that can be fit into our platform that has been visible, especially in public business during first quarter of the year. We closed a deal with Attendo and then Nuorten Sutela. These new type of services don't mean that we are exiting our medical core. There are clear criteria through which we then assess different opportunities. When there's a clear and strong link with our core capabilities and our services, and when medical is still in the core, we can and will execute these type of acquisitions as well. Outlook looking forward, we are still obviously in abnormal market conditions. We are in this, what we have been calling a mixed scenario. COVID-related business is still strong, but underlying demand is picking up. H1 continues to be with the same pattern. Looking at different customer groups, with the corporate customers, demand for preventive care will develop positively. Looking at sickness care the recovery depends on the activity and mobility of the society. Of course, depending on how the recovery of Finnish economy goes and how the number of employed personnel develops, that of course will have an impact on the underlying market size. For the private customers early part of Q1 was, as I said earlier, a little bit slow due to the lockdown measures, has been picking up, that will develop positively. Of course, there's going to be a lot of variation between regions and most probably a lot of volatility also in the demand. All in all according to our view, it's going to develop positively. Public sector as we have been commenting earlier the market is active and our pipeline is strong. We see a stable demand and new opportunities also arising from that strengthening pipeline. That's the view for the next six months compared to year-on-year period. With that one, I'll give floor to Ilkka. Good afternoon on my behalf as well. Like usually, we will then go through a couple of the financial highlights. Starting from the revenue development, like Ville already explained, that the overall sales increase was at 8.3%. Good development, especially in the corporate segment, mainly driven by COVID-related services as well as preventive services, especially those legally required occupational healthcare services, which the year started especially well in those. Good development in wellbeing services as well and digital appointments. On the other hand, as you can see, 46% growth in service sales in public sector that is driven by several different smaller categories and items. Also driven by COVID-related services, as well as increased amount of the occupational healthcare end customers or end users. There's also other services that are increasing. However, not so much pent-up demand from the public queues yet. Some smaller agreement, nothing material or major deriving from those. Overall, I would say normal level of demand in those services or normal type of services of which demand has increased. If you take us further down and take again a look about the wellbeing services and digital visits. As you can see, especially in the wellbeing sales, even though that we are still on a quite low level, EUR 25 million per quarter, you can see that actually the increase has been now higher than during the previous quarters. It's now that 16% increase in wellbeing sales, compared to 10% and 9% for the previous quarter. Good development in there. Is also related to those mental health and that type of services of which we have seen increasing demand overall through the COVID-19 situation. Digital visits still up by that 96%. Obviously, we are now facing, in Q2 and Q3, tougher comparison period. It's interesting to see how those will develop going forward. The relative profitability, as you can see, very high level of both EBITDA as well as EBITA relative to historical development. If we compare to the earlier Q1, we are on a record high level. Obviously, we have had higher EBITA margin levels in some quarters. In Q1, comparing the Q1 result, that was an excellent result during 2021. If we then take a closer look at how the costs have developed within that cost structure, you can see that actually the purchase of the materials has now declined that 4.7%, even though that the surgery still has developed quite nicely, and even though that protection gearing expenses are still on a quite high level. We have been able to develop cost efficiency in material purchase and such. On the other hand, employee-related expenses as well as IT expenses are increasing. Employee-related expenses are mainly driven by COVID-19-related services. Those services, like discussed earlier, require additional employees, and therefore we can also see because the demand of those services were higher, we can also see that in the employee expenses. On the other hand, IT expenses, like historically as well, has increased. One factor there is obviously that during the comparison period, we were not yet fully on a remote mode. There is infrastructure-related expenses on that. On the other hand, there's a continuous increase in software-related expenses as we provide new services to the market. Obviously, there's maintenance expenses related to those new services always. Other operating expenses declined by 10%. That's a lump sum of several different cost items. Obviously, like I think in all companies, compared to previous quarter, we are still benefiting from lower traveling expenses, as an example, and also being quite cost-cautious with other expenses on a fixed cost categories. On the balance sheet side, the liquidity position is stronger than earlier. The leverage ratio is coming down. Like you can see, it's now on a level of 2.7x, so down from 3.4x during the Q3 2020. Good development in there and we are in a good position if we would need to sort of move or do any sort of sizable acquisitions or so. Stable development in working capital, and not so much improvement at the moment. That also actually relates to COVID-related services. Those are sort of new processes to us, and when you have new processes, that causes some sort of additional work and burden to the back-office work and therefore some sort of increase in the sales receivables for the COVID-19 related tests and sort of services. There's a sort of DSO and DPO. You can see that both are quite stable, sort of development still there. Both actually are in a good level also compared to the historical levels. CapEx, one slide on CapEx. As you can see, we are still in a declining trend. However, like we have communicated earlier, we have not anymore sort of freezed any CapEx and investments, but continued our sort of earlier plans. However, it's quite typical actually that from the decision-making up until to bookkeeping, it takes time when you order new medical equipment or start sort of repairment or improvement of your premises. That's why we can see decline in machine and equipment and improvement to the premises, even though that we have continuously invested in intangible assets, meaning digital sort of development that has remained quite stable all the time during the COVID-19 situation as well. That concludes the financial section, I think that we have plenty of time for Q&A. Thank you. Thank you. I think we can take the questions first from the teleconference lines. Please, op erator. If you wish to audio your question, please press zero on your telephone keypad. If you wish to audio a question, you may do so by pressing zero, two to cancel. Once again, please press zero on your telephone keypad if you wish to ask an audio question. Our first question comes from Alex Gibson from Morgan Stanley. Please go ahead. Great, thanks for taking my questions. I have three. I'd like to go through them one by one. The first one is just on around telehealth and your digital visits. Just thinking forward and where we are today, what percentage of your total appointments are digital today versus digital pre-pandemic? How do you think that percentage is going to change in a post-COVID world? I'm thinking about this around, are you changing any formal best practices to recommend certain patients go digital first rather than visiting a center? That would be my first line of questioning. Shall you take the numbers and- I actually haven't taken a look at what the sort of the percentage of the revenue in Q1 was last year out of the total appointment, it was that 26%. In Q1, I haven't actually taken a look at it, but like you can see from the numbers, it has obviously increased from the previous or from the comparison period. Yeah. Okay, as to the future and how we see that one, how we are building that one, of course, 26% of remote is not the upper limit. There are different type of assessments in our line of business, what could it be? Up to 50%-60%. What we are doing internally is just that we are building the platform, we are building smooth channels. Most importantly, when we are creating and strengthening medical protocols and care chains, from the start, they are built for hybrid. For both professionals and then consumers, they can both navigate in hybrid world easily and smoothly. It's going to require some more investments further into our platform, but we are well on that way, and platform starts to be quite smooth already even for the hybrid navigation. That's what we are building, and then it's up to the customer and up to the professional how they choose to use our services. Maybe it's still worth to highlight that should be taken or should be noted that clear majority of the digital visits are still related to corporate services. Out of the digital appointments. A clear majority is actually related to preventive services or preventive occupational healthcare-related services is the most typical one that is currently operated remotely. Yeah. Okay, great. Maybe a slightly related question is just around your footprint of the business and maybe COVID-19 shifting to digital visits as well, or shifting the way practice is done. Of your, I think it's 280 centers or so, do you think that number has reached maturity, or do you think you need to grow the footprint much from that level? Or is it now more about capturing share within your catchment areas that you already exist in? Well, as to the physical network, there are very few white spots in the map which we would still like to fill in the future. There are some isolated opportunities in geographical terms, but it's more capturing share and boosting digital channels. Maybe still commenting on that one. It is like Ville said, so we don't really have material white spots anymore in Finland. However, it should be noted that especially when it comes to those therapy services and such, actually the number of the units might increase because sometimes it's much more cost-efficient to have a therapy clinic separate from the normal medical center because the premise-related requirements are much lower in therapy segment compared to doctor appointment rooms where you need to have a water basin and such. In that sense, number of the units might increase even though that there's no geographical white spots anymore left that much. Okay. That's helpful. I guess the last one would be, I think a lot of people would like to see you move abroad, and broaden your reach. It seems that might be quite slow if you have to use your own capital or cash flow. I guess if you are thinking about doing that more aggressively, would you consider merging with another company or even being bought by another company? Do you just think it'll be a slow expansion? Well, as to the sort of management plans and how we see the optimal progress of Terveystalo, we are still firm believers of our hybrid model. If we are to expand abroad, the model would look quite the same as in Finland today. It would be a combination of digital offering our scalable capabilities, also coupled with a physical network. Yes, it is not going to grow organically. It is going to require acquisitions. We have been earlier commenting optimal approach being a low risk and we remain in that view. Okay. Thank you. Our next comes from Sami Sarkamies from Nordea. Please go ahead. Hi. Thanks for taking my questions. I also have a couple. Starting from the public segment, do you see any reason why the current growth rate would not prevail throughout the year or even pick up in case you will be able to sign new contracts? They are not sort of underlying negative developments as we see today. Of course, it is a market which can be easily flipped due to couple of single decisions. It's a different type of market than our B2B and B2C market. As we speak, looking at the market, we have earlier said that the pipeline looks strong, it's active, it's more positive than we saw last year. As I said, we don't see negative underlying trends there today. Okay, moving on to the corporate segment. You did emphasize preventive care and COVID-19-related services as drivers for Q1 growth. Do you see risk on the downside in the coming quarters in case preventive activities could come to a lower level or COVID-19-related services decline as you suggest will be the case from Q3 onwards? Well, there I would say that the biggest uncertainty lies in recovery of sickness care related to our corporate deals and our corporate customers. Yeah, maybe adding on that. Like communicated, we see actually quite positively at the moment the sort of the development of the preventive services also going forward. The uncertainty, like Ville said, is relating to mainly on sickness care obviously. There might be also some turbulence in preventive care like it used to be last year. I think we all hope that we will not anymore have to go to similar situation that we went through last year. I think the bigger uncertainty relates to sickness care and the demand on that side. Okay, thanks. Yeah. Maybe further elaborating on that, the logic is pretty similar actually to private healthcare, like we have said that because there's a lot less all kinds of infections at the moment. That has also impact for sickness care in occupational healthcare. On the other hand, these long-term diseases are developing quite stably and actually, comparing to previous quarter in private segment as an example, there were certain ICD codes that were completely shut off during the second half of March last year, like eye-related services and such, and orthopedic and such. Like communicated now, we saw actually quite a positive development in those services as well, which is actually quite encouraging, and hopefully is a positive sign for people, life normalizing as well. Okay, moving on to the private segment. You were complaining that lockdowns and non-existent flu season did burden growth in Q1. On the other hand, you mentioned that growth rate improved towards the end of the quarter. Just curious, what sort of growth rates are we talking about in March, April timeframe? We haven't obviously communicated that precisely, but you can say that there's a few percentage improvement in the underlying demand that we are seeing. Nothing major, but slightly positive. I believe that the key driver there is that when the COVID-19 situation is easing and society is opening that will have at least some positive development for the underlying demand. Okay, my final question would be on COVID-19 vaccinations. Can you please talk about your role in those and can you say anything about the vaccination volumes by yourself so far? First of all, the system in Finland still is such that municipalities are controlling and managing the vaccinations. We are partnering locally with the municipalities, and based on their choice and decisions, we are then vaccinating people either as a direct partner to public sector or then through our occupational healthcare contracts. We are not in mass vaccinations as yet. We are very close to that one. Vaccinations will not be a sort of silver bullet for Terveystalo. We are part of the vaccinations campaign, but the volumes will not rock the boat significantly. Yeah, the vaccination data is actually available in open reporting of Terveystalo, and those municipalities that we have agreement with is also available in our internet pages. If I recall it correctly, last Monday, I think it was, we had a 25 contract with municipalities out of 300 Finnish municipalities. That sort of draws some kind of magnitude at this stage where we are. Okay. Thank you very much. I don't have any further questions. Thank you. Our next question comes from Panu Laitinmäki from Danske Bank. Please go ahead. Yes. Thank you. I just try to understand how much did you benefit from the COVID test and what will happen in a more normal situation. I guess there are many ways of asking this question, but let's put it this way, that if I look at your corporate business, the revenue in Q1 was about EUR 10 million higher than it was two years ago. If I do the math, it seems that you got maybe EUR 17 million to EUR 20 million revenue from the COVID tests. Then the underlying business that was still at a lower level, the sickness care and the infection-related appointments, that was probably much lower margin than the, I don't know, EUR 20 million that you get from the COVID test. The question is really that, is there any reason not to expect this business profitability to decline when we go out from the pandemic and test volumes come down? That's the first question. Maybe first commenting to your assumption is that you're probably now taking the list prices when doing the math, obviously, especially when it comes to those mass tests. Those are open tender processes and not following the list prices. Therefore, on the other hand, the impact for the top line is smaller, but so is for the bottom line as well, even though those are scaling better than separate tests. If I would describe it in such a way that as we had a good development, that's an excellent question, and question that we are actually, let's say, thinking almost every day, because you could argue that some of those, or actually, as we know, there's a very small percentage of those COVID tests that are positive. All kind of infections are now tested with the COVID tests. In that sense, you could argue that in a more normal situation, that would be a part of normal infection-related sickness care development and sickness care demand. Therefore, it's too harsh to compare, just removing all the COVID-19 test and comparing that with the underlying demand, and compare it to, as an example, to 2020 or 2019 numbers. It's a mixed picture, but like I said, overall, the preventive services are developing well, and sickness care is a more, let's say, risks related to that. Since you asked this in a way that you did, if there are any reason to believe, then the reason would be operating leverage. Why the COVID-related business or COVID tests are high margin. Yeah To operating leverage. When the volumes are high, then of course margins are high. That same applies to a lot of the sickness care, especially the lab volumes. If part of that will be in the future transferred to normal laboratory services, like normal CRP or such infection-related laboratory services, there's the same kind of logic there. The volume on that end is actually quite low, or is actually very low, and therefore profitability is also quite low. On the other hand, COVID tests profitability is high, like I said. Most likely in the future, it will go other way around. If the normal infections start to increase, the profitability in that segment is increasing, and a sort of normal diagnostic starts to increase again, and vice versa. Thanks a lot. This is helpful. I understand it's difficult to know this or comment this in advance. The second question is about the public sector demand. You have commented it more positively, but then I understood that the growth in the service sales mostly came from COVID-19-related services and then from kind of success in occupational healthcare in public side, which is maybe not related to kind of public sector being more active with the private company. The question is, I guess that, what kind of pipeline do you see in the public sector? Do you see large outsourcings, bigger growth in service sales? What should we expect going forward for this business? Yeah. Just looking at the normal pipeline, that's what we are looking when we are commenting or thinking about the activity. Of course, COVID-19-related business is a separate matter altogether. We, of course, have not disclosed the sort of size of the pipeline, but it's way stronger than it was, for example, one year ago. As to what type of services there are in that bucket, there are outsourcing contracts which typically are smaller than we have seen, but higher in numbers, and then different type of partnership deals, new type of services as well. Yeah. Like Ville said, it's a sort of typical, I would say, normal market, I would say. There's a more different kind of services and products and innovation and such, and less sort of those typical historical large outsourcing. The variance of the different kind of contracts and agreements and the services is going to increase in the future, and we will see quite innovative solution, because the demand from the municipalities and the public sector is still increasing and is huge. How that sort of will be sort out, that the sort of future will show, and I think we all, sort of service provider, are developing our own solution to municipalities and for the public sector. There's definitely going to be other services than just big complete outsourcing. One example is that sort of specialty care services that we provide to City of Nokia, in which we sort of take care of the referral of the Nokia city to specialty care. We sort of act as a certain. Broker yeah, broker or gatekeeper to the specialty care services. That's one sort of example of the, let's put it that way, new innovations of services to the public sector. Okay, thanks. Maybe just a quick follow-up related to that. You have a target of growing at least 5% annually. Would you expect the public sector to contribute more to the goal, like growing much more than 5%? Well, at least looking at the forecasted market growth, public sector is bound to grow more. The underlying demand is, as Ilkka said, very strong. Whereas in private and corporate, the growth stems more from gaining market share further. All right. Thank you. That's all from me. Thank you. Just as a quick reminder, if you wish to ask an audio question, please press zero, one on your telephone keypad. Our next question comes from Jon Berggren from Kepler Cheuvreux. Please go ahead. Yes, hi, for taking my question. You emphasize wellbeing services a lot today, and that you see strong growth for these services, and you also mentioned during presentation partnership with Nightingale. Can you please elaborate a bit on your expectations for this specific partnership with Nightingale? Do you believe that they will have a central role in continued growth for wellbeing services? Thank you. If we pick Nightingale as an example, as I said in the presentation, that should be taken as an example and the first step in the new field. With our strategy, we are strengthening the relationship with our customers, with our customer base. To be able to do that, we need new type of services, continuous services with low-entry barrier. This is one example of that one. Also, this sort of rides with megatrends of people being more interested in their wellbeing and also being active part in that journey, measuring themselves and taking active role and responsibility of their health as a sort of revenue stream early on. We don't expect this one, again, to rock the boat, but it's an important first step to demonstrate that this type of service is viable. It can be sold to the customers, and our customers like it. They accept it and use the service. It's not going to be the last, this type of service, either. Yeah, it's actually really exciting to see how it will develop because it's something completely new to the market. Great. Thank you. That was my only question. Thank you. There appears to be no further questions registered, so I'll hand back to the speakers. Okay, thank you. We have one more question from the webcast, and it comes from Anssi Raussi, OP Markets. Sorry if I missed this, but could you please explain a bit this quite high gross margin and reasons behind the improvement versus Q1 2020? Our CFO. Profitability development. Well, obviously, if you want to put it better, there's three elements on that. There's a positive development in the sales mix. Like explained, there's these COVID tests. There's surgeries have developed quite nicely and certain other sort of specialty care services which improves the sales mix. Obviously, the second is that when the top-line overall develops positively, we have the operating leverage impact for the fixed costs and as well as in this case also for the variable cost. The third element is that we have had quite tight cost control, especially when it comes to the fixed costs. Also, like you can see, we have been able to improve our purchase terms when it come to the material cost and purchases in those areas as well. Three elements, sales mix, top-line growth, and tight cost control. Okay. Thank you. I think it seems that we don't have any further questions today, so thank you everyone a lot for participating our event, and have a great rest of the day