Good morning, everybody, and welcome to Terveystalo's first half 2023 results call and webcast. My name is Kati Kaksonen. I am responsible for Terveystalo Investor Relations, Sustainability, and Communications. As usual, we will go through the results presentation with the presentations by our CEO, Ville Iho, and our CFO, Juuso Pajunen. After the presentation, we will have time for your questions. We will take questions both from the phone lines and through the webcast after the presentation. Without further ado, over to you, Ville. Thank you, Kati, and good morning from my behalf as well. It is nice to present Terveystalo Q2 results from midsummer sunny Helsinki. Key highlights from Q2. First and most important is the fact that margin uplift is progressing according to our plan and across all three segments. That is really important, and we will share details on that one later in the presentation. A key driver for Healthcare Services progress, obviously, is Alpha program, and now we can say that we have clocked EUR 40 million run rate impact at the end of Q2. We are well on our way to reach our target EUR 50 million and overperform against that target. Supply has been developing positively for Terveystalo. We have been improving supply close to 10%. Supply and demand are more in balance than, let us say, half a year ago when we were sold out all the time. I think now we are in a healthier place. Demand and supply balance, improvement in that one can be seen, especially in low seasons and shoulder seasons where booking rates are slightly lower than they have been, let us say, last fall. Key numbers. As said, profitability improving nicely. We are on track to deliver at 20% up to 28.5% measured in EBITDA. We are growing. Juuso will share more details on underlying growth, even though the headline figure is only 1.3% growth. If you take a deeper look into that one, actually we are growing in all of the segments. The underlying business is growing quite nicely. NPS customer satisfaction. That is something to be really proud of. We are clocking a record number this quarter, 86. We are not only improving our business, we are improving customer satisfaction. Customers and patients are experiencing value in what we are doing. Of course, in long term, going forward, that is really, really important. eNPS at 23. That is slightly down from earlier measurement. This is still a world-class figure for a service company, but we have been over 30. When one is analyzing the figure in more detail, you can see that actually where the decrease comes from are the units where the Alpha program has had its biggest impact. It is very logical. We can also see a very positive development and improvements in eNPS and numbers behind that one. We are confident that we will get back to earlier levels and even improve from those ones. As said, all the segments are improving, and that is really important for making this whole machinery work. Healthcare Services improved against last year's Q2. That's driven by improving business environment, but also a big driver has been Alpha program. We are now at 10%, and the improvement must be seen against the fact that we are still fighting against the headwind of losing COVID-related high-margin sales, still improving in Healthcare Services Finland, and quite nice growth as well. Portfolio businesses. There are businesses in different type of places, in different type of situations. All in all, improving that part of the business as well. Some very positive moves there and improvements. Then some stagnant businesses and some businesses that still require turnaround, all in all, making a positive change. Sweden is making a very positive progress this quarter, basically doubling the EBITDA margin to 6%. That goes to show that when we have been able to build scale and increase volumes in that business through our actions, be them acquisitions or organic growth, it pays out. The profitability is improving. The growth rate there, if you exclude the FX impact, is also quite nice. Juuso will cover that one later in the presentation. As said, profit improvement program is making good progress. We are nicely progressing against the EUR 50 million target. We are now clocking, as said, run rate impact of roughly EUR 40 million. We are going to deliver over EUR 30 million P&L impact this year. On our way to over-perform against our target. As everybody understands, this is a key thing for us delivering 12% in 2025. Business environment is likely to improve around us. That's due to the fact that government program has seriously taken patients into the center, customers into the center. They are willing to use all the tools available for them, specifically increase the use of private providers. There are different elements in the program which will impact this market in short term, midterm, and long term. For example, Kela reimbursement, which is a quick fix for improving the queue situation in Finland, is a short-term measure, also will have a short-term and fast impact into the business environment. On the other hand, improving transparency in the cost and impact of the healthcare providers will create even playground for all of the providers, be them public or private, and give us ability to showcase that we are able to make health impact and be cost-efficient. That's what we do. That's going to create opportunities for us. For example, having a lot of weight on mental health-related issues, it's positive for private providers, especially for Terveystalo. We have been market makers in a way in that domain by our short therapy products and services for corporates. We are looking forward to contribute also to public health in mental health domain. Care guarantees will be more strictly followed, of course, that will create more spill to private sector and direct purchases also. Another highlight for Q2 and an operational achievement and advance for Terveystalo is the fact that we introduce for the first time AI-enabled medical device, software device, which is a care need assessment tool fully integrated into our patient and customer flows. This is a first time that this type of medical device is so integrated part of full care chains and patient and customer flows. This is joint development by a small provider and Terveystalo with our tools, with our data, with our business rules, and then having a medical core inside the shell. This is a big step forward in integrated care, in making patient journeys more effective and having more impact, and also making healthcare, especially private healthcare and Terveystalo, more scalable. A big step forward. We are looking for continuing investing innovative technologies. This is just one showcase, but a big first step. With that highlight, I will give mic to Juuso. Perfect. Thank you, Ville. Good morning from sunny Helsinki. Let's talk about the numbers from second quarter. If we just make a quick executive summary, what has happened in the second quarter, I think the big thing is that the underlying margin improved in all segments, and it continued. We are on a positive track to materialize our Profit Improvement Program and taking us towards the 12% target in 2025. Other one from balance sheet perspective, we entered into the bond market with our first sustainability-linked bond and thus diversifying our sources of fund, but also making a clear and loud statement that meaningful matters, and we want to make a positive societal impact. Finally, of course, from financial perspective, our guidance for 2023 is unchanged. We expect our revenues to grow, and we expect our adjusted EBITDA margin to be between 9.1% and 10.1%. Let's take a bit deep dive to the details. The revenue growth, it's driven by price increases, and we have a strong demand. Our market environment is favorable, and it is positive. If we look a bit further into what has happened, in the Healthcare Services, we have the loss of COVID-related revenues, some 75,000 tests compared to previous year second quarter or 254,000 compared to first half. That is a material amount of revenue and a material amount of margin that we have lost, and thus you see it in the diagnostic column being red. At the same time, we have been able to ramp up our, let's call it, normal diagnostics. We are catching up and continuously progressing towards pre-COVID levels. We have a positive underlying momentum in here. If we look the portfolio businesses, the big impact there is the EUR 7 million less revenues from the outsourcing. I could comment that we are not entirely unhappy on losing that type of revenue. It is part of the earlier communicated pattern of ramp-down of these old outsourcing contracts. The other momentum has been positive. Staffing and dental are growing. They are performing and growing. The other portfolio businesses are rather demonstrating quite normal volatility, some of the parts going really well and some of the parts going somewhat well. Sweden, the big impact in there is the currencies. If we exclude the FX impact, we would be growing in constant currencies roughly 7%. On there, we continue to be on track of delivering the growth, but also you will see in the following slide that we have the margin improvement. The other way of looking these numbers around is that, if we would take out the COVID revenues and we would look the underlying organic growth, it would be roughly 5%. Then if you take the outsourcing impact out of that one, we would be between 7% and 8% organic growth. We have a positive momentum, we have a growing business, but then we have also deliberate choice of the outsourcing contracts, and then we have the environment or circumstances on the COVID tests. If we take FX on a group level, that's a bit south of 1% impact negative, and then the M&A is pretty much the same number in positive manner. We can talk about that the underlying growth is 5% and between 7% and 8% if you look it excluding also the outsourcings. The market environment and the demand is solid. If we go a bit further and we look the EBITDA, first it's good to know that we had one working day less compared to previous year, so that always drives a certain momentum both in the top line and in bottom line. If we go a bit further into the segments, we have the Healthcare Services. Despite losing 75,000 of the COVID tests, Healthcare Services is able to improve the results. We have been able to push the prices up, and that has been more than compensating the cost inflation impact. We have the Alpha program is progressing well and delivering concrete, solid results on the bottom line. At the same time, the cost control continued. If you flip through the release and you go to the notes of the notes in the table section, you will see that we have the IT costs are not ballooning. I think they were year-over-year something like 1% up. We have the other premises costs are still growing up, but then if you see the depreciations on the IFRS 16 leases, those are only moderately up and below our revenue. Basically, both the Alpha program and the cost control are bearing fruit. We are improving our efficiency. If we look the portfolio businesses, we have the positive momentum in most of the underlying markets. We have the negative momentum in the outsourcings, but the relative profitability is improving. Finally, in Sweden, the market normalization post-COVID. We need to remember that our occupational health market is different compared to Finland, and we don't have the COVID test positives. Rather, the home working and such has been negatively impacting the results previous year. We are improving via the normalization. The second big boost is that we show that the scale matters. We are able to leverage the scale and improve the efficiency of the underlying operations, and thus we have almost doubled the underlying margin. We also announced two small acquisitions in Sweden that just highlight that we continue on this track, profitable growth in Sweden. Basically, this just highlights what I said earlier. We have profit improvement, margin improvement in all of the segments. At the same time, if we look a bit on the underlying portfolio, especially in the Healthcare Services Finland, you do see that our corporate and private clients, consumer clients are increasing while the public sector is decreasing. This is also a choice. In a high-demand environment, obviously, we want to address our supply to the places where it's the most profitable. At the same time, it's good to note that when Ville highlighted that the seasonality is back, this is exactly also what is happening. I will talk a bit further on that topic when we talk about the guidance slide. Basically, we see from all different aspects, the world is normalizing. COVID revenues out, COVID tests out, laboratories, imaging, all of that one ramping towards the pre-COVID levels. Imaging obviously didn't have an issue earlier, but basically we are going into the normal way. Sickness leaves, all of that one pointing to the same direction. We are going to a normal world. Basically, when the sales mix is normalizing, we have the price increases that we have been able to push forward, and we have the Alpha program progressing. The outcome is here. We are improving our relative profitability from 7.6% previous year second quarter to 8.8% now, or at the same time, we are at 9.8% for the first half. Basically, also that one now the first half in relative profitability terms is above previous year first half, despite losing 250,000 COVID tests, which is a material amount of revenue and material amount of revenue and profit. All of this one demonstrates that we are now going towards a positive trend, and we are capable of improving, both through our own actions and through the normalization of the world. Our CapEx spending, we have been talking quite a lot about this one in the past couple of quarterly releases and in the Capital Markets Day. All I can say is that this confirms what we have been saying continuously. We have been coming down from the EUR 59 million, 4.7% from the revenues, to the current EUR 48 million, 3.8% from the revenues. I've been various times stating that probably the range we are talking about is somewhere around 4.5% of the revenues, depending on the business cases, depending on the needs. This is now CapEx excluding M&A. We continue to invest in our growth. On the balance sheet perspective, first on the operating cash flow, it continues to be solid. At the same time, it's good to note that our accounts receivables have increased a bit. The material reason for that one comes from the public sector. The new Wellbeing services counties are being in the ramp-up phase of their operations, and there has been some slowness on those payments, which I would deem quite natural when handing over responsibilities from municipalities to the Wellbeing services county. That has created some friction or stickiness into the accounts receivables that I'm pretty sure we will overcome. The second part is on the net debt to adjusted EBITDA. We are at 3.3x, and this one is now all included. Basically, IFRS 16 lease liabilities and then the interest-bearing debt from capital markets, banks and so on, less the cash. What has happened in there is first it's very good to note that our lease liabilities have gone up some EUR 20 million from the end of December last year. This is something that continues to evolve via a big premises user, and we have hospitals, we have lots of physical presence that will remain. This portfolio we continue to evaluate continuously. We want to have it as a stable, but at the same time, today is actually quite a good moment to negotiate on lease agreements. Sometimes to gain on the rental levels, you may need to give up a bit of the maturity on the contracts. This is something that we actively do, we actively balance, and now you see it in the numbers on the lease liabilities part. At the same time, the interest-bearing debt has gone EUR 16 million down the non-IFRS 16 part. Remembering that we paid the EUR 18 million of the dividends in the first quarter. We have a positive leverage, and especially looking excluding the IFRS 16, we are continuously trailing in a good part, and with the solid cash flow, we are able to do that well. The second part is good to note in the balance sheet, and especially in the debt structure, is that we have now a weighted average of interest around 3.6%. Everyone is taking a normalization compared to the market interest levels. They have been rapidly increasing during the past 12 months. At the moment, we do all know where the interest rate levels are, and that one will and continues to burden then our financial expenses also in the future. We have hedged 50/50, but that is basically a handbrake when you approach the market levels. Little by little, this is also something that we need to see and we need to evaluate continuously. If we then look on the sustainability-linked bond, this one I am extremely proud and happy of. We launched a EUR 100 million bond 1st of June this year, and this comes from two different angles. The first one is we have broadened our sources of funds. We have now entered the capital markets on the debt structure, and we did it successfully. At the same time, we are now walking the talk. We are saying that we want to have a positive societal impact. We want to do good in the world. Now, on the KPIs that we are putting forward, that has an impact on the interest. We are promoting and saying we do good. The second KPI is the NPS. Basically, if we don't have happy clients, they are probably not healthier than when entering our operations, and thus the link to our sustainability target to deliver healthier life. We have the relevant proportion of occupational healthcare patients referred to short-term psychology. This is more from the science perspective, medical impact perspective. Petri Bono, our Chief Medical Officer, has been demonstrating and showing, and the whole Terveystalo team, that if you refer patients to short-term psychotherapy treatment, the sickness leaves goes materially down, meaning that we have healthier individuals, but at the same time, the employer wins. It is a win-win concept, and this one we want to push both internally to our doctors, what you do matters, but also externally walking the talk. I am really happy that we are now able to go to capital markets, we have done it in a sustainability linked bond manner. If we talk about the guidance, I think that the first big thing in the guidance is that it doesn't change. We estimate the revenues for the full year 2023 to grow, we estimate the adjusted EBITDA margin to be between 9.1% and 10.1%. The underlying market trends are materially the same as earlier. We do see that we have some prolonged inflation. We do see that it has lasted a bit longer than probably all of us estimated. At the same time, we do know where we are standing with the Profit Improvement Program. It will deliver over EUR 30 million real P&L impact this year. Otherwise, the market conditions remain similar. We have the number of employed in May remain strong. We do see that the underlying demand is stable, what we do see also is the seasonality. We have now, especially in the latter part of the quarter in June, we started to see that the sunny weathers pushed people to vacations. At the same time, when you don't have any kind of a sickness season, influenza time, our operations are accommodating to that one, taking the vacation. That delivers less revenues, a bit less profit. We are going into the normal world where we have seasonality, both from a calendar perspective and from the general sickness level perspective. What does that mean if we look a bit forward? Our full year guidance for adjusted EBITDA margin is between 9.1% and 10.1%, obviously that splits into two different quarters, third quarter and fourth quarter. We do not know up to which level the third quarter and fourth quarter will follow and go back to the normal seasonalities. I would quite carefully look the year 2017, 2018, 2019, where we have these seasonality patterns existing pre-COVID. Those are the years where you don't have a COVID disturbing materially the operations. There are always volatilities, there are always items that impact, I would look a bit those ones. You would see that in 2017, 2018, Q3 was some 2.5 percentage points below the full-year profitability, and Q4 similarly was above. H1, H2 are fairly comparable to each other normally, if you take the full-year profitability, you see that Q3 is clearly the weaker one and the Q4 is clearly the stronger one. This is on the guidance perspective full year between 9.1% and 10.1%, there will be the normal seasonality impact between the quarters three and four. With these ones, I reiterate our guidance. We will grow, we will deliver 9.1% between 10.1%, we are confident that our financial targets, we will be at 12% in 2025. With these words, it's time to transition to the Q&A. Thanks, Juuso. I think that we are ready for your questions. Do we have any questions from the phone lines? Or do we have phone lines? Yes. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Sami Sarkamies from Danske Bank. Please go ahead. Hi. I have four questions. Starting from growth. Even though you seemed fairly content with growth in Q1, Q2, there was some slowdown relative to Q1. What is driving the slowdown, and do you think this will continue also in the second half of the year? Well, thanks, Sami. As Juuso said, we are now seeing seasonality coming back. We don't see any changes in sort of normal working days, normal working weeks, but around low seasons, shoulder seasons, we see sort of normal fluctuation of demand. That has been seen around different holidays against the peak holiday season in June. That's really where the slight change has come from, as Juuso said. Again, maybe reiterating a little bit what Juuso said around the H2 also, the Q3 and coming back from the holiday season has always been a slight question mark how the demand and also the supply will ramp up. I think we are, and I'm confident that we are well-footed now with the supply, but there's always volatility around when the demand pattern starts after the holidays, when do the normal infection seasons start, et cetera. Q4, one can be very confident that that's going to be strong demand all along. Okay, thanks. The second question is on the demand supply balance that is now sort of more balanced than in the past. How much of the change can be explained with improved supply and how much with softer demand? Well, I would say that from our part, it's explained by improved supply. We have been able to improve the supply roughly 10%, and there you basically have the figure. Yeah. Are you satisfied with the current situation, or are you planning any sort of actions? Regarding The demand supply balance. I'm thinking about going into the season, right? Well, I'm really happy about the progress around improving our recruitment, our market share when it comes to professionals and boosting and ramping up the supply. In long term, the trend is going to continue positively. This is a growth market. Healthcare Services demand will increase step by step steadily over the coming years. We see also some improvement, as I said earlier, in the market conditions. In the long-term trend, there's no changes and hence we continue our efforts to increase our supply, to increase our market share. At the end of the day, regardless of the volatility around different seasons, the one who has the supply has the business as well. Okay. Then moving on to diagnostics. You did flag softer sales in the month of June. How do you explain this, and are you concerned the pattern could extend into second half the year? If I start on this one. Basically, we have not said softer demand on that one. What we see is the seasonality now coming in and normalizing the ramp-up of the diagnostics to pre-COVID levels, or the revenues from diagnostics compared to doctor appointments continue to ramp up and demonstrate normalization and are in the solid fundamentals. We are rather talking about truly the seasonality coming in summer holidays, less sickness in the general population, and that one is visible in the medical appointments. Once that one is visible there, it has a correlation towards the diagnostics appointments, and that correlation continues to grow. Diagnostics revenues in relation to medical appointment revenues are approaching the pre-COVID, I would call, normal levels. Yeah. Okay, finally reiterate what Juuso said. As I said, this is seasonality, and there will be always fluctuations in normal times post-COVID, as Juuso explained earlier. It's not normal, it's not healthy to be fully booked all the time, and as you might remember, and I think you well remember, for example, Q3, Q4 booking rate figures, they are not healthy. That also prohibits us from providing availability of right professionals at the right time. In long term, even long term, mid-term, and looking at the true patterns of demand will grow. To your question, we are not worried. I'm not worried about the seasonality in a way spreading to normal times. Okay, thanks. Finally, how and when do you expect the new government program to impact your financials? As I said earlier, there's short-term fixes in play. Namely Kela reimbursement boost. That's the fastest way to impact the queues and healthcare crisis in Finland, and that's expected to land somewhere during H2. That is a short-term fix, as also said in the government program. The rest will follow our normal legislation timetable. We'll have more info on that one in August and in September. Normally the time lag for putting material legislation in place will take one year, two years. There are, as I said, measures in short-term, in mid-term, and in long-term. Great. Our guidance for 2023. Okay, thanks. I don't have any third question. The next question comes from Joni Sandvall from Nordea. Please go ahead. Thanks, Ville and Juuso, for good presentation. Maybe a follow-up on the diagnostics sales. Could you comment anything on how far from the pre-pandemic levels you are, and what were actually diagnostic sales level on pre-pandemic level? We have not disclosed in detail those numbers. We are not yet on pre-COVID levels. We are ramping towards that one. There's some way to go. You can always think about it how you measure it, whether it's on absolute terms, then the answer would be different. When it's relation to medical appointment sales, then the answer would be different. We are approaching it. We are little by little getting there. Okay, thanks. You mentioned that you have seen 7%-8% underlying growth when excluding these outsourcing deals. How large actually price increases have been now if you compare to last year? Well, we have also not disclosed that one in detail. I think that we have been referring high single-digit numbers earlier that we have been pushing through. That varies a bit segment by segment and varies between specialty to specialty. Of course, for us, it's not only about the price increases, but it's also the price composition that what part of the price is in the lists increased and how. We can talk about if we talk about like for like basis within the list, then we are in the high single-digit numbers. Okay, thanks. A question related to one-time installments on the employment salaries. This was EUR 450 per person. Was this booked as a whole in Q2 P&L, or are you splitting this to next quarters also? This is part of the total salary package, a bit north of 3% impact on an annualized basis, we are treating it in that manner. It's for us a technicality. Part of it is in the second quarter, the rest is in the coming quarters. Okay. The last one from me, you reach now the around EUR 40 million run rate on Alpha program. Can you give any flavor on how much of this is related to cost savings and how much on price increases? We continue on the same pattern as we have continuously earlier disclosed on the program. The target is EUR 50 million. Basically we had operational efficiencies, we had hard savings, we had commercial actions. Straight from the top of my head, it was 20/20/10, give or take the thinking. In a big picture, we are within the pattern and the plan that we have communicated earlier. Okay, thanks. That's all from me. As a reminder, if you wish to ask a question, please dial star five on your telephone keypad. There are no more questions at this time. I hand the conference back to the speakers for any closing comments. Thanks. We'll continue with the questions from the webcast. If you're following, please type your questions in. One question from Iiris from Carnegie, or actually three questions. I'll start with the first one. Have you seen any signs of weakened consumer confidence in your demand? I wouldn't call it that one. Actually, looking at the customer and sales mix that we have been able to serve during H1, I'm sure Iiris remembers when we communicated during H2 last year that we are not able to serve our private customers, consumer customers, due to the lack of supply. Now when the supply has been ramped up according to demand more so than earlier, we have been able to actually increase the consumer sales. The only thing that you could speculate is this volatility, but I would deem it to be a seasonality phenomena, supply being more on the level of demand rather than consumer confidence or in a way ramification of that one coming through. Yeah, I guess earlier we were expecting it, the consumer demand being dampened by the decrease of Kela reimbursements, now the new government is planning to reintroduce and actually increase those. We didn't see so much of a decline even from the decrease and it would be expected that that would boost the demand going forward. A second question on the orders from the Wellbeing counties. When do we see them or expect them to materialize, and what kind of profitability are we expecting from these compared to the current profitability in the portfolio business? We have earlier communicated that we do not expect to see material market moves during H1, the first signs of deals coming through would be seen during H2. There's no reason to change that comment. They are still in a ramp-up phase, and when we are commenting the improving environment due to the government program it does not really impact the pace in which the healthcare districts are able to ramp up their operations. There's an inertia in the government program then sort of dismantles some blocks that are today prohibiting us from providing certain services in a meaningful way for the healthcare districts. Yeah. One example that we discussed in the Capital Markets Day was the surgical queues, for example. Yeah the- The so-called Centralization Act will be, according to government program, dismantled, that will enable us to help public queues in certain surgeries, which has not been possible earlier. A third question, maybe to you, Juuso. The other segment reported an EBITA over EUR 1 million in Q2, while it usually has been close to zero. What kind of annual figure should be expected here? Break even, positive, negative, any guidance there? Basically, obviously our guidance is for the whole group 9.1%-10.1%. At the same time, the segment Other has some volatility between quarters. It should be pretty much empty at the full year, sometimes there can be some minor pluses or minuses. This is a bit about technicalities, how you allocate costs within the group and between the segments. These type of timing differences may happen. I would concentrate on the full group and the 9.1%-10.1% material. Thank you. We don't have any further questions at the moment from the webcast. Any closing comments or remarks when we head into the summer holiday season and to August? Thanks for the audience and thanks for the questions. As a summary, underlying growth is there. We are improving our profitability according to our plan, our program is clocking results in good speed. We have really happy customers. We are clocking record NPS figures today, that's really important going forward. Likelihood of market environment improving due to the government actions is high. Anything that you would like to add? Nothing more to add. You enjoy and relax. Great. Have a great summer, everybody, and thanks for joining, and see you later this year.