Slides
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Terveystalo Group Q3/2025 Results Ville Iho, President & CEO Juuso Pajunen, CFO
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Agenda 2 Ville Iho, President & CEO Q3 2025 Financial & operational highlights Juuso Pajunen, CFO Q3 2025 Financial performance analysis Outlook & guidance Q&A
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Q3 2025 highlights 3 26.8 -1.0% y-o-y 280.4 -5.2% y-o-y Revenue (MEUR) Adj. EBIT (MEUR) 87 +0.5% y-o-y NPS, appointments 9.5% +0.4%-p. y-o-y 0.13 +9.7% y-o-y EPS (EUR) Adj. EBIT margin 54.5 +32.0% y-o-y Operating cash flow (MEUR)
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Each of our three business areas have a clear improvement agenda Business Area Healthcare Services Portfolio Businesses Sweden LTM Revenue EUR 1,046 mill. EUR 201 mill. EUR 77 mill. LTM Adj. EBIT margin 14.4% 5.0% -3.2% Share of LTM revenue* 80% 15% 6% Mandate in the portfolio Profitable growth, cash flow Turnaround and selective, profitable growth Capturing the public market upside Turnaround, profitable growth M&A appetite Specialities-driven, EPS enhancing M&A Selective, EPS enhancing M&A Selective, EPS enhancing M&A Investment appetite +++ ++ + 4 *OTHER-CATEGORY ACCOUNTS FOR APPROXIMATELY -2% OF GROUP REVENUE
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…focused on creating value 5 Where are we today? Healthcare Services Portfolio Businesses Sweden Successful profitability improvement program completed. Broadscale development agenda for further value creation. Profitability improvement on track. Dental 2x – inorganic opportunities. New Public Partnerships offer growth and diversification. Profitability improvement on track. Growth acceleration opportunities to be assessed. Initiatives Profitability improvement Public partnerships Dental M&AB2B: Occupational Health program Next Gen Insurance partnerships B2C: Kela 65 freedom of choice OPS 1.1x Digital health 10x Profitability improvement Growth acceleration plan
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We see growth opportunities in multiple areas of our business, driven by volume Growth driver Healthcare Services Portfolio Businesses Sweden YTD NTM YTD NTM YTD NTM Public Consumer Insurance Occupational health 6 • Shift from OOP to insurance • Lower morbidity in Q3 vs. LY • 10k Kela-65 visits in Sept, volumes expected to grow gradually • -4% in the number of end users • Lower morbidity in Q3 • More restrictions on the use and scope of services
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3 FACTORS IMPACT VOLUME DEVELOPMENT Connected employees As part of the profit improvement program, the active customer selection aimed at improving margins led to a reduction in the number of employees connected to the system between 2022 and 2024. The recent decline is attributed to a lower employment rate and a rise in re- tenders. Use and scope of services Companies are actively managing service utilisation, with the overall scope of services showing a downward trend. Morbidity Seasonal morbidity is ~25% lower compared to last year, which has affected the volume of appointments and diagnostics. THE NUMBER OF EMPLOYEES COVERED BY OCCUPATIONAL HEALTH HAS DECREASED 7 Occupational Health revenue is influenced by the number of connected employees, the use and scope of services, and morbidity 620 640 660 680 700 720 740 760 780 600 2022 -09 2022 -12 2023 -03 2023 -06 2023 -09 2023 -12 2024 -03 2024 -06 2024 -09 2024 -12 2025 -06 2025 -09 777 780 761 778 758 764 749 771 747 746 724 738 714 2025 -03 -4% OH connected employees
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We have a clear agenda for Occupational Health Occupational Health focus areas Sales and account management Product Digital front door & platform 8
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Kela estimates a total of 1 million visits annually Leveraging our extensive clinic network, we have successfully captured a substantial portion of this new volume with ~14k GP visits so far: https://avoinraportointi.terveystalo.com/valinnanv apauskokeilu/ Terveystalo leads across all key metrics, including Top of Mind within the targeted age group 9 Consumer demand backed by insurance is steadily increasing, with the freedom of choice pilot for those over 65 reinforcing this trend Terveystalo is the preferred brand among consumers The freedom of choice pilot has had a strong start
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Our value creation is increasingly powered by our proprietary digital platform, improving both efficiency and customer value 10 ProfessionalsIndividual customers B2B customers Digital front door for individuals Digital front door for B2B AI care EHR/EMR system Financial transactions Individual care Platform capabilities Patient 360o Appointment booking Patient & customer steering Clinical case management Professional workflow management Occupational Health Work ability management Remote services Analytics Workplace risk assessment Individual screening Professional UIs Own IPR / Terveystalo controlled solution 3rd party solution Digital triage Appointment steering Contract 360o
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Financial performance Juuso Pajunen, CFO 11
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Q3: Positive margin development at the Group level continued despite revenue headwind • Solid performance - EPS increasing by 9.7% • Relative profitability improved mainly due to better operational efficiency • Revenue decreased mainly due to the planned reduction in the outsourcing portfolio, a decrease in occupational health visits & the number of connected customers, lower morbidity, as well as the end of customer contracts in Sweden 12 Q3 2024 -5,4 Healthcare Services -9,5 Portfolio Business -0,8 Sweden 0,4 Other Q3 2025 295,8 280,4 -5,2% 27,0 26,8 Q3 2024 -1,6 Healthcare Services 0,5 Portfolio Business 0,8 Sweden 0,1 Other Q3 2025 -1% Revenue Adj. EBIT 9.1% 9.5% 7-9/2025 7-9/2024 Change, % 2024 Revenue, MEUR 280.4 295.8 -5.2 1,340.0 Adj. EBITA, MEUR 32.4 34.3 -5.5 171.0 Adj. EBITA-% 11.5 11.6 -0.1 %-p 12.8 Adj. EBIT, MEUR 26.8 27.0 -1.0 140.5 Adj. EBIT-% 9.5 9.1 0.4 %-p 10.5 Group update Key figures
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Q3: Robust profitability in Healthcare Services 13 Q3 2024 -7,5% Visit growth 0,0% Working days* 5,2% Service and sales mix, pricing Q3 2025 100,0% 97,7% 56% 23% 18% Occupational health Consumers Insurance 3% Service sales Growth Mix By customer By service 66% 25% 9% Appointments Diagnostics Other • Profitability weakened due to lower revenue; however, the operational efficiency remained strong. • Revenue from insurance customers increased. • Overall, revenue decreased due to fewer visits, driven by: 1) a lower number of connected occupational health employees and restrictions on service use and scope by client companies, 2) lower morbidity, and 3) lower service sales to the public sector 7-9/2025 7-9/2024 Change, % 2024 Revenue, MEUR 226.6 232.0 -2.3 1,042.8 Adj. EBITA, MEUR 31.0 34.1 -8.9 162.0 Adj. EBITA-% 13.7 % 14.7 % -1.0%-p. 15.5 % Adj. EBIT, MEUR 28.1 29.7 -5.5 143.7 Adj. EBIT-% 12.4 % 12.8 % -0.4%-p. 13.8 % Segment update Key figures *THE SAME NUMBER OF WORKING DAYS AS IN THE COMPARISON PERIOD
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Q3: Healthcare Services are affected by multiple factors linked to patient visits 100,0% Q3 2024 Morbidity OH Public Consumer (OOP + Insurance) 92.5% Q3 2025 • Morbidity in Q3 has been lower than in the previous year, resulting in approx. 50,000 fewer visits. This trend is part of normal seasonal variations and changes annually. • Three key factors drive the decline in visits for Occupational Health: – A general decline in the employed population in Finland due to a sluggish economy. – Employers are implementing cost reduction initiatives driven by weak economic conditions. – Proactive customer selection made during the profit improvement program, added with some involuntary market share losses. – > We have a robust program to address the OH weakness and expect growth in the number of connected employees in 2026. • Public sector capacity sales have stabilised, and the sales pipeline is opening up • Consumer market has developed favourably, driven primarily by Kela 65 and insurance partnerships Comments Development of visits in Q3* Macro Actionable Seasonality *INDICATIVE BRIDGE, BASED ON MANAGEMENT ASSESSMENT
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Q3: The profitability fundamentals continued to strengthen in the Portfolio Businesses 15 54,5 Q3 2024 -5,5 Outsourcing -4,6 Staffing 0,5 Dental 0,0 Other Q3 2025 45,0 -17.5% Revenue 7-9/2025 7-9/2024 Change, % 2024 Revenue, MEUR 45.0 54.5 -17.5 238.5 Adj. EBITA, MEUR 3.6 3.1 15.3 10.3 Adj. EBITA-% 8.0 % 5.7 % 2.3%-p. 4.3 % Adj. EBIT, MEUR 3.3 2.8 18.2 9.1 Adj. EBIT-% 7.4 % 5.2 % 2.2%-p. 3.8 % • The termination of low-margin outsourcing contracts and improved operational efficiency improved profitability year- on-year. • The publicly funded market remained cautious; however, there are signs of a recovery in demand. The market also saw some larger partnership tenders. • Revenue decreased year-on-year due to: – the planned reduction in the outsourcing portfolio, – weaker demand and proactive customer selection in staffing services. • Revenue from dental care has increased because of the growing demand from consumers. Segment update Key figures
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Q3: Difficult market conditions in Sweden, successful measures of the profit improvement programme 16 Revenue 7-9/2025 7-9/2024 Change, % 2024 Revenue, MEUR 13.5 14.2 -5.3 81.8 Adj. EBITA, MEUR -2.3 -3.0 23.0 -2.0 Adj. EBITA-% -17.1 % -21.0 % 3.9%-p. -2.5 % Adj. EBIT, MEUR -2.6 -3.3 22.5 -3.4 Adj. EBIT-% -19.2 % -23.4 % 4.2%-p. -4.1 % Key figures • The cost savings from the profit improvement program positively impacted profitability. • Adjusted EBIT improved year-on-year. • The weak macroeconomic situation in Sweden continued, and the unemployment rate remained high. • Revenue decreased due to expired contracts and weaker demand. Segment update 14,2 Q3 2024 FX -0,8 Operations Q3 2025 0,4 13,5 -5,3%
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We invest in organic and disciplined inorganic growth • Our investment strategy prioritises organic growth and disciplined inorganic expansion. • We focus on digital investments to improve user experience and productivity for healthcare professionals. • We selectively invest in physical assets like leasehold improvements and medical equipment. • Disciplined M&A agenda to complement organic investments 17 10 18 20 22 29 16 12 14 16 13 21 30 25 27 30 2,7 3,3 3,4 3,7 3,2 3,0 3,4 9 2018 2019 2020 2021 4,7 2022 2023 2024 Q3 2025 (LTM) 20 34 33 43 59 41 40 45 Tangible assets Intangible assets Total capex, % of revenue CAPEX (MEUR)
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Strong profit growth has led to significant cash flow conversion and deleveraging 18 A strong financial position supports our strategy execution 174 158 171 190 196 224 202 198 211 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Operating cash flow (LTM) • Net debt amounted to EUR 500.5 (545.4) million • Net debt to EBITDA was 2.1 • Net debt, excluding IFRS 16 (lease liabilities) amounted to EUR 311.6 (350.0) million. • Cash flow from operating activities in Q3/2025 was impacted by the seasonal variation in the level of committed net working capital. 2018 2019 2020 2021 2022 2023 2024 Q3 2025 2.1 3.5 3.2 3.1 2.6 3.4 3.3 2.3 Net Debt to EBITDA
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Guidance for 2025 (unchanged) Terveystalo expects its full-year 2025 adjusted EBIT to be EUR 155-165 million (2024: EUR 140.5 million). • The estimates are based on the current demand environment, employment levels, and morbidity rates. • The estimates account for a decrease of approximately EUR 30 million in revenue within the Portfolio Businesses segment's outsourcing operations due to the ending of contracts. • Profitability is expected to strengthen in all business segments. • The estimates do not account for significant acquisitions or divestments. 19
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Q&A 20
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terveystalo.com
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22 The legacy outsourcing contract portfolio shrinks as old contracts expire or are terminated CONTRACT VALUE, OUTSOURCING CONTRACTS, M€¹ 1) ROUNDED FIGURES 120 2022 80 2023 75 2024 45 2025 30 2026 10 2027 10 2028
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We target 90% lower production costs (weighted average) in digital channels Further opportunity from channel mix optimisation 23 Our emphasis is on customer-focused product development and using technology to lower production costs across all customer groups 2023 2024 2030 # # # +400% +900% +20% Current plan 32% 68% 2023 50% 50% 2030 # # Technology enabled throughput gain Remote Onsite A larger share of remote appointments drives further efficiency Fully AI- enhanced target state