Source: Terveystalo Healthcare Oyj
Terveystalo's January-March 2008 turnover increased by 80.7 percent and was EUR 52.9 million, while operating profit was EUR 4.4 million
SUOMEN TERVEYSTALO OYJ INTERIM REPORT
May 15, 2008 at 1 p.m.
Terveystalo's January-March 2008 turnover increased by 80.7 percent and was EUR
52.9 million, while operating profit was EUR 4.4 million
January-March 2008 (January-March 2007):
- Turnover EUR 52.9 million (29.3)
- Operating profit EUR 4.4 million (2.6)
-- Turnover for the Occupational Healthcare segment was EUR 28.5 million (8.5)
and operating profit was EUR 2.6 million (0.3)
-- Turnover for the Clinics and Hospitals segment was EUR 16.6 million (12.0)
and operating profit was EUR 3.2 million (3.1)
-- Turnover for the Diagnostics segment was EUR 6.8 million (7.7) and operating
profit was EUR 4.1 million (1.3)
-- Turnover for other, i.e. items not unallocated to the segments, was EUR 1.1
million (1.0) and operating result was EUR -5.4 million (-2.1).
- Full year 2008 turnover and operating profit is expected to grow
significantly from 2007.
Suomen Terveystalo Group's (Terveystalo) turnover increased in January-March
2008 by 80.7 percent compared to the corresponding period in the previous year
and amounted to EUR 52.9 million (EUR 29.3 million in January-March 2007).
Operating profit grew by 71.2 percent and amounted to EUR 4.4 million (2.6).
--------------------------------------------------------------------------------
| KEY FIGURES | 1.1.- | 1.1.- | Change, | 1.1.- |
| | 31.3.2008| 31.3.2007 | % | 31.12.2007 |
| | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turnover, EUR 1,000 | 52,868 | 29,264 | 80.7% | 140,719 |
--------------------------------------------------------------------------------
| Operating profit, EUR | 4,442 | 2,595 | 71.2% | 401 |
| 1,000 | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.01 | 0.03 | -66.7% | -0.05 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.21 | 0.82 | 47.6% | 1.20 |
--------------------------------------------------------------------------------
| Net gearing, % | 188.0 | 132.7 | 41.7% | 184.8 |
--------------------------------------------------------------------------------
| Return on investment, % | 10.6 | 12.2 | -13.1% | 0.6 |
--------------------------------------------------------------------------------
| Return on equity, % | 5.4 | 14.1 | -61.7% | -5.0 |
--------------------------------------------------------------------------------
| Capital adequacy, % | 28.0 | 31.7 | -11.7% | 27.5 |
--------------------------------------------------------------------------------
| Operating profit / | 8.4 | 8.9 | -5.6% | 0.3 |
| turnover, % | | | | |
--------------------------------------------------------------------------------
The income statement figures used to calculate ROI and ROE have been annualized.
SUOMEN TERVEYSTALO OYJ'S INTERIM REPORT
1.1. - 31.3.2008
Business operations
Measured by turnover and the extent of its operations, Terveystalo is Finland's
leading healthcare company. The company operates in private healthcare service
markets and offers its customers comprehensive healthcare services.
The Group's business operations are divided into three business segments: the
Occupational Healthcare segment, the Clinics and Hospitals segment and the
Diagnostics segment. Until the end of 2007 all imaging and laboratory services
were reported as part of the Diagnostics segment. From the beginning of 2008,
sample-taking laboratory operations and express analytics as well as imaging
services are reported as part of the Clinics and Hospitals segment, in terms of
clinic hospitals and clinics, and as part of the Occupational Healthcare segment
in terms of occupational clinics. Business operations not allocated to any
particular segment are reported under the heading “Other”, which mainly consists
of the company's holding in the business operations of AVA clinics specializing
in infertility treatments.
Business segment information for 1.1.-31.3.2007 and for the whole year 2007 is
presented corresponding to the business segment division taken into use as of
the beginning of 2008.
In the first quarter of 2008, Terveystalo continued integrating its services and
internal operating methods that was started in 2007. The aim of the integration
that will continue until the end of 2008 is to clarify operating procedures,
boost the efficiency of the unit network, reduce overlaps and simplify support
and administration services so that they better correspond to the needs of the
Group's extended business operations.
Occupational Healthcare segment
As a result of the Medivire Työterveyspalvelut Oy acquisition carried out at the
beginning of September 2007, Terveystalo Group became the leading provider of
occupational healthcare services in Finland, measured by both turnover and the
extent of the network. At the end of 2007 the company was responsible for the
healthcare services of more than 12,000 corporate customers and more than
365,000 individuals.
In January, Suomen Terveystalo Oyj was granted an SFS-EN ISO 9001:2000 quality
certificate. In the first quarter the company continued integrating the
processes and operating models in occupational healthcare that began in late
2007. The training package directed at occupational healthcare specialists was
made part of the specialization and further training of occupational healthcare
doctors offered by universities. Approximately 30 doctors with occupational
healthcare specialist teaching rights operate across Finland within Terveystalo.
Clinics and Hospitals segment
In the first quarter of 2008 the company continued developing its clinic
hospitals and clinics. The aim is that the clinic hospitals will support the
service offering of smaller units and ensure the availability of Terveystalo's
services regionally and nationally. A standardized and extensive service network
is expected to have a positive effect on Terveystalo's market position in the
long term.
A new clinic hospital was taken into use in Turku during March, where five
previously separately-operating Terveystalo clinics moved into the same
premises. In addition to a 1.5 Tesla magnet, a new 3.0 Tesla device was acquired
for the imaging unit of the new clinic hospital. The more powerful image signal
and shorter imaging time improves image quality and thus both diagnostics and
diagnosis reliability. In Joensuu, Terveystalo and the city of Joensuu started
the first cooperation between a private and public healthcare provider in joint
premises where part of the premises is used in the daytime by the public health
center, and by Terveystalo in the evenings. The agreement, which also includes
cooperation in terms of equipment and treatment products and, in the future,
possibly also in terms of laboratory tests and sample taking, is an example of
how a new way of thinking can result in cost-efficient and functional
cooperation models between the public and private healthcare sectors.
A majority of Terveystalo's sample-taking laboratories operate in units
belonging to the Clinics and Hospitals segment as the company focuses on
sample-taking laboratory operations and related services that happen in the
customer interface.
The Diagnostics segment is responsible for X-ray and MRI imaging in the imaging
units that belong to this segment and offers mobile imaging and screening
services to external customers, as well as internally to complement the
healthcare services offered to the customers of the Occupational Healthcare and
Clinics and Hospitals segments. The Diagnostics segment also has Group-wide
responsibility for developing diagnostics services and for ensuring that the
diagnostics equipment used in the Group is up-to-date.
In January-March 2008, more than ten separate imaging units operated within the
Terveystalo Group. A majority of imaging services are carried out in units
belonging to the Clinics and Hospitals segment.
Group functions support Group level, regional and local business operations. At
the beginning of 2008, the Group's operational structure was strengthened by
adding quality to Group functions which already included HR, sales, finance, ICT
and communications. Insurance services-related operations are also a
responsibility at the Group level.
Group structure
In the review period, the Suomen Terveystalo Group consisted of the parent
company Suomen Terveystalo Oyj and its 36 subsidiaries. No new subsidiaries or
business operations were acquired in the review period.
Turnover
In January-March 2008, turnover grew by 80.7 percent compared to the
corresponding period last year and amounted to EUR 52.9 million (EUR 29.3
million in January-March 2007). The Occupational Healthcare segment's share of
turnover was 53.8 percent, the Clinics and Hospitals segment's share was 31.4
percent and the Diagnostics segment's share was 12.8 percent.
Turnover by segment
--------------------------------------------------------------------------------
| Turnover by segment | | | | |
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.- | 1.1.- | Change, % | 1.1.- |
| | 31.3.2008 | 31.3.2007 | | 31.12.2007 |
--------------------------------------------------------------------------------
| Occupational Healthcare | 31,801 | 9,290 | 242.3% | 63,808 |
| segment | | | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals | 18,306 | 13,529 | 35.3% | 54,897 |
| segment | | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 7,646 | 8,201 | -6.8% | 32,489 |
--------------------------------------------------------------------------------
| Other | 1,077 | 1,047 | 2.9% | 2,667 |
--------------------------------------------------------------------------------
| Group eliminations | -5,961 | -2,803 | 112.7% | -13,142 |
--------------------------------------------------------------------------------
| Group total | 52,868 | 29,264 | 80.7% | 140,719 |
--------------------------------------------------------------------------------
In addition to Group functions, the ”Other” item contains the Group's share of
the operations of the AVA clinic that focuses on fertilization treatment and is
not included in the business segments.
Earnings
In January-March 2008 the operating profit was EUR 4.4 million, i.e. 8.4 percent
of turnover (EUR 2.6 million, i.e. 8.9% of turnover in January-March 2007). The
operating profit grew by 71.2 percent from the corresponding period last year.
Operating profit includes one-off item from sales gain of the central laboratory
operations amounting to EUR 2.1 million. Operating profit of the group excluding
one-off item from review period amounts to EUR 2.4 million which is equivalent
to 7.8 % of turnover. Operating profit excluding one-off item has decreased by
7,8 % from the corresponding period last year.
The earnings belonging to the owners of the parent company was EUR 0.9 million,
i.e., 1.7 percent of turnover (EUR 1.2 million, 4.2 %). Earnings per share
calculated from earnings belonging to the owners of the parent company was EUR
0.01 (EUR 0.03).
Operating profit by segment
--------------------------------------------------------------------------------
| Operating profit by | | | | |
| segment | | | | |
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.- | 1.1.- | Change, % | 1.1.- |
| | 31.3.2008 | 31.3.2007 | | 31.12.2007 |
--------------------------------------------------------------------------------
| Occupational Healthcare | -736 | -402 | 83.1% | -6,441 |
| segment | | | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals | 1,440 | 1,597 | -9.8% | 4,229 |
| segment | | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 3,185 | 744 | 328.1% | 1,676 |
--------------------------------------------------------------------------------
| Other | -5,409 | -2,146 | 152.1% | -12,204 |
--------------------------------------------------------------------------------
| Group eliminations | 5,961 | 2,802 | 112.7% | 13,142 |
--------------------------------------------------------------------------------
| Group total | 4,442 | 2,595 | 71.2% | 401 |
--------------------------------------------------------------------------------
The operating profit of the Diagnostics segment includes EUR 2.1 million sales
gain from selling the central laboratory operations.
Return on assets
Return on investments (ROI) in January-March 2008 was 10.6 percent (12.2% in
January-March 2007). Return on equity (ROE) was 5.4 percent (14.1%).
Structure
In February 2008, Suomen Terveystalo Oyj sold its central laboratory operations
to Medix Laboratoriopalvelut Oy. Terveystalo still estimates that the strategic
partnership with Medix Laboratoriot Oy related to mass analytics and special
sample research will produce savings of at least EUR 0.5 million for the company
annually. The laboratories that perform express analytics in clinic hospitals,
clinics and occupational healthcare centers were not included in the deal.
The business divestment improved Terveystalo's preconditions to develop its
sample-taking laboratory operations and express analytics in the customer
interface, as well as also offering related services as outsourcing services.
The national office network offers possibilities; for instance, to offer
screening-related sample-taking services to municipalities.
The sales gain from the central laboratory operations including sales costs was
EUR 2.1 million.
Investments
Terveystalo continued investing in imaging equipment and in updating and
developing premises. In January-March 2008, for instance, the new clinic
hospital in Turku that was opened in March and the new clinic hospital that was
opened in Rovaniemi in April, as well as new or renewed premises in Forssa,
Joensuu, Kemi and Kurikka, were furnished.
Balance sheet and financing
At the end of March 2008 the balance sheet total was EUR 294.2 million (EUR
124.1 million at the end of March 2007). Balance sheet total has increased
significantly due to the acquisition of Medivire Työterveyspalvelut Oy on
September 2007. Liquidity remained good in January-March 2008. The Group's
liquid assets, including financial securities, amounted to EUR 6.2 million (5.9)
at the end of the period.
Net gearing was 188.0 percent (132.7 %) at the end of the first quarter.
Cash flow
In January-March 2008 operational cash flow was EUR 1.2 million (EUR 5.1 million
in January-March 2007). Interests paid have been presented on the cash flow from
financing instead of cash flow from operations and information from period
January 1-March 31, 2007 and financial period 2007 have been changed
correspondingly.
Cash flow from operations has decreased from the corresponding period last year
due to increase in working capital. Increase in the Accounts receivable and
other receivables has been higher that corresponding period last year.
Personnel
The average number of personnel in January-March 2008 was 2,390 (average in
January March 2007 1,308 and 1,689 in 2007). The number of personnel at the end
of March was 2,369 (1,335 at the end of March 2007 and 2,398 at the end of the
fiscal period 2007). The increase in personnel resulted particularly from the
acquisition of Medivire Työterveyspalvelut Oy in the fall of 2007.
At the end of the period, approximately 2,100 professional independent
entrepreneurs (practitioners) were receiving patients in the Group companies'
premises.
Based on a decision by the Board of Directors Suomen Terveystalo Oyj Group has
launched a result and reward system for 2008 concerning all personnel.
Organization
In accordance with an integration plan approved on November 19, 2007 by Suomen
Terveystalo Oyj's Board of Directors, operations in many towns have been or will
be partly or fully integrated into larger entities in order to increase
efficiency and cost savings. During January-March 2008 units in, for instance,
Hämeenlinna, Iisalmi, Kouvola, Pori, Rovaniemi, Savonlinna and Turku moved to
new joint premises.
Shares and share capital
At the end of March, Suomen Terveystalo Oyj's share capital was EUR 681,416.63
(EUR 681,416.63 at the end of 2007) and the total number of shares was
68,141,663. The share ticker in the book-entry system is SUT1V.
During January-March 2008 the highest share price was EUR 1.99 and the lowest
share price EUR 1.42. The medium share price weighted by the January-March share
exchange was EUR 1.66. The closing share price at the end of March was EUR 1.59.
During the review period a total of 5,141,345 shares were exchanged representing
7.6 per cent of the total amount of shares at the end of the review period. The
market value of the share stock with the closing share price of 31 March, 2008
was EUR 108,345,244. At the end of the review period the company had 6,672
shareholders (6,510 at the end of 2007).
Parent company Suomen Terveystalo Oyj does not own any company shares. The
Group's subsidiaries Suomen Terveystalo Lääkäriasema Oy and Nova Clinic Oy own a
total of 55,691 parent company shares. This corresponds to 0.08 percent of the
stock and votes.
The Board of Directors of Suomen Terveystalo Oyj resolved on February 21, 2008,
by authorization of the Annual General Meeting on May 28, 2007, that stock
options be issued to the key personnel of Suomen Terveystalo Oyj and its
subsidiaries. In the same meeting, the Board approved the Group's result and
reward system for 2008 concerning the entire personnel. The option rights are
used to encourage the key personnel to sustained work in order to increase the
owner value and to commit the key personnel to the employer. The total number of
option rights is 3,644,500 and they provide the right to subscribe for a maximum
of 3,644,500 of the company's new shares. The interest of the shares on the
basis of the option rights is a maximum of 5.1 percent of the company's shares
and voting rights associated with the shares after possible share subscriptions.
The share subscription price will be based on the prevailing market price of the
Suomen Terveystalo Oyj share on the OMX Nordic Exchange Helsinki in
January—March 2008, 2009 and 2010. The share subscription price for 2008A stock
options is, however, at least EUR 2.16 which corresponds to the share
subscription price at which the personnel subscribed for shares in the initial
public offering 2007. The share subscription period for 2008A stock options will
be January 2, 2011 — December 31, 2012; for 2008B stock options January 2, 2012
— December 31, 2013, and for 2008C stock options January 2, 2013 — December 31,
2014.
Annual General Meeting 2008
Suomen Terveystalo Oyj's Annual General Meeting (AGM) was arranged in Helsinki
on April 17, 2008. The Annual General Meeting approved the Board of Directors'
proposal on the distribution of profits, according to which no dividend is paid
and the loss of the fiscal year that ended on December 31, 2007 be transferred
into the profit/loss account.
Board composition and compensation
The number of Board members was confirmed by the AGM as eight (8). Managing
Director Ari Ahola, Doctor Pentti Parkkinen, M.D., M.Pol.Sc. Kari Puro, M.Sc. in
Technology Kaija Pöysti, M.Sc., Harvard USA, University lecturer Pekka Roto and
M.Sc. in Technology Petteri Walldén were re-elected as Board members, and DSc in
Economics Kari Neilimo and Director Matti Roto were elected as new Board
members.
The term of office of the Board will end at the conclusion of the next Annual
General Meeting. A presentation of the Board members can be found on the
company´s Internet pages at www.terveystalo.com.
The term of office compensation for the Chairman of the Board was set at EUR
30,000, for the Deputy Chairman of the Board at EUR 21,600, and for the Board
members at EUR 12,000, in addition to which the Chairman of the Board will
receive a meeting compensation of EUR 800 and the Deputy Chairman of the Board
and Board members will receive meeting compensation of EUR 600 for each Board or
Board committee meeting. Reasonable travel costs of Board members will be
compensated against invoices.
In terms of auditors the Annual General Meeting decided that the current auditor
APA PricewaterhouseCoopers Oy, with APA Janne Rajalahti as the auditor in
charge, will continue.
In the meeting held after the Annual General Meeting the Board of Directors
re-elected Pentti Parkkinen as the Chairman of the Board and elected Kari
Neilimo as the Deputy Chairman.
Events after the review period
On April 1, 2008 Jukka Yli-Hankala, M.Sc., was appointed as Suomen Terveystalo
Oyj's CFO and member of the Group Management Team from June 1, 2008.
Short-term risks and uncertainty factors
Terveystalo takes controllable risks related to its strategy and objectives. The
risks are managed and minimized as far as possible, using a variety of means.
The company is not prepared to take any risks that could endanger the continuity
of operations, or be uncontrollable or substantially impair its operations. The
purpose of the company's risk management is to systematically and
comprehensively identify risks associated with the operations, maintain
risk-awareness and ensure that risks are managed appropriately in making of
business decisions.
The most significant risks related to Terveystalo's operations include risks
related to growth and acquisitions, social and legislative risks, risks related
to malpractice cases and liability for damages, risks related to contracts,
risks related to customer relationships, risks related to personnel and risks
related to technology - including functionality of IT systems and information
security. The aim is to manage these risks through operation guidelines and
rules or to transfer them to another party through agreements and insurance
policies.
The main short-term risks include financial risks. In August 2007, the company
increased its debt financing by EUR 134 million to finance the Medivire
Työterveyspalvelut Oy acquisition. There are risks related to financing costs
and loan repayments if the operational cash flow is low and/or interest rates
rise considerably. The company manages its financing risks with an operational
profitability program, interest rate hedging and continuous communication with
the financers.
Short-term risks also include risks related to the effects of the launch of new
clinics and hospitals on the company's profitability in the short term if the
implementation of operations in the new premises does not progress as planned.
The biggest risks of this type are related to the operations that started in the
new clinic hospital in Turku in March and in Rovaniemi in April. Also the
integration of Suomen Terveystalo Työterveys Oy (formerly Medivire
Työterveyspalvelut Oy) and Terveystalo operations and systems can, if they are
prolonged, have a significant effect on the benefits reaped from the integration
and on Group functions.
During the review period, the company continued its systematic risk management
and development of internal supervision processes and systems in cooperation
with an external audit partner, which was initiated in 2007.
Outlook
According to published studies, private healthcare services are expected to grow
annually by an average of nine percent also in the coming years and the company
will continue to strive for faster growth than the market on average. Growth in
demand for occupational healthcare services is expected to continue. The general
growth outlook for private doctor services is regarded as good and the company
expects the growth in the Clinics and Hospitals segment to continue. The sale of
the Diagnostics segment's services to the public sector, in particular, will
continue growing, according to the company's projections.
Based on the general market growth, growth expectations in the organic business
and implemented acquisitions, the company´s 2008 turnover is expected to clearly
exceed the 2007 turnover.
As part of the Group's integration program, the company initiated in late 2007 a
program to considerably improve operational efficiency and thus improve
profitability. The company's operating profit for 2008 is expected to clearly
exceed the 2007 operating profit.
Financial reports 2008
In 2008, Suomen Terveystalo will publish the following interim reports:
- interim report for January-June August 14, 2008 at approximately 1 p.m.
Helsinki time
- interim report for January-September November 13, 2008 at approximately 1 p.m.
Helsinki time
SUOMEN TERVEYSTALO GROUP
Suomen Terveystalo Oyj's interim report January 1 - March 31, 2008 has been
compiled in accordance with the recognition and measurement principles set out
in the International Financial Reporting Standards (IFRS), but not all of the
requirements of IAS 34: Interim Financial Reporting has been followed. When
compiling this interim report the company has applied the same principles as in
the financial statement for the fiscal year that ended on December 31, 2007.
The figures in the income statement and balance sheet are Group figures. All
integral Group companies are consolidated in the Group's interim report. The
interim report is unaudited.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, EUR 1,000 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM ASSETS | | | |
--------------------------------------------------------------------------------
| Property, plant and | 56,779 | 44,865 | 58,926 |
| equipment | | | |
--------------------------------------------------------------------------------
| Goodwill | 146,711 | 41,667 | 147,042 |
--------------------------------------------------------------------------------
| Other intangible assets | 42,577 | 7,994 | 42,932 |
--------------------------------------------------------------------------------
| Investment property | 45 | 47 | 45 |
--------------------------------------------------------------------------------
| Investments in associates | 1,384 | 1,560 | 1,262 |
--------------------------------------------------------------------------------
| Receivables from | 17 | 17 | 17 |
| associates | | | |
--------------------------------------------------------------------------------
| Financial assets | 1,246 | 1,411 | 1,231 |
| available for sale | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 4,897 | 2,166 | 4,924 |
--------------------------------------------------------------------------------
| TOTAL LONG-TERM ASSETS | 253,657 | 99,727 | 256,381 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 2,049 | 1,645 | 2,102 |
--------------------------------------------------------------------------------
| Accounts receivable and | 32,244 | 16,866 | 24,928 |
| other receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair | -313 | 387 | 397 |
| value through profit or | | | |
| loss | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 6,536 | 5,502 | 13,088 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 40,516 | 24,400 | 40,516 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 294,174 | 124,126 | 296,896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 31.3.2008 | 31.3.2007 | 31.12.2007 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 681 | 472 | 681 |
--------------------------------------------------------------------------------
| Share issue | 0 | 315 | 0 |
--------------------------------------------------------------------------------
| Share premium account | 459 | 31,211 | 459 |
--------------------------------------------------------------------------------
| Unrestricted equity | 77,809 | 100 | 77,809 |
| reserve | | | |
--------------------------------------------------------------------------------
| Retained earnings | 1,798 | 5,238 | 889 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 1,593 | 1,955 | 1,682 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' | 82,340 | 39,291 | 81,520 |
| EQUITY | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 12,029 | 3,574 | 12,492 |
--------------------------------------------------------------------------------
| Interest-bearing | 138,669 | 44,105 | 21,292 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other liabilities | 458 | 415 | 459 |
--------------------------------------------------------------------------------
| TOTAL LONG-TERM | 151,156 | 48,094 | 34,243 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Accounts payable and | 37,111 | 23,199 | 38,462 |
| other liabilities | | | |
--------------------------------------------------------------------------------
| Current tax liabilities | 49 | 401 | 195 |
--------------------------------------------------------------------------------
| Current interest-bearing | 23,516 | 13,141 | 142,476 |
| liabilities | | | |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 60,676 | 36,741 | 181,133 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND | 294,174 | 124,126 | 296,896 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND LOSS | 1.1.- | 1.1.- | 1.1.- |
| ACCOUNT, EUR 1,000 | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Turnover | 52,868 | 29,264 | 140,719 |
--------------------------------------------------------------------------------
| Other operating income | 2,653 | 164 | 1,049 |
--------------------------------------------------------------------------------
| Share of profit of | 122 | 189 | 365 |
| associates | | | |
--------------------------------------------------------------------------------
| Raw material and consumables | -7,262 | -4,610 | -23,955 |
| used | | | |
--------------------------------------------------------------------------------
| Employee benefit costs | -25,497 | -12,429 | -63,476 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -5,336 | -2,459 | -14,134 |
--------------------------------------------------------------------------------
| Other operating expenses | -13,107 | -7,525 | -40,166 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 4,442 | 2,595 | 401 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 93 | 20 | 564 |
--------------------------------------------------------------------------------
| Financial expenses | 4,022 | -875 | -5,092 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 513 | 1,739 | -4,126 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 307 | -423 | 1,146 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 820 | 1,316 | -2,980 |
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Parent group owners | 909 | 1,218 | -3,088 |
--------------------------------------------------------------------------------
| Minority interest | -89 | 98 | 107 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated on the earnings belonging to the owners of |
| the parent company (EUR) |
--------------------------------------------------------------------------------
| Undiluted | 0.01 | 0.03 | -0.05 |
--------------------------------------------------------------------------------
| Diluted | 0.01 | 0.03 | -0.05 |
--------------------------------------------------------------------------------
| CONDENSED CASH FLOW | | | |
| STATEMENT | | | |
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.- | 1.1.-| 1.1.- |
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operations | | | |
--------------------------------------------------------------------------------
| Profit for the period | 820 | 1,316 | -2,980 |
--------------------------------------------------------------------------------
| Adjustments to the profit | 6,498 | 3,536 | 17,052 |
| for the period | | | |
--------------------------------------------------------------------------------
| Change in working capital | -6,366 | 748 | -3,231 |
--------------------------------------------------------------------------------
| Interest received | 6 | 16 | 514 |
--------------------------------------------------------------------------------
| Taxes paid | 253 | -565 | -1,870 |
--------------------------------------------------------------------------------
| Net cash flow from | 1,212 | 5,051 | 9,485 |
| operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments | | | |
--------------------------------------------------------------------------------
| Acquired operations | 0 | -592 | -130,236 |
--------------------------------------------------------------------------------
| Investments in tangible and | -4,258 | -3115 | -15,455 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Disposal of associates | 0 | 0 | 123 |
--------------------------------------------------------------------------------
| Gains on disposal of | 3,399 | 0 | 0 |
| business operations | | | |
--------------------------------------------------------------------------------
| Gains on disposal of assets | 361 | 31 | 335 |
--------------------------------------------------------------------------------
| Dividends received | 1 | 2 | 465 |
--------------------------------------------------------------------------------
| Net cash flow from | -497 | -3,674 | -144,768 |
| investments | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
--------------------------------------------------------------------------------
| Share issue payments | 0 | 18 | 48,187 |
--------------------------------------------------------------------------------
| Costs of issuing equity | 0 | -548 | -2,065 |
--------------------------------------------------------------------------------
| Withdrawals of loans | 12 | 1,397 | 134,829 |
--------------------------------------------------------------------------------
| Repayment of loans | -303 | -1,762 | -33,191 |
--------------------------------------------------------------------------------
| Interest paid | -5,901 | -621 | -2,327 |
--------------------------------------------------------------------------------
| Repayment of finance lease | -1,075 | -929 | -3,603 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | -2 | -29 |
--------------------------------------------------------------------------------
| Net cash flow from financing | -7,267 | -2,447 | 141,800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets at beginning | 13,088 | 6,571 | 6,571 |
| of period | | | |
--------------------------------------------------------------------------------
| Liquid assets at end of | 6,536 | 5,502 | 13,088 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY 1.1. - 31.3.2008 |
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Share | Unre- | Retai- | Mino- | Total |
| | capital| premium | issue | stric- | ned | rity | |
| | | account | | ted | earnings| inte- | |
| | | | | equity | | rest | |
| | | | | reserve | | | |
--------------------------------------------------------------------------------
| Sharehol- | 681 | 459 | 0 | 77,809 | 889 | 1,682 | 81,520 |
| ders' | | | | | | | |
| equity | | | | | | | |
| Jan 1,2008 | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 0 | 0 | 0 | 0 | 909 | -89 | 820 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde-| 681 | 459 | 0 | 77,809 | 1,798 | 1,593 | 82,340 |
| rs' equity | | | | | | | |
| March 31, | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY 1.1. - 31.3.2007 |
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Share | Unrestr- | Retained| Mino- | Total |
| | capital| premium | issue | icted | ear- | rity | |
| | | account | | equity | nings | inte- | |
| | | | | reserve | | rest | |
| | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde-| 472 | 31,211 | 315 | 630 | 4,021 | 1,892 | 38,541 |
| rs' equity | | | | | | | |
| Jan 1, 2007| | | | | | | |
| | | | | | | | |
--------------------------------------------------------------------------------
| Costs of | 0 | 0 | 0 | -741 | 0 | 0 | -741 |
| issuing | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Deferred | 0 | 0 | 0 | 193 | 0 | 0 | 193 |
| tax on | | | | | | | |
| costs of | | | | | | | |
| issuing | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Rights | 0 | 0 | 0 | 18 | 0 | 0 | 18 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | 0 | 0 | -2 | 0 | -2 |
--------------------------------------------------------------------------------
| Profit for | 0 | 0 | 0 | 0 | 1,218 | 98 | 1,316 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | 0 | 0 | 0 | -35 | -35 |
| interests | | | | | | | |
| in | | | | | | | |
| acquisiti- | | | | | | | |
| ons and | | | | | | | |
| other | | | | | | | |
| changes | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde-| 472 | 31,211 | 315 | 100 | 5,237 | 1,955 | 39,290 |
| rs' equity | | | | | | | |
| March 31, | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SEGMENT REPORTING, 1,000 EUR | 1.1- | 1.1.- | 1.1.- |
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Turnover by segment | | | |
--------------------------------------------------------------------------------
| Occupational Healthcare | 31,801 | 9,290 | 63,808 |
| Segment | | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals segment | 18,306 | 13,529 | 54,897 |
--------------------------------------------------------------------------------
| Diagnostics segment | 7,646 | 8,201 | 32,489 |
--------------------------------------------------------------------------------
| Other | 1,077 | 1,047 | 2,667 |
--------------------------------------------------------------------------------
| Eliminations | -5,961 | -2,803 | -13,142 |
--------------------------------------------------------------------------------
| Total turnover | 52,868 | 29,264 | 140,719 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit by segment | | | |
--------------------------------------------------------------------------------
| Occupational Healthcare | -736 | -402 | -6441 |
| Segment | | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals segment | 1,440 | 1,597 | 4,229 |
--------------------------------------------------------------------------------
| Diagnostics segment | 3,185 | 744 | 1,676 |
--------------------------------------------------------------------------------
| Other | -5,409 | -2,146 | -12,204 |
--------------------------------------------------------------------------------
| Eliminations | 5,961 | 2,803 | 13,142 |
--------------------------------------------------------------------------------
| Total operating profit | 4,442 | 2,595 | 401 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and expenses | -3,929 | -855 | -4,528 |
--------------------------------------------------------------------------------
| Profit before tax | 513 | 1,739 | -4,126 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | 307 | -423 | 1,146 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 820 | 1,316 | -2,980 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND LOSS ACCOUNT, BY QUARTER, EUR 1,000 | |
--------------------------------------------------------------------------------
| | 1.1- | 1.10.- | 1.7.- | 1.4- | 1.1.- |
| | 31.3.2008 |31.12.2007 | 30.9.2007 | 30.6.2007 | 31.3.2007 |
| | | | | | |
--------------------------------------------------------------------------------
| Turnover | 52,868 | 52,923 | 30,236 | 28,297 | 29,264 |
--------------------------------------------------------------------------------
| Other | 2,653 | 321 | 164 | 399 | 164 |
| operating | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Share in | 122 | -50 | 83 | 143 | 189 |
| associated | | | | | |
| companies | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Raw material | -7,262 | -9,780 | -4,879 | -4,686 | -4,609 |
| and | | | | | |
| consumables | | | | | |
| used | | | | | |
--------------------------------------------------------------------------------
| Employee | -25,497 | -24,271 | -14,854 | -12,396 | -11,954 |
| benefit costs | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -5,336 | -5,290 | -3,707 | -2,678 | -2,459 |
--------------------------------------------------------------------------------
| Other | -13,107 | -13,766 | -9,579 | -8,825 | -8,000 |
| operating | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 4,442 | 87 | -2,536 | 254 | 2,595 |
| PROFIT | | | | | |
--------------------------------------------------------------------------------
| Financial | 93 | 141 | 101 | 302 | 20 |
| income | | | | | |
--------------------------------------------------------------------------------
| Financial | -4,022 | -2,771 | -1,025 | -421 | -875 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before | 513 | -2,542 | -3,459 | 135 | 1,739 |
| tax | | | | | |
--------------------------------------------------------------------------------
| Income taxes | 307 | 680 | 938 | -49 | -423 |
--------------------------------------------------------------------------------
| PROFIT FOR | 820 | -1,862 | -2,522 | 87 | 1,316 |
| THE PERIOD | | | | | |
--------------------------------------------------------------------------------
| Attributable | | | | | |
| to: | | | | | |
--------------------------------------------------------------------------------
| Parent | 909 | -1,810 | -2,527 | 31 | 1,218 |
| company | | | | | |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| Minority | -89 | -52 | 5 | 56 | 98 |
| interest | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | 1.1.- | 1.1.- | 1.1.- |
| | 31.3.2008 | 31.3.2007 | 31.12.2007|
--------------------------------------------------------------------------------
| Average personnel | 2,390 | 1,308 | 1,689 |
--------------------------------------------------------------------------------
| Personnel at end of period | 2,369 | 1,335 | 2,398 |
--------------------------------------------------------------------------------
Calculation of financial ratios:
Return on equity, % =
100 x (Profit before tax - direct taxes)/
(Shareholders' equity + minority interest (average))
Return on investment, % =
100x (Profit before tax + interest expenses + other financial expenses)/
(Balance sheet total - non-interest-bearing liabilities (average))
Capital adequacy, % =
100 x (shareholders' equity + minority interest) / (Balance sheet total -
advances received)
Net gearing =
(Interest-bearing liabilities - liquid assets) /
(Shareholders' equity + minority interest)
Undiluted earnings per share =
(Profit before tax - minority interest - income taxes) /
Weighted average number of outstanding shares
Diluted earnings per share =
(Profit before tax - minority interest - income taxes) /
Weighted average number of outstanding shares adjusted for dilution
Equity per share =
Shareholders' equity /
Undiluted number of share at end of fiscal period
SUOMEN TERVEYSTALO OYJ
Board of Directors
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Managing Director Martti Kiuru, tel. +358 30 63 311,
martti.kiuru@terveystalo.com
The bulletin and tables are available at: http://www.terveystalo.com
Terveystalo:
Suomen Terveystalo is the leading company producing healthcare services in
Finland. The company offers healthcare, occupational healthcare and hospital
services to private individuals, companies and the public sector through more
than 150 offices across Finland. The company, which was founded in 2001, has
grown strongly. The company share is listed on the OMX Nordic Exchange Helsinki
under the code SUT1V.
The statements about the future are based on the situation when the bulletin was
published and the actual outcome may differ from the statements. Anything in
this bulletin that is not historical fact is a statement about the future.
Statements about the future contain known and unknown risks, uncertainties and
other factors that may lead to considerable deviation in Suomen Terveystalo
Group's actual earnings, operations and accomplishments compared to any
statements related to future earnings, operations and accomplishments included
in such a statement on the future. Such factors include general economic and
operating environment-related conditions, additions and changes to the
competitive situation, the company's ability to implement and utilize its
investment program, the success of the unification program for operations
initiated in September 2007 and the company's ability to continue expanding its
operations.
Distribution:
OMX Nordic Exchange Helsinki
Principal media