SUOMEN TERVEYSTALO OYJ
STOCK EXCHANGE RELEASE
November 20, 2007, 9 a.m.
Terveystalo's January-September turnover increased by 42.1 per cent and was EUR
87.8 million, operating profit was EUR 0.3 million
January-September 2007 (January-September 2006):
- Turnover EUR 87.8 million (61.8).
- Operating profit EUR 0.3 million (3.3).
- - Turnover for the Clinics and Hospitals segment was EUR 45.9 million (33.4)
and operating profit was EUR 1.5 million (1.9).
- - Turnover for the Diagnostics segment was EUR 39.3 million (28.4) and
operating profit was EUR 10.2 million (6.3).
- - Turnover for other, i.e., items not allocated to the segments, was EUR 2.6
million (0.0) and operating profit was EUR -11.3 million (-4.9).
- Full year 2007 turnover is estimated to grow considerably compared to the
year
before.
- Full year 2007 operating profit is expected to be below 2006 operating profit
due to the costs related to the integration project started in September and the
weaker than expected summer season. Results of the last quarter of the current
year will also be affected by the higher than estimated salary increases whose
impact can not be fully transferred to prices in short term.
Suomen Terveystalo Oyj's (Terveystalo) turnover increased in January-September
2007 by 42.1 per cent compared to the corresponding period in the previous year
and amounted to EUR 87.8 million (EUR 61.8 million in January-September 2006).
Operating profit was EUR 0.3 million (3.3). The operating profit decreased by
90.5 percent compared to January-September 2006.
In accordance with an agreement signed on June 29, 2007, Terveystalo acquired
Medivire TTP Holding Oy's entire stock on August 31, 2007. The deal made
Terveystalo the largest provider of healthcare services in Finland. After the
deal, Terveystalo is responsible for the occupational healthcare services of
more than 11,000 corporate customers and more than 350,000 individuals. In
addition, two smaller acquisitions were carried out in the third quarter.
Terveystalo's operations are reported in two segments so that occupational
healthcare services are included in the Clinics and Hospitals segment.
--------------------------------------------------------------------------------
| KEY FIGURES | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Turnover, EUR 1,000 | 87,796 | 61,782 | 88,852 |
--------------------------------------------------------------------------------
| Operating profit,EUR 1,000 | 313 | 3,283 | 5,106 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.02 | 0.01 | 0.04 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.24 | 0.74 | 0.81 |
--------------------------------------------------------------------------------
| Net gearing, % | 159.2 | 120.2 | 134.7 |
--------------------------------------------------------------------------------
| Return on investment, % | 0.6 | 4.4 | 6.5 |
--------------------------------------------------------------------------------
| Return on equity, % | -2.5 | 2.6 | 6.0 |
--------------------------------------------------------------------------------
| Operating profit/turnover,% | 0.4 | 5.3 | 5.7 |
--------------------------------------------------------------------------------
The income statement figures used to calculate ROI and ROE have been annualized.
SUOMEN TERVEYSTALO OYJ'S INTERIM REPORT
1.1. - 30.9.2007
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 corporate, private and community customers comprehensive
healthcare services. The company's operations are divided into two segments: the
Clinics and Hospitals segment and the Diagnostics segment. In addition, the
company's holding in the business operations of AVA Clinics that specialize in
infertility treatments is reported under the heading Other Operations Not
Allocated to Segments (Other). Nationwide, regional and local operations are
supported through Group functions.
The Clinics and Hospitals segment is responsible for occupational healthcare,
private practice and hospital services.
In the third quarter of 2007, the company continued developing its
clinic-hospitals and clinics to start operating as centralized customer service
units, through which customers are directed to receive all services produced by
the company. A standardized and extensive service network is expected to have a
positive effect on Terveystalo's market position in the long term.
In August, five previously decentralized units were transferred to the renovated
premises of Terveystalo Tampere, premises which now meet the needs of modern
clinic-hospital operations. The clinic is located in Tampere, next to the
railway station. The new premises enable considerable growth in patient volumes
and a doubling of the amount of operations.
In August, Terveystalo's operations expanded to Forssa and its neighboring
regions as the company acquired Lääkäriasema Linikka Oy, which is a clinic that
serves occupational healthcare and private patients in Forssa.
In September, the first Nainen&Terveys (Women&Health) know-how centers started
operating in Helsinki, Jyväskylä and Kokkola. These know-how centers, which
operate within clinic-hospitals, focus on gynecological procedures, fetal
diagnostics, the monitoring of breast cancer patients as well as offer a more
straightforward and quicker treatment process than before. The process has
become more efficient by, for instance, transferring many procedures that
previously were mainly carried out in operating theaters to the actual
reception.
A new clinic was opened in Äänekoski in September.
In the third quarter the Group started separating the occupational healthcare
from the Clinics and Hospitals segment into an Occupational Healthcare segment
which will be implemented from the beginning of 2008.
The Diagnostics segment offers imaging, mobile imaging, laboratory and screening
services to external customers and internally within the group to complement the
services offered to the customers of the Clinics and Hospitals segment.
The number of screening service customers grew in July-September according to
plan. This year Terveystalo will invite over 250,000 women for a screening
mammography.
The company strengthened its position as Finland's leading provider of MRI
services using mobile equipment as it took a fourth mobile MRI machine into use
and ordered a fifth in the third quarter.
In the review period the construction of the X-ray and MRI department continued
in Joensuu and renovation of an old MRI department started in Lappeenranta.
Joensuu's new imaging department and Lappeenranta's renewed MRI department and
its new high-field machines were taken into use in November.
Group functions support group-level, regional and local business operations. The
Group's operational structure introduced at the beginning of September includes
five Group functions, which consist of HR, sales, finance, ICT and
communication. In addition, the group level is also responsible for operations
related to quality issues, R&D and insurance services.
Turnover
In January-September 2007 turnover grew by 42.1 per cent compared to the
corresponding period last year and amounted to EUR 87.8 million (EUR 61.8
million in January-September 2006). The Clinics and Hospitals segment's share of
turnover was 52.3 per cent and Diagnostics segment's share was 44.7 per cent.
Turnover by segment
--------------------------------------------------------------------------------
| 1,000 EUR | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Clinics and Hospitals | 52,190 | 34,241 | 49,330 |
| segment | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 42,916 | 29,040 | 44,523 |
--------------------------------------------------------------------------------
| Group eliminations | -9,916 | -1,499 | -6,992 |
--------------------------------------------------------------------------------
| Other | 2,607 | 0 | 1,992 |
--------------------------------------------------------------------------------
| Group total | 87,796 | 61,782 | 88,853 |
--------------------------------------------------------------------------------
In addition to group operations, the Other item contains the Group share of the
operations of the AVA Clinics that focus on fertilization treatment and are not
included in the segments.
Earnings
In January-September 2007 the operating profit was EUR 0.3 million, i.e., 0.4
per cent of turnover (EUR 3.3 million, i.e., 5.3 % of turnover in
January-September 2006). The operating profit decreased by 90.5 per cent
compared to the corresponding period in the previous year.
The Group's third quarter operating profit was deeper in the red than
anticipated due to continued string development of Group functions and the
integration of Medivire Työterveyspalvelut into the Group. In addition, the
Group booked EUR 0.3 million in renovation costs for premises that were removed
from use related to the move of premises in Tampere.
The earnings belonging to the owners of the parent company was EUR -1.4 million,
i.e., -1.6 per cent of turnover (EUR 0.6 million, 1.0 %). Earnings per share
calculated from earnings belonging to the owners of the parent company was EUR
-0.02 (EUR 0.02).
Operating profit by segment
--------------------------------------------------------------------------------
| 1,000 EUR | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Clinics and Hospitals | 1,501 | 1,875 | -906 |
| segment | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 10,153 | 6,302 | 13,446 |
--------------------------------------------------------------------------------
| Other | -11,341 | -4,894 | -7,434 |
--------------------------------------------------------------------------------
| Group total | 313 | 3,283 | 5,106 |
--------------------------------------------------------------------------------
Return on assets
Annualized return on investment (ROI) in January-September 2007 was 0.6 per cent
(4.4% in January-September 2006). Annualized return on equity (ROE) was -2.5 per
cent (2.6%).
Investments
Medivire Työterveyspalvelut
In accordance with an agreement signed on June 29, 2007, the acquisition of
Medivire TTP Holding Oy's entire stock was completed on August 31, 2007. The
sellers were MB-Funds Ltd, Ilmarinen Mutual Pension Insurance Company and
Medivire's executive management. The deal price was EUR 128.2 million. At the
time of the acquisition Medivire TTP Holding Oy owned 97.67 per cent of the
stock of Medivire Työterveyspalvelut, which at the time was Finland's leading
provider of occupational healthcare services.
Medivire Työterveyspalvelut, founded in 1995, employed at the time of
acquisition over 900 occupational healthcare professionals in some 40 towns and
its occupational healthcare services offered an extensive range of preventive
and medical occupational health care for both the public and the corporate
sectors.
The 2006 turnover of Medivire Työterveyspalvelut Oy amounted to approximately
EUR 75 million, and operating profit to EUR 3.5 million. The turnover for this
year is estimated to be over EUR 80 million and operating profit to exceed EUR 7
million excluding the approximately EUR 2.3 million one-time write-down related
to the adoption of a uniform depreciation system.
Of the goodwill generated from the Medivire acquisition, a total of EUR 35.1
million was allocated at customer relationships, which will be depreciated
over a seven year period in accordance with the Group's calculation principles.
There was EUR 101.0 million in unallocated goodwill.
The company estimates that the reorganization and dissolution of overlapping
operations can lead to EUR 3-5 million synergy benefits at an annual level. Most
of the synergy benefits are expected to take effect from 2008 onwards. Their
materialization and timing is partially affected by how quickly the existing
cooperation, lease and other agreements can be revised and how functional that
proves to be.
Other investments
In the third quarter, in addition to the Medivire acquisition, the company also
carried out the Lääkäriasema Linikka Oy and Petosen Lääkärikeskus Medina Oy
acquisitions. These acquisitions strengthen the company´s occupational
healthcare and private doctor services, particularly in the Forssa and Kuopio
regions. Both deals were completed on July 2, 2007. The acquisitions were paid
in cash and the combined price was EUR 84,000.
In the third quarter of 2007, the company continued its investments in
modernizing and developing its premises and in imaging equipment. In
July-September, a number of the new and renovated premises were furnished,
including the new clinic—hospital in Tampere that started operating in August,
the clinic opened in Äänekoski and the premises of the Nainen&Terveys know-how
centers in Helsinki, Jyväskylä and Kokkola that started operating in September.
The company also took a fourth mobile MRI machine into use and continued to
build a new X-ray and MRI department in Joensuu, which was opened in November,
and started renovating an old MRI department in Lappeenranta, which was
completed in November.
Balance sheet and financing
At the end of September 2007 the balance sheet total was EUR 288.7 million (EUR
105.4 million at the end of September 2006). Liquidity remained good in
January-September 2007. The Group's liquid assets, including financial
securities, amounted to EUR 12.1 million (6.6) at the end of the period. The
increase in liquid assets was mainly due to the listing carried out in the
financial period.
To finance the Medivire acquisition, the company signed a EUR 160 million
financing package with OKO Bank plc. The company withdrew EUR 130 million in
loan capital from the package during the review period. The financing package
includes covenants which are checked quarterly starting at the end of 2007.
Net gearing was 159.2 per cent (120.2%) at the end of the third quarter.
Cash flow
In January-September 2007 operational cash flow was EUR 0.7 million (EUR 6.6
million in January-September 2006).
Personnel
The average number of personnel in January-September 2007 was 1,461 (1,038 in
January-September 2006; 1,085 in 2006) and 2,338 at the end of the period (1,156
at the end of September 2006 and 1,253 at the end of 2006).
At the end of the period, 2,050 professional independent entrepreneurs received
patients on the Group companies' premises.
As a result of the Medivire Työterveyspalvelut acquisition the company launched
a reorganization of operations in September. According to a stock exchange
release published on September 18, 2007, elimination of overlaps and
reorganization of units and functions, the Group anticipated it will achieve a
reduction of some 100 man-years from the level on September 18, by the end of
2008. Some reductions will be achieved through natural attrition and potential
outsourcings.
Organization
Suomen Terveystalo Oyj's Board of Directors complemented the Group's Management
Team during the review period by appointing Medivire Työterveyspalvelut Oy's
former Managing Director Kimmo Karvonen, M.Sc. (born 1962) and former Deputy
Managing Director Jukka-Pekka Kuokkanen, eMBA (born 1958), to be members of
Suomen Terveystalo Oyj's Group Management Team effective from September 1, 2007,
and Master of Laws trained on the bench Johanna Karppi (born 1968) effective
from September 10, 2007.
From September 1, Suomen Terveystalo's Group Management Team consists of the
following members: Managing Director Martti Kiuru, business segment Directors
Kimmo Karvonen (Occupational Healthcare), Veli-Pekka Joki-Erkkilä (Clinics and
Hospitals) and Ilkka Lehto (Diagnostics), Chief Sales Officer Jukka-Pekka
Kuokkanen, CFO Timo Leinonen, CIO Juha Wilkman and Chief Communications Officer
Marja-Terttu Verho, and from September 10, Head of Human Resources Johanna
Karppi.
Shares and share capital
At the end of the third quarter 2007, Suomen Terveystalo Oyj's share capital was
EUR 680,446.63 and the total number of shares was 68,044,663. The share ticker
in the book-entry system is SUT1V. There were no changes in the number of shares
during July-September 2007. Equity/share was EUR 1.24 at the end of the review
period (EUR 0.74 at the end of September 2006). In January-September 2007 the
highest share price was EUR 2.75 and the lowest was EUR 2.10. In
January-September, the trading-weighted average share price was EUR 2.46.
At the end of the review period the company had 6,440 shareholders (6,014
shareholders on June 30, 2007).
The parent company Suomen Terveystalo Oyj does not own any company shares. The
Group's subsidiaries Keski-Suomen Sydäntutkimusasema Oy and Nova Clinic Oy own a
total of 55,691 parent company shares. This corresponds with 0.08 per cent of
the entire stock and votes.
Events after the review period
In September 2007, Medivire TTP Holding Oy made a redemption offer to all
minority shareholders for their 5,475 Medivire Työterveyspalvelut Oy's shares
(totaling 2.33% of the stock). All 124 Medivire Työterveyspalvelut Oy's minority
shareholders accepted the redemption offer and on October 5, 2007 Medivire TTP
Holding Oy's members of the Board of Directors confirmed the result of the
redemption offer.
The total value of Medivire TTP Holding Oy's redemption offer amounted to EUR
3,051,600.75. The redemption price was paid to the shareholders on October 11,
2007. Thus Medivire TTP Holding Oy, which is fully owned by Suomen Terveystalo
Oyj, owns 100 per cent of Medivire Työterveyspalvelut Oy.
In October 2007, Terveystalo acquired the operations of Turun Päänsärkykeskus
(currently Medishare Oy), which operates in the city of Turku. The deal includes
the reception operations of Päänsärkykeskus and the entire stock of Suomen
Erikoisneurologikeskus Oy, which it owns in full and that specializes in drug
research operations related to clinical neurology. The acquisition strengthens
Terveystalo's neurological expertise and the services offered by the company in
Turku and its surrounding areas.
In its meeting on November 19, 2007, Suomen Terveystalo Oyj's Board of Directors
decided to initiate the following merger processes: Vaasa Reilab Oy will merge
with Seinäjoen Työterveyskeskus Oy and Seinäjoen Työterveyskeskus Oy,
Lääkäriasema Septum Oy and Oy Työterveyshuolto Medicentra Företagshälsovård Ab
will merge with Medivire Työterveyspalvelut Oy. All of the above mentioned
mergers are estimated to be completed by March 31, 2008.
In its meeting on November 19, 2007, Suomen Terveystalo Oyj's Board of Directors
approved an integration plan which will result in operations in many towns being
partly or fully integrated into larger entities, an action which will lead to
increased efficiency and cost savings. As part of its integration plan, the
company combines Medivire's and Terveystalo's clinics in cities such as Iisalmi,
Kokkola, Pori, Savonlinna and Turku, as well as in the Pirkanmaa region. In
addition, clinics will be integrated in the Pohjanmaa region. The integration is
expected to result in approximately one million euros in non-recurring costs
booked in 2007.
Short-term risks and uncertainty factors
Suomen Terveystalo takes 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 risks that might endanger the continuity of
operations, be uncontrollable or substantially impair the company's 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 when making
business decisions.
The most significant risks include risks related to growth and acquisitions,
social and legislative risks, risks related to malpractice cases and liability
for damages, risks related to customer relationships, risks related to personnel
and risks related to technology, functionality of IT systems and information
security. The aim is to manage these risks through operating guidelines and
rules or transfer them to another party through agreements and insurance
policies.
The main short-term risks are related to the effects of the launch of new
clinics and hospitals on the company's profitability in the short term if the
stabilization of the new premises does not progress as planned. The main such
near-term start-up has been the new clinic-hospital in Tampere, whose operations
started in August 2007. In addition, the integration of Medivire
Työterveyspalvelut Oy's and Terveystalo's operations and systems may, if
prolonged, have a considerable effect on the benefits from the integration and
on the Group's operations.
In July-September 2007, the company continued the systematic risk management and
development of internal supervision processes and systems together with an
external internal audit partner that was initiated in the first quarter.
Outlook
According to published studies, the private healthcare services are expected to
increase annually by nine per cent on average in the coming years. The company
will continue to strive for faster growth than the market on average. The
general growth outlook in private doctor services is seen as good and, based on
this, the company expects the growth in the Clinics and Hospitals segment to
continue. The number of occupational healthcare customer agreements is also
expected to grow. The sale of the Diagnostics segment's services in particular
to the public sector will continue growing according to the company's view.
Terveystalo reached the market leader position nearly 18 months prior to what
the company had estimated. Based on the general market growth and on implemented
and planned acquisitions, the 2007 turnover is expected to exceed the turnover
in 2006 significantly.
The company´s operating profit is expected to be below 2006 operating profit due
to the costs related to the integration project started in September and the
weaker than expected summer season. Results of the last quarter of the current
year will also be affected by the higher than estimated salary increases whose
impact can not be fully transferred to prices in short term.
SUOMEN TERVEYSTALO GROUP
Suomen Terveystalo Oyj's interim report January 1 - September 30, 2007 has been
compiled in accordance with the recognition and measurement principles set out
in the International Financial Reporting Standards (IFRS), but not all of
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 31 December 2006.
The figures in the income statement and balance sheet are Group figures. All
integral Group companies are consolidated in the Group's balance sheet. The
interim report is unaudited.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, EUR | | | |
| 1,000 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM ASSETS | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 52,801 | 37,643 | 43,937 |
--------------------------------------------------------------------------------
| Goodwill | 143,031 | 39,373 | 40,946 |
--------------------------------------------------------------------------------
| Other intangible assets | 44,661 | 4,868 | 8,074 |
--------------------------------------------------------------------------------
| Investment property | 46 | 172 | 171 |
--------------------------------------------------------------------------------
| Investments in associates | 1,415 | 160 | 345 |
--------------------------------------------------------------------------------
| Receivables from associates | 17 | 578 | 26 |
--------------------------------------------------------------------------------
| Financial assets available for | 1,224 | 2,170 | 1,103 |
| sale | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 4,018 | 555 | 2,006 |
--------------------------------------------------------------------------------
| TOTAL LONG-TERM ASSETS | 247,214 | 85,519 | 96,607 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 1,772 | 1,431 | 1,644 |
--------------------------------------------------------------------------------
| Accounts receivable and other | 27,655 | 11,851 | 16,423 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 393 | 413 | 375 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 11,669 | 6,210 | 6,571 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 41,489 | 19,905 | 25,013 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 288,704 | 105,424 | 121,621 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 30.9.2007 | 30.9.2006 | 31.12.2006 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 680 | 464 | 472 |
--------------------------------------------------------------------------------
| Share issue | 0 | 314 | 315 |
--------------------------------------------------------------------------------
| Share premium account | 31,670 | 31,257 | 31,211 |
--------------------------------------------------------------------------------
| Unrestricted equity reserve | 46,323 | -196 | 630 |
--------------------------------------------------------------------------------
| Retained earnings | 2,741 | 2,742 | 4,022 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 2,726 | 960 | 1,892 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY | 84,140 | 35,541 | 38,542 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 12,783 | 2,453 | 3,561 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 142,665 | 40,105 | 45,131 |
--------------------------------------------------------------------------------
| Other liabilities | 392 | 448 | 454 |
--------------------------------------------------------------------------------
| TOTAL LONG-TERM LIABILITIES | 155,840 | 43,006 | 49,146 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 33,894 | 17,647 | 20,550 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Current tax liabilities | 105 | 53 | 93 |
--------------------------------------------------------------------------------
| Current interest-bearing | 14,724 | 9,176 | 13,290 |
| liabilities | | | |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 48,723 | 26,876 | 33,933 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 288,704 | 105,424 | 121,621 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT | 1.7.- | 1.1.- | 1.7.- | 1.1.- | 1.1.-|
| AND LOSS ACCOUNT, | 30.9.2007|30.9.2007 |30.9.2006 | 30.9.2006 | 31.12.2006|
| EUR 1,000 | | | | | |
--------------------------------------------------------------------------------
| Turnover | 30,236 | 87,796 | 19,590 | 61,782 | 88,852 |
--------------------------------------------------------------------------------
| Other operating | 164 | 727 | 113 | 396 | 2,244 |
| income | | | | | |
--------------------------------------------------------------------------------
| Share of profit of | 83 | 415 | 111 | 267 | 390 |
| associates | | | | | |
--------------------------------------------------------------------------------
| Raw material and | -4,879 | -14,175 | -3,244 | -9,368 | -13,828 |
| consumables used | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -14,854 | -39,205 | -8,561 | -25,585 | -36,449 |
| costs | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -3,707 | -8,844 | -2,220 | -5,432 | -8,899 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Other operating | -9,579 | -26,401 | -6,272 | -18,777 | -27,206 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | -2,536 | 313 | -483 | 3,283 | 5,106 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 101 | 423 | 85 | 130 | 195 |
--------------------------------------------------------------------------------
| Financial expenses | -1,025 | -2,321 | -482 | -1,427 | -2,105 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | -3,459 | -1,585 | -880 | 1,987 | 3,195 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 938 | 466 | -353 | -1,100 | -1,021 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | -2,522 | -1,119 | -1,233 | 887 | 2,175 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Parent group owners | -2,527 | -1,278 | -1,402 | 603 | 1,937 |
--------------------------------------------------------------------------------
| Minority interest | 5 | 159 | 170 | 284 | 238 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated on the earnings belonging to the owners of |
| the parent company (EUR) |
--------------------------------------------------------------------------------
| Undiluted | -0.04 | -0.02 | -0.03 | 0.01 | 0.04 |
--------------------------------------------------------------------------------
| Diluted | -0.04 | -0.02 | -0.03 | 0.01 | 0.04 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONDENSED CASH FLOW STATEMENT | | |
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operations | | | |
--------------------------------------------------------------------------------
| Profit for the period | -1,119 | 886 | 2,175 |
--------------------------------------------------------------------------------
| Adjustments to the profit for | 9,840 | 7,673 | 11,403 |
| the period | | | |
--------------------------------------------------------------------------------
| Change in working capital | -4,729 | 325 | -5,130 |
--------------------------------------------------------------------------------
| Interest paid | -1,787 | -1,153 | -1,696 |
--------------------------------------------------------------------------------
| Interest received | 392 | 66 | 140 |
--------------------------------------------------------------------------------
| Taxes paid | -1,906 | -1,181 | -2,403 |
--------------------------------------------------------------------------------
| Net cash flow from operations | 692 | 6,616 | 4,489 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments | | | |
--------------------------------------------------------------------------------
| Acquired operations | -128,351 | -11,473 | -11,409 |
--------------------------------------------------------------------------------
| Investments in tangible and | -10,583 | -1,120 | -4,113 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Gains on disposal of assets | 83 | 179 | 396 |
--------------------------------------------------------------------------------
| Dividends received | 402 | 255 | 292 |
--------------------------------------------------------------------------------
| Net cash flow from | -138,448 | -12,159 | -14,834 |
| investments | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
--------------------------------------------------------------------------------
| Share issue payments | 48,413 | -901 | 606 |
--------------------------------------------------------------------------------
| Costs of issuing equity | -2,065 | 0 | -1,017 |
--------------------------------------------------------------------------------
| Withdrawals of loans | 131,105 | 11,510 | 14,679 |
--------------------------------------------------------------------------------
| Repayment of loans | -32,154 | -5,354 | -3,962 |
--------------------------------------------------------------------------------
| Repayment of finance lease | -2,443 | -2,585 | -2,825 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | -2 | 0 | 0 |
--------------------------------------------------------------------------------
| Net cash flow from financing | 142,854 | 2,670 | 7,481 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets at beginning of | 6,571 | 9,436 | 9,436 |
| period | | | |
--------------------------------------------------------------------------------
| Liquid assets at end of | 11,669 | 6,563 | 6,571 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY 1.1. - | |
| 30.9.2007 | |
--------------------------------------------------------------------------------
| 1,000 EUR | Share | Share | Share | Unre- | Reta- | Mino- | Total |
| | capi- | pre- | issue | stri- | ined | rity | |
| | tal | mium | | cted | earn- | inte- | |
| | | acco- | | equi- | ings | rest | |
| | | unt | | ty | | | |
| | | | | reser- | | | |
| | | | | ve | | | |
--------------------------------------------------------------------------------
| Sharehold- | 472 | 31,211 | 315 | 630 | 4,021 | 1,892 | 38,541 |
| ers' equity | | | | | | | |
| Jan 1, 2007 | | | | | | | |
--------------------------------------------------------------------------------
| Costs of | 0 | 0 | 0 | -2,053 | 0 | 0 | -2,053 |
| issuing | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Rights | 200 | 0 | 0 | 47,746 | 0 | 0 | 47,946 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Conversion | 8 | 459 | 0 | 0 | 0 | 0 | 467 |
| of | | | | | | | |
| convertible | | | | | | | |
| loan into | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | 0 | 0 | -2 | 0 | -2 |
--------------------------------------------------------------------------------
| Unsubscrib- | 0 | 0 | -315 | 0 | 0 | 0 | -315 |
| ed share | | | | | | | |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 0 | 0 | 0 | 0 | -1,398 | 159 | -1,239 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | 0 | 0 | 0 | 674 | 674 |
| interests | | | | | | | |
| in | | | | | | | |
| acquisitio- | | | | | | | |
| ns and other| | | | | | | |
| changes | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde- | 680 | 31,670 | 0 | 46,323 | 2,741 | 2,726 | 84,140 |
| rs' equity | | | | | | | |
| Sep 30, | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY 1.1. - | |
| 30.9.2006 | |
--------------------------------------------------------------------------------
| 1,000 EUR | Share | Share | Share | Unre- | Retai- | Mino- | Total |
| | capi- | pre- | issue | stri- | ned | rity | |
| | tal | mium | | cted | earn- | inte- | |
| | | acco- | | equi- | ings | rest | |
| | | unt | | ty | | | |
| | | | | reser- | | | |
| | | | | ve | | | |
--------------------------------------------------------------------------------
| Shareholde- | | 30,753 | 1 | 0 | 2,139 | 362 | 33,719 |
| rs equity | | | | | | | |
| Jan 1, | | | | | | | |
| 2006 | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
--------------------------------------------------------------------------------
| Funding | 0 | -98 | 0 | -196 | 0 | 0 | -294 |
--------------------------------------------------------------------------------
| Rights | 1 | 602 | 313 | 0 | 0 | 0 | 916 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 0 | 0 | 0 | 0 | 603 | 0 | 603 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | 0 | 0 | 0 | 598 | 598 |
| interests | | | | | | | |
| in | | | | | | | |
| acquisitio- | | | | | | | |
| ns and other| | | | | | | |
| changes | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde- | 464 | 31,257 | 314 | -196 | 2,742 | 960 | 35,541 |
| rs' equity | | | | | | | |
| Sep 30, | | | | | | | |
| 2006 | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SEGMENT REPORTING, 1,000 | 1.1.- | 1.1.- | 1.1.- |
| EUR | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Turnover by segment | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals | 52,190 | 34,241 | 49,330 |
| segment | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 42,916 | 29,040 | 44,523 |
--------------------------------------------------------------------------------
| Other | 2,607 | 0 | 1,992 |
--------------------------------------------------------------------------------
| Eliminations | -9,916 | -1,499 | -6,992 |
--------------------------------------------------------------------------------
| Total turnover | 87,796 | 61,782 | 88,853 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit by segment | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals | 1,501 | 1,875 | -906 |
| segment | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 10,153 | 6,302 | 13,446 |
--------------------------------------------------------------------------------
| Other | -11,341 | -4,894 | -7,434 |
--------------------------------------------------------------------------------
| Total operating profit | 313 | 3,283 | 5,106 |
--------------------------------------------------------------------------------
| Operating profit of | 0.4 | 5.3 | 5.7 |
| turnover, % | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -1,898 | -1,297 | -1,910 |
| expenses | | | |
--------------------------------------------------------------------------------
| Profit before tax | -1,585 | 1,986 | 3,196 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | 466 | -1,100 | -1,021 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | -1,119 | 886 | 2,175 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND LOSS ACCOUNT, BY QUARTER, EUR 1,000 | |
--------------------------------------------------------------------------------
| | 1.7.- | 1.4- | 1.1.- | 1.10.- | 1.7.- |
| | 30.9.2007 | 30.6.2007 | 31.3.2007 | 31.12.2006 | 30.9.2006 |
--------------------------------------------------------------------------------
| Turnover | 30,236 | 28,297 | 29,264 | 27,070 | 19,590 |
--------------------------------------------------------------------------------
| Other | 164 | 399 | 164 | 1,850 | 113 |
| operating | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Share of | 83 | 143 | 189 | 121 | 111 |
| profit of | | | | | |
| associates | | | | | |
--------------------------------------------------------------------------------
| Raw material | -4,879 | -4,686 | -4,609 | -4,460 | -3,244 |
| and | | | | | |
| consumables | | | | | |
| used | | | | | |
--------------------------------------------------------------------------------
| Employee | -14,854 | -12,396 | -11,954 | -10,853 | -8,561 |
| benefit costs | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -3,707 | -2,678 | -2,459 | -3,466 | -2,220 |
--------------------------------------------------------------------------------
| Other | -9,579 | -8,825 | -8,000 | -8,440 | -6,272 |
| operating | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING | -2,536 | 254 | 2,595 | 1,822 | -483 |
| PROFIT | | | | | |
--------------------------------------------------------------------------------
| Financial | 101 | 302 | 20 | 64 | 85 |
| income | | | | | |
--------------------------------------------------------------------------------
| Financial | -1,025 | -421 | -875 | -679 | -482 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before | -3,459 | 135 | 1,739 | 1,208 | -880 |
| tax | | | | | |
--------------------------------------------------------------------------------
| Income taxes | 938 | -49 | -423 | 80 | -353 |
--------------------------------------------------------------------------------
| PROFIT FOR | -2,522 | 87 | 1,316 | 1,288 | -1,233 |
| THE PERIOD | | | | | |
--------------------------------------------------------------------------------
| Attributable | | | | | |
| to: | | | | | |
--------------------------------------------------------------------------------
| Parent | -2,527 | 31 | 1,218 | 1,334 | -1,402 |
| company | | | | | |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| Minority | 5 | 56 | 98 | -46 | 170 |
| interest | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | 1.1.- | 1.1.- | 1.1.- |
| | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Average personnel | 1,461 | 1,038 | 1,085 |
--------------------------------------------------------------------------------
| Personnel at end of period | 2,338 | 1,156 | 1,253 |
--------------------------------------------------------------------------------
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))
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 /
Number of shares adjusted by option and convertible bond dilution
SUOMEN TERVEYSTALO OYJ
Board of Directors
ADDITIONAL INFORMATION:
Managing Director Martti Kiuru, tel. +358 9 2310 6100,
martti.kiuru@terveystalo.com
CFO Timo Leinonen, tel. +358 400 793073, timo.leinonen@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. All
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 company´s business restructuring plan
that was started in September 2007, and the company's ability to continue
expanding its operations.
Distribution:
OMX Nordic Exchange Helsinki
Principal media
Terveystalo's January-September turnover increased by 42.1 per cent and was EUR 87.8 million, operating profit was EUR 0.3 million
| Source: Terveystalo Healthcare Oyj