TERVEYSTALO HEALTHCARE OYJ FINANCIAL STATEMENT RELEASE
March 31, 2009 at 2.00 p.m
TERVEYSTALO'S FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31, 2008
Terveystalo's January-December 2008 turnover and operating result increased
considerably; turnover was EUR 210.1 million and operating result was EUR 7.1
million.
- January-December 2008 (January-December 2007):
- - Turnover EUR 210.1 million (140.7) Growth is mainly due to a large
acquisition carried out in September 2007.
- - Operating result EUR 7.1 million (0.4) Operating result excluding
impairment in accordance with IAS 36 recognized in the last quarter was EUR 7.8
million.
- In October-December, operating result grew by 2,233.0 percent compared to the
corresponding period in 2007.
- Terveystalo expects that the full year 2009 turnover and operating result
will exceed the 2008 turnover and operating result.
The figures in this financial statements bulletin are audited.
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| KEY FIGURES | 1.10.- | 1.10.- | 1.1.- | 1.1.- |
| | 31.12.2008| 31.12.2007 | 31.12.2008 | 31.12.2007 |
| | | | | |
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| Turnover, EUR 1,000 | 55,616 | 52,923 | 210,150 | 140,719 |
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| Operating result, EUR | 2,053 | 88 | 7,080 | 401 |
| 1,000 | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.03 | -0.03 | -0.10 | -0.05 |
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| Equity per share, EUR | 1.08 | 1.17 | 1.08 | 1.17 |
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| Net gearing, % | 170.7 | 184.8 | 170.7 | 184.8 |
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| Return on investment, % | 3.6 | 0.5 | 3.0 | 0.6 |
| (ROI)* | | | | |
--------------------------------------------------------------------------------
| Return on equity, % | -11.3 | -12.4 | -8.5 | -5.0 |
| (ROE)* | | | | |
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| Capital adequacy, % | 30.3 | 27.5 | 30.3 | 27.5 |
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| Operating result / | 3.7 | 0.2 | 3.4 | 0.3 |
| turnover, % | | | | |
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* the income statement figures used in the calculation have been annualized
Terveystalo Healthcare Oyj (Terveystalo) Group's turnover increased in
January-December 2008 by 49.3 percent compared to the corresponding period in
the previous year and amounted to EUR 210.1 million (EUR 140.7 million in
January-December 2007). Turnover growth is mainly due to a large acquisition
carried out in September 2007. Operating result grew by 1,665.8 percent and
amounted to EUR 7.1 million (0.4); excluding impairment in accordance with IAS
36, operating result grew by 1,852.1 percent and was EUR 7.8 million.
Managing Director Martti Kiuru:
”Our business continued growing and we managed to further improve our
profitability in October-December 2008. The integration program that we
initiated in the fall of 2007 progressed as planned. The continuous weakening in
the economic situation did not have an effect on the demand for Terveystalo's
healthcare services in October-December.”
Market situation
The value of the Finnish healthcare service market is over EUR 12 billion. The
public sector has traditionally been the largest producer of healthcare
services. The share of private service production on the markets has increased
heavily in recent years and the growth is expected to continue. The demand for
private healthcare services is affected by the ageing of the population, the
increase in wealth and general interest towards health, an increase in
outsourcing services (such as specialist consultations, surgery, imaging,
screening and other research services), regard for occupational healthcare
services, the demand for flexibility in healthcare services and the outsourcing
trend as the requirements of working life increase.
Terveystalo's market environment is also affected by increased efficiency in
service production as medical technology develops and insurance products become
more common in the healthcare sector.
Measured by turnover and the extent of its operations, Terveystalo has been
Finland's leading healthcare company since 2007.
1.10.-31.12.2008
In October-December 2008, Terveystalo's turnover grew by 6.4 percent compared to
the corresponding period last year and amounted to EUR 55.6 million (EUR 52.9
million in October-December 2007).
Operating result grew by 2,233.0 percent from the corresponding period last year
and was EUR 2.1 million, i.e. 3.7 percent of turnover (EUR 0.1 million, 0.2% in
October-December 2007). Operating result excluding IAS 36 accordant impairment
was EUR 2.8 million, 5.0% (EUR 0.1 million, 0.2% in October-December 2007).
Growth in operating result was affected by turnover growth and the implemented
integration program, including increased efficiency and unification of
procedures, as well as merging of units.
In October-December 2008, a total of EUR -3.0 million in net financial costs
from interest rate hedging instruments was recognized in financial items.
1.1.-31.12.2008
In January-December 2008, Terveystalo's turnover grew by 49.3 percent compared
to the corresponding period last year and amounted to EUR 210.1 million (EUR
140.7 million in January-December 2007). The growth in turnover was mainly
contributable to the operations of Medivire Työterveyspalvelut Oy, which merged
with the Group in September 2007. Organic turnover growth was approximately 13
percent (approximately 12 percent in 2007).
Operating result grew by 1,665.8 percent from the corresponding period last year
and was EUR 7.1 million, i.e. 3.4 percent of turnover (EUR 0.4 million, 0.3 % in
January-December 2007). Non-recurring items recognized during the period
included a EUR 2.1 million sales gain reported in January-March from the sale of
the central laboratory business, a EUR 0.7 million cost item reported in
April-June mainly related to an arbitration case of a copyright dispute related
to the patient information system, EUR 0.2 million costs related to the
subscription rights issue reported in July-September, and a EUR 0.2 million cost
item related to the public bid, as well as a EUR 0.7 million impairment in
accordance with IAS 36 in the last quarter.
In January-December 2008, a total of EUR -2.8 million in net financial costs
from interest rate hedging instruments was recognized in financial items.
The earnings belonging to the owners of the parent company were EUR -7.1
million, i.e. -3.4 percent of turnover (EUR -3.1 million, -2.2%). Earnings per
share calculated from earnings belonging to the owners of the parent company was
EUR -0.10 (EUR -0.05).
Terveystalo Healthcare Oyj (Suomen Terveystalo Oyj until the end of 2008)
Business operations
Measured by turnover and the extent of its operations, Terveystalo Healthcare
Oyj (Suomen Terveystalo Oyj until December 31, 2008, Terveystalo) is Finland's
leading healthcare company. The company offers comprehensive healthcare services
to its municipal and partnership customers, occupational healthcare customers
and private individuals.
From January 1, 2008, the Group's business operations have been reported in
three business segments: Occupational Healthcare segment, the Clinics and
Hospitals segment and the Diagnostics segment. All imaging and laboratory
services were reported as part of the Diagnostics segment until the end of 2007.
Starting from January 1, 2008, sampling laboratory operations, rapid analytics
and imaging services are reported as part of the Clinics and Hospitals segment
with regard to clinic-hospitals and clinics, and as part of the Occupational
Healthcare segment with regard to occupational healthcare clinics. The item
Unallocated is used to report operations not allocated in the segments. These
operations mainly consist of the Company's shares in the operations of AVA
clinics specializing in infertility treatments. The Unallocated item also
includes the costs from Group functions (HR, Quality, Sales, Finance, ICT and
Communication) and national booking and customer service operations, as well as
costs deriving from group structure creation and the Group's integration
program.
Group functions support Terveystalo's Group-level, regional and local
operations. In 2008 the Group functions included HR, Quality, Sales, Finance,
ICT and Communications. From the beginning of 2009, the Group functions include
HR, Quality, Finance, ICT and Communications. Sales is part of the Municipality
and partnership business. The Group's centralized booking and customer service
operations were expanded in the call center units in Kristiinankaupunki and
Lahti.
The Group has grown considerably both organically and through acquisitions, and
continued its integration program aiming at unifying group services and internal
operating methods throughout 2008. The program helped to clarify operating
procedures, boost the efficiency of the unit network, eliminate overlaps, and
simplify support and administrative services to better correspond to the current
and future needs of the Group's extended business operations. Operations were
combined partly or in full in a number of municipalities to form larger entities
in order to improve operational efficiency and achieve cost savings. At the end
of December 2008, Terveystalo had over 100 units in over 50 cities across
Finland. A year before, there were over 150 units.
Terveystalo´s quality system has a SFS-EN ISO 9001:2008 certificate that covers
all operations.
Business segments
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 2008, the company had more than 100 units
that offered occupational healthcare services and it was responsible for the
occupational healthcare services of more than 13,000 corporate customers and
more than 380,000 individuals.
Clinics and Hospitals segment
In 2008, Terveystalo continued developing its clinic hospitals and clinics,
taking into account the need for local service offerings as well as the Group's
national and regional service offerings.. A uniformly operating, extensive
service network is expected to have a positive effect on Terveystalo's market
position in the long term..
During 2008, new clinic-hospitals were opened in Rovaniemi and Turku.
The clinic operations were made more efficient in several towns. New specialty
clinics operating in accordance with the Group's clinic concept were opened in
2008, including the Allergy Clinic, Diabetes Clinic, Lung Clinic, Ear Clinic,
Pain Clinic and Headache Clinic in one or several locations.
Diagnostics segment
In 2008, Terveystalo strengthened its diagnostics services, which include
imaging, mobile imaging, laboratory and screening service both for external
customers and internally within the Group, by investing in equipment and
developing operating models and IT systems. In February, the Group's central
laboratory operations were sold to Medix Laboratoriot Oy, who became
Terveystalo's strategic cooperation partner. The company continued to seek
strategic partnerships in the public sector, and cooperation with municipalities
and insurance companies strengthened in imaging and mobile imaging in
particular.
Terveystalo's imaging services include X-rays and ultrasonography, magnetic
resonance imaging (MRI), computed tomography (CT) scans, mammography and bone
mineral density measurement, as well as related tele-radiology services, which,
in addition to Group units, are offered to public sector actors in particular.
At the end of 2008, Terveystalo had 12 fixed MRI machines and six mobile MRI
units. X-rays were being taken in over 30 units in nearly 30 towns. Ultrasounds
were carried out in over 50 units, of which 10 also had 4D ultrasound equipment
suitable for demanding fetal structure tests during pregnancy. Bone-density
tests were carried out in 20 towns.
The number of customers in the mammography, pap and fetal screening services
grew as planned. At the end of 2008, screening mammography tests were carried
out in approximately 30 towns and, using mobile units, in nearly a hundred other
locations across Finland. The pap screening process for cervical cancer
screening tests was finalized and these screenings began in a few towns. From
2010 onwards, municipalities have a legal obligation to arrange fetal screening
services.
Since the divestment of the central laboratory operations, the laboratory
operations have focused on sample taking laboratory operations and related
services. Terveystalo has the most extensive national sample taking laboratory
network in the private sector.
Turnover by segment
In January-December 2008, the Occupational Healthcare segment's share of the
Group's turnover was 59.6 percent, the Clinics and Hospitals segment's share was
27.9 percent and the Diagnostics segment's share was 10.7 percent.
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| Turnover by segment | | | |
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| EUR 1,000 | 1.10.- | 1.10.- | 1.1- | 1.1.- |
| | 31.12.2008 | 31.12.2007 | 31.12.2008 | 31.12.2007 |
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| Occupational | 41,546 | 32,974 | 139,038 | 63,808 |
| Healthcare segment | | | | |
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| Clinics and Hospitals | 18,947 | 12,315 | 70,652 | 54,897 |
| segment | | | | |
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| Diagnostics segment | 7,902 | 10,803 | 28,574 | 32,489 |
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| Unallocated | 832 | 55 | 3,736 | 2,667 |
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| Intra-group sales | -13,609 | -3,226 | -31,850 | -13,142 |
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| Group total | 55,616 | 52,923 | 210,150 | 140,719 |
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The reference data for the segments has been adjusted to correspond with the
segment division adopted from the beginning of 2008. In 2007, the operations
were divided into two segments: the Clinics and Hospitals segment and the
Diagnostics segment. Starting from the beginning of 2008, the business
operations have been divided into three business segments: Occupational
Healthcare segment, Clinics and Hospitals segment and Diagnostics segment. The
Unallocated item includes the Group's share of the operations of the AVA clinic
that focuses on fertilization treatment.
Operating result by segment
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| Operating result by segment | | | |
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| EUR 1,000 | 1.10.- | 1.10.- | 1.1- | 1.1.- |
| | 31.12.2008 | 31.12.2007 | 31.12.2008 | 31.12.2007 |
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| Occupational | 4,467 | -1,928 | 11,241 | -2,929 |
| Healthcare segment | | | | |
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| Clinics and | 1,126 | 3,190 | 8,265 | 11,310 |
| Hospitals segment | | | | |
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| Diagnostics segment | 1,358 | 1,718 | 6,796 | 4,225 |
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| Unallocated | -4,898 | -2,892 | -19,222 | -12,204 |
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| Group total | 2,053 | 88 | 7,080 | 401 |
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The reference data for the segments has been adjusted to correspond with the
segment division adopted from the beginning of 2008. In 2007, the operations
were divided into two segments: the Clinics and Hospitals segment and the
Diagnostics segment. Starting from the beginning of 2008, the business
operations have been divided into three business segments: Occupational
Healthcare segment, Clinics and Hospitals segment and Diagnostics segment.
The operating result of the Occupational Healthcare segment for January-December
2008 includes a EUR 0.5 million non-recurring expense item and the operating
result of the Clinics and Hospitals segment includes a EUR 0.2 million
non-recurring expense item. The January-December 2008 operating result of the
Diagnostics segment includes a EUR 2.1 million non-recurring sales gain. The
Unallocated item for January-December 2008 includes a EUR 0.2 million
non-recurring cost recognition related to the subscription rights issue and a
EUR 0.2 million non-recurring expense item related to the public bid. The
impairment recognition in accordance with IAS 36 is divided by segment as
follows: Occupational Healthcare segment EUR 0.4 million, Clinics and Hospitals
segment EUR 0.2 million and Diagnostics segment EUR 0.1 million.
The costs from Group operations (HR, Quality, Finance, ICT and Communications),
the national booking and customer service operations, the formation of the Group
structure and the Group's integration program are reported in the Unallocated
item. The biggest cost items causing the EUR 19.2 million operating loss in the
Unallocated item came from invoicing, appointment and customer service
operations' costs, costs from the Group's centralized sales and marketing
operations, and costs related to centralized patient information and other IT
systems. The fertilization treatment operations reported in the Unallocated item
did not have a significant effect on the operating result in January-December
2008.
Return on assets
In January-December 2008, the return on investment (ROI) was 3.0 percent (0.6%
in January-December 2007). Return on equity (ROE) was -8.5 percent (-5.0 %).
Investments
In January-September 2008, Terveystalo continued investing in developing and
modernizing its offices and imaging equipment. In October-December the company
began an expansion renovation in Helsinki to expand the Kamppi occupational
healthcare center into a clinic that started operating in early 2009. This
clinic will house Terveystalo's, as well as Finland's, largest private imaging
center.
The financial year's investments in tangible assets amounted to EUR 10.8 million
and in intangible assets to EUR 3.1 million. The sales proceeds from tangible
assets amounted to EUR 0.2 million.
Balance sheet and financing
At the end of December 2008, the balance sheet total was EUR 290.3 million (EUR
296.9 million at the end of December 2007).
At the end of December 2008, Terveystalo Group's Quick Ratio was 0.6 (0.2 at the
end of December 2007). The Group's liquid assets, including financial
securities, amounted to EUR 4.4 million at the end of December (EUR 13.5
million). In January-December 2008, the company withdrew new interest bearing
loans of EUR 22.0 million and repaid EUR 36.2 million in interest bearing loans
and EUR 16.6 million in interest. Net gearing at the end of 2008 was 170.7
percent (184.8%).
The company agreed on new covenant levels related to its financing agreements
with its principal financers in December 2008.
The capital in financial liabilities to which the covenants apply was EUR 116.3
million on December 31, 2008. The company's interest margin for loans granted by
the principal financers has been 2.25 percentage points between October 1 and
December 31, 2008. The average interest rate for 2008 was 6.94 percent.
Cash flow
In January-December 2008, operational cash flow was EUR 13.8 million (EUR 9.5
million in January-December 2007). In accordance with the presentation allowed
by IAS 7, paid interest has been presented in cash flow from financing,
deviating from the reporting practices in the previous fiscal period, and the
comparison data for 2007 have been adjusted accordingly.
Personnel
In January-December 2008, the average number of personnel was 2,347 (average in
January-December 2007 was 1,689). At the end of December 2008, the number of
personnel was 2,351 (2,398 at the end of December 2007). The increase in the
average number of personnel particularly resulted from the acquisition of
Medivire Työterveyspalvelut Oy in the fall of 2007.
Related to the integration program launched in Terveystalo Group in the fall of
2007, the number of personnel, mainly from administration and support functions
in regional and unit organizations, had decreased by approximately 120 man-years
by the end of December 2008.
At the end of 2008, more than 2,000 private practitioners operated on
Terveystalo premises.
Group structure
No acquisitions of businesses or business operations outside the Group were made
in January-December 2008. Preparation of measures aiming at a simplification of
the Group structure and lightening of the administrative structure continued.
The parent company sold its operative business to Suomen Terveystalo Oy
(formerly Suomen Terveystalo Diagnostiikka Oy) on December 31, 2008.
At the end of December 2008, Terveystalo Group consisted of the parent company,
Terveystalo Healthcare Oyj (formerly Suomen Terveystalo Oyj), and its 34
subsidiaries.
Organization
As part of the integration program that began in the fall of 2007 and continued
until the end of 2008, Terveystalo's operations in many towns have been partly
or fully integrated into larger entities in order to ensure service
availability, increase efficiency and generate cost savings. At the end of
December 2008, Terveystalo had over 100 units in over 50 cities across Finland.
A year before, there were over 150 units.
The Group Management Team consisted of the following people in October-December
2008: Managing Director Martti Kiuru, Business Segment Directors Tanja Vuorela
(Occupational Healthcare segment), Veli-Pekka Joki-Erkkilä (Clinics and
Hospitals segment) and Ilkka Lehto (Diagnostics segment), Head of Human
Resources Johanna Karppi, Chief Sales Officer Jukka-Pekka Kuokkanen, Chief
Communications Officer Marja-Terttu Verho, Chief Information Officer Juha
Wilkman and Chief Financial Officer Jukka Yli-Hankala.
Subscription rights issue
A total of 12,964,758 shares were subscribed for in Suomen Terveystalo Oyj's
subscription rights issue that ended on October 8, 2008. Of these, 7,510,922
were subscribed for with primary subscription rights and 198,373 with secondary
subscription rights. In addition, Ilmarinen Mutual Pension Insurance Company and
Varma Mutual Pension Insurance Company, in accordance with their subscription
guarantee, subscribed for unsubscribed Shares on the basis of the Primary
Subscription Right and the Secondary Subscription Right. Ilmarinen Mutual
Pension Insurance Company subscribed for a total of 1,994,608 shares and Varma
Mutual Pension Insurance Company subscribed for a total of 3,260,855 shares.
The shares issued correspond with approximately 19 percent of Suomen Terveystalo
Oyj's total number of shares and the votes they generate prior to the issue and
approximately 16 percent after the issue.
Terveystalo collected a total gross sum of EUR 14.3 million in the share issue.
On October 13, 2008, the Board of Directors of Suomen Terveystalo Oyj approved
all primary and secondary subscriptions made in the share issue arranged between
September 24 and October 8, 2008, as well as the subscriptions based on
subscription guarantees made by Ilmarinen Mutual Pension Insurance Company and
Varma Mutual Pension Insurance Company in accordance with the terms of the share
issue.
As a result of the subscription rights issue after the new shares were entered
into the trade register on October 15, 2008, the company's share capital is EUR
811,064.21 and the number of shares is 81,106,421.
After the subscription rights issue, Varma Mutual Pension Insurance Company's
share of Terveystalo's entire stock and votes rose above one-tenth (1/10).
Varma Mutual Pension Insurance Company owned 11,354,899 Terveystalo shares,
which corresponded with 14.0 percent of total shares and votes.
After the subscription rights issue, Ilmarinen Mutual Pension Insurance
Company's share of Terveystalo's entire stock and votes rose above one-tenth
(1/10). Ilmarinen Mutual Pension Insurance Company owned 11,354,899 Terveystalo
shares, which corresponded with 14.0 percent of total shares and votes.
After the subscription rights issue, Infosto Research & Development Oy Ltd's
share of Terveystalo's entire stock and votes fell below one-twentieth (1/20)
Infosto Research & Development Oy Ltd owned 3,543,827 Terveystalo shares, which
corresponded with 4.37 percent of total shares and votes.
All shares subscribed for in the share issue were entered into the trade
register on October 15, 2008, after which the temporary shares were combined
with Terveystalo's share type. On October 10, 2008, Terveystalo had 6,932
shareholders.
The temporary shares and the shares subscribed for based on secondary
subscription rights started trading on NASDAQ OMX in Helsinki together with the
old shares on October 16, 2008.
After the subscription rights issue, a total of 12,544,035 shares of the
authorizations concerning a share issue and granting of special rights entitling
to shares given to the Board of the Directors by the AGM on May 28, 2007, and
the EGM on September 1, 2008, remain unutilized.
Shares and share capital
At the end of December, Terveystalo's share capital was EUR 811,064.21 (EUR
681,416.63 at the end of 2007) and the total number of shares was 81,106,421.
The share ticker in the book-entry system is SUT1V.
In January-December 2008, the highest share price was EUR 1.99 and the lowest
was EUR 0.52. In January-December, the trading-weighted average share price was
EUR 1.19 and the closing price on December 31, 2008, was EUR 0.54. In
January-December, 10,246,900 shares were exchanged, which corresponds to 12.6
percent of the number of shares at the end of the period. The market value of
the stock using the closing price for the review period on 31.12.08 was EUR 43.8
million. At the end of the year 2008, the company had 7,191 shareholders (6,510
at the end of 2007).
On December 31, 2008, the company owned 40,400 of its own shares. In addition,
the subsidiary Nova Clinic Oy owned a total of 15,291 parent company shares. The
total number of these shares corresponded with 0.07 percent of all shares and
votes at the end of 2008.
Inside dealings
The company's related parties consist of the board members, managing director,
members of the management group and associated companies of Terveystalo
Healthcare Oyj.
In the review period, the parent company bought services related to the LIS
control system used in the central laboratory from Starnet Innovations Oy,
indirectly owned by Media Invest Int Oy, for approximately EUR 56,000. Media
Invest Oy is owned by Ari Ahola and Matti Roto. Terveystalo's cooperation with
Starnet Innovations Oy ended when the central laboratory was divested.
Salaries and fees paid by Terveystalo to the related parties and short-term
employee benefits amounted to approximately EUR 1.6 million in January-December
2008.
At the end of December, the consolidated balance sheet contained a EUR 0.2
million receivable from associated companies and approximately EUR 0.5 million
in liabilities to associated companies.
Extraordinary General Meeting
The EGM was arranged in Helsinki on December 18, 2008. In accordance with the
proposal from the Board of Directors, the EGM decided that clause 1 of Suomen
Terveystalo Oyj's Articles of Association would be changed so that the company
name is changed to Terveystalo Healthcare Oyj.
Events after the review period
The company name was changed to Terveystalo Healthcare Oyj from the beginning of
2009.
The Group continues to simplify the Group structure and lighten the
administrative structure through the merging of subsidiaries. The goal is to
centralize operative business into one subsidiary in the future. The mergers
related to these arrangements were registered in the trade register on January
1, 2009, when a total of 17 Terveystalo Group companies were merged with another
Group company as follows: Suomen Terveystalo Työterveys Oy will merge with
Medivire TTP Holding Oy, Pohjanmaan Röntgen Oy with Oy Työterveyshuolto
Medicentra Företagshälsovård Ab, Magneettikymi Oy with Tietotomo Oy, Joensuun
Röntgen Oy with Itä-Suomen Kuvantamiskeskus Oy, and Kouvolan Lääkäritalon
Röntgen Oy, Espoontorin Lääkäriasema Oy, Lääkäriasema Septum Oy, Lääkäriasema
Linikka Oy, Petosen Lääkärikeskus Medina Oy, Lääketieteellinen Tutkimuslaitos
Toritutkain Oy, Lääkäri- ja laboratoriopalvelu Tammer Tutka Oy, Tampereen
Gynekologiakeskuksen Laboratorio- ja konsultaatiopalvelut Oy, Seinäjoen
Työterveyskeskus Oy, Oy Työterveyshuolto Medicentra Företagshälsovård Ab, Suomen
Terveystalo Lääkäriasema Oy, Medivire TTP Holding Oy and Lappeenrannan
Lääkäriasema Oy with Suomen Terveystalo Diagnostiikka Oy. Simulatenously,
Terveystalo Healthcare Oyj, the new name of the parent company Suomen
Terveystalo Oyj, was taken into use in accordance with the decision by the EGM
on December 31, 2008. The company name of the operative subsidiary Suomen
Terveystalo Diagnostiikka Oy was changed to Suomen Terveystalo Oy.
On January 19, 2009, Terveystalo Healthcare Oyj and Star Healthcare Oy signed a
transaction agreement, based on which Star Healthcare made a public offer for
all Terveystalo shares not owned by Terveystalo and Terveystalo's option rights.
The precondition for the bid was that the bid will include an amount of shares
that corresponds with over 90 percent of the shares and votes in Terveystalo.
Star Healthcare is the Finnish subsidiary owned by the European capital investor
Bridgepoint's Bridgepoint Europe IV fund.
The price offered in the bid was EUR 2.00 per share in cash, which was 203.0
percent higher than the closing price of Terveystalo's share on NASDAQ OMX
Helsinki Oy on January 16, 2009. The bid price for the option rights was EUR
0.20 in cash for each option right. Terveystalo's shareholders, representing
51.8 percent of the company's shares and votes, including Ilmarinen Mutual
Pension Insurance Company, Varma Mutual Pension Insurance Company, other
significant insurance companies and certain Board members, the CEO and certain
members of the Group Management Team of Terveystalo had irrevocably and
unconditionally committed to accepting the bid. In addition, Terveystalo's Board
of Directors unanimously recommended that shareholders and option holders should
accept the bid.
The bid period began on January 26, 2009, and ended on February 16, 2009.
On January 19, 2009, Bridgepoint Capital Limited, which is Bridgepoint's
administration company and acts on its behalf, announced to the Financial
Supervision Authority and Terveystalo that Star Healthcare's holding in
Terveystalo would be based on the commitments and exceed 50 percent of
Terveystalo's shares and votes if the bid is completed.
The Finnish Competition Authority approved the acquisition of Terveystalo in
accordance with the bid with a decision dated January 29, 2009.
According to a notification received by Bridgepoint Capital Limited on February
10, 2009, shareholders representing 12.2 percent of Terveystalo's shares and
votes had, in addition to the shares covered by the commitments, accepted the
bid. If the bid materializes, Star Healthcare's holding in Terveystalo would,
based on the commitments and the above-mentioned acceptances of the bid, be
54,753,611 Terveystalo Healthcare Oyj's shares, i.e. 67.5 percent of the share
capital and votes.
On February 16, 2009, Terveystalo Healthcare Oyj received notification that Star
Healthcare Oy had learned that shareholders owning more than 94 percent of
Terveystalo's shares and votes had accepted Star Healthcare Oy's bid on all of
Terveystalo Healthcare Oyj's shares and option rights. On February 19, 2009, the
final outcome of the bid was confirmed to be 95.7 percent of all Terveystalo
shares and votes. In addition, all issued option rights were offered to Star
Healthcare based on the bid. On February 26, 2009, Star Healthcare Oy initiated
a redemption offer for the remaining shares in accordance with the Companies
Act.
On January 19, 2009, Terveystalo signed an agreement with certain financial
institutions on refinancing Terveystalo's loan arrangements in connection with
the bid. The availability of refinancing was a condition for the bid being
completed in accordance with the terms and certain other conditions being met.
Refinancing was finalized on February 27, 2009 when approximately EUR 129.5
million interest-bearing loans were paid and approximately EUR 110 million of
new loan withdrawn. In addition Star Healthcare Oy granted company shareholder
loan amounting to EUR 23,6 million.
Extraordinary General Meeting
Terveystalo Healthcare Oyj arranged an EGM on March 9, 2009.
The EGM decided to revise the first paragraph of clause 3 of the Articles of
Association so that the company's Board of Directors consists of at least three
and a maximum of six members. After the revision, the first paragraph of clause
3 of the Articles of Association reads: ”The Company's Board of Directors,
consisting of at least three (3) and at most six (6) members, manages the
administration of the Company and the proper arrangement of its operations.” In
addition, the members of the company's Board of Directors were relieved of their
duties and Mika Herold, Håkan Johansson, Martti Kiuru and Mikael Lövgren were
appointed new members of the Board of Directors.
Mikael Lövgren began working as the Chairman of the Board of Directors of
Terveystalo Healthcare Oyj on March 9, 2009.
In accordance with the Corporate Governance Recommendations for Finnish Listed
Companies, at least two Board members must be independent of significant company
shareholders (Recommendation 14). European capital investor Bridgepoint's
company called Star Healthcare Oy owns over 95 percent of Terveystalo Healthcare
Oyj's shares and votes. On March 9, 2009, Terveystalo's EGM appointed Mika
Herold, Håkan Johansson, Martti Kiuru and Mikael Lövgren members of the Board of
Directors of Terveystalo Healthcare Oyj. Of these members, Herold, Johansson and
Lövgren represent Bridgepoint and are thus dependent Board members, Kiuru is
Terveystalo's managing director. Star Healthcare Oy has announced that it will
make a redemption offer for the remaining Terveystalo shares in accordance with
the Companies Act and that the aim is to delist Terveystalo's shares from NASDAQ
OMX Helsinki as soon as possible.
Near term risks and uncertainty factors
The most significant risks related to Terveystalo's operations include risks
related to growth and acquisitions, such as the growth expectations related to
company operations not materializing, which could result in an impairment of the
goodwill included in the consolidated balance sheet. The general economic
situation also affects the materialization of the above-mentioned risks.
Other risks include risks related to financing, social and legislative risks,
risks related to malpractice cases and liability for damages, risks related to
contracts and customer relationships, risks related to personnel and risks
related to technology, functionality of IT systems and information security.
These risks are managed using guidelines and rules or they are partially of
fully transferred to second or third parties through agreements and insurance
policies. Risks related to financing costs and loan repayments are managed with
interest rate swaps and continuous communication with financers.
Risks are also related to the effect of start-up of new clinics and hospitals on
the Company's profitability in the short term if operations do not start-up as
planned in new premises.
The task of the Company's risk management is to systematically and extensively
recognize and be aware of risks related to operations and to ensure that the
risks are managed appropriately when making operational decisions. The Company
continued the development of systematic risk management, as well as internal
supervision processes and systems, in 2008.
Outlook
According to published research, private healthcare services are expected to
continue growing in future years at an average annual rate of nine percent.
According to the company's view, further or continued weakening of the general
economic situation could possibly have an effect on the demand of private
healthcare services in Finland. Terveystalo will continue striving to grow
faster than the average market growth in its sector.
In the fall of 2007, Terveystalo launched an integration program to improve
operational efficiency and profitability. The program lasted until the end of
2008. The integration program progressed as planned in October-December as well.
From September 2007 to the end of 2008, the man-years at Terveystalo Group had
decreased by approximately 120 man-years, mainly from administration and from
the support functions in regional and unit organizations. Some of the synergy
benefits deriving from the reduction in man-years towards the end of 2008 will
realize fully after the termination periods end during 2009. Through the
program, the company achieved annual synergy benefits of EUR 3-5 million that
will mainly materialize from 2008 onwards.
Terveystalo expects its 2009 turnover and operating result to exceed the
turnover and operating result of 2008.
Board of Directors' dividend proposal to the Annual General Meeting
The parent company's loss for the period was EUR -3.1 million and the assets
subject to profit distribution totaled EUR 78.9 million.
The Board of Directors proposes that the loss for the period is transferred to
the company's unrestricted equity and no dividend is distributed.
Annual General Meeting
Terveystalo Healthcare Oyj's Annual General Meeting will be arranged in Helsinki
on June 11, 2009.
Terveystalo's printed financial statement and Annual Report for the year 2008
will be ready in week 19. It can be read on the company's Web pages at
www.terveystalo.com and ordered from Terveystalo Healthcare Oyj, Communications,
Ratapihantie 11, FI-00520 Helsinki.
Financial reports 2009
In 2009, Terveystalo Healthcare Oyj will publish the following interim reports:
interim report for January-March on May 28, 2009
interim report for January-June on August 13, 2009
interim report for January-September on November 12, 2009
TERVEYSTALO GROUP
Terveystalo Healthcare Oyj's (Suomen Terveystalo Oyj until the end of 2008)
January 1 - December 31, 2008, financial statement has been compiled in
accordance with the recognition and measurement principles set out in the
International Financial Reporting Standards (IFRS). When compiling this
financial statement, the company has applied the same principles as in the
financial statement for the fiscal year that ended on December 31, 2007, apart
from the interest rate costs presented in cash flow from financing in the cash
flow statement, which have here been adjusted to correspond with the
presentation method used in 2008. The reference data for the segments has been
adjusted to correspond with the segment division adopted from the beginning of
2008.
The figures in the income statement and balance sheet are Group figures. All
integral Group companies are consolidated in the Group's interim report.
Compiling the financial statements in accordance with IFRS standards requires
Terveystalo's management to use estimates and assumptions that affect the amount
of assets and liabilities at the time of balance sheet compilation. In addition,
the management must use discretion in the application of accounting principles
in the financial statement. The actual outcome may deviate from the estimates
and assumptions.
The financial statement figures included in the bulletin have been audited. The
original financial statement bulletin is in Finnish. The English financial
statement bulletin is a translation.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, EUR 1,000 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM ASSETS | | |
--------------------------------------------------------------------------------
| Tangible fixed assets | 55,358 | 58,926 |
--------------------------------------------------------------------------------
| Goodwill | 146,066 | 147,042 |
--------------------------------------------------------------------------------
| Other intangible assets | 38,168 | 42,932 |
--------------------------------------------------------------------------------
| Investment properties | 44 | 45 |
--------------------------------------------------------------------------------
| Investments in associates | 1,291 | 1,262 |
--------------------------------------------------------------------------------
| Receivables from associates | 17 | 17 |
--------------------------------------------------------------------------------
| Financial assets available for | 1,169 | 1,231 |
| sale | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 5,015 | 4,924 |
--------------------------------------------------------------------------------
| TOTAL LONG-TERM ASSETS | 247,128 | 256,380 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Current assets | 2,752 | 2,102 |
--------------------------------------------------------------------------------
| Account receivable and other | 36,035 | 24,928 |
| receivables | | |
--------------------------------------------------------------------------------
| Financial assets recognized at | 135 | 397 |
| fair value through profit or | | |
| loss | | |
--------------------------------------------------------------------------------
| Liquid Assets | 4,261 | 13,088 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 43,183 | 40,516 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 290,311 | 296,896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 31.12.2008 | 31.12.2007 |
| LIABILITIES | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 811 | 681 |
--------------------------------------------------------------------------------
| Share premium account | 459 | 459 |
--------------------------------------------------------------------------------
| Invested unrestricted capital | 91,142 | 77,809 |
| fund | | |
--------------------------------------------------------------------------------
| Accumulated Profits | -6,231 | 889 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 1,548 | 1,682 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY | 87,729 | 81,520 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LONG-TERM LIABILITIES | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 11,071 | 12,492 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 123,627 | 21,292 |
--------------------------------------------------------------------------------
| Other liabilities | 428 | 459 |
--------------------------------------------------------------------------------
| TOTAL LONG-TERM LIABILITIES | 135,126 | 34,243 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 36,986 | 38,428 |
| liabilities | | |
--------------------------------------------------------------------------------
| Deferred taxes based on the | 125 | 229 |
| taxable income for the | | |
| financial year | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 30,344 | 142,476 |
| liabilities | | |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 67,455 | 181,133 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 290,311 | 296,896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND | 1.10.- | 1.10.- | 1.1.- | 1.1.- |
| LOSS ACCOUNT, EUR 1,000 | 31.12.2008 | 31.12.2007 | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Turnover | 55,616 | 52,923 | 210,150 | 140,719 |
--------------------------------------------------------------------------------
| Other operating income | 83 | 321 | 3,202 | 1,049 |
--------------------------------------------------------------------------------
| Share of profit of | -97 | -50 | 395 | 365 |
| associates | | | | |
--------------------------------------------------------------------------------
| Raw material and | -7,798 | -9,780 | -32,701 | -23,955 |
| consumables used | | | | |
--------------------------------------------------------------------------------
| Employee benefit costs | -25,098 | -24,271 | -95,533 | -63,476 |
--------------------------------------------------------------------------------
| Depreciations and | -6,210 | -5,290 | -21,503 | -14,134 |
| write-downs | | | | |
--------------------------------------------------------------------------------
| Other operating | -14,443 | -13,766 | -56,929 | -40,166 |
| expenses | | | | |
--------------------------------------------------------------------------------
| OPERATING RESULT | 2,053 | 88 | 7,080 | 401 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income | 159 | 141 | 298 | 564 |
--------------------------------------------------------------------------------
| Finance costs | -6,198 | -2,771 | -15,648 | -5,092 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX | -3,985 | -2,542 | -8,270 | -4,127 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 1,588 | 679 | 1,047 | 1,146 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | -2,397 | -1,862 | -7,222 | -2,981 |
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| - Parent company owners | -2,306 | -1,810 | -7,101 | -3,088 |
--------------------------------------------------------------------------------
| - Minority interest | -91 | -52 | -121 | 107 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated on the profit belonging to the owners of the |
| parent company (EUR) |
--------------------------------------------------------------------------------
| Undiluted | -0.03 | -0.03 | -0.10 | -0.05 |
--------------------------------------------------------------------------------
| Diluted | -0.03 | -0.03 | -0.10 | -0.05 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | |
--------------------------------------------------------------------------------
| EUR 1,000 | 1.1.- | 1.1.- |
| | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operations | | |
--------------------------------------------------------------------------------
| Profit for the period | -7,223 | -2,980 |
--------------------------------------------------------------------------------
| Adjustments to the profit for the | 33,087 | 17,052 |
| period | | |
--------------------------------------------------------------------------------
| Change in working capital | -12,182 | -3,231 |
--------------------------------------------------------------------------------
| Interest received | 282 | 514 |
--------------------------------------------------------------------------------
| Taxes paid | -142 | -1,870 |
--------------------------------------------------------------------------------
| Net cash flow from operations | 13,822 | 9,485 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments | | |
--------------------------------------------------------------------------------
| Acquired operations | 0 | -130,236 |
--------------------------------------------------------------------------------
| Investments in tangible and intangible | -9,195 | -15,455 |
| assets | | |
--------------------------------------------------------------------------------
| Disposal of associates | 0 | 123 |
--------------------------------------------------------------------------------
| Income from business operation | 3,399 | 0 |
| divestments | | |
--------------------------------------------------------------------------------
| Gains on disposal of assets | 221 | 335 |
--------------------------------------------------------------------------------
| Dividends received | 378 | 465 |
--------------------------------------------------------------------------------
| Net cash in investing activities | -5,196 | -144,768 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | |
--------------------------------------------------------------------------------
| Share issue payments | 14,261 | 48,187 |
--------------------------------------------------------------------------------
| Costs of issuing equity | -863 | -2,065 |
--------------------------------------------------------------------------------
| Withdrawals of loans | 22,000 | 134,829 |
--------------------------------------------------------------------------------
| Repayment of loans | -31,466 | -33,191 |
--------------------------------------------------------------------------------
| Paid interest | -16,629 | -2,327 |
--------------------------------------------------------------------------------
| Repayment of finance lease liabilities | -4,724 | -3,603 |
--------------------------------------------------------------------------------
| Dividends paid | -33 | -29 |
--------------------------------------------------------------------------------
| Net cash flow from financing | -17,454 | 141,800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets at beginning of period | 13,088 | 6,571 |
--------------------------------------------------------------------------------
| Liquid assets at end of period | 4,261 | 13,088 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY 1.1. - |
| 31.12.2008 |
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Unrestri | Retained | Minority| Total |
| | capital | premium | cted | earnings | interest| |
| | | account | equity | | | |
| | | | reserve | | | |
--------------------------------------------------------------------------------
| Shareholders'| 681 | 459 | 77,809 | 889 | 1,682 | 81,520 |
| equity Jan 1,| | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
| Option | 0 | 0 | 64 | 0 | 0 | 64 |
| program | | | | | | |
--------------------------------------------------------------------------------
| Subscription | 130 | 0 | 14,132 | 0 | 0 | 14,262 |
| Rights issue | | | | | | |
--------------------------------------------------------------------------------
| Equity | 0 | 0 | -863 | 0 | 0 | -863 |
| acquisition | | | | | | |
| costs | | | | | | |
--------------------------------------------------------------------------------
| Redeemed | 0 | 0 | 0 | 0 | -13 | -13 |
| subsidiary | | | | | | |
| minorities | | | | | | |
--------------------------------------------------------------------------------
| Loss for the | 0 | 0 | 0 | -7,101 | -121 | -7,222 |
| period | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | 0 | -18 | 0 | -18 |
--------------------------------------------------------------------------------
| Shareholders'| 811 | 459 | 91,141 | -6,230 | 1,548 | 87,729 |
| equity Dec | | | | | | |
| 31, 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CALCULATION OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY 1.1. - |
| 31.12.2007 |
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Share | Unrest | Retained| Minori | Total |
| | capit | premium | issue | ricted | earnings| ty | |
| | al | account | | equity | | intere | |
| | | | | reserve| | st | |
| | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders'| 472 | 31,211 | 315 | 630 | 4,021 | 1,892 | 38,542 |
| equity Jan 1,| | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
| Costs of | 0 | 0 | 0 | -2,727 | 0 | 0 | -2,727 |
| issuing | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 0 | 0 | 0 | 709 | 0 | 0 | 709 |
| on costs of | | | | | | | |
| issuing | | | | | | | |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Rights issue | 201 | 0 | 0 | 47,984 | 0 | 0 | 48,185 |
--------------------------------------------------------------------------------
| Dividend | 0 | 0 | 0 | 0 | -44 | 0 | -44 |
--------------------------------------------------------------------------------
| Unsubscribed | 0 | 0 | -315 | 0 | 0 | 0 | -315 |
| share issue | | | | | | | |
--------------------------------------------------------------------------------
| Conversion | 8 | 459 | 0 | 0 | 0 | 0 | 467 |
| of | | | | | | | |
| convertible | | | | | | | |
| bond into | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Transfer of | 0 | -31,211 | 0 | 31,211 | 0 | 0 | 0 |
| share | | | | | | | |
| premium | | | | | | | |
| account to | | | | | | | |
| unrestricted | | | | | | | |
| equity | | | | | | | |
| reserve | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | 0 | 0 | 0 | -317 | -317 |
| interests in | | | | | | | |
| acquisitions | | | | | | | |
| and other | | | | | | | |
| changes | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 0 | 0 | 0 | 0 | -3,088 | 107 | -2,981 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders'| 681 | 459 | 0 | 77,807 | 889 | 1,682 | 81,520 |
| equity Dec | | | | | | | |
| 31, 2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SEGMENT REPORTING, | 1.10.- | 1.10.- | 1.1- | 1.1.- |
| 1,000 EUR |31.12.2008 | 31.12.2007 | 31.12.2008 | 31.12.2007 |
| | | | | |
--------------------------------------------------------------------------------
| Turnover by segment | | | |
--------------------------------------------------------------------------------
| Occupational | 41,546 | 32,974 | 139,038 | 63,808 |
| Healthcare segment | | | | |
--------------------------------------------------------------------------------
| Clinics and | 18,947 | 12,315 | 70,652 | 54,897 |
| Hospitals segment | | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 7,902 | 10,803 | 28,574 | 32,489 |
--------------------------------------------------------------------------------
| Unallocated | 832 | 55 | 3,736 | 2,667 |
--------------------------------------------------------------------------------
| Intra-group sales | -13,609 | -3,226 | -31,850 | -13,142 |
--------------------------------------------------------------------------------
| Total turnover | 55,616 | 52,923 | 210,150 | 140,719 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result by segment | | | |
--------------------------------------------------------------------------------
| Occupational | 4,467 | -1,928 | 11,241 | -2,929 |
| Healthcare segment | | | | |
--------------------------------------------------------------------------------
| Clinics and | 1,126 | 3,190 | 8,265 | 11,310 |
| Hospitals segment | | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 1,358 | 1,718 | 6,796 | 4,225 |
--------------------------------------------------------------------------------
| Unallocated | -4,898 | -2,892 | -19,222 | -12,204 |
--------------------------------------------------------------------------------
| Total operating | 2,053 | 88 | 7,080 | 401 |
| result | | | | |
--------------------------------------------------------------------------------
| Operating result / | 3.7% | 0.2% | 3.4% | 0.3% |
| turnover, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing profits | -6,039 | -2,630 | -15,350 | -4,528 |
| and costs | | | | |
--------------------------------------------------------------------------------
| Earnings before tax | -3 985 | -2 542 | -8 270 | -4 126 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | 1 588 | 679 | 1 047 | 1 146 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | -2 397 | -1 862 | -7 222 | -2 981 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND LOSS ACCOUNT, BY QUARTER, | | |
| EUR 1,000 | | |
--------------------------------------------------------------------------------
| | 1.10.- | 1.7.- | 1.4.- | 1.1- | 1.10.- |
| | 31.12.2008 | 30.9.2008 | 30.6.2008 | 31.3.2008 | 31.12.2007|
| | | | | | |
--------------------------------------------------------------------------------
| Turnover | 55,616 | 45,821 | 55,844 | 52,868 | 52,923 |
--------------------------------------------------------------------------------
| Other | 83 | 213 | 253 | 2,653 | 321 |
| operating | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Share in | -97 | 61 | 309 | 122 | -50 |
| associated | | | | | |
| companies | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Raw | -7,798 | -8,447 | -9,194 | -7,262 | -9,780 |
| material | | | | | |
| and | | | | | |
| consumables | | | | | |
| used | | | | | |
--------------------------------------------------------------------------------
| Employee | -25,098 | -19,958 | -24,980 | -25,497 | -24,271 |
| benefit | | | | | |
| costs | | | | | |
--------------------------------------------------------------------------------
| Depreciation| -6,210 | -5,255 | -4,703 | -5,336 | -5,290 |
| | | | | | |
--------------------------------------------------------------------------------
| Other | -14,443 | -14,002 | -15,377 | -13,107 | -13,766 |
| operating | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 2,053 | -1,567 | 2,151 | 4,442 | 87 |
| RESULT | | | | | |
--------------------------------------------------------------------------------
| Financial | -35 | -1 202 | 1 443 | 93 | 141 |
| income | | | | | |
--------------------------------------------------------------------------------
| Finance | -6,004 | -3,336 | -2,287 | -4,022 | -2,771 |
| costs | | | | | |
--------------------------------------------------------------------------------
| Profit | -3,985 | -6,105 | 1,306 | 513 | -2,542 |
| before | | | | | |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Income | 1,588 | -44 | -804 | 307 | 680 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| PROFIT FOR | -2,397 | -6,148 | 502 | 820 | -1,862 |
| THE PERIOD | | | | | |
--------------------------------------------------------------------------------
| Attributable| | | | | |
| to: | | | | | |
--------------------------------------------------------------------------------
| Equity | -2,306 | -6,081 | 377 | 909 | -1,810 |
| holders of | | | | | |
| the Company | | | | | |
--------------------------------------------------------------------------------
| Minority | -91 | -67 | 125 | -89 | -52 |
| interest | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | 1.1.- | 1.1.- |
| | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Average personnel | 2,347 | 1,689 |
--------------------------------------------------------------------------------
| Personnel at end of period | 2,351 | 2,398 |
--------------------------------------------------------------------------------
Calculation of financial ratios:
Return on equity, % =
100 x (Profit before tax - direct taxes)/
(Shareholders' equity + minority interest (average))
Return on investment, % =
100 x (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 shares at end of the review period
Quick ratio =
Liquid assets / (Current liabilities - advances received)
TERVEYSTALO HEALTHCARE OYJ
Board of Directors
ADDITIONAL INFORMATION:
Martti Kiuru, Managing Director, tel. +358 30 633 1629,
martti.kiuru@terveystalo.com
Jukka Yli-Hankala, Chief Financial Officer, tel. +358 30 633 1743,
jukka.yli-hankala@terveystalo.com
The bulletin and tables are available at: http://www.terveystalo.com
Terveystalo:
Terveystalo is Finland's leading private healthcare service company, offering
versatile healthcare, occupational healthcare, diagnostic and hospital services.
The Company has more than 100 units across Finland. Established in 2001,
Terveystalo has grown strongly throughout its history.
The statements about the future are based on the situation when this 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 Terveystalo Group's
actual earnings, operations and accomplishments compared to any statements
related to future earnings, and 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, and the company's ability to utilize its investments and implement
its integration program and its business strategy.
Distribution:
NASDAQ OMX Helsinki Oy
Principal media
www.terveystalo.com
TERVEYSTALO'S FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31, 2008
| Source: Terveystalo Healthcare Oyj