TERVEYSTALO HEALTHCARE OYJ INTERIM REPORT
May 29, 2009 at 1:00 p.m.
TERVEYSTALO'S INTERIM REPORT JANUARY 1 - MARCH 30, 2009
Terveystalo's turnover in January-March increased by 7.9 per cent, while
operating profit decreased by 24.3 per cent compared with January-March 2008.
Taking into account non-recurring items realized during the review period and
reference period, the operating profit increased by 59.7 per cent. Turnover
amounted to EUR 57.0 million and operating profit stood at EUR 3.4 million.
January-March 2009 (January-March 2008)
- Turnover EUR 57.0 million (52.9).
- Operating profit EUR 3.4 million (4.4). Operating profit excluding
non-recurring items was EUR 3.7 million (2.3).
- In January-March, operating profit decreased by 24.3 per cent. Taking into
account non-recurring items realized during the review period and reference
period, the operating profit increased by 59.7 per cent.
- Terveystalo expects its 2009 turnover and operating profit to exceed the
turnover and operating profit of 2008.
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| KEY FIGURES | Jan. 1 - | Jan. 1 - | Jan. 1 - |
| | Mar. 31, | Mar. 31, | Dec. 31, 2008 |
| | 2009 | 2008 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turnover, EUR 1,000 | 57,026 | 52,868 | 210,150 |
--------------------------------------------------------------------------------
| Operating profit, EUR 1,000 | 3,363 | 4,442 | 7,080 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.01 | 0.01 | -0.10 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.08 | 1.21 | 1.08 |
--------------------------------------------------------------------------------
| Net gearing, % | 171.6 | 188.0 | 170.7 |
--------------------------------------------------------------------------------
| Return on investment, % (ROI)* | 5.7 | 10.6 | 3.0 |
--------------------------------------------------------------------------------
| Return on equity, % (ROE)* | -3.3 | 5.4 | -8.5 |
--------------------------------------------------------------------------------
| Capital adequacy, % | 29.8 | 28.0 | 30.3 |
--------------------------------------------------------------------------------
| Operating profit / turnover, % | 5.9 | 8.4 | 3.4 |
--------------------------------------------------------------------------------
* The income statement figures used in the calculation have been annualized.
Terveystalo Healthcare Oyj (Terveystalo) Group´s turnover increased in
January-March 2009 by 7.9 per cent compared to the corresponding period in the
previous year and amounted to EUR 57.0 million (EUR 52.9 million in
January-March 2008). Operating profit decreased by 24.3 per cent. Taking into
account non-recurring items realized during the review period and reference
period, the operating profit increased by 59.7 per cent.
Managing Director Martti Kiuru:
“Terveystalo's turnover continued to grow in January-March. In addition, result
from actual operations was better than the year before because operating profit,
including non-recurring items realized during the review period and reference
period, increased by 59.7 per cent compared with the previous year. The
continued decline in the general financial situation did not have much impact on
the demand for Terveystalo's healthcare services at the beginning of the year.
We expect that our growth and development program started in February 2009 will
further improve the efficiency and results of our operations.”
Market situation
The demand for private healthcare services in Finland is increased e.g. by their
availability, the ageing population, increased wealth, general interest towards
health and increased acquisition of healthcare services by the insurance and
public sectors. Furthermore, the demand for private occupational healthcare
services continues to increase.
January 1 - March 31, 2009
In January-December 2009, Terveystalo's turnover increased by 7.9 percent
compared to the corresponding period last year and amounted to EUR 57.0 million
(EUR 52.9 million in January-December 2008).
Operating profit decreased by 24.3 percent from the corresponding period last
year and was EUR 3.4 million, i.e. 5.9 percent of turnover (EUR 4.4 million,
8.4% in January-March 2008). Operating profit excluding non-recurring items was
EUR 3.7 million, i.e. 6.4 per cent of turnover (EUR 2.3 million, 4.3%). Taking
into account non-recurring items realized during the review period and reference
period, the operating profit increased by 59.7 per cent. Non-recurring items
registered during the review period included expense items of a total of EUR 0.3
million related to a public tender offer. The reference period's operating
profit included non-recurring sales gains of EUR 2.1 million relating to the
sale of the Central Laboratory's business operations. After the non-recurring
items, the growth in operating profit was affected by turnover growth and
operational efficiency procedures following the implemented integration program,
which included the increased efficiency and unification of procedures, as well
as merging of units.
In January-March 2009, a total of EUR -1.1 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 -0.7
million, i.e. -1.3 per cent of turnover (EUR 0.9 million, 1.7%). Taking into
account the non-recurring expense items included in operating profit and the
non-recurring finance-expense entry of EUR 0.5 million related to the
reorganization of Terveystalo's loans implemented during the review period, the
earnings belonging to the owners of the parent company stood at EUR 0.1 million,
i.e. 0.2 per cent of turnover (EUR -1.2 million, -2.4% taking into account the
reference period's non-recurring item). Earnings per share calculated from
earnings belonging to the owners of the parent company were EUR -0.01 (EUR
0.01).
Terveystalo Healthcare Oyj
Business operations
The company name was changed to Terveystalo Healthcare Oyj from the beginning of
2009.
Terveystalo Healthcare Oyj offers comprehensive healthcare services to its
municipal and partnership customers, occupational healthcare customers and
private individuals. The Group's business operations are reported as three
business segments: the Occupational Healthcare segment, the Clinics and
Hospitals segment and the Diagnostics segment.
On February 18, 2009, Inspecta Certification granted the SFS-EN ISO 9001:2008
certificate (no. 3612-02) to Terveystalo Healthcare Oyj. The certificate covers
clinic (medical center), hospital and occupational healthcare services, imaging,
laboratory operations, customer services and Group functions.
Business segments
Occupational Healthcare segment
At the end of March 2009, Terveystalo had more than one hundred units that offer
occupational healthcare services.
Clinics and Hospitals segment
Terveystalo's largest clinic up to date was opened in the center of Helsinki in
January. Building projects related to new clinic-hospital facilities in
Jyväskylä and Kouvola were started in January-March. The Neurological know-how
center operating in accordance with the Group's know-how center concept was
opened in Turku. In January-March, the Accident, Orthopedic and Sports special
clinics operating in accordance with the special clinics concept were opened in
Helsinki, the Children's clinic in Kouvola, and the Vaccination and Travel
clinic in Kotka and Kouvola.
The service selection was improved in January-March by expanding the operations
of units in Kuopio and Oulu that have previously operated as occupational
healthcare units to cover general practitioner and specialist services for
private customers, by expanding clinic operations in Tornio and Vaasa, and by
acquiring additional facilities for the Terveystalo clinic in Forssa.
Diagnostics segment
In the beginning of the year, Terveystalo's and Finland's largest private
medical imaging center was opened in Helsinki.
Turnover by segment
In January-March 2009, the Occupational Healthcare segment's share of the
Group's turnover was 54.5 per cent, the Clinics and Hospitals segment's share
was 30.3 per cent and the Diagnostics segment's share was 13.5 per cent.
--------------------------------------------------------------------------------
| Turnover by segment | | | | | |
--------------------------------------------------------------------------------
| Jan. 1 - | Occupati | Clinics | Diagnost | Unalloc | Elimina | Group |
| Mar. 31, | onal | and | ics | ated | tions | total |
| 2009, EUR |Healthcare| Hospitals | segment | | | |
| 1,000 | segment | segment | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| External | 31,080 | 17,251 | 7,692 | 1,003 | 0 | 57,026 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Intra-group | 2,948 | 591 | 576 | 0 | -4,115 | 0 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Turnover | 34,027 | 17,842 | 8,268 | 1,003 | -4,115 | 57,026 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jan. 1 - | Occupati | Clinics | Diagnost | Unalloc | Elimina | Group |
| Mar. 31, | onal | and | ics | ated | tions | total |
| 2008, EUR |Healthcare| Hospitals | segment | | | |
| 1,000 | segment| segment | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| External | 28,455 | 16,560 | 6,777 | 1,077 | 0 | 52,868 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Intra-group | 3,345 | 1,746 | 870 | 0 | -5,961 | 0 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Group total | 31,801 | 18,306 | 7,646 | 1,077 | -5,961 | 52,868 |
| turnover | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Jan 1 - | Occupati | Clinics | Diagnost | Unalloc | Elimina | Group |
| Dec. 12, | onal | and | ics | ated | tions | total |
| 2008, EUR | Healthca | Hospitals | segment | | | |
| 1,000 | re | segment | | | | |
| | segment | | | | | |
--------------------------------------------------------------------------------
| External | 125,320 | 58,692 | 22,402 | 3,736 | 0 | 210,150 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Intra-group | 13,718 | 11,960 | 6,172 | 0 | -31,850 | 0 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Group total | 139,038 | 70,652 | 28,573 | 3,736 | -31,850 | 210,150 |
| turnover | | | | | | |
--------------------------------------------------------------------------------
The Unallocated item includes the Group's share of the operations of the AVA
clinic that focuses on fertilization treatment.
Operating profit by segment
--------------------------------------------------------------------------------
| Operating profit by segment | | |
--------------------------------------------------------------------------------
| EUR 1,000 | Jan 1 - | Jan 1 - | Jan 1 - |
| | Mar. 31, | Mar. 31, | Dec. 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Occupational Healthcare | 3,065 | 2,609 | 11,241 |
| segment | | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals | 2,735 | 3,187 | 8,265 |
| segment | | | |
--------------------------------------------------------------------------------
| Diagnostics segment | 1 943 | 4,055 | 6,796 |
--------------------------------------------------------------------------------
| Unallocated | -4,381 | -5,409 | -19,222 |
--------------------------------------------------------------------------------
| Group total | 3,363 | 4,442 | 7,080 |
--------------------------------------------------------------------------------
The Unallocated item in January-March 2009 includes a non-recurring expense
entry of EUR 0.3 million related to a public bid. The January-March 2008
operating profit of the Diagnostics segment includes a EUR 2.1 million
non-recurring sales gain.
The costs from Group operations (HR, Quality, Finance, IT 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 4.4 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-March 2009.
Return on equity
In January-March 2009, the return on investment (ROI) was 5.7 per cent (10.6% in
January-March 2008). Return on equity (ROE) was -3.3 per cent (5.4%).
Balance sheet and financing
At the end of March 2009, the balance sheet total was EUR 293.2 million (EUR
294.2 million at the end of March 2008).
At the end of March 2009, Terveystalo Group's Quick Ratio was 1.0 (0.6 at the
end of March 2008). The Group's liquid assets, including financial securities,
amounted to EUR 3.4 million at the end of March (EUR 6.2 million). On January
19, 2009, Terveystalo signed an agreement with certain financial institutions on
the refinancing of Terveystalo's loan arrangements. The loan arrangement was
executed on February 27, 2009. In addition, interest hedging agreements related
to loans from financial institutions were reorganized during the review period.
In January-March 2009, the company withdrew new interest bearing loans of EUR
137.6 million, and repaid EUR 133.3 million in interest bearing loans and EUR
6.2 million in interest. Net gearing at the end of the review period was 171.6
per cent (188.0%).
Cash flow
In January-March 2009 operational cash flow was EUR 8.0 million (EUR 1.2 million
in January-March 2008).
Personnel
In January-March 2009, the average number of personnel was 2,386 (average in
January-March 2008 was 2,390). At the end of March 2009, the number of personnel
was 2,390 (2,369 at the end of March 2008).
At the end of the review period, 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-March 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 merged 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. At the same time, the
company name of the operative subsidiary Suomen Terveystalo Diagnostiikka Oy was
changed to Suomen Terveystalo Oy.
At the end of March 2009, the Terveystalo Group consisted of the parent company,
Terveystalo Healthcare Oyj, and its 17 subsidiaries.
Public bid, January 19, 2009
On January 19, 2009, Terveystalo Healthcare Oyj and Star Healthcare Oy signed a
transaction agreement, according to which Star Healthcare made a public offer
for all Terveystalo shares not owned by Terveystalo, and Terveystalo's option
rights. A precondition for the bid was that the offer will include an amount of
shares that corresponds with more than 90 per cent of the shares and votes in
Terveystalo. The bid price was EUR 2.00 per share in cash, which was 203.0 per
cent higher than the closing price of Terveystalo's share on NASDAQ OMX Helsinki
Oy on January 16, 2008. The bid price for the option rights was EUR 0.20 in cash
for each option right. Terveystalo's shareholders, representing 51.8 per cent 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 based on the commitments will exceed 50 per cent 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.
On February 19, 2009, the final outcome of the bid was confirmed to be 95.7 per
cent 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.
Shares and share capital
At the end of March 2009, Terveystalo's share capital was EUR 811,064.21 (EUR
811,064.21 at the end of 2008) and the total number of shares was 81,106,421.
The share ticker in the book-entry system is SUT1V.
In January-March 2009, the highest share price was EUR 2.01 and the lowest was
EUR 0.54. In January-March, the trading-weighted average share price was EUR
1.85 and the closing price on March 31, 2009 was EUR 1.97. In January-March,
86,761,363 shares were exchanged, which corresponds to 107.0 per cent 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 March 31, 2009, was EUR 159.8
million. At the end of the review period, the company had 1,751 shareholders
(7,191 at the end of 2008).
On March 31, 2009, the company owned 40,400 of its own shares. The total number
of these shares corresponds with 0.05 per cent of all shares and votes at the
end of the review period.
Extraordinary General Meeting, March 9, 2009
Terveystalo Healthcare Oyj's Extraordinary General Meeting (EGM) held on March
9, 2009 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 as 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 more than 95 per cent of Terveystalo
Healthcare Oyj's shares and votes. Of the members of the Terveystalo Healthcare
Oyj's Board of Directors appointed by Terveystalo's EGM on March 9, 2009 Herold,
Johansson and Lövgren represent Bridgepoint and are thus dependent Board members
and 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 the Terveystalo Group'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 said 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. The
company aims at controlling these risks using guidelines and rules, or they are
partially or 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 interaction with financers.
Risks are also related to the impact of starting new units, such as hospitals,
on the company's short-term profitability.
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
will continue the development of systematic risk management, as well as internal
supervision processes and systems, in 2009.
Outlook
According to Terveystalo's view, further or continued weakening of the general
economic situation in Finland could possibly have an effect on the demand for
private healthcare services. The company 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. From September 2007 to the end of 2008, the number of man-years at
Terveystalo Group had, relating to the integration program, decreased by
approximately 120, mainly from administration and from support functions in
regional and unit organizations. Some of the synergy benefits deriving from the
reduction in man-years at the end of 2008 will not be fully realized until 2009.
Through the program, the company achieved annual synergy benefits of EUR 3-5
million that will mainly materialize from 2008 onwards. The growth and
development program started in February 2009 is expected to further improve the
efficiency of the company's operations and increase its competitiveness.
Terveystalo expects its 2009 turnover and operating profit to exceed the
turnover and operating profit of 2008.
Events after the review period
Annual General Meeting, April 28, 2009
Terveystalo Healthcare Oyj's Annual General Meeting (AGM) held on April 28, 2009
confirmed the 2008 financial statements and consolidated financial statements,
and granted discharge from liability for the Board of Directors and the Managing
Director for 2008.
According to the Board of Directors' proposal, the AGM confirmed that the Board
of Directors consists of four (4) members and re-elected Mikael Lövgren, Håkan
Johansson, Mika Herold and Martti Kiuru as members of the Board of Directors. In
its meeting held after the Annual General Meeting, the Board of Directors
re-elected Mikael Lövgren as Chairman.
Following the Board of Directors' proposal, the AGM decided that no fees be paid
for the members of the Board of Directors. The Board members and auditors will
be compensated for reasonable travel expenses against an invoice.
According to the Board of Directors' proposal, the AGM elected KMPG Oy AB,
Authorized Public Accountants, as the company's new auditor with Jari Härmälä,
Authorized Public Accountant, as head auditor.
The Annual General Meeting approved the Board of Directors' proposal on the
distribution of profits, according to which no dividend be paid and the loss of
the fiscal year that ended on December 31, 2008 be transferred into the
profit/loss account.
Major shareholders
Through the public tender offer released on January 19, 2009, Star Healthcare Oy
has obtained more than nine-tenths (9/10) of Terveystalo's shares and, as a
result, has, in accordance with section 1 of chapter 18 of the Companies Act,
obtained the right to redeem the shares held by all other remaining Terveystalo
shareholders at a fair price. Star Healthcare Oy has commenced redemption
proceedings by notifying Terveystalo of the situation on February 26, 2009. On
April 30, 2009, Star Healthcare Oy owned 96.24 per cent of Terveystalo
Healthcare Oyj's shares.
TERVEYSTALO GROUP
Terveystalo Healthcare Oyj's interim report January 1 - March 31, 2009 has been
compiled in accordance with the recognition and measurement principles set out
in the International Financial Reporting Standards (IFRS). However, not all of
the requirements of IAS 34: Interim Financial Reporting have been followed. When
compiling this interim report release, the company has applied the same
principles as in the financial statements for the fiscal year that ended on
December 31, 2008. Of the IAS and IFRS revisions and amendments entered into
force on January 1, 2009, IAS 1 has had an impact on the presentation method of
the consolidated financial statements and the statement on changes in equity,
even though the Group does not have any items to be presented in the statement
of comprehensive income. There have also been changes in the IFRS 8, IAS 23, IAS
27, IFRS 2 and IAS 32 standards that are in effect for financial periods
starting from January 1, 2009, but they have not had any significant impact on
the Group's figures.
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 interim report in accordance with the 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 interim report. The actual outcome may deviate from the estimates and
assumptions.
The information presented in the interim report is unaudited. The original
financial statements release is in Finnish. The English financial statements
release is a translation.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, EUR 1,000 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | MAR. 31, | MAR. 31, | DEC. 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Tangible fixed assets | 53,234 | 56,779 | 55,358 |
--------------------------------------------------------------------------------
| Goodwill | 146,066 | 146,711 | 146,066 |
--------------------------------------------------------------------------------
| Other intangible assets | 36,406 | 42,577 | 38,168 |
--------------------------------------------------------------------------------
| Investment properties | 44 | 45 | 44 |
--------------------------------------------------------------------------------
| Investments in associates | 1,361 | 1,384 | 1,291 |
--------------------------------------------------------------------------------
| Receivables from | 17 | 17 | 17 |
| associates | | | |
--------------------------------------------------------------------------------
| Financial assets available | 1,168 | 1,246 | 1,169 |
| for sale | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 6,448 | 4,897 | 5,015 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 244,743 | 253,657 | 247,128 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 2,823 | 2,049 | 2,752 |
--------------------------------------------------------------------------------
| Account receivable and | 42,100 | 32,244 | 36,035 |
| other receivables | | | |
--------------------------------------------------------------------------------
| Financial assets | 253 | -313 | 135 |
| recognized at fair value | | | |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Liquid assets | 3,304 | 6,536 | 4,261 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 48,480 | 40,516 | 43,183 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 293,222 | 294,174 | 290,311 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | MAR. 31, | MAR. 31, | DEC. 31, |
| LIABILITIES | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 811 | 681 | 811 |
--------------------------------------------------------------------------------
| Share premium account | 459 | 459 | 459 |
--------------------------------------------------------------------------------
| Invested unrestricted | 91,371 | 77,809 | 91,142 |
| capital fund | | | |
--------------------------------------------------------------------------------
| Accumulated profits | -6,951 | 1,798 | -6,231 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 1,560 | 1,593 | 1,548 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY | 87,250 | 82,340 | 87,729 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 12,192 | 12,029 | 11,071 |
--------------------------------------------------------------------------------
| Interest-bearing | 143,859 | 138,669 | 123,627 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other liabilities | 348 | 458 | 428 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT | 156,400 | 151,156 | 135,126 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 40,311 | 37,111 | 36,986 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Deferred taxes based on | 82 | 49 | 125 |
| the taxable income for the | | | |
| financial year | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 9,181 | 23,516 | 30,344 |
| liabilities | | | |
--------------------------------------------------------------------------------
| TOTAL CURRENT LIABILITIES | 49,573 | 60,676 | 67,455 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND | 293,222 | 294,174 | 290,311 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND LOSS | JAN. 1 - | JAN. 1 - | JAN. 1 - |
| ACCOUNT, EUR 1,000 | MAR 31, | MAR 31, | DEC. 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Turnover | 57,026 | 52,868 | 210,150 |
--------------------------------------------------------------------------------
| Other operating income | 191 | 2,653 | 3,202 |
--------------------------------------------------------------------------------
| Share of profit of | 70 | 122 | 395 |
| associates | | | |
--------------------------------------------------------------------------------
| Raw materials and supplies | -9,196 | -7,262 | -32,701 |
--------------------------------------------------------------------------------
| Employee benefit costs | -25,046 | -25,497 | -95,533 |
--------------------------------------------------------------------------------
| Depreciations and | -5,391 | -5,336 | -21,503 |
| write-downs | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -14,291 | -13,107 | -56,929 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 3,363 | 4,442 | 7,080 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income | 62 | 93 | 298 |
--------------------------------------------------------------------------------
| Finance costs | -4,293 | -4,022 | -15,648 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX | -868 | 513 | -8,270 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | 159 | 307 | 1,047 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | -708 | 820 | -7,222 |
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| - Parent company owners | -720 | 909 | -7,101 |
--------------------------------------------------------------------------------
| - Minority interest | 12 | -89 | -121 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated on the profit belonging to the owners of the |
| parent company (EUR) |
--------------------------------------------------------------------------------
| Undiluted | -0.01 | 0.01 | -0.10 |
--------------------------------------------------------------------------------
| Diluted | -0.01 | 0.01 | -0.10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF | JAN. 1 - | JAN. 1 - | JAN. 1 - |
| COMPREHENSIVE INCOME, EUR | MAR. 31, | MAR. 31, | DEC. 31, |
| 1,000 | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | -708 | 820 | -7,222 |
--------------------------------------------------------------------------------
| Items in comprehensive | 0 | 0 | 0 |
| income for the period | | | |
--------------------------------------------------------------------------------
| COMPREHENSIVE INCOME FOR THE | -708 | 820 | -7,222 |
| PERIOD | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| - Parent company owners | -720 | 909 | -7,101 |
--------------------------------------------------------------------------------
| - Minority interest | 12 | -89 | -121 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONDENSED CASH FLOW STATEMENT | | |
--------------------------------------------------------------------------------
| EUR 1,000 | JAN. 1 - | JAN. 1 - | JAN. 1 - |
| | MAR. 31, | MAR. 31, | DEC. 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operations | | | |
--------------------------------------------------------------------------------
| Profit for the period | -708 | -820 | -7,223 |
--------------------------------------------------------------------------------
| Adjustments to the profit for | 9,616 | 6,498 | 33,087 |
| the period | | | |
--------------------------------------------------------------------------------
| Change in working capital | -895 | -6,366 | -12,182 |
--------------------------------------------------------------------------------
| Interest received | 39 | 6 | 282 |
--------------------------------------------------------------------------------
| Taxes paid | -83 | 253 | -142 |
--------------------------------------------------------------------------------
| Net cash flow from operations | 7,969 | 1,212 | 13,822 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | -1,357 | -4,258 | -9,195 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Income from business operation | 0 | 3,399 | 3,399 |
| divestments | | | |
--------------------------------------------------------------------------------
| Gains on disposal of assets | 6 | 361 | 221 |
--------------------------------------------------------------------------------
| Dividends received | 1 | 1 | 378 |
--------------------------------------------------------------------------------
| Net cash in investing | -1,351 | -497 | -5,196 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
--------------------------------------------------------------------------------
| Share issue payments | 0 | 0 | 14,261 |
--------------------------------------------------------------------------------
| Costs of issuing equity | 0 | 0 | -863 |
--------------------------------------------------------------------------------
| Withdrawals of loans | 137,639 | 12 | 22,000 |
--------------------------------------------------------------------------------
| Repayment of loans | -132,012 | -303 | -31,466 |
--------------------------------------------------------------------------------
| Loan acquisition costs | -5,677 | 0 | 0 |
--------------------------------------------------------------------------------
| Paid interest | -6,234 | -5,901 | -16,629 |
--------------------------------------------------------------------------------
| Repayment of finance lease | -1,291 | -1,075 | -4,724 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | 0 | -33 |
--------------------------------------------------------------------------------
| Net cash flow from financing | -7,575 | -7,267 | -17,454 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets at beginning of | 4,261 | 13,088 | 13,088 |
| period | | | |
--------------------------------------------------------------------------------
| Liquid assets at end of period | 3,304 | 6,536 | 4,261 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY January 1 - March |
| 31, 2008 |
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Unrestric | Retained | Minority| Total |
| | capital | premium | ted | earnings | interest| |
| | | account | equity | | | |
| | | | reserve | | | |
--------------------------------------------------------------------------------
| Shareholder | 811 | 459 | 91,141 | -6,231 | 1,548 | 87,729 |
| s' equity, | | | | | | |
| Jan. 1, | | | | | | |
| 2009 | | | | | | |
--------------------------------------------------------------------------------
| Option | 0 | 0 | 229 | 0 | 0 | 229 |
| program | | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | 0 | 0 | 0 | -720 | 12 | -708 |
| ve income | | | | | | |
--------------------------------------------------------------------------------
| Shareholder | 811 | 459 | 91,370 | -6,951 | 1,560 | 87,250 |
| s' equity, | | | | | | |
| Mar. 31, | | | | | | |
| 2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY January 1 - March |
| 31, 2008 |
--------------------------------------------------------------------------------
| EUR 1,000 | Share | Share | Unrestric | Retained | Minority| Total |
| | capital | premium | ted | earnings | interest| |
| | | account | equity | | | |
| | | | reserve | | | |
--------------------------------------------------------------------------------
| Shareholder | 681 | 459 | 77,809 | 889 | 1,682 | 81,520 |
| s' equity, | | | | | | |
| Jan 1, 2008 | | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | 0 | 0 | 0 | 909 | -89 | 820 |
| ve income | | | | | | |
--------------------------------------------------------------------------------
| Shareholder | 681 | 459 | 77,809 | 1,798 | 1,593 | 82,340 |
| s' equity, | | | | | | |
| Mar. 1, | | | | | | |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SEGMENT REPORTING, 1,000 EUR | JAN. 1 - | JAN. 1 - | JAN. 1 - |
| | MAR. 31, | MAR. 31, | DEC. 31, |
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Turnover by segment | | |
--------------------------------------------------------------------------------
| Occupational Healthcare | 34,027 | 31,801 | 139,038 |
| segment | | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals segment | 17,842 | 18,306 | 70,652 |
--------------------------------------------------------------------------------
| Diagnostics segment | 8,268 | 7,646 | 28,574 |
--------------------------------------------------------------------------------
| Unallocated | 1,003 | 1,077 | 3,736 |
--------------------------------------------------------------------------------
| Intra-group sales | -4,115 | -5,961 | -31,850 |
--------------------------------------------------------------------------------
| Total turnover | 57,026 | 52,868 | 210,150 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit by segment | | |
--------------------------------------------------------------------------------
| Occupational Healthcare | 3,065 | 2,609 | 11,241 |
| segment | | | |
--------------------------------------------------------------------------------
| Clinics and Hospitals segment | 2,735 | 3,187 | 8,265 |
--------------------------------------------------------------------------------
| Diagnostics segment | 1,943 | 4,055 | 6,796 |
--------------------------------------------------------------------------------
| Unallocated | -4,381 | -5,409 | -19,222 |
--------------------------------------------------------------------------------
| Total operating profit | 3,363 | 4,442 | 7,080 |
--------------------------------------------------------------------------------
| Operating profit / turnover, | 5.9% | 8.4% | 3.4% |
| % | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing profits and costs | -4,231 | -3,929 | -15,350 |
--------------------------------------------------------------------------------
| Earnings before tax | -868 | 513 | -8,270 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | 159 | 307 | 1,047 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | -708 | 820 | -7,222 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED PROFIT AND LOSS ACCOUNT, BY QUARTER, | | |
| EUR 1,000 | | |
--------------------------------------------------------------------------------
| | JAN. 1 - | OCT. 1 - | JUL. 1 - | APR. 1 - | JAN. 1 - |
| | MAR. 31, | DEC. 31, | SEP. 30, | JUN. 30, | MAR. 31, |
| | 2009 | 2008 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Turnover | 57,026 | 55,616 | 45,821 | 55,844 | 52,868 |
--------------------------------------------------------------------------------
| Other | 191 | 83 | 213 | 253 | 2,653 |
| operating | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Share in | 70 | -97 | 61 | 309 | 122 |
| associated | | | | | |
| companies | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Raw | -9,196 | -7,798 | -8,447 | -9,194 | -7,262 |
| materials | | | | | |
| and | | | | | |
| supplies | | | | | |
--------------------------------------------------------------------------------
| Employee | -25,046 | -25,098 | -19,958 | -24,980 | -25,497 |
| benefit | | | | | |
| costs | | | | | |
--------------------------------------------------------------------------------
| Depreciati | -5,391 | -6,210 | -5,255 | -4,703 | -5,336 |
| on | | | | | |
--------------------------------------------------------------------------------
| Other | -14,291 | -14,443 | -14,002 | -15,377 | -13,107 |
| operating | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 3,363 | 2,053 | -1,567 | 2,151 | 4,442 |
| PROFIT | | | | | |
--------------------------------------------------------------------------------
| Financial | 62 | -35 | -1,202 | 1,443 | 93 |
| income | | | | | |
--------------------------------------------------------------------------------
| Finance | -4,293 | -6,004 | -3,336 | -2,287 | -4,022 |
| costs | | | | | |
--------------------------------------------------------------------------------
| Profit | -868 | -3,985 | -6,105 | 1,306 | 513 |
| before | | | | | |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Income | 159 | 1,588 | -44 | -804 | 307 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| PROFIT FOR | -708 | -2,397 | -6,148 | 502 | 820 |
| THE PERIOD | | | | | |
--------------------------------------------------------------------------------
| Attributab | | | | | |
| le to: | | | | | |
--------------------------------------------------------------------------------
| Equity | -720 | -2,306 | -6,081 | 377 | 909 |
| holders of | | | | | |
| the | | | | | |
| Company | | | | | |
--------------------------------------------------------------------------------
| Minority | 12 | -91 | -67 | 125 | -89 |
| interest | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | JAN. 1 - | JAN. 1 - | JAN. 1 - |
| | MAR. 31, | MAR. 31, | DEC. 31, 2008 |
| | 2009 | 2008 | |
--------------------------------------------------------------------------------
| Average personnel | 2,386 | 2,390 | 2,347 |
--------------------------------------------------------------------------------
| Personnel at end of period | 2,390 | 2,369 | 2,351 |
--------------------------------------------------------------------------------
Calculation of financial ratios:
Return on equity, % =
100 x (Profit before tax - direct taxes)/
(Shareholders' equity (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 (0)30 633 1629,
martti.kiuru@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 business strategy.
Distribution:
NASDAQ OMX Helsinki Oy
Principal media
www.terveystalo.com