Terveystalo’s strategy
Terveystalo’s purpose is to fight for a healthier life.
During the most recent strategy period, we have focused on achieving a clear improvement in profitability in our core business, Healthcare Services, and building the conditions for independent value creation in the Portfolio Businesses segment. We reached our profitability target of a 12% EBITA margin one year ahead of schedule, and we announced our new financial targets in December 2024.
In the next strategy period 2025–2029, we will focus on five strategic priorities:
Engaged team
At Terveystalo, our purpose is to fight for a healthier life. We build a humane and functional work environment where our team can focus on meaningful matters. Our people strategy aims to ensure the engagement, job satisfaction and productivity of our professionals. Our goal is to be the best and most attractive place to work in our industry.
Superior customer value through integrated care
The core of our strategy is to always offer fluent, caring and effective integrated care to our customers. We develop digital solutions that ensure a smooth everyday life for our professionals, the best care outcomes for our customers and help address the care gap in the industry. With our integrated care model, we strive to achieve both a positive social impact and high profitability.
Profitable, organic growth
Our goal is profitable, organic growth. We seek growth in all customer groups and in several different service areas. One key area is to grow the insurance business by developing new partnership models, based on value creation, with insurance companies. In the public pay market, we seek growth through new partnerships, staffing services, digital solutions and network capacity sales. In addition, in the consumer and corporate customer segments, we focus on growth in selected specialties — such as paediatric health, mental health, orthopaedics and sleep medicine — where we see significant potential in terms of both meeting customer needs and profitable business growth. In dental health services, our goal is significant growth, which will respond to growing demand and support the overall health of customers.
Profit improvement
Although our profitability has improved significantly over the past two years, there is still potential for profitability growth. The further development of digital solutions enables the continuous improvement of process efficiency and the productivity of operations. The automation of manual work, enhancing customer steering, smart resource planning and solutions aimed at making the work of our professionals more fluent play a key role. The profit improvement programme launched in Sweden at the end of 2023 is aimed at a structural change in profitability in 2025.
Optimised business portfolio
We see growth potential in several specialties, and our goal is to expand our business portfolio in specialties such as paediatrics, eye diseases, dermatology and obesity care.
In Sweden, our long-term goal is profitable growth. Following the profit improvement programme, we will aim to expand into services that support occupational health in Sweden. In the Portfolio Businesses segment, the goal is independent value creation in different businesses.
Profitable growth:
- EPS to grow on average by 10% p.a.
- We expect faster earnings per share growth in 2025, as fewer items affecting comparability are expected
Moderate leverage ratio:
- Net debt to EBITDA not to exceed 2.5x
- Indebtedness may temporarily surpass the target level, particularly in conjunction with acquisitions
Attractive dividends:
- At least 80% of net result to be distributed as dividends
- The dividend proposal must consider the company's long-term potential and financial status
During the fourth quarter of 2022, Terveystalo launched a profit improvement program, which aimed for an inflation-adjusted, annualised (run-rate) EBITA improvement of at least EUR 50 million by the end of 2024. The overall target of the program was exceeded at the end of 2023, when the measures implemented were estimated to have an annual run-rate impact of over EUR 60 million on profitability. The adjusted EBITA impact of the program during 2023 was EUR 37 million. In 2024, measures are focused on achieving the 12 percent profitability target (adjusted EBITA-%) during 2025.
During the fourth quarter of 2023, a profit improvement program was launched in Sweden targeting a structural change in the profitability in 2025. The cost structure has been adjusted to match the weakened demand, which started to be reflected, among other things, in lower personnel costs in the third quarter. The program will now focus on improving operational efficiency and commercial measures.
The total costs related to the programs in 2022–2024 are estimated to be EUR 35-40 million. The costs are related to restructuring and advisory fees. Advisory fees are tied to the results achieved by the programs. The costs of the programs are treated as items affecting comparability. The costs of the programs were approximately EUR 11.3 million during January–September. In 2023, the costs amounted to EUR 21.7 million.
Starting from 1 January 2023, Terveystalo Group comprises three reporting segments: Healthcare Services, Portfolio Businesses, and Sweden.
Healthcare Services
The Healthcare Services business segment offers customers in Finland integrated care paths from preventive occupational health services to primary care services and specialised care, diagnostics and day surgery. In the Healthcare Services segment, Terveystalo’ s goal is to be the best provider of integrated care and to grow profitably.
Portfolio Businesses
The Portfolio Businesses segment consists of businesses that focus on value creation, leveraging Terveystalo’s capabilities as needed. The Portfolio Businesses segment includes public sector outsourcing, staffing services and dental health, as well as other businesses such as public digital services, rehabilitation, child welfare and massage services.
Sweden
The Sweden segment consists of the services provided by the Feelgood subsidiaries, focusing on occupational health, organisational management consulting and addiction prevention services. Terveystalo aims to significantly improve profitability in Sweden in the short term.