Annual Report
2021
Responsibility
Contents
Year 2021
3
4
Terveystalo in brief
Key figures
5 CEO's Review
7 Highlights in 2021
10 Trends influencing health care
11 Terveystalo's addressable markets
13 Terveystalo’s strategy
16 Financial targets and their achievement
17 Value creation model
19 Why invest in Terveystalo?
Responsibility
Terveystalo and responsibility
23 Terveystalo’s responsibility themes
24 Goals and achievements
27
Terveystalo contributes to the achievement
of sustainable development goals
29 Responsibility management
32 Stakeholder engagement
33
Materiality analysis as the foundation of our
responsibility efforts
Introduction
Terveystalo’s Annual Report 2021 consists of four sections:
Year 2021, Responsibility, Corporate Governance and
Financials.
The Year 2021 section includes basic information on
Terveystalo’s business operations, market environment,
strategy and value creation. The Responsibility section
describes Terveystalo’s responsibility and sustainability
efforts and their results in line with the GRI Standards Core
reporting guidelines. The Statement of Non-Financial
Information as required by the Accounting Act is included
in the Report of the Board of Directors found in the
Financials section of the Annual Report. The Corporate
Governance section includes the Corporate Governance
Statement, Remuneration Policy and Remuneration
Report. The Financial Review includes the Report of the
Board of Directors, the financial statements and notes to
the financial statements, the auditor’s report and informa-
tion for shareholders.
The Annual Report is available in Finnish and English.
1
Terveystalo’s responsibility themes
35 Good health and well-being
43 Ethical business
47 Responsible work
55 Sustainable economic growth
59 Responsible consumption and climate action
Reporting principles
65 Corporate responsibility reporting principles
66 Sustainability themes and material topics
69 GRI index
Corporate Governance
73 Corporate Governance Statement
86 Remuneration Policy
91 Remuneration Report
Financials
96 Board of Directors' report
119 Financial statements
173 Auditors' report
177 Information for shareholders
179 Contact information
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Year 2021
Terveystalo in brief
Key figures
CEO's Review
Highlights in 2021
3
4
5
7
10 Trends influencing health care
11 Terveystalo's addressable markets
13 Terveystalo’s strategy
16
17 Value creation model
19 Why invest in Terveystalo?
Financial targets and their achievement
2
2
Terveystalo
Annual Report 2021
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo in brief
Terveystalo is the largest private health
care service provider in Finland in terms of
revenue and network. Terveystalo is also a
leading occupational health provider in the
Nordic region.
We offer a wide variety of primary health care, specialized
care, and well-being services for corporate and private cus-
tomers and the public sector. Terveystalo’s digital services
are available 24/7, regardless of time and place. Health and
well-being services are also provided by Terveystalo’s over
360 clinics across Finland. In Sweden, we offer occupational
health services at 120 clinics. Terveystalo is listed on the
Helsinki Stock Exchange and has a predominantly Finnish
ownership.
Terveystalo is a pioneer in occupational health
in the Nordic region and the largest private
health care service provider in Finland
• 8 million customer visits in Finland in 2021
2 million remote appointments in Finland
•
in 2021
1.3 million individual customers in Finland
in 2021
1.5 million end customers of occu-
pational health services in Finland and Sweden
•
•
3
Services provided
Terveystalo provides services to three
different customer groups: corporate
customers, private customers and pub-
lic sector customers.
Imaging and laboratory tests
• Occupational health services
• GP and specialist services
• Well-being services
•
• Day surgery
• Demanding surgery
• Oral health
• Outsourcing services
Staffing services
•
• Child welfare services
In Finland
360
Clinics, of which 18 hospital
units and 38 dental clinics
Over 14,700 professionals
In Sweden
120
Clinics offer occupational
health services
Approximately 780
professionals
24/7
Digital services
regardless of location
Terveystalo’s platform business model connects
customers and practitioners and integrates courses
of treatment into efficient chains of care
Customer with a care need
Clinic network
Physical appointments
Laboratory
Imaging
Surgery
Integrated
digi-physical
care chains
Excel in
customer
experience &
engagement
Optimize avail-
ability of right
professionals
Partnership ecosystem
Digital services and tools,
data-driven care models
Private practitioners and
Terveystalo personnel
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Key figures
Revenue and Adjusted EBITA-%
Revenue breakdown 2021
% of total revenue 2021
MEUR
1,500
1,250
1,000
750
500
250
0
%
30
25
20
15
10
5
0
1,154.6
1,030.7
986.4
689.5
744.7
2017
2018
2019
2020
2021
Revenue, MEUR
Adj. EBITA % of revenue
Total
1,154.6
MEUR
(986.4)
42% Corporate
29% Private
26% Public
3% Sweden and others
Feelgood (Sweden) consolidated as of 1 July 2021.
Personnel and private practitioners
Terveystalo konserni, milj. euroa
Revenue
2021
1,154.6
2019
2020
986.4 1,030.7
13,753
13,310
10,895
8,696
Adjusted EBITA1)
Return on equity (ROE), %1)
15,559
Equity ratio, %1)
Earnings per share (EUR)
Gearing, %1)
Net debt/adjusted EBITDA
(last 12 months)1)
Dividend per share (EUR)
Personnel (end of period)
2017
2018
2019
2020
2021
Private practitioners (end of period)
141.0
13.6
42.2
0.63
85.2
2.5
0.282)
9,805
5,754
101.9
8.2
42.1
0.36
85.9
3.0
0.26
8,253
5,057
115.1
10.3
39.9
0.43
101.3
3.1
0.20
8,685
5,068
20,000
16,000
12,000
8,000
4,000
0
4
Personnel
Private practitioners
1) Adjusted earnings before impairment and amortization
of intangible assets
2) Board proposal
1) Customer satisfaction, Net Promoter Score
2) Employee promoter score (job satisfaction)
1,155
Revenue (EUR million)
12.2%
Adjusted EBITA % of revenue
1 M
Digital appointments
in 2021
83
NPS1), appointments
500,000
COVID-19 tests
in 2021
32
eNPS2)
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
CEO Ville Iho:
A record year
on many fronts
2021 was a very strong year for Terveystalo. We broke
records on many fronts as we reached all our financial
targets, won market share, further improved customer
satisfaction, and kept our leading position as the most
attractive employer in the industry. Revenue, EBITA,
EBITA margin, number of digital visits, Net Promoter
Score (NPS) and Employee Net Promoter Score (eNPS)
all reached all-time highs.
Demand normalized, growth was limited by supply
Amid Covid-19 turbulence, our core business has performed well and has
grown stronger. Demand for health services was broad-based and very
strong. Our revenue increased by 17 percent to approximately EUR 1.2 bil-
lion and our profitability was excellent as the adjusted EBITA margin rose to
the target level of over 12 percent of revenue.
Due to high demand, booking rates in our appointments rose to a record
high towards the end of the year, and supply bottlenecks limited revenue
growth. However, for several years now, we have been investing in intelligent
supply and demand management to improve access to care which benefited
5
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
us in this situation. Shortages in the supply of physical
appointments were also compensated by our further
successful ramping up of Terveystalo’s digital offering. To
open supply bottlenecks, we will naturally also continue
to utilize our position as the most desirable employer in
recruitment as well.
Our core business is in good shape and we
have multiple growth opportunities ahead
Demand drivers for our core business are strong, driven by
several factors such as backlog of care and growing inte-
rest in health and well-being. Our successful entry to the
Swedish health care market with the Feelgood acquisition
doubled our addressable market and was a very important
step in Terveystalo’s growth story. We have successfully
completed the post-acquisition integration phase and
have already done value-creating acquisitions in Sweden.
We see a strong growth potential both organically and
through acquisitions in the market. Our long-term goal is
to grow beyond occupational health in Sweden and utilize
our leading expertise in integrated care chains.
Digital healthcare is a part of Terveystalo’s core busi-
ness with 1 million appointments a year and 1.7 million
registered users in our platform. There is also a clear
synergy potential in using our digital capabilities across
the markets. This is clearly seen in Sweden, where we
are starting to implement our occupational health digital
solutions. We will invest even more in our digital business,
especially to accelerate the growth of our own services. In
addition, we see in-bound demand for our top-notch capa-
bilities, which we can commercialize.
Our goal is to strengthen our market leadership and
accelerate growth in all our customer groups. From our
products, we develop new services that suit the different
needs and life stages of our customer groups and develop
a personalized and engaging customer experience. In the
future, we also want to change the healthcare tradition
from episodic treatment to holistic care and be a health
partner for one million people in the Nordic region.
In addition to expanding to Sweden, we continued to
make acquisitions in Finland that complement our busi-
ness by completing 11 acquisitions in areas such as child
protection, rehabilitation and therapy services, massage
services, demanding surgery, and occupational health.
Strategic and complementary acquisitions will continue to
be a key part of our strategy, and our expertise in selecting
acquisition targets and realizing synergies is an important
competitive advantage for us.
The implementation of our strategy is progressing
as planned, our core business is in good shape and the
opportunities for value-added capital allocation have
improved with the expansion into new markets. Based on
the strong result for 2021 and our prospects, the Board of
Directors proposes to the Annual General Meeting that a
dividend of EUR 0.28 per share be paid, which corresponds
to 44 percent of the net result for 2021. Thanks to our
strong balance sheet, we have a good opportunity to
invest in growth.
I would like to express my warm thanks to all the peo-
ple at Terveystalo for their dedication and hard work to
achieve our common goals, and to thank our customers
for their trust.
We promote health and well-being
In the area of responsibility, we continued our work to
develop access to care as well as quality and effectiveness
of care. We measure the results of our quality work in
accordance with the best international practices, and our
overall quality index increased from the previous year. We
were also once again the most attractive employer in the
industry in the eyes of both professionals and students. In
the area of environmental responsibility, we set new ambi-
tious goals; Terveystalo’s operations will be carbon neutral
in 2022 and we will achieve zero emissions in our own
operations in 2030. We encourage all health care organi-
zations to be transparent in terms of quality, effectiveness,
and cost of care. Comparability takes us all forward.
We have a clear purpose and in our core markets we are
a leading service provider, playing a key role in the sector
and in people’s lives. We are committed to our vision; a
world with fewer sick days and more healthy, happy years.
Towards a better tomorrow,
Ville Iho
6
We support the
UN Global Compact
initiative
"Terveystalo has signed the UN Global
Compact initiative. We are committed
to continuing our work to integrate
the Global Compact's principles related
to the environment, human rights,
work and the fight against corruption
into our operations, culture and value
chain,"
Ville Iho,
CEO of Terveystalo
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Highlights in 2021
Terveystalo’s 20th anniversary
The year 2021 marked 20 years since Terveystalo was founded. The
company started from the vision of four physicians to build a med-
ical clinic network that covers all of Finland. In 2001, Terveystalo
had four clinics and employed approximately 60 health care profes-
sionals. Today, Terveystalo employs more than 15,500 people. We
have expanded our operations to cover all of Finland, completed
over 200 acquisitions and, as our most recent step, expanded inter-
nationally, starting from the Swedish occupational health market
through the Feelgood acquisition.
logo
Terveystalo entered the Swedish
market by acquiring Feelgood AB
With leading occupational health processes, services and
digital tools, Terveystalo is the market leader in occupational
health in the Nordic region. The acquisition of Feelgood
represents an important first step for us in scaling our
capabilities beyond Finland’s borders. Our goal is to grow in
the Swedish occupational health market both organically
and through additional acquisitions. We also see potential
for expanding the range of services in the Swedish market
towards more integrated chains of care.
Fokus special units aim to deliver market-
leading service and an attractive working
environment for professionals
Terveystalo established its first Fokus special units specializing in mental
well-being, musculoskeletal disorders and gastroenterology. The units
operate as a network and aim to deliver high clinical quality as well as
easy access to services. They strengthen Terveystalo’s position in spe-
cialized care. The new operating model will later be expanded to include
other specialties in which we see potential for growth and the creation
of customer value.
7
Terveystalo was ranked as the most
attractive employer among both
industry professionals and students
According to the Universum survey, Terveystalo is the
most attractive employer in the health care and phar-
maceutical industry and the second-most attractive
employer in the entire medical sector among profes-
sionals for the second consecutive year. Terveystalo was
ranked at the top of its industry among private health
care service providers. Students in the field ranked
Terveystalo as the industry’s most attractive employer
for the eighth consecutive year.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo and Nightingale joined forces
to launch an entirely new well-being
membership concept for customers
The Terveystalo + Nightingale well-being membership concept is
an excellent example of a service that supports preventive health
care and health partnerships with customers. The service is based
on blood analyses by the health technology company Nightingale,
a health index that is regularly measured based on the blood analy-
ses as well as digital well-being content and programs that support
lifestyle changes. The content and programs are put together by
Terveystalo’s specialists and delivered through the Terveystalo app.
Terveystalo becomes a
manufacturer of software-
based medical devices
Terveystalo became the first health service provider in
Finland to receive an ISO 13485 quality management
system certificate. With the certificate, Terveystalo
becomes a manufacturer, distributor, seller and mar-
keter of software-based medical devices. The certifica-
tion represents a strategic competence for Terveystalo
and puts us on the leading edge of science-first soft-
ware development.
Children’s Terveystalo opened its doors
and has a strong focus on digital solutions
In the consumer business, our goal is to accelerate growth and
solidify our position as the market leader. We launched the
largely digital Children’s Terveystalo concept to provide even
better service to families with children. Remote appointments
are a key element of the Children’s Terveystalo service package
in addition to 19 locations for in-person appointments. The con-
cept has been received very well and the customer volumes of
our services for children have multiplied.
Care guidance is developed
by consistent care protocols
Terveystalo’s goal is to support professionals and custom-
ers in planning and implementing increasingly effective
treatment by making it easy to make day-to-day decisions
in line with care protocols. The care protocols are treat-
ments defined by Terveystalo, based on the Current Care
Guidelines to treat a given illness for which a customer
seeks treatment. The first care protocols we have adopted
are for treating lower back pain, depression and anxiety.
8
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
New climate targets: carbon
neutrality in 2022, zero emissions
from own operations in 2030
Terveystalo set new ambitious climate targets. Our goal
is to reduce our carbon footprint so that Terveystalo’s
operations are carbon neutral in 2022 and Terveystalo
will achieve zero emissions in its own operations in
2030. Between 2022 and 2030, we will compensate
for our remaining emissions by investing in certified
carbon dioxide emission compensation projects.
9
Helsinki chose Terveystalo as its partner
to operate the Kannelmäki health center
Partnering with the public sector, Terveystalo is already
responsible for the health care of over 200,000 Finns. In the
fall of 2021, the approximately 20,000 residents within the
Kannelmäki health center’s sphere of service provision were
added to that figure. This was the City of Helsinki’s first service
purchase decision concerning a health center. In addition to
offering convenient access to care, we want to create an even
better customer experience at the health center for the resi-
dents of Kannelmäki.
We made a number of acquisitions in 2021
to complement our business operations:
• Espoon Keskuksen Hammaslääkärit Oy (dental services)
• Attentio Oy (rehabilitation and therapy services)
• Keltaisen Kartanon Kuntoutus Oy (child welfare services)
• Helsinki Hospital Oy (demanding surgery)
• Fysiopiste Mervi Nivukoski (physical therapy)
• Sivupersoona Oy (speech therapy and language interpretation
• Dalarnas Företagshälsa AB (occupational health)
• Ankkuri's child welfare services
• Medimar Scandinavia Ab (medical clinic on the Åland Islands)
• AITO Työterveys – Vantaan Työterveys Oy
(occupational health services)
• Suomen Hierojakoulut Oy (massage therapist training)
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Trends influencing health care
1. The digitalization of health care
2. The aging of the population
•
•
•
•
•
•
•
•
The COVID-19 pandemic has accelerated the digi-
talization of health care and the development of
related technology.
Health care professionals are increasingly willing to
make use of remote services as part of a hybrid oper-
ating model.
Customer expectations concerning digital services
are increasing and customers expect better service
quality, availability, convenience and personalization.
Impact on health care
•
•
•
•
•
Making broad use of digitalization enables the faster
provision of products and services, promotes inno-
vation and helps control the growth of costs.
Digitalization and artificial intelligence enable more
efficient use of limited health care resources.
Access to care and the smoothness of service
are improved.
Artificial intelligence (AI) enhances the identification
of health risks and enables medical professionals to
make faster decisions, giving them more time for
customer encounters.
The development of advanced digital services
creates new business opportunities.
10
The Finnish population is aging at the second-
highest rate in the world and this trend is expected
to continue in the coming decades. The same trend
is also seen in Sweden.
Changes in the population structure will have a
pivotal effect on the dependency ratio, with public
health care costs growing at the same time.
The aging of the population and the typically higher
health care costs of elderly people are expected to
influence the growth of health care costs.
The higher proportion of elderly people in the popu-
lation presents a variety of challenges to health care,
and the only way to respond to these challenges is
through new and innovative solutions.
Smooth cooperation and division of duties between
the public and private sectors are preconditions for
maintaining and developing the functional capacity,
quality and availability of health care.
3. Lifestyle diseases, holistic
health and well-being
4. Shortage of health care
professionals
•
•
•
•
•
•
•
As many as 50% of working-age Finns have,
or are at risk of developing, a lifestyle disease.
Obesity, diabetes, hypertension, sleep disorders,
substance abuse, back problems and mental health
challenges reduce work ability, lead to sickness
absences and the costs of medical care while also
increasing premature unemployment.
Interest in holistic health and well-being as well
as related data and measurements is growing in
certain population groups.
Lifestyle diseases increase the demand for health
care services and emphasize the significance of
preventive health care and early intervention.
There is a need for more data, automation and a
customer-driven approach in order to build better
treatment plans.
A growing need for cost-effective solutions for
managing population health.
There will be a shift from paying for use towards
partially subscription-based services that support
lifelong health.
•
•
•
•
•
•
•
•
There is a global shortage of health care professionals.
In Finland, the public sector alone is estimated to cur-
rently have a shortage of over a thousand physicians.
The social welfare and health care sector in Finland is
predicted to need as many as 200,000 new professionals
over the next 15 years to replace retiring employees and
respond to the growing demand for services.
The industry faces a twofold challenge of not only
attracting but also retaining professionals. Especially with
regard to nurses, it has been reported that the COVID-19
pandemic has led to an increase in the number of people
who have made a career change or intend to do so.
Recruitment problems have become worse and the
competition for skilled professionals continues to
intensify – creating an attractive workplace is of
critical importance.
The role of nurses and other health care
professionals is growing.
Digitalization and remote services make it possible
to relieve the shortage of skilled professionals and
balance out regional differences in access to care.
The changes also require health care professionals
to be trained in digital competencies as well as
treating customers remotely.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo's addressable markets
Terveystalo operates in Finland in
occupational health, primary health care,
specialty care and well-being services.
In 2021, Terveystalo expanded into
occupational health in Sweden with the
acquisition of Feelgood, one of Sweden's
leading occupational health companies.
pension costs. This has effects on public health as well as
the total cost of health care. According to studies, compa-
nies that systematically invest in work ability management
benefit manifold. One invested euro returns six euros as
a result of lower sickness absence and pension costs.
Terveystalo provides occupational healthcare services for
over 25,000 companies in Finland, which have approxi-
mately 650,000 occupational health customers.
Terveystalo's addressable
market in Finland
In Finland, the total cost of health care is estimated at
around EUR 15 billion. About 75 percent is publicly funded
and provided. Privately provided health care accounts for
just over a quarter, which includes publicly funded and
privately provided (6 percent) and privately provided and
funded (20 percent) health care. The privately provided
market relevant to Terveystalo, approximately EUR 4.1
billion, includes primary health care, dental care, specialty
care, occupational health care and child welfare services.
Terveystalo's share of this entire market is about 25-30
percent.
Finland has a unique occupational health system that
covers 1.9 million Finns. Occupational health is associated
with a statutory pension system. The system encourages
employers to invest in occupational health to bring down
11
Terveystalo’s addressable market
in Finland, 2015-2020E
EUR bn
CAGR 1.4%
3.8
0.9
3.9
1.0
4.0
1.1
4.0
1.1
4.2
1.2
4.1
1.3
2.1
2.0
2.1
2.1
2.1
2.0
0.8
0.8
0.8
0.9
0.9
0.9
2015
2016
2017
2018
2019
2020E
Occupational healthcare
Private healthcare, private customers
Publicly funded private healthcare
Source: National Institute for Health and Welfare,
KELA, Statistics Finland
Private provision is an established and
growing component of the Finnish market
Public provision
and funding
75%
Public funding,
private provision
6%
EUR
15bn market
Private funding
and provision
20%
Source: National Institute for Health and Welfare, KELA,
Statistics Finland
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Between 2015 and 2020, Terveystalo's target market
has grown by approximately 1.4 percent per year (CAGR).
The COVID-19 pandemic had a negative impact on market
growth in 2019-2021, but healthcare market growth is
forecast to return to positive in 2022. The rapid aging of
the population, the accumulated care debt during the
pandemic, and the high incidence of lifestyle illnesses will
increase the need for healthcare in the coming years.
Terveystalo's addressable
market in Sweden
In Sweden the total cost of health care is estimated at
around EUR 30 billion. About 73 percent is publicly funded
and provided. Privately provided health care accounts
for just under a quarter and is around EUR 7 billion, which
includes publicly funded and privately provided (19 per-
cent of total healthcare market) and privately provided and
funded (5 percent) health care. In Sweden, the privately
produced and financed market consists largely of oral
health services that are not paid for by the public sector
for people over 23 years, as well as employer-financed
occupational health care. The private healthcare market in
Sweden is quite fragmented; the combined market share
of the ten largest players is around 36 percent. Market
growth has historically been faster than the Finnish market
(approximately 6.2 percent CAGR 2015-2019). In Sweden,
the positive drivers of the private healthcare market are
largely the same as in Finland, i.e. in addition to population
aging and lifestyle illnesses, there are also lengthened
12
care queues, somewhat growing use of voluntary health
insurance, growing health and well-being awareness, the
growing role of preventive care as well as development of
health technology.
of roughly 19 percent. The Swedish occupational health
system differs from the Finnish system, e.g. in that it is less
statutory services and occupational and private health
services are in separate systems.
Terveystalo currently operates in the Swedish occu-
pational health market (via Feelgood) and offers services
within occupational health and safety in the workplace:
risk assessments, ergonomics and physiotherapy, organ-
ization and leadership and harmful use. In addition,
Terveystalo provides private health care and well-being
services to its occupational care customers´ employees
and their families through the digital service, Feelgood
Plus. The size of the occupational health market in Sweden
is approximately EUR 0.4 billion. The market has been
fairly stable. Terveystalo is the third largest private provider
of occupational health in Sweden with a market share
Healthcare markets
EUR bn
~30
23
7
~15
11
4
Finland
Sweden
Private provision
Public provision
However, employers' interest in providing wider occu-
pational healthcare and medical services is growing in
order to reduce sick leave and lengthen working lives. The
Swedish occupational health market offers opportunities
to develop practices, tools and services offered to cus-
tomer companies. In Sweden, Terveystalo serves about
8,300 corporate customers with a total of about 825,000
occupational healthcare end-customers.
Operating environment 2021
The impacts of the COVID-19 pandemic on healthcare and
the market continued in 2021.
In privately produced healthcare services, growth in
digital services and remote appointments continued to
be strong and new operating models have become part of
normal operations. Demand for COVID-19-related services
also continued to grow, with test volumes remaining high
and vaccinations initiated at the end of 2020 contin-
ued throughout the year 2021. As the year progressed,
demand for most health services returned to normal.
Demand for mental health services and for preventive and
well-being services grew strongly. At the end of the year,
visits related to various infections were also increasing.
In Sweden, demand for occupational health was nega-
tively impacted by the COVID-19 pandemic, as customers
postponed occupational health projects. The third quarter
was also seasonally soft due to the impact of summer holi-
days. The demand picked up during the fourth quarter, and
activity and volumes were at a good level. Major projects
relating to occupational health services postponed due to
the pandemic were agreed to be launched during 2022.
The Government’s proposal on the reform of social
and healthcare services was approved by the Parliament
in June 2021. Under the proposal, the responsibility for
the organization of social and healthcare services will
be transferred to the 21 well-being services counties to
be established and the City of Helsinki. The first county
elections in Finland were held in January 2022, and the
elected well-being services county councils will com-
mence the new era of social and healthcare services. As a
result of the social welfare and healthcare reform, some of
Terveystalo’s outsourcing agreements for public services
will need to be renegotiated so that the new contractual
terms will enter into force at the beginning of 2026 at
the latest. Furthermore, there will be restrictions on the
subcontracting practices for public services produced as
outsourced services, but these will not have a significant
impact on Terveystalo.
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Our purpose is to fight
for a healthier life.
Our vision is to introduce the new era of health
– with fewer sick days and more healthy, happy
years – driven by data and Nordic know-how.
How we do it
THE SMART PLATFORM
We are able to provide our customers with the right
service regardless of time, place, and channel, from
the beginning of the treatment path to its end.
THE CUSTOMER’S HEALTH PARTNER
We anticipate the customer’s needs, create services
that support holistic well-being, take care and actively
strengthen the relationship.
GROWTH IN NEW MARKETS
We grow in the Nordics and in digital services.
Values
HUMAN BEING AT THE CENTER
We take responsibility for the health and wellbeing of our
fellow human beings, for the opportunity to live a good life.
We work together to help our customer and our customer guides
us in our renewal. We help each other and value all of our experts.
STEERED BY MEDICAL SCIENCE
Everything we do is based on medical science and
researched knowledge. All our decisions are steered by
care efficacy and the well-being of our customers.
FOR THE COMMON GOOD
We build health and wealth for the society and produce
effective care efficiently. We share information
and ignite discussion and create better healthcare
for all: customers, professionals, and society.
13
Strategic targets
THE PROFITABILITY LEADER IN THE NORDIC
REGION IN PRIVATE HEALTH SERVICES.
PREFERRED BY CUSTOMERS AND
PROFESSIONALS.
Financial targets
• Growth
• Indebtedness
At least 5% annual
growth in revenue
• Profitability
An adjusted EBITA
margin of 12–13%
Interest-bearing Net debt/
Adjusted EBITDA not to
exceed 3.5
• Dividend
At least 40% of net profit
as dividends annually
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo’s strategy
The smart platform
Our services are the most conveniently available to
customers. We provide the right service regardless of
time, place, and channel, from the beginning to the
end of the care path.
The demand for novel health services, pricing models
and operative models is growing, while the scarcity of
health care professionals is increasing the need for more
intelligent use of competence.
We are developing an intelligent service platform that
will drive growth, profitability, customer satisfaction and
retention. By having the smartest platform in the indus-
try, we can provide our customers with the right service
regardless of time, place, and channel, from the beginning
to the end of the care path. The optimization of customer
guidance and the personalization of services enable us to
not only make more efficient use of our resources but also
improve access to care, clinical quality, the impact of our
services and, consequently, customer satisfaction. The
smart service platform supports the management of the
customer’s entire care path, which is always built using
industry-leading care protocols to make it as smooth and
impactful as possible.
The functionalities implemented in customer steering
and supply management have already reduced supply
bottlenecks, increased self-service rates and improved
conversion in the use of our services. There is still room
for further improvement and we are continuing to
invest in developing our processes and our platform.
Health partner
We anticipate customer needs, create services that
support holistic well-being, look after our custom-
ers and actively strengthen our relationship with
them.
In addition to treating illnesses, we want to create
health partnerships with our customers and to keep in
touch, anticipate customer needs and provide holistic
well-being services. We use digital solutions to make
the use of our services convenient and attractive, to
increase customer retention and to provide a platform
for continuous health partnerships and personalized
services. The Terveystalo mobile application already
has over 500,000 active users and our goal is to be a
health partner for a million people in the Nordic region.
We are also adding new low-threshold well-being
services to our offering and developing services that
suit the various life stages of our customers. In 2021,
we launched the largely digital Children’s Terveystalo
concept to serve families with children better, more
comprehensively, and in an increasingly child-friendly
manner. Remote appointments are a key element of
14
in Terveystalo’s laboratory, instructions for
interpreting the results and a digital service,
including well-being content, provided
through the Terveystalo app. The user
receives an individual index number divided
into five areas, including the age of the heart,
fatty acid balance, inflammation and choles-
terol balance. The customer can then start to
improve these areas of their health with the
help of digital programs and recommenda-
tions prepared by dieticians, psychologists,
physicians and other professionals specialized
in lifestyle issues.
Terveystalo and Nightingale
joined forces and launched
an entirely new well-being
membership concept
In October 2021, we launched the Terveystalo
+ Nightingale Well-being Membership con-
cept, which is an excellent example of a new
service that supports preventive healthcare
and health partnerships with customers. The
service is based on blood analyses by the
health technology company Nightingale,
a health index that is regularly measured
based on the blood analyses as well as dig-
ital well-being content and programs put
together by Terveystalo’s specialists and
delivered through the Terveystalo app. The
purpose of the service is to motivate people
to adopt a healthy lifestyle. The importance
of a healthy lifestyle in disease prevention is
significant, as studies show that, for example,
40% of cancers could be prevented by life-
style changes.
The membership includes 2 + 1
Nightingale health index measurements
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
the Children’s Terveystalo service package. The concept
has been received very well and the customer volumes of
our services for children have multiplied. We expanded the
Children’s Terveystalo concept to 13 new units in the fall
in addition to the six units that were included in the launch
stage.
We also developed the new Terveystalo + Nightingale
well-being membership concept that inspires people to
look after their health and make lifestyle changes. Going
forward, we will also focus increasingly on the senior citi-
zen segment and develop new service products for them.
A key element of our preventive services is the use of
health surveys and other health data to identify health
risks and refer customers to services that suit their needs.
We have a long history of providing preventive services –
such as mental well-being and physical therapy services
– to our corporate customers and we have been able to
confirm the benefits of these services through reduced
sickness absences, for example. We have strengthened
our service offering through numerous acquisitions and
invested in digital service concepts, including services
related to mental well-being (Mielen chat and Mielen sparri
mental-health chat consultations). We aim to continue to
grow in these areas and further expand their use in our
private customer segment as well.
International expansion
We will achieve growth in the Nordic region and in
digital services.
Terveystalo is the largest private health care provider in
Finland and the clear market leader in occupational health
in the Nordic region. Our growth potential in our domestic
market is starting to be limited, which is why we are now
looking beyond Finland’s borders.
The Nordic region is a natural choice for the first
steps of our international expansion. The acquisition of
Feelgood, which is one of the leading occupational health
care providers in Sweden, gives us access to the growing
Swedish health market and represents an important step
in Terveystalo’s expansion and growth outside Finland. Our
goal is to grow in the Swedish occupational health market
both organically and through additional acquisitions. In the
longer term, we see potential not only in the good growth
opportunities in the Swedish occupational health market
but also in expanding to other nearby occupational health
markets and expanding the range of services in Sweden
toward more integrated care chains.
Terveystalo is a pioneer in the digitalization of health
care. We have world-class expertise in digital tools for
customers and professionals and we have made long-term
investments in their development. Terveystalo is in a good
position to also leverage these competencies in other
markets and thereby create significant added value for
various stakeholders.
15
als in our industry. Moreover, when patients
are more accurately referred to the appropri-
ate specialist, the specialists’ job descriptions
become more diverse while also reflecting
their competencies more closely. The Fokus
special units have got off to a positive start
and they strengthen Terveystalo’s position as
a provider of specialized medical care services
in all customer groups. The new operating
model will later be expanded to include other
specialties in which we see similar potential
for business growth and the creation of cus-
tomer value.
Fokus special units aim to
deliver market-leading service
and an attractive working
environment for professionals
Terveystalo is boosting its growth by con-
centrating its expertise in specialized care.
Terveystalo Fokus special units combine our
leading expertise and multidisciplinary service
across the country, through both in-person
appointments and remote services. We have
brought together leading specialized exper-
tise in the Fokus units that concentrate on
mental well-being, musculoskeletal disorders
and gastroenterology. The units operate as
a network and aim to deliver high clinical
quality as well as easy access to services that
suit each individual customer’s needs. The
operating model of the Fokus special units is
based on providing comprehensive treatment
for customers and finding a specialist and the
best clinical care for every ailment. When our
chain of service is highly effective and our
treatments have a high clinical impact, we are
the most attractive workplace for profession-
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Financial targets and their achievement
Growth
Profitability
Capital structure
Dividends
Target
Annual revenue growth of at least 5 percent
through organic growth and acquisitions.
Target
Adjusted EBITA margin of at least 12–13
percent in the medium to long term.
Target
The net debt/adjusted EBITDA ratio must be 3.5x or less.
However, indebtedness may temporarily exceed the
target level, such as in conjunction with acquisitions.
Target
The target is to distribute a minimum of 40 percent of
net profit as dividends annually. However, the dividend
proposal must take into account Terveystalo’s long-term
development potential and financial position.
Achievements
17%
Terveystalo’s revenue grew by
17.1% to EUR 1,154.6 million.
Achievements
12.2%
Terveystalo’s EBITA grew by
38.4% to EUR 141.0 million.
Achievements
2.5
Net debt/adjusted EBITDA was
2.5 (3.0) at the end of 2021.
Achievements
44%
The Board of Directors proposes that a dividend of EUR
0.28 per share be paid for the year 2021. This represents
44 percent of the net profit for the financial period.
Revenue
Target of at least 5% growth annually
Adjusted EBITA and EBITA-%
Target 12-13% of revenue
Net debt / Adjusted EBITDA
Target max 3.5
Dividend/share and % of net profit
Target is to distribute at least 40% of net profit as dividends.
MEUR
1,500
1,250
1,000
750
500
250
0
16
1,030.7
986.4
1,154.6
689.5
744.7
2017
2018
2019
2020
2021
MEUR
150
125
100
75
50
25
0
141.0
115.1
101.9
87.7
73.0
2017
2018
2019
2020
2021
Adjusted EBITA, MEUR
Adjusted EBITA, % of revenue
%
30
25
20
15
10
5
0
5
4
3
2
1
0
3.8
2.8
3.1
3.0
3.5
2.5
2017
2018
2019
2020
2021
2017-2018 not fully comparable due to IFRS 16 impact
EUR
0.5
0.4
0.3
0.2
0.1
0
0.26
0.28
0.20
0.13
0.06
2017
2018
2019
2020
2021*
Dividend/share, EUR
% of net profit
*Proposed dividend in total
TerveystaloAnnual Report 2021 Value creation model
The foundation for value creation
Personnel, competence and culture
•
•
Competent and committed personnel: more than
15,500 professionals, of whom more than 5,700
are independent practitioners.
We invest in our personnel’s competence and
well-being as well as our culture. Our goal is to
be the best and most attractive employer in
our industry.
Digital capabilities and innovation
•
Digital solutions for improving clinical,
operational and experienced quality
• Terveystalo app and remote services
• Digital tools for professionals
• Care guidance tools
• Efficient and responsible use of data
Intangible resources
• Strong brand
• ISO 9001:2015 quality certification
• ISO 13485 certification
• Strong patient safety
• Data protection and information security
•
Stakeholder relations, stakeholder trust and close
cooperation with the public authorities, industry
organizations, insurance and pension companies
and sickness funds
Infrastructure
• 24/7 digital services
• 360 clinics in Finland
• 18 hospital units
• 38 dental clinics
•
•
73 Rela-hierojat massage units in Finland, 1 in Estonia
120 locations in Sweden offering occupational
health services, of which 62 are own clinics
Financial capital
•
•
•
Net debt EUR 519 (491) million
Equity EUR 609 (571) million
Investments excluding M&A EUR 43 (33) million
Purchased materials and services
•
•
Purchased materials and services EUR 489 (448) mil-
lion
Electricity 14,195 (15,944) MWh, of which 89 percent
(62 percent) was green electricity
Activities
Mission
Our purpose is to fight for a healthier life.
Vision
Our vision is to create a new era of health – fewer sick days
and more healthy, happy years – driven by data and Nordic
know-how.
We provide services to three different customer groups:
1. corporate customers
2. private customers
3. public sector customers
• Occupational health services
• GP and specialist services
• Well-being services
• Imaging and laboratory tests
• Day surgery
• Demanding surgery
• Oral health
• Outsourcing services
• Staffing services
• Child welfare services
24/7
digital services
8 M
customer visits
in 2021
2 M
remote appointments
in 2021
Year 2021
Responsibility
Corporate Governance
Financials
Impacts
SDG
Good health and well-being
•
•
We have an impact on our customers’ health
and well-being.
• High customer satisfaction, NPS 83 (83)
Smooth care chains and digital services expedite
access to care.
•
T3 (the third available non-urgent appointment
with a physician) at our clinics was 1.61 (1.17)
• Help available via the chat function in seconds
•
Sickness absences and the costs of work left undone
are reduced.
Responsible work and
sustainable economic growth
•
The most attractive employer in the industry and
a high level of employee well-being
•
•
Employee Net Promoter Score eNPS 32 (18)
Personnel sickness absenteeism rate
4.4 percent (3.8 percent)
Lost time injury frequency rate LTIR 15 (25),
significantly below the national average for
the industry (35)
Studies show that Terveystalo is the most
attractive employer in its industry among
both professionals and students.
•
•
Cooperation and partnerships with the public sector
bring solutions to access to care.
•
T3 (the third available non-urgent appointment
with a physician) for public services was 6.5 (5.6)
Services related to COVID-19 enable society to
remain open
• Over 500,000 COVID-19 tests in 2021
Biobank samples are used in clinical research to
investigate the causes of illnesses and develop
treatments.
• We create value for our shareholders.
• Profitable growth, revenue +17 percent
Earnings per share EUR 0.63 (0.36)
•
Stable dividend distribution: dividend
•
proposal EUR 0.28 (0.26) per share
Return on equity (ROE) 13.6 percent
(8.2 percent)
•
• We are a significant employer and taxpayer.
• Wages and salaries paid EUR 378 (310) million
•
Tax footprint EUR 191 (152) million
•
•
•
18
Responsible consumption and climate action
•
•
We reduce the emissions arising from our operations
by using green electricity and prioritizing vehicles with
low emissions.
•
The carbon footprint from Scope 1 and 2 emissions
decreased by 69 percent.
We promote the conservation and sustainable use
of natural resources by reducing plastic consumption,
recycling and increasing the efficiency of material
management.
•
The recovery rate of waste generated
at Terveystalo units 100 percent (99 percent)
• Waste recycling rate 64 percent (61 percent)
•
Our digital services enable us to simultaneously
improve service availability and reduce our customers’
travel times and the emissions generated by travel.
•
25 percent (26 percent) of all visits were provided
remotely, digitally or by phone.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Why invest in Terveystalo?
Terveystalo is the most profitable
company in its industry. Going forward,
Terveystalo will continue to pursue
profitable growth both organically and
through acquisitions that increase value.
Terveystalo also aims to be an industry
leader when it comes to responsibility.
In recent years, Terveystalo has made significant invest-
ments particularly in digitalization and the customer
experience as well as clinical and operational quality.
Investments in the intelligent service platform, strength-
ening health partnerships with customers and expanding
through successful acquisitions have seen Terveystalo
establish a very strong position in a growing market.
Terveystalo expanded to the Swedish occupational health
market in 2021 and the goal is to continue the company’s
international expansion.
19
1. The growth of the health
and wellness market is
driven by several trends
The aging population and high rate of life-
style diseases increase the demand for, and
costs of, health care. People are also increas-
ingly interested in investing in their health
and well-being, which increases the demand
for health services. In addition, public health
care will continue to require the contribution
of private health care providers to work
through the treatment backlog and provide
health care services efficiently and with high
quality. Treatment backlogs have been fur-
ther increased by the COVID-19 pandemic.
The Finnish health care market grew at an
average rate of 1.4 percent (CAGR) between
2015 and 2020. Terveystalo’s organic growth
during the same period was three times as
fast. Terveystalo’s target is annual revenue
growth exceeding 5 percent.
2.
A scalable business model
with leading digital capa-
bilities and high operating
leverage
Developing a scalable intelligent service plat-
form is at the core of Terveystalo’s strategy.
It consists of a physical network of clinics
as well as digital services. The intelligent
platform makes it possible to connect pro-
fessionals with customers as efficiently as
possible by providing the customer with the
right service regardless of time, place, and
channel, from the beginning to the end of
the care path. In 2021, Terveystalo’s digital
services had 1.7 million registered users
and as much as 25 percent of all customer
appointments were conducted remotely.
Terveystalo is in a strong position to take
advantage of these capabilities also in other
markets in a manner that creates value. Due
to Terveystalo’s high operating leverage,
additional sales and synergistic acquisitions
support the improvement of profitability.
3. A strong track record of
profitable growth and
value-creating acquisitions
Strategic and complementary acquisitions
are an important component of Terveystalo’s
growth strategy. Terveystalo has made
over 200 acquisitions to expand its net-
work of clinics as well as complement the
range of services through expansion into
new specialties and well-being services.
Between 2015 and 2020, acquisitions and
organic growth saw Terveystalo grow by
approximately 14 percent (CAGR), which
is ten times as high as the growth of the
market. Terveystalo has strong competence
in choosing acquisition targets and realizing
synergies. For the major acquisitions made
in 2017–2019, the synergies sought were
exceeded by approximately 9 percent on
average and these synergies saw the EV/
EBITDA (LTM) multipliers of these acquisi-
tions decrease from 13x to 6x. Good syner-
gies have also been achieved with smaller
acquisitions.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
4. Strong balance sheet
and cash flow return on
investment enable stable
dividend distribution as well
as investments in business
development and acquisitions
Terveystalo’s balance sheet is strong
and cash flow return on investment has
been stable from one year to the next.
Terveystalo’s target in terms of capital struc-
ture is a net debt/adjusted EBITDA ratio of
at most 3.5x (2021: 2.5x). The company may
exceed its net debt target temporarily due to
large acquisitions. Terveystalo’s strong bal-
ance sheet and cash flow return on invest-
ment enable the development and growth
of business, both organically and through
acquisitions. Terveystalo has distributed sta-
ble dividends, with the target of the dividend
policy being to distribute at least 40 percent
of the net profit for each financial period to
shareholders (44 percent for 2021).
5. Expansion to the growing
Swedish market through
the Feelgood acquisition
Terveystalo is the largest private health care
provider in Finland and the clear market
leader in occupational health in the Nordic
region. The acquisition of Feelgood rep-
resents an important step in Terveystalo’s
expansion and growth outside Finland. Our
goal is to grow in the Swedish occupational
health market both organically and through
additional acquisitions. In the longer term,
we see potential not only in the good growth
opportunities in the Swedish occupational
health market but also in expanding to other
nearby occupational health markets and
expanding the range of services in Sweden
toward more integrated care chains.
6. Terveystalo is the most
attractive employer
For several years, surveys have shown that
Terveystalo is the most attractive employer
in its industry among both professionals and
students. The ability to attract and retain
health care professionals is very important
for Terveystalo’s growth and the execution of
the company’s strategy. Terveystalo invests
heavily in well-being at work, company
culture and competence. Maintaining the
company’s position as the most attractive
employer in its industry is a core element of
Terveystalo’s strategy.
20
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Responsibility
Terveystalo and responsibility
23 Terveystalo’s responsibility themes
24 Goals and achievements
27
29 Responsibility management
32 Stakeholder engagement
Materiality analysis
33
Sustainable development goals
Terveystalo’s responsibility themes
35 Good health and well-being
43 Ethical business
47 Responsible work
55 Sustainable economic growth
59 Responsible consumption and climate action
Reporting principles
65 Corporate responsibility reporting principles
66 Responsibility themes and material topics
69 GRI Index
21
21
Terveystalo
Annual Report 2021
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo and
responsibility
Responsibility is a core value for Terveystalo. Above all, we
want to promote the health and well-being of our custo-
mers and personnel. We also create positive impacts on
the entire society around us and promote ethical business
practices throughout our value chain. Our aim is also to
minimize our environmental impacts in all of our opera-
tions and products.
Our responsibility and corporate responsibility efforts
are guided by Terveystalo’s Code of Conduct, our common
values and strategic goals as well as the responsibility
themes that are essential to our stakeholders. We regularly
monitor the results of our work pertaining to responsibility
and corporate responsibility.
22
22
Terveystalo
Annual Report 2021
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo’s responsibility themes
Good health and well-being
Ethical business
Responsible work
Sustainable economic growth
•
•
•
All members of our personnel are
responsible for ensuring that our
customers receive appropriate,
high-quality and safe care.
We aim to stand out by providing
an outstanding experience in all
customer encounters, regardless of
the channel.
We develop our work by listening
to our customers and utilizing new
technology.
•
•
•
Terveystalo’s employees and prac-
titioners must do the right thing
regardless of where we are, who we
are with or what the circumstances
are.
A workplace culture that always
insists on doing what is right
creates a foundation for long-term
success.
In addition to the company’s values,
Terveystalo’s operations are guided
by Terveystalo’s Code of Conduct
and Supplier Code of Conduct.
•
•
•
•
Competent and committed per-
sonnel form the foundation for our
operations.
We offer diverse career and deve-
lopment opportunities in a wide
range of jobs.
We aim to be our industry’s most
attractive employer for physicians
as well as other professionals.
Equality, fairness and non-discrimi-
nation are important principles to
which we are committed.
•
•
•
Responsible business is also finan-
cially profitable and sustainable.
We create value for our customers,
society, and our shareholders by
continuously developing the quality
of our operations, enabling faster
access to care, reducing sickness
absences, and employing directly
and indirectly more than 15,500
professionals.
We are a significant employer,
taxpayer and provider of health
services in Finland.
Responsible consumption
and climate action
•
•
•
•
Our goal is to be carbon neutral in 2022
and achieve zero emissions in
our own operations in 2030.
We reduce the emissions arising from
our operations by using emission-free
green electricity and prioritizing
vehicles with low emissions.
We promote the conservation and
sustainable use of natural resources
in our supply chain by reducing plastic
consumption, recycling and increasing
the efficiency of material management.
Our digital services enable us to simul-
taneously improve service availability
and reduce our customers’ travel times
and the emissions generated by travel.
23
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Goals and achievements
We have set targets in accordance with our key responsibi-
lity themes and we monitor their achievement on a regular
basis. In 2020, we developed a quality index to promote
reporting and transparency of quality by measuring clinical
and experienced quality, access to care as well as pre-
ventive care. The quality index consists of seven different
impact indicators and we use it to measure clinical, expe-
rienced and process results based on international best
practices. Our quality indicators and their continuously
updated results are available to the public on our website.
In 2021, we set new ambitious climate goals: we aim to be
carbon neutral in 2022 and achieve zero emissions in our
own operations in 2030.
Good health and well-being
Area
Quality index:
High clinical and
experienced quality,
access to care and
preventive care
Access to care,
public services
Patient safety
24
Target
Indicator
Use of the WHO Surgical Safety Checklist
in over 99% of surgical operations
Prescriptions for drugs affecting the central nervous
system in relation to visits to a physician below 3.5%
Duration of sickness absence issued on the day of the operation (median),
repair of the rotator cuff and the anterior cruciate ligament < 28 days
Percentage of preventive work of occupational
health appointments over 60%
Use of the WHO Surgical Safety Checklist in
surgical operations
Prescriptions for drugs affecting the central nervous
system in relation to visits to a physician
Duration of sickness absence issued on the day of the
operation (median), repair of the rotator cuff and the
anterior cruciate ligament
Percentage of preventive work of occupational
health appointments
Days until next available appointment, clinics (T3) below 1.00
T3, i.e. the third available appointment
Appointment NPS over 74
eNPS at least 14 in 2021
Quality index total
Days until next available appointment (T3)
public services < 7 for a physician, < 1 for a nurse
Appointment NPS
eNPS
Quality index, %
T3, i.e. the third available appointment with a physician
T3, i.e. the third available appointment with a nurse
Reimbursed patient claims / appointments with a physician
Near misses/hazardous incidents
Target
Over 99%
< 3.5%
< 28
> 60%
< 1.00
> 74
> 14
100
< 7
< 1
2021
99.8%
4.3%
2020
97.8%
4.6 %
32
36
2019
97.2%
-
42
70.2%
67.8%
67.5%
1.61
83.0
32
94.6
6.5
1
1.17
82.8
18
94.2
5.6
1
0.98
72.5
9
96.4
11.7
1
0.0019%
50.0%
0.0021%
57.0%
0.0025%
61.0%
SDG
3
3
3
3
3
3
3
3
3
3
3
3
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Ethical business
Area
Target
Indicator
Employees who have completed
orientation training on the Code
of Conduct and correct action
Suppliers who have approved the
Supplier Code of Conduct
Responsible work
100% of our employees have completed the training
100% of our suppliers have approved the Supplier Code of Conduct
Percentage of employees who have completed the
training relative to all employees
Percentage of suppliers who have approved the
Supplier Code of Conduct relative to all suppliers
(of suppliers representing 80% of total purchases)
Area
Target
Occupational safety
Accident rate below the sector average
Personnel’s well-being
Employer recommended
by the personnel
Reducing sickness absences
Improving the employee promoter score
Indicator
Accident rate
Sickness absences
eNPS
Sustainable economic growth
Area
Tax footprint
Target
We openly disclose our tax footprint annually
Revenue growth
Minimum annual growth 5%
Indicator
Tax footprint, EUR million
Revenue growth, %
The people we employ
We create jobs
Employee benefit expenses, EUR million
Target
100%
100%
Target
< 35
(sector average)
-
31 by 2025
Target
-
5%
-
The figures include the whole Group.
25
2021
66.0%
2020
52.3%
2019
SDG
-
80%
80%
60%
2021
2020
15
4.4%
32
2021
191.0
17.1%
378.2
27
3.8%
18
2020
152.3
-4.3%
310.2
2019
25
3.8%
9
2019
149.8
38.4%
314.3
16
16
SDG
8
8
8
SDG
8
8
8
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Responsible consumption
and climate action
Area
Target
Previous climate target:
Reducing the carbon footprint
Reducing the carbon footprint by 40% by 2030 (using 2018 as the baseline) 1)
Indicator
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
Target
- 40% by 2030
2021
1,565.6
2020
2,168.6
2019
2,141.2
Carbon neutrality in 2022, zero emissions from own operations in 2030.2) Between
2022 and 2030, we will compensate for any remaining greenhouse 99%
99.8%
97.8%
97.2%
Prescriptions for drugs affecting the central nervous
system in relation to visits to a physician below 3.5%
Prescriptions for drugs affecting the central
nervous system in relation to visits to a physician
< 3.5%
4.3%
4.6%
Duration of sickness absence issued on the day of the
operation (median), repair of the rotator cuff and the
anterior cruciate ligament < 28 days
Duration of sickness absence issued on the day
of the operation (median), repair of the rotator
cuff and the anterior cruciate ligament
< 28
32
36
-
42
Percentage of preventive work of occupational
health appointments over 60%
Percentage of preventive work of occupational
health appointments
> 60%
70.2%
67.8%
67.5%
Days until next available appointment, clinics (T3) below 1.00
T3, i.e. the third available appointment
Appointment NPS over 74
eNPS at least 14 in 2021
Quality index total
Appointment NPS
eNPS
Quality index, %
< 1.00
> 74
> 14
100
Access to care,
public services
Days until next available appointment (T3) public
services < 7 for a physician, < 1 for a nurse
Patient safety
T3, i.e. the third available appointment with a physician < 7
T3, i.e. the third available appointment with a nurse
< 1
Reimbursed patient claims / appointments
with a physician
1.61
83.0
32
94.6
6.5
1
1.17
82.8
18
94.2
5.6
1
0.98
72.5
9
96.4
11.7
1
0.0019%
0.0021%
0.0025%
Near misses/hazardous incidents
50.0%
57.0%
61.0%
3
3
3
3
3
3
3
3
3
3
3
3
All members of our personnel are
responsible for ensuring that our
customers receive appropriate, high-
quality and safe care. We aim to stand
out by providing an outstanding
experience in all customer encounters,
regardless of the channel. We develop
our work by listening to our customers
and utilizing new technology.
Quality and impact are at
the core of our operations
We are committed to the high quality and continuous
development of our operations. We measure, monitor and
manage our quality actively. Developing our service quality
and operational efficiency even further allows us to ensure
the best possible working conditions for our professionals
and the optimal impact of our customers’ service expe-
rience, without compromising on the all-important aspects
of human contact and empathy.
35
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Kestävää kulutusta ja ilmastotyötä
Good health and well-being
We divide our quality-related work
into four areas:
Clinical quality is the basis
of everything we do
Clinical quality
The customer’s experienced quality
•
Health care must be based on evidence and good
care and operating practices, and it must be high
quality, safe and appropriately implemented. At
Terveystalo, we actively monitor, measure and
manage clinical quality.
Operational efficiency
•
Streamlined processes ensure the smart allocation
of resources and the reliability of operations. All
services provided by Terveystalo are based on our
comprehensive and certified quality management
system. Our customers can always trust the quality
of our care, the smooth use of services, and the
efficiency and safety of our services. In addition,
we promote pleasant and efficient everyday life by
developing our expertise and management. Our
comprehensive network, digital tools and extensive
service range constitute a platform for providing
efficient, personal and local services for customers.
•
The customer’s experience is always personal and
develops through every encounter. It is important
to us that customers receive the care they need
without delay and they are encouraged to make
choices that promote their well-being. Our obje-
ctive is to be the preferred provider of healthcare
services for all customer groups.
The professional’s experienced quality
•
We believe that satisfied employees provide a bet-
ter customer experience in customer encounters,
and so enhancing customer satisfaction. The rea-
lization of the strategy requires that we are able to
attract qualified and motivated health care profes-
sionals to Terveystalo and retain them. This enables
us to achieve clinical quality, superior service expe-
rience and operational efficiency.
36
Clinical
quality
Quality
experienced by
the professional
Quality
experienced
by the
customer
Operational
quality
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Kestävää kulutusta ja ilmastotyötä
Good health and well-being
Quality management at all
levels of the organization
The cornerstones of our quality system are patient safety
and the national legislation governing the field. Our quality
assurance system is a management system that provides
a framework for managing quality and effectiveness at all
levels of the organization. Our strategic priority areas, joint
processes and measurability guide us towards consistently
high-quality operations. Continuous improvement of our
operations is an essential part of our quality efforts. The
objectives of our quality-related efforts also include ensu-
ring service availability, patient safety, an excellent custo-
mer experience, compliance with recommendations, data
protection, information security and the development
of the effectiveness of care. The Group’s quality steering
group monitors the achievement of the quality objectives
quarterly using quality indicators.
Patient safety is the foundation
for quality in health care
Clinical quality is a continuously monitored and developed
key element of our quality efforts. Clinical quality refers to
the patient receiving the right treatment at the right time
and in the right manner, and that treatment has no avoi-
dable adverse effects. We ensure service quality, safety,
customer orientation and productivity through consistent
operating methods, the continuous training of our experts
as well as modern premises and technology. We manage
37
patient safety by monitoring the number of procedure and
clinic-specific post-surgery infections, hazardous events,
official requests for clarifications, and the decisions of
the Patient Insurance Center, among other measures. We
ensure the safety and effectiveness of the provided phar-
macotherapy by medication plans, operating guidelines,
and a basic range of drugs.
Each year, the themes, priorities and strategy of patient
safety at Terveystalo are chosen by the Group’s patient
safety team and confirmed by the quality steering group.
This work is supported by internal and external audits.
In 2021, the patient safety themes were improving the
patient safety culture and data protection. The priorities
were pharmacotherapy permits, treatment of patients’
first-aid situations as well as aseptic behavior and hand
hygiene. The clear structures and strategy of patient safety
are aimed at effective cooperation to improve patient
safety within clinics, throughout the organization, with the
supervisory authorities and particularly in practical work
with patients.
A good patient safety culture means having an open
atmosphere in which employees are able to highlight
any shortcomings or hazards (near misses/hazardous
incidents) they observe in their work treating patients,
without fear of sanctions or blame. Shortcomings and
hazardous incidents are addressed openly and carefully to
ensure that the issue does not reoccur. Terveystalo con-
ducted a patient safety culture survey In 2021, Terveystalo
conducted as part of the patient safety theme year 2021.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
The aim of the survey was to assess how patient safety
is visible in Terveystalo’s day-to-day operations, what the
personnel’s perceptions are regarding the realization
of patient safety, the current level of patient safety at
Terveystalo and what issues we should focus on in the
development of our patient safety culture. Based on the
results, we will start development measures at the unit,
regional and Group levels.
The quality index measures
clinical and experienced quality
We continuously develop our services, the quality and
effectiveness of provided care and the service experience
of our customers. We measure clinical, experienced and
process results based on international best practices.
Terveystalo uses a quality index that consists of
four components:
• high clinical quality
•
•
•
availability of care
preventive care
experienced quality from the professional’s
perspective and the patient’s perspective
38
•
•
Our quality index is comprised of seven key indicators:
use of the WHO Surgical Safety Checklist in surgical
operations
prescriptions for drugs affecting the central ner-
vous system relative to the number of physician’s
appointments
duration of sickness absence issued on the day of
operation for repair of the rotator cuff and the ante-
rior cruciate ligament
percentage of preventive work of occupational
health appointments
availability of care as measured by T3 (the third
available appointment)
•
•
•
• Net Promoter Score (NPS) for appointments
employee Net Promoter Score (eNPS)
•
In 2021, we continued to develop quality and effective-
ness reporting and also adopted new quality indicators. We
published a set of 25 quality indicators on our website.
Use of the WHO Surgical Safety Checklist
in surgical operations
We perform surgeries in our network of 18 hospitals. We
systematically apply the WHO Surgical Safety Checklist
before the start of each procedure. It is a standard list
of questions to check safety issues relevant for the opera-
tion in the OR. In 2021, the WHO Surgical Safety Checklist
was used in 99.8 (97.8) percent of the operations we
performed.
Prescriptions for drugs affecting the central
nervous system relative to the number of
physician’s appointments
When used appropriately, drugs affecting the central
nervous system are effective and necessary. However,
because of their adverse effects, their use requires careful
discretion by a physician. We have a special project aimed
at promoting the safe use of drugs affecting the central
nervous system according to clinical guidelines in patient
care. To harmonize prescription practices, we have prepa-
red detailed guidelines for prescribing drugs affecting the
central nervous system based on legislation, Current Care
Guidelines, Smart to Avoid Recommendations, guidelines
issued by the National Supervisory Authority for Welfare
and Health, and operating models proven in clinical work.
In 2021, our clinics wrote prescriptions for drugs affecting
the central nervous system for 4.3 (4.6) percent of visits to
a physician.
Duration of sickness absence issued on the
day of operation for repair of the rotator cuff
and the anterior cruciate ligament
Our surgical operations aim to provide swift high-quality
care pursuant to care criteria to quickly restore the
patient’s functional capacity and ability to work. We sys-
tematically develop the treatment chain for our surgery
patients. Our aim is to enable faster recovery and return
Kestävää kulutusta ja ilmastotyötä
Good health and well-being
to work. Correctly prepared surgery implemented without
delay as well as a plan for early rehabilitation and return to
work play a key role in this. The average length of sickness
absence issued on the day of operation for surgical repair
of the rotator cuff and the anterior cruciate ligament was
32 (36) days in 2021.
Percentage of preventive work of
occupational health appointments
Work not carried out is expensive for Finnish companies.
Therefore, it pays to invest in work ability management
through preventive measures. Effective work ability
management requires that organizations know what
kinds of risks to work ability they are managing. With tar-
geted health examinations, we survey the organization’s
health and work ability risks and obtain information to
support the management efforts. Our occupational health
examinations always include an electronic, scientifically
validated health survey. The survey is a self-assessment
for the employees. Based on the survey, we can identify
possible risks related to health and work ability. With the
survey, we can target measures particularly to those with
significant risks. In 2021, preventive work accounted
for 70.2 (67.8) percent of all of our occupational health
appointments.
TerveystaloAnnual Report 2021 Year 2021
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Availability of care as measured by T3
(the third available appointment), clinics
We continuously develop the availability of care by mana-
ging the balance between supply and demand as well as
by developing our digital services and the work of our
professionals. We measure the availability of care by the
T3 indicator, which is the number of days until the third
available non-urgent appointment at our clinics. The figure
indicates how quickly a customer can have an appoint-
ment with a physician. The T3 indicator for appointments
with a physician was 1.61 (1.17) in 2021. In addition to
physical appointments, the availability of care is enhanced
by digital general practitioner appointments available
24/7, with an average waiting time of seconds. In addition,
digital mental well-being services also lower the threshold
for seeking treatment.
Net Promoter Score (NPS) for appointments
We aim to stand out by providing an excellent experience
in all customer encounters. We develop our work by liste-
ning to our customers and utilizing new technology. NPS
(Net Promoter Score) is our most important indicator of
customer satisfaction. We collect feedback with SMS and
browser-based surveys, and we are continuously adding
NPS measurements at new customer encounter points. In
2021, the NPS for our appointments was 83 (83). The NPS
for our hospital services remained at a high level at 94.7
(94.4).
39
Employee Net Promoter Score (eNPS)
We want to be the most attractive workplace for professio-
nals. The professional survey is one of our most important
tools for improving internal procedures and supervisor
work. The survey is aimed at all of Terveystalo’s profes-
sionals, including private practitioners. In the employee
survey, the employee Net Promoter Score (eNPS) is used
as a key indicator of well-being and coping at work. The
eNPS figure indicates the proportion of our employees and
private practitioners who would recommend Terveystalo
as a workplace to others. Our eNPS continued to develop
favorably in 2021 and rose to a good level at 32 (18). The
professionals’ experience at Terveystalo improved in all key
areas in 2021.
Quality index
% of target
1
120
100
80
60
Quality index
95
(94)
7
6
5
4
2021
2020
2
3
1.
2.
3.
4.
Use of the WHO Surgical Safety Checklist in operations
Prescriptions for drugs affecting the central nervous
system in relation to visits to a physician
Median sickness absence days after operation
Percentage of preventive work of occupational
health appointments
Days until next available appointment, T3
5.
6. Appointment NPS
7. eNPS
Kestävää kulutusta ja ilmastotyötä
Good health and well-being
Care guidance is developed by
means of consistent care protocols
Science-based care guidance is developed with the help
of consistent care protocols. Our goal is to support pro-
fessionals and customers in planning and implementing
increasingly effective treatment by making it easy to
make day-to-day decisions in line with care protocols.
The care protocols are treatments defined by Terveystalo,
based on the Current Care Guidelines and other generally
accepted clinical recommendations, to treat a given illness
or ailment for which a customer seeks treatment. Our aim
is to first define 6–8 care key protocols, which helps us
model this new approach. The first care protocols we have
adopted are for treating lower back pain, depression and
anxiety.
For professionals, the care protocols propose suitable
next steps on the customer’s care path. Together with the
customer, the professional then decides which of the pro-
posals to put into action, taking the customer’s individual
situation and needs into consideration. Customers can
also be given direct guidance, for example in the case of
reminding them of a laboratory referral that has yet to be
used, a national recommendation concerning influenza
vaccination, a referral to a COVID-19 test or some other
simple care protocol.
We aim to support customers in various ways, including
reminders on digital channels regarding the next steps
of their treatment and by maintaining active contact
with customers to ensure that treatment is carried out
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
appropriately. For the patients, this means a clearer,
smoother and more predictable care pathway through our
digital services and during appointments with our profes-
sionals. For our professionals, the care protocols provide
tools that make their work easier as well as clearer and
smoother workflow.
Growth in digital health, COVID-19-
related services and mental
well-being services
The demand for services related to COVID-19 remained
high in 2021, with the demand for other health care ser-
vices returning to normal. When the pandemic began in
early 2020, we quickly responded to the needs emerging
from COVID-19 and created entirely new service soluti-
ons ranging from risk assessment to testing and tracing.
During the pandemic, we have established COVID-19
testing units across Finland and built a fully digital care
pathway for COVID-19 testing in the Terveystalo app
that includes every step of the process except the actual
sample taking. Our clinics have conducted more than
730,000 COVID-19 tests during the pandemic. We have
also introduced several alternative test solutions, including
an antibody test and gargle test in cooperation with Synlab
as well as a rapid test to enable better management of the
flu season and the COVID-19 pandemic. The distribution
of COVID-19 vaccines began in Finland in late 2020 and
the mass vaccinations of the working-age population
40
started in May 2021. Terveystalo has played an active
role in the vaccination effort. COVID-19 vaccinations
have been available at Terveystalo for the residents of
about 147 municipalities as well as employees whose
employer has concluded a vaccination agreement with
Terveystalo. Our open reporting provides information
on tests, diagnoses and vaccines administered on a
daily basis.
The COVID-19 pandemic has seen the demand for
our services shift increasingly toward digital services,
and digital appointments have become established as
an important aspect of our normal operations. Thanks
to our digital capabilities, we have been able to respond
quickly to the strong growth in the demand for digital
services. The total number of digital appointments
during the year was approximately one million (700,000),
and our customers were able to reach a physician in
seconds through our online chat service. A total of 2.0
(1.8) million appointments were conducted remotely and
as much as 25 (26) percent of all appointments were con-
ducted remotely, digitally or by phone.
The pandemic has increased mental health problems.
According to the customer data we have collected, anxiety
disorders are the third most common diagnosis and three
of the top five causes of sickness absences are related
to mental health problems. The demand for services
related to mental well-being has also multiplied during the
COVID-19 pandemic. Terveystalo’s Fokus special unit for
mental well-being started its operations at the beginning
of 2021. The special unit provides psychologist, psychiat-
Terveystalo COVID-19 tests per week 2020-2021
15,000
12,500
10,000
7,500
5,000
2,500
Kestävää kulutusta ja ilmastotyötä
Good health and well-being
Care path for
lower back pain
At Terveystalo, the treatment of lower back
pain is guided by a care path for lower back
pain based on the Käypä hoito- recommen-
dations and research evidence. The first
step in the care path is an assessment by
a professional of the nature of the back
pain. All those diagnosed with non-specific
back pain are automatically referred to the
lower backpain treatment path: the client
is recommended to make an appointment
with either an occupational physiothera-
pist or a physiotherapist. Other necessary
treatments will be individually planned by
the doctor and physiotherapist. The custo-
mer automatically receives videos of back
pain and its treatment and appointment
reminders in the Terveystalo application. In
addition to home practice and physiothera-
pist guidance, treatment may also include
medication and psychological support.
0
2020-11
2020-14
2020-17
2020-20
2020-23
2020-26
2020-29
2020-32
2020-35
2020-38
2020-41
2020-44
2020-47
2020-50
2020-53
2021-03
2021-06
2021-09
2021-12
2021-15
2021-18
2021-21
2021-24
2021-27
2021-30
2021-33
2021-36
2021-39
2021-42
2021-45
2021-48
2021-51
Source: https://avoinraportointi.terveystalo.com/korona/,
Reporting does not include on-site testing at customer companies.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
rist and psychotherapist services to occupational health
customers and private customers through physical and
remote channels. Terveystalo’s professionals can provide
mental health assessment, support and treatment as well
as related preventive services. Our treatment paths for
mental health and low-threshold services have produced
excellent treatment results. Our low-threshold mental
health services and brief psychotherapy have helped our
corporate customers to reduce sickness absences related
to mental health problems and the associated costs by
more than 30%, while the customers’ perception on their
own well-being has returned to normal.
A new well-being service to
support lifestyle changes
In September 2021, Terveystalo launched the first consu-
mer version of an entirely new kind of well-being service
that is based on blood analyses by the health technology
company Nightingale, a health index based on the blood
analyses as well as digital well-being content and programs
put together by Terveystalo’s experts. The blood analysis
technology is one of the world’s most widely used next-
generation medical research tools and it has already been
used for over a million blood samples. The effectiveness
and benefits of the technology have been proven in over
300 peer-reviewed scientific publications and the techno-
41
logy has passed the European health care regulatory
requirements. Nightingale’s biotechnology uses algori-
thms based on large data masses to refine data obtained
from blood samples into clear and easily understandable
information on health risks. Nightingale’s specification
method makes it possible for Terveystalo to incorporate
state-of-the-art medical technology into a new kind of
well-being service. The service was launched in the form
of a Terveystalo + Nightingale well-being membership that
includes three annual samples taken at Terveystalo’s labo-
ratories as well as regular coaching content and weekly
programs focused on physical activity, nutrition, sleep and
recovery. The service is used via the Terveystalo app.
An operating model for effective work
abilitywork ability management and using
AI in risk identification
We updated our operating model, tools and indicators
related to work ability management in 2021. The outcome
is the Healthy Workplace operating model, by which we
create measurable value for our customer companies. A
healthy workplace is not created by chance, but through
planning. This requires information to support the mana-
gement of employee work ability, anticipate risks and
create ways in which we can work together to build heal-
thy work communities from healthy employees and suc-
Development of digital visits 2019-2021
thousand
+821%
300
250
200
150
100
50
0
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Does not include the digital appointments of the Sweden and others segment.
Kestävää kulutusta ja ilmastotyötä
Good health and well-being
cessful companies from healthy work communities. There
are multi-dimensional and strong links between work,
work ability and health. The Healthy Workplace operating
model enables cooperation to build a workplace that
strengthens the individual’s work ability and the communi-
ty’s ability to function. When work is meaningful and work
ability is effectively managed, employee well-being impro-
ves while the risk of work disability and work left undone
are reduced. Healthy individuals not only help a company
achieve a high level of well-being, they are productive and
work effectively together to achieve the organization’s
goals.
We use AI to support work ability management. We rely
on research-based data and use academically validated
indicators that have been proven to predict potential
work ability risks and prolonged sickness absences. The
AI-assisted Etydi system we use helps health care profes-
sionals identify potential work ability risks at an earlier
stage. The system screens the employees for even weak
signals of work disability to be able to target measures at
the right people. AI also combines the results of each indi-
vidual’s Health Survey with the data it collects, providing
good visibility into the organization’s risks and ability to
influence them. Our occupational health team provides
the organization with information and proposals concer-
ning risk factors that the organization should focus on.
TerveystaloAnnual Report 2021 Year 2021
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Financials
Suunta service brings together the best tools
for occupational health care cooperation
Our Suunta service enables effective digital occupational
health care cooperation. To create the service, we have
brought together everything the customer organization
needs to build a healthy workplace community. The
Suunta service includes work ability management tools,
the planning of operations, occupational health care
cooperation tools and reporting as well as other occupa-
tional health care customer systems and functionalities in
a single user interface. Predictive and preventive indicators
of work ability risks are compiled into the Etydi artificial
intelligence used by professionals.
To our customers, the results of this work are visible in
the form of work ability management indicators. Suunta
provides the opportunity for continuous dialogue between
the customer and Terveystalo, and it also brings transpa-
rency with regard to the quality, effectiveness and costs of
occupational health care cooperation.
The award-winning Terveystalo app brings
health services close to the customer
At Terveystalo, a physician, nurse or therapist can also be
consulted remotely via video or chat. Digital services effi-
ciently improve the availability of care and lower the thres-
hold of seeking treatment. Our Terveystalo app provides,
for example, access to the Doctor Chat in approximately
seven seconds 24/7, every day of the year. Our low-thres-
hold Mielen Chat for mental well-being is also available
to our occupational health customers 24/7, every day of
the year. Through our Terveystalo app, our customers can
renew prescriptions, get referrals for laboratory tests and
communicate with the nurse or physician responsible for
their care. Clearly visualized laboratory test and imaging
results are always available in the app. The app also provi-
des the customer with a personalized health plan called
Oma Suunnitelma. In addition, the app sends personal
health-related reminders. The Terveystalo mobile applica-
tion has over 500,000 active users and as many as 1.7 mil-
lion Finns have registered as users of our digital services.
Terveystalo becomes a manufacturer of
software-based medical devices
In August 2021, Terveystalo became the first health ser-
vice provider in Finland to receive an ISO 13485 quality
management system certificate. With the certificate,
Terveystalo becomes a manufacturer, distributor, seller
and marketer of software-based medical devices. For
Terveystalo, the certificate is a strategic competence that
enables the product development of smart software used
in health care. The sales and marketing of medical devices
is subject to the product being CE marked, which in turn
is subject to the product being designed and manufac-
tured in compliance with the ISO 13485 quality mana-
gement system and the provisions of the Medical Device
Regulation. The certificate awarded to Terveystalo proves
that Terveystalo’s processes meet the requirements set for
manufacturers of medical devices.
The biobank builds well-being for the future
Biobanks make samples and data available to high-quality
research and product development projects that aim to
find the causes of diseases and promote general health.
The goals of Terveystalo’s biobank are the promotion of
the population’s health, the identification of factors invol-
ved in disease mechanisms, the prevention of diseases
and the development of products or treatment practices
that promote the population’s well-being or health or that
are used in medical care. We investigate the causes of
diseases and support the development of products and
treatments used in health care. Our biobank also promotes
scientific research related to COVID-19. Terveystalo’s bio-
bank has been awarded ISO 9001:2015 quality manage-
ment system certification.
Excellent availability of primary
health services
Fast and timely access to care is one of the biggest chal-
lenges of Finnish primary health care. We have developed
42
Kestävää kulutusta ja ilmastotyötä
Good health and well-being
health centers’ operating models over the longer term
to ensure easy access to care. Our goal is a health center
with no queues, one that maintains a high level of clinical
quality while delivering a good customer and employee
experience.
In primary health care, Terveystalo partners with seve-
ral municipalities and joint authorities. We produce health
center appointment services at 17 municipal health cen-
ters. At the start of October 2021, we started operating the
Kannelmäki health center in partnership with the City of
Helsinki, and we are now providing services for the 20,000
residents of the area. We are also participating in a service
voucher pilot in Espoo, where customers can choose a
private service provider as their health center by using a
service voucher issued by the city.
In our health centers, the average T3 time indicating
the availability of non-urgent appointments (the third
available appointment) was 6.5 (5.6) days in 2021. Our tar-
get is less than 7 days for doctor’s services and less than 1
day for nurse’s services. The availability of care was excel-
lent nationwide at our health centers throughout the year.
The availability of oral health care has also remained at a
good level at Terveystalo’s 12 outsourced dental clinics
despite the continued COVID-19 pandemic. The average
T3 time for non-urgent dentist’s appointments was 35 (30)
days for the year.
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Ethical business
Eettistä liiketoimintaa
Ethical business
Operating ethically and responsibly is
an integral element of Terveystalo’s
values and strategy. Terveystalo’s
Code of Conduct and Supplier Code of
Conduct provide a framework that helps
us ensure that we act in accordance
with our values, internal guidelines and
applicable laws. They support a company
culture that takes ethical perspectives
into account and combines a high
work ethic, professionalism, solution-
oriented cooperation and the pursuit of
measurable impact in everything we do.
43
Ethical business
Area
Target
Indicator
Target
2021
2020
2019
SDG
Employees who have
completed training on
the Code of Conduct
and correct action
Suppliers who have
approved the Supplier
Code of Conduct
100% of our employees have completed
the training
Percentage of employees who have completed
the training relative to all employees
100%
66.0%
52.3%
-
16
100% of our suppliers have approved
the Supplier Code of Conduct
Percentage of suppliers who have approved the
Supplier Code of Conduct relative to all suppliers
(of suppliers representing 80% of total purchases)
100%
80%
80%
60%
16
Values guide our work
Human being at the center
Steered by medical science
For the common good
We take responsibility for everyone’s
health and well-being, the opportunity
to lead a good life. Together, we work
for the best of our customers, and the
customers show us the direction of
our renewal. We help each other and
value all of our professionals.
Everything we do is based on medicine
and science. The effectiveness of care
and our customers’ well-being guide
all of our decisions.
Through our operations, we build a
healthier and wealthier society, and
provide effective treatment. We share
information and invite discussion. We
create better health care for everyone:
customers, professionals and society.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
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Ethical business
Eettistä liiketoimintaa
We train our personnel to comply with
the code of conduct and ethical requi-
rements
The Code of Conduct translates our values into concrete
principles that form a foundation for our daily work and
decision-making. Values and ethics are emphasized in
Terveystalo’s work through the requirements of the sector.
Terveystalo’s business is guided by legislation governing
the sector and private health care services as well as the
requirements set by authorities. The work of healthcare
professionals is also guided by the ethical standards of
professional groups. In addition, Terveystalo’s own Code of
Conduct provides an overarching guideline that is shared
by everyone at Terveystalo and which we all adhere to.
The Code of Conduct addresses a wide range of topics,
including anti-corruption and bribery, compliance with
fair competition and environmental requirements, privacy
protection, patient safety, employee equality, non-discri-
mination and freedom of association.
In 2021, we updated our orientation training on correct
action and the Code of Conduct. An entirely new course
was created for employees and practitioners who engage
in clinical work, while the course designed for administra-
tive employees was updated with new questions. The
purpose of the courses is to build an understanding of
why compliance and ethical responsibility are important
and how they are related to the day-to-day actions and
decisions by everyone at Terveystalo. A further goal of the
training is to create a better understanding of key themes
related to ethics, including fair competition, the avoidance
of conflicts of interest, the prevention of bribery, data
protection and reporting misconduct. In 2021, 7,485
Terveystalo employees (6,032 salaried employees, 66.0
(52.3) percent of the total salaried employees in Finland)
completed the training and received a passing grade. The
goal is that 100% of employees complete the Code of
Conduct training. The updated Code of Conduct has been
well received by our employees – it has had a positive
effect on the experienced significance and responsibility
of work.
Anti-corruption and bribery
In the area of anti-corruption and bribery, Terveystalo
complies with the law and other applicable regulations.
Terveystalo is also committed to the UN Global Compact
initiative and its anti-corruption principles. Our operations
are also guided by our Code of Conduct, which includes
anti-corruption and bribery guidelines regarding, for
example, giving and accepting gifts and hospitality as well
as the avoidance of conflicts of interest.
The prevention of corruption is included in
Terveystalo’s Code of Conduct, which addresses the giving
and accepting of gifts and hospitality, sponsorships, accep-
ting and making donations, understanding and avoiding
conflicts of interest as well as the rules pertaining to lob-
bying. We emphasize that, at Terveystalo, we do not offer,
give, request or accept gifts or other benefits that could
44
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
affect business decisions or have considerable personal
or financial value. We also do not make financial contribu-
tions to political parties or fund the election compaigns
of individual candidates. No incidents of corruption were
reported in 2021.
Respecting human rights
Terveystalo does not tolerate any form of discrimination,
harassment, bullying, racism or inappropriate treatment,
nor does Terveystalo condone the use of child labor, any
form of forced labor or other human rights violations in
its own operations or its supply chain. Terveystalo res-
pects the human rights set out in the UN Declaration of
Human Rights as well as the workers’ rights defined by the
International Labour Organization (ILO) and related inter-
national conventions. The company is committed to the
UN Global Compact initiative and its principles pertaining
to human rights and labour rights. Terveystalo’s suppliers
are also expected to comply with these principles and res-
pect internationally recognized human rights. Principles
related to human rights are included in Terveystalo’s Code
of Conduct and Supplier Code of conduct.
Maintaining a competitive advantage
and responsible marketing
Terveystalo’s Code of Conduct includes a commitment to
fair competition. We compete fairly, with integrity and in
compliance with the applicable legislation. All of our emp-
loyees are required to comply with laws, regulations and
internal guidelines pertaining to competition. We respect
the intellectual property rights and confidential informa-
tion of others. In its marketing activities, Terveystalo is
committed to complying with the ethical guidelines gover-
ning the marketing of medical services. The marketing of
medical services must provide patients with accurate and
reliable information on the services provided by physicians
and health care service providers, thereby giving patients
the opportunity to obtain factual information and support
patients’ freedom of choice in seeking medical care.
The responsibility of suppliers is ensu-
red by the supplier code of conduct
Each year, Terveystalo buys services, materials and
supplies for its clinics from more than 4,000 suppliers.
Consequently, the network of service providers and
suppliers of goods – and good supplier cooperation – play
a key role in our operations. We want our contractual
service providers and suppliers of goods to be aware of
Terveystalo’s significant role in society. We also want supp-
liers to commit to taking responsibility for the economic,
social and environmental impacts of their operations. To
ensure the responsible conduct of suppliers, contrac-
tual suppliers and suppliers participating in tendering
processes have to approve the Supplier Code of Conduct,
which includes guidelines and requirements pertaining to
anti-corruption and bribery, human rights, fundamental
rights at work, occupational health and safety, taxation
and environmental responsibility. At the end of 2021,
80 (80) percent of suppliers representing 80 percent of
Terveystalo’s total procurement volume had approved the
Supplier Code of Conduct. Terveystalo also uses a supplier
self-assessment form that covers topics such as comp-
liance with the Supplier Code of Conduct.
Whistleblowing channel gives
everyone the opportunity to report
suspected misconduct
One important aspect of our culture of responsible
business is that everyone who acts on behalf of or with
Terveystalo and every customer, partner and supplier feels
that they can freely report any suspicions of misconduct
and trust that Terveystalo will take appropriate measures
to investigate any actions that are or are suspected of
being in violation of the Code of Conduct. Actual or sus-
pected infringements are primarily reported to the super-
visor, the supervisor’s supervisor or Terveystalo’s Legal &
45
Ethical business
Eettistä liiketoimintaa
Compliance department. Terveystalo also uses WhistleB,
a whistleblower system open to everyone. This channel
enables anonymous reporting of observed or suspected
misconduct at: www.report.whistleb.com/terveystalo. Any
suspected misconduct and violations are investigated
appropriately and confidentially. If a suspected violation
proves to be unwarranted, there are no negative conse-
quences to the reporter provided that the reporter has
acted in good faith.
We are happy that the whistleblowing channel has
reached our employees and that the channel has been
used to respond to suspected violations. In 2021, we
received a total of 22 (10) reports of suspected violations
through the whistleblowing channel. Out of these, the
reports already investigated did not reveal any noncomp-
liance with or infringement of law or the Code of Conduct.
One report received in 2020, the investigation of which
was completed in 2021, was found to be in breach of the
Code of Conduct resulting in a disciplinary process. The
findings of the reports and completed investigations have
been considered in the development of Terveystalo’s
processes.
TerveystaloAnnual Report 2021 Year 2021
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Corporate Governance
Financials
We ensure data protection and
information security for patients
Privacy protection is a core value for us. At Terveystalo, we
respect everyone’s privacy. We pay special attention to the
appropriate and legally compliant processing of personal
data. We provide our personnel with training and instruc-
tions on the processing of personal data and emphasize
the particular confidentiality and protection of patient
data. The realization of data protection is the responsibility
of everyone who works for Terveystalo.
The digitalization of health care presents significant
opportunities for improving the availability and effecti-
veness of care as well as the early identification of risks.
Terveystalo has made significant investments in the
development of digital services and tools. As digital ser-
vices increase in importance, modifying the industry, the
requirements concerning data protection and information
security increase accordingly.
Terveystalo stores patient information in informa-
tion security certified patient information systems.
Terveystalo’s patient information systems used in Finland
are category A systems and they have undergone infor-
mation security certification in accordance with the
regulations related to providing Kanta services. In addition,
Terveystalo’s data protection and information security is
regularly audited internally and by a third party according
to the ISO 9001:2015 certification.
Terveystalo applies the appropriate physical, technical,
and administrative protection measures to protect data
from misuse. These measures include, among others,
control and filtering of network traffic, use of encryption
techniques and safe data centers, appropriate access
control, controlled granting of access rights and supervi-
sion of their use, giving instructions to staff participating
in personal data processing and risk management related
to the planning, implementation, and maintenance of our
services. Terveystalo chooses its subcontractors carefully
and uses agreements and other arrangements to ensure
that they process data in compliance with the law and
good data protection practices.
We use data and AI responsibly
The identification, prediction and prevention of illnesses
and health risks benefits both the patient and society.
Collecting, analyzing and using patients’ health data is an
essential part of health risk identification. It ensures that
we can provide timely treatment for customers and give
recommendations. It is always up to the customers to
decide if they want to accept them. We use and develop
AI in a reliable and ethical manner. We actively monitor
that the AI solutions we use are responsible, beneficial to
people, relevant to both Terveystalo and the customers
and that the specified objectives are achieved. We respect
and monitor the realization of fundamental rights also
in the context of using AI technology and we protect our
customers’ data and privacy in all circumstances.
We engage in internal dialogue in the company regar-
ding the ethics of AI and topics related to data protection
(including the Act on the Secondary Use of Health and
Social Data). We actively monitor AI solutions, the related
discussion and recommendations (including the EU regu-
lations on AI that are currently in the process of being
drafted). In the development and use of AI, we are com-
mitted to legal compliance and we adhere to the general
ethical recommendations pertaining to the use of AI.
Ethical business
Eettistä liiketoimintaa
”
Privacy protection
is a core value for
us. We pay special
attention to the
appropriate and
legally compliant
processing of
personal data.
46
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Responsible work
At Terveystalo, our mission is to fight
for a healthier life. To realize our goal
of being a pioneer in the health care
industry, we continuously develop our
thinking, our competence and our
working methods. We give health care
professionals the opportunity to join
a multidisciplinary community of top
talents, a team whose members help
each other succeed. In line with our
values, we always focus on people and
work toward the common good. Our
strategic goal is to be the best and most
attractive employer in the industry for
physicians as well as other professionals.
Terveystalo is a significant employer
Terveystalo is a significant employer in Finland. At the
end of 2021, we had 9,805 (8,253) employees and
5,644 (5,057) independent practitioners in Finland. Our
acquisition of the Swedish occupational health com-
pany Feelgood in 2021 led to us having 668 new emplo-
yees and 110 practitioners in Sweden. We also made 11
47
Responsible work
Area
Target
Occupational safety
Accident rate below the sector average
Indicator
Accident rate
Target
< 35
(sector average)
Personnel’s well-being
Reducing sickness absences
Sickness absences
-
4.4%
3.8%
3.8%
Employer recommended
by the personnel
Improving the employee promoter score
eNPS
31 by 2025
32
18
9
Responsible work
2021
2020
2019
SDG
15
25
27
8
8
8
other complementary acquisitions during the year, which
increased our number of personnel by 172. The exit turno-
ver of our personnel in Finland was 14.0 (17.1) percent.
We need many professionals
to support our growth
There is a chronic shortage of personnel in the health
care sector. With this in mind, it is a strategic priority for
us to ensure that Terveystalo has enough health and well-
being professionals to enable us to achieve our strategic
growth targets. We can accomplish this by recruiting new
professionals, having Terveystalo’s existing professionals
work more (converting part-time practitioners into full-
time practitioners, for example) and reducing exit turno-
ver. This requires that Terveystalo’s attractiveness as an
employer and the well-being at work and job satisfaction
of Terveystalo’s employees and practitioners constitute
the foundation of everything we do. We strengthen that
foundation by providing professionals with interesting and
meaningful work, diverse career and development oppor-
tunities and by ensuring that our professionals can work
smoothly and focus on what is important. As an employer,
we promise to maintain a good workplace community,
operate in a multidisciplinary manner, develop both as a
company and as individuals and be a pioneer in our field.
Our goal is to be the best and most attractive employer
in our industry. We have worked systematically toward this
goal for several years, and studies show that we are the
most popular employer in our industry in Finland among
both students and professionals in our field.
Changes in how professionals work and
supporting people through change
We contribute to the changes taking place in how people
work in the field of health and well-being by striving to
create the smoothest and most efficient work environ-
ment and providing broad support for our professionals in
the transformation of work. Digitalization has changed the
way health care and well-being professionals work and int-
roduced new demands with regard to their competencies.
The transformation of work represents an opportunity
to clarify the work of professionals and make their work
smoother and more productive. This allows professionals
to focus on customer encounters and problem-solving.
Change also requires new approaches to management
and remuneration. When it comes to changes in the way
TerveystaloAnnual Report 2021 Year 2021
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Corporate Governance
Financials
professionals work and supporting that change, we focus
particularly on improving the content and guidance of
work, where the development of treatment guidance with
the help of care protocols holds a key role. The goal of
treatment guidance based oncare protocols is to provide
more consistent and effective care for our customers
while also making the work of our professionals easier. We
are also introducing new tools to support professionals
in their work, including the Terveystalo+ Nightingale
health index and digital health and well-being content,
instructions and weekly programs for customers, delivered
through the Terveystalo app, which our professionals can
also use in giving instructions and guidance to customers.
We provide our professionals with diverse digital tools that
are the subject of continuous development. Our work
ability management model in occupational health, the
AI-supported Etydi tool for identifying work ability risks,
the Terveystalo Pro mobile app for professionals, medical
reporting and our Dashboard support professionals with
their work and also provide tools for research activities.
We look after the health and safety
of our employees
Occupational health care plays an important role in the
identification of health risk factors and the prevention of
illnesses. Our occupational health care and occupational
safety are organized on a company-specific and regional
basis in accordance with Finnish legislation, according to
which the employer shall arrange occupational health care
at its own expense in order to prevent and control health
risks and problems related to work and working conditions
and to protect and promote the safety, work ability and
health of employees.
In addition to the statutory requirements, we provide
our employees with a comprehensive range of primary
health care, specialized care and well-being services, such
as direct access to an occupational physical therapist
and Mielen Chat and Mielen Sparri, digital services that
support mental well-being. Mielen Chat and Mielen Sparri
are low-threshold services that are provided remotely
using the Terveystalo app. These services allow the user
to discuss anything on their mind in strict confidentiality
and they also provide tools to support mental well-being.
Brief psychotherapy is also part of our occupational health
services. We aim to recognize challenges related to work
ability and occupational health at an early stage and seek
solutions to these challenges through effective coopera-
tion with occupational health services.
Our own occupational health services provides occu-
pational health care for our personnel throughout Finland.
Thanks to centralized and goal-driven management, the
content and practices of our occupational health care
are consistent and produce good results. Labquality Oy
has awarded our occupational health services an ISO
9001:2015 Quality System Certificate.
In our Group, advice and guidance related to employee
health and well-being at work, the assessment of work-re-
lated health risks, and the prevention and treatment of
illnesses are part of our normal cooperation with our occu-
48
Responsible work
Terveystalo ranked as the most attractive employer
among both industry professionals and students
Terveystalo is the most attractive employer
in the health care and pharmaceutical in-
dustry and the second-most attractive emp-
loyer in the entire medical sector among
professionals for the second consecutive
year. Terveystalo was ranked at the top of its
industry among private health care service
providers. These were the results of the emp-
loyer image survey conducted by Universum
in 2021. The approximately 1,500 respon-
dents were health care professionals from both
the private and the public sector. The survey
evaluated nearly 60 organizations, including
public sector entities, private health care ser-
vice providers and pharmaceutical companies.
In Universum’s employer image survey of stu-
dents in the field, Terveystalo was ranked
as the industry’s most attractive employer
for the eighth consecutive year.
TerveystaloAnnual Report 2021 Year 2021
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Responsible work
pational health services and our insurance company part-
ners. When it comes to the treatment of serious illnesses,
we cooperate with primary health care and specialized
health care.
During the COVID-19 pandemic, we have invested
significantly in maintaining our personnel’s work ability
and medical care under the exceptional circumstances.
Terveystalo’s personnel have operated in the eye of the
storm of the COVID-19 pandemic. Sickness absences
among our personnel increased slightly and the sickness
absence rate in Finland was 4.4 (3.8) percent of hours
worked.
The statutory occupational health action plan includes
the general objectives of occupational health care as well
as the requirements based on workplace conditions and
related measures. We review the action plan annually
based on workplace visits and other occupational health
surveys, among other things.
Our occupational health operations are based on our
Healthy Workplace model, which is aimed at ensuring that
work is as efficient as possible, the workplace community
functions well, the management approach is active, and
individuals have a high level of well-being at work.
In occupational health care, the company, the person-
nel and the occupational health services work together in
accordance with the set goals. The action plan is available
to the personnel on the company’s intranet.
Terveystalo’s private practitioners are not covered
by occupational health care. Instead, as self-employed
persons, they arrange their own occupational health care.
Private practitioners are not in an employment relation-
ship with Terveystalo. They decide on their own fees and
provide services directly to customers as part of our ser-
vice offering.
We actively seek acquisitions. Occupational health
services for the employees transferred from the acquired
entities are, as a rule, organized in accordance with the
acquired entity’s previous agreement at least for the dura-
tion of a transition period if the company in question is a
subsidiary and it is not merged with Suomen Terveystalo
Oy.
There were no fatal accidents or accidents leading to
serious injuries at Terveystalo in 2021. Terveystalo's acci-
dent frequency in Finland was 15 (25) in 2021, which is
clearly below the average in the health care industry (35).
Occupational safety played a significant
role in the daily life of Terveystalo emp-
loyees during the covid-19 pandemic
Ensuring the safety of Terveystalo employees remained
a key priority in 2021. We closely monitored the develop-
ment of the COVID-19 situation and updated our guideli-
nes for Terveystalo employees in various roles accordingly.
Active internal communication also played a significant
role. For example, we regularly organized webinars for all
of our personnel to cover news and current information
related to COVID-19.
In 2021, we also started a development effort focused
on other aspects of occupational safety, including the
updating of occupational safety operating models, tools
and guidelines. In late 2021, we drew up an action plan
on the measures we will take over the next few years to
ensure safety at work for Terveystalo employees even
better than before. Among other things, the action plans
includes occupational safety training, clarifications to safe-
ty-related responsibilities and new operating models for
the assessment of occupational safety risks, for example.
In our survey of professionals conducted in the fall of
2021, we asked Terveystalo employees and practitioners
to express an opinion on the safety of their work for the
first time. Some 85 percent of the respondents felt that
their work environment is safe.
We develop our know-how and
Terveystalo as a workplace
The systematic and business-driven development of our
personnel is especially important for Terveystalo’s future
success. Smooth work and appropriate, responsible
supervisory work ensure our personnel’s well-being, which
in turn benefits our customers through better care and
a positive customer experience. We require everyone at
Terveystalo to have a defined set of professional skills
that is based on the values that guide our operations. At
Terveystalo, competence is developed by doing (70%), by
learning from others (20%) and by participating in training
(10%). In personal development discussions, the need for
competence development is assessed and the discussion
participants agree on how the desired development will be
achieved. We provide professional training and opportuni-
ties for learning on the job. We have invested particularly
in the development of leadership and supervisory work
as well as supporting on-the-job self-study by increasing
online learning, for example.
In 2021, we launched Toward Better Leadership, a
development program aimed at all managers and super-
visors at Terveystalo. The program is underpinned by the
changes in management required for the implementation
of our new strategy as well as Terveystalo’s new leader-
ship principles: people orientation, high performance
and responsibility. The development program focuses
on, for example, the nature of leadership at Terveystalo
and how we can coach individuals and teams to perform
better. The program also addresses how we create a safe
workplace atmosphere where everyone feels comfortable
to participate, exercise influence, take responsibility and
act with courage even in situations that involve the pos-
sibility of failure. In addition to launching the leadership
program, we organized Occupational Health Sparring
events for occupational health care professionals during
the year, began an effort to develop the well-being at work
of our occupational health nurses, provided training on
the implementation of new tools and operating models
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TerveystaloAnnual Report 2021 Year 2021
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and organized a wide range of training activities aimed at
various professional groups to support their professional
development. We also provided training to our various
personnel groups on data protection, information security
and our Code of Conduct.
the COVID-19 pandemic and we are now providing strong
support to the transition to flexible hybrid work. In this
transition, it is essential to engage teams in planning the
transition as well as manage different working methods
and team spirit in day-to-day operations.
In 2021, we provided a total of 79,847 (63,864) hours of
training, which corresponds to 8.7 (7.5) hours per
salaried employee.
In addition to internal training, we engage in research
and education cooperation with several universities and
promote youth employment with our trainee programs, for
example.
As part of workplace development, Terveystalo’s
employees and practitioners work flexibly on a place-in-
dependent basis, with the objectives and appropriateness
of work being the deciding factors in how the work is
performed. Our Group services, for example, are shifting
to hybrid work, which involves teams agreeing on the
most effective working method for them, considering
factors such as productivity, objectives, flexibility and the
well-being of personnel. Going forward, we also want to
strengthen collaboration and teamwork, so we encourage
our teams to meet regularly at the office. We have also
developed flexible working opportunities for those of our
professionals who work at the customer interface. Flexible
work is now routine for physicians, occupational health
professionals and those who work at our customer service
centers, for example. We have supported and provided
training related to the transition to remote work during
Personal development discussions as a
tool for performance management and
job satisfaction
At Terveystalo, annual personal development discussions
are held with all full-time employees to support goal-dri-
ven and motivated work. The core of the discussions
consists of reviewing the successes and lessons learned
from the previous period together with the supervisor,
setting goals for the new period and, above all, creating
an open atmosphere of discussion to facilitate feedback
in both directions. In addition to addressing the goals
for the previous and next period, the discussion covers
competence, well-being at work, working in accordance
with Terveystalo’s defined professional skills, cooperation
as well as long-term objectives and wishes. The themes
discussed in the personal development discussion are revi-
sited in one-to-one discussions held at least once a month
and in more extensive half-year reviews. The personal
development discussions are a key aspect of the practical
implementation of Terveystalo’s strategy, values and pro-
fessional skills as well as performance management and
the monitoring of the achievement of goals.
50
Responsible work
Working life skills in Yrityskylä
Terveystalo's partner Economy and Youth
TAT offers children and young people the
opportunity to learn and get excited about
working life and the economy, and to pursue
an independent life as an active member
of society. Yrityskylä, developed by TAT, is a
learning entity based on the basic education
curriculum. Through Yrityskylä, up to 83
per cent of Finland's 6th graders and 73 per
cent of 9th graders have access to society
and working life. In 2021, a small Terveystalo
was found in eight Yrityskylä locations,
which reached 51,121 sixth-graders all over
Finland. In the Yrityskyläs’ Terveystalo clinics,
sixth-graders take care of the well-being
of the employees. A day in Yrityskylä can
arouse interest in the dream profession of
the future.
"I learned at Terveystalo that in a nice
job time flies and I get to be myself,"
– a sixth-grader after Yrityskylä Day.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo’s professional
skills are as follows:
Competent
Responsible
My professional competence is extensive, and I share my
competence. I have the courage and the will to develop
and update my competence, and I seek solutions, chal-
lenge myself, and network with other professionals.
I take responsibility for the quality of my work. I offer high-
quality service to every customer. I also take responsibility
for my work community by being friendly and treating all
of the professionals around me equally well. We grow by
growing together.
Caring
I build cooperation and trust between our professionals
and our customers. I work in a way that is inclusive and
encourages others and behave in a way that shows my
respect for others.
Customer-oriented
I do everything I can to serve customers proactively, using
the customer’s needs as a starting point and ending up
with a solution that serves the customer. I ensure that the
customer knows their care path. I create a smooth and
warm customer experience for the customer.
Productive
I work in a way that is goal-oriented and proactive.
I achieve results in my work and by working together
with our other professionals and our customers.
The professional survey is a key
development tool
The professional survey is one of our most important
tools for improving internal procedures and supervisor
work. The survey is aimed at all of our personnel, including
private practitioners. Conducted twice a year, the profes-
sional survey sheds light on Terveystalo employees’ and
practitioners’ experiences related to well-being at work,
management and the effectiveness of the workplace
community, among other topics. In the personnel survey,
the employee Net Promoter Score (eNPS) is used as a
key indicator of well-being and coping at work. The eNPS
figure indicates the proportion of our employees and pri-
vate practitioners who would recommend Terveystalo as a
workplace to others. The development areas highlighted
in the 2020 survey included the ease of obtaining informa-
tion, work processes and procedures as well as coopera-
tion between units, clinics and professional groups. Based
51
Responsible work
Women and men, %
of all employees in Finland
72% Women
28% Men
Women and men,
% of executive team, 2021
% of employees and private
practitioners in Finland, 2021
50% Women
50% Men
62% Employees
38% Private practioners
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
to take responsibility and the will to improve our operations
and themselves.
To realize these principles, Terveystalo Plc and its subsi-
diaries in Finland prepare company-specific personnel plans,
training plans, equality and non-discrimination plans and
define targets for improvement.
In accordance with the diversity policy of our Board of
Directors, our objective is to have a balanced gender distri-
bution in the Board of Directors. In 2021, two of the seven
members of the Board of Directors were women. Five of the
eleven Management Group members were women.
The remuneration of our personnel is based on the prin-
ciples of performance, equal treatment and competitive-
ness. For jobs that fall under collective agreements, such as
nurses, the pay categories correspond to the classifications
specified in the collective agreements. Pay is also influenced
by job-specific responsibility supplements and the emplo-
yee’s years of experience. For senior salaried employees,
pay is determined based on the position and the demands
of the job as well as other factors, including competence,
experience, performance and results. The company-specific
equality plans are focused on the equality of remuneration
and aimed at promoting equal pay. Gender, for example,
cannot be a factor that influences pay.
on the results, we started initiatives such as a project to
develop the work of occupational health nurses and we
also started to develop practices concerning the location
of shared information and improving intranet functionality.
In 2021, we launched Toward Better Leadership, a deve-
lopment program aimed at all managers and supervisors at
Terveystalo.
In the 2021 professional survey, the employee Net
Promoter Score (eNPS) continued to develop favorably,
rising to a record-high level of 32 (18). Based on the
results, Terveystalo’s strengths include the development
and renewal of the company, respecting diversity and
satisfaction with supervisors. We will continue to work on
making it easier to obtain information and strengthen
team spirit and coherence in teams. Our goal is to achieve
more concrete improvements and bring the eNPS to a
good level, meaning a level above 31, by 2025.
We promote diversity, equality
and non-discrimination
We observe the principles of equality, fairness, and non-
discrimination. We do not discriminate on the basis of race,
age, ethnic or national origin, nationality, language, religion,
belief, opinions, health status, disability, sexual orientation or
other personal reasons or circumstances. In recruitment, we
focus on the person’s professional competence, the ability
52
Terveystalo is an official
partner of Helsinki Pride –
we focus on promoting
non-discrimination
Terveystalo was an official partner of Helsinki
Pride 2021 and participated in Helsinki Pride
Week 2021 to celebrate human rights efforts
and the historical milestones already achie-
ved. While tremendous progress has been
achieved with regard to non-discrimination,
there are many steps still ahead – and
Terveystalo is no exception. We recognize
that the world is not yet free of discrimina-
tion. It will take continuous work to ensure
that, in the future, everyone is free to be
exactly who they are, and we at Terveystalo
want to be part of that change. To this end,
we announced Terveystalo’s five steps
towards more equal and non-discriminatory
working life. We are committed to the five
steps and will monitor their achievement.
In the fall, we organized a brief information
Responsible work
campaign on sexual and gender minorities
and diversity for everyone at Terveystalo in
collaboration with Helsinki Pride. We also
distribute information on rainbow sensitivity
in customer encounters. In the professional
survey conducted in the fall, Terveystalo
employees’ and practitioners’ experiences
related to non-discriminatory treatment and
respect for diversity had improved substan-
tially from the previous good level.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Number of Terveystalo’s personnel and private practitioners in Finland
Personnel in Finland by type of employment relationship, %
Responsible work
Personnel
Private practitioners
2021
9,137
5,644
Personnel by occupational group in Finland
Personnel in Finland
Physicians
Nurses
Other health care professionals
Customer service
Management
Senior management
Salaried employees and private practitioners
Personnel by country
Finland
Sweden and others
Total
Salaried employees and private practitioners
53
2020
8,253
5,057
2021
14,781
5,900
3,933
2,554
915
1,462
12
2019
8,685
5,068
2020
13,310
5,707
3,628
1,963
749
1,210
12
2021
14,781
778
15,559
2018
4,494
4,877
2019
12,983
5,599
3,302
1,603
646
878
12
2020
13,310
0
13,310
Permanent
Fixed-term
Full-time
Part-time
Percentage of women and men, %
Personnel in Finland
Physicians
Nurses
Other health care professionals
Customer service
Management
Senior management
Board of Directors
Personnel (salaried) in Sweden
2021
2020
2019
77
23
50
50
84
16
55
45
64
36
49
51
2021
2020
Women
Men
Women
Men
72
49
95
78
91
77
50
29
83
28
51
5
22
9
23
50
71
17
71
48
96
83
95
80
55
29
29
52
4
17
5
20
45
71
N/A
N/A
Age structure of the personnel in Finland, %
Under 30 years
30–49 years
Over 50 years
Salaried employees and private practitioners
2021
2020
14
49
37
13
48
39
2019
13
48
39
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Sickness absences, %
Personnel (salaried) in Finland
Physicians
Nurses
Other health care professionals
Customer service
Management
Personnel (salaried) in Sweden
The figures published in 2020 were reported without the so-called self-reported sick leave,
which have now been added to the figures for the comparison years.
Personnel in Finland, exit turnover, %
Personnel in Finland
Physicians
Nurses
Other health care professionals
Customer service
Management
Due to the different nature of the operations, staffing services are not included in the figures.
Salaried employees and private practitioners
2021
2020
2019
4.4
0.9
5.6
4.5
9.5
1.4
4.0
3.8
1.3
5.7
4.3
5.6
1.3
N/A
2021
2020
14.0
19.8
13.8
7.8
8.9
8.1
17.1
28.8
13.2
6.0
8.4
6.0
3.8
1.8
5.9
5.4
6.3
1.6
N/A
2019
13.2
20.2
9.7
5.5
8.2
9.3
54
Employee Net Promoter Score (eNPS)
Personnel in Finland
Salaried employees and private practitioners
Accidents and accident frequency
Personnel (salaried) in Finland
Number of accidents
Accident frequency (per one million working hours)
Personnel (salaried) in Sweden
Number of accidents
Accident frequency (per one million working hours)
Responsible work
2021
32
2020
18
2019
9
2021
2020
2019
2018
198
15
8
0
253
25
N/A
N/A
293
27
N/A
N/A
The figures for 2018-2020 have been adjusted due to the availability of more detailed calculations.
Hours of training
Personnel (salaried) in Finland
Physicians
Nurses
Other health care professionals
Customer service
Management
Hours of training per employee
Physicians
Nurses
Customer service
Other health care professionals
Management
2021
79,847
3,754
44,505
9,784
1,851
18,928
8.7
1.9
11.4
2.0
10.8
13.1
250
30
N/A
N/A
2020
63,864
7,893
35,851
14,534
N/A
5,534
7.5
3.4
10.3
N/A
9.4
5.3
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Sustainable economic growth
Responsible business is also financially
profitable and sustainable. We create
value for our customers, society, and our
shareholders by continuously developing
the clinical, operational, and experienced
quality of our work, enabling faster access
to care, reducing sickness absences, and
employing directly and indirectly more
than 15,500 people. We are a significant
employer, taxpayer and provider of health
services in Finland.
Terveystalo’s success benefits
the society
We produce services in Finland not only in the form of
occupational health services for employers but also in
the form of purchased services for the public sector and
directly to private customers. Well-functional occupational
health keeps the economy going. By providing public ser-
vices, we save the taxpayers’ money because we can offer
high-quality health services cost efficiently. By choosing
public sector services, the customer also reduces queues
in the public sector, both in dental care and other health
care. In Sweden, a market we expanded into by acquiring
Feelgood in 2021, we mainly produce diverse preventive
occupational health services, helping Swedish companies
and their employees achieve a higher level of well-being.
We create economic value added not only for our cus-
tomers but also for other key stakeholders, such as our
personnel, private practitioners, companies that provide
us with materials and services, and society. Our most sig-
nificant cash flows consist of revenue from service sales,
purchases from suppliers of goods and services, wages
and salaries paid to our personnel, taxes, investments and
dividends paid to the shareholders.
Sustainable economic growth
Well-functional
occupational health
keeps the economy
going.
”
Sustainable economic growth
Area
Tax footprint
Target
Indicator
We openly disclose our tax footprint annually.
Tax footprint, EUR million
Revenue growth
Minimum annual growth 5%
The people we employ
We create jobs.
The figures include the whole group.
Revenue growth, %
Employee benefit expenses,
EUR million
Target
-
5%
-
2021
191.0
17.1%
2020
152.3
-4.3%
2019
149.8
38.4%
378.2
310.2
314.3
SDG
8
8
8
55
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Creation and distribution of direct economic value added
MEUR
Customers
2021
2020
2019
Revenue and other operating income
1,158.0
989.1
1,032.8
Suppliers
Purchased products, materials and services
Value added
Distribution of value added
Distributed to stakeholders:
Personnel
Salaries and fees
Public sector
Taxes and social expenses
Creditors
Net financing costs
Shareholders
Dividends
Buyback of own shares
Communities
Business development
56
488.9
669.1
447.6
541.5
472.9
559.9
315.9
262.5
261.9
82.6
9.0
33.1
11.2
42.6
58.4
10.0
16.5
0
32.7
65.2
14.4
25.5
0
33.2
Terveystalo is one of the largest
employers in Finland
Terveystalo was one of the largest employers in Finland in
2021. At the year-end our personnel in Finland included
approximately 9,137 (8,253) salaried employees and 5,644
(5,057) private practitioners. In Sweden, we had 668 emp-
loyees and 110 private practitioners.
Terveystalo pays its taxes to the
countries it operates in
In accordance with Terveystalo’s public tax strategy, we
pay, collect, account and report our indirect and direct
taxes in full at the right time and place, i.e. where the
economic activity, addition of value and work generating
the profit actually take place. This means that, as a Group,
we pay almost all of our taxes to Finland, which is where
most of our operations take place. Following the Feelgood
acquisition, the expansion of the operations of Rela-
hierojat and the Evalua sales company, we also pay taxes in
Sweden, Estonia and the Netherlands for the operations of
our local companies in those jurisdictions. Our responsible
tax policy ensures that our financial profit is divided fairly
between our key stakeholders, i.e. customers, sharehol-
ders, municipalities and the state. Tax revenue is used in
turn to finance public services and investments that sup-
port the national government’s capabilities, responsibility
and responsiveness.
Sustainable economic growth
We publish our tax footprint annually. It describes the
total sum of taxes paid to society and tax-like charges
and how this sum is divided. Our direct taxes include
corporate income tax, transfer tax and real estate tax, and
our indirect taxes include value added tax, for example. In
accordance with the Tax Accounting Act, a share of the
corporate income tax we pay is paid to the municipalities
where Terveystalo’s employees have worked, based on the
number of employees. This means that all of Terveystalo’s
clinics and outsourcing operations accrue tax revenue for
the municipality they operate in.
As a rule, private health care companies are not eligible
to deduct value added tax on purchases, which means that
VAT is a substantial factor for them. Indeed, the proportion
of value added tax that is not deducted increases our tax
footprint. The healthcare services sold by a private service
provider are tax-free for customers. However, some ser-
vices – such as cosmetic surgery – are not exempted from
VAT for the customer, which means we collect and pay VAT.
The parent company of the Terveystalo Group and the
financing and purchasing company operate in Finland and
pay their taxes to Finland. Terveystalo has companies pro-
viding health care and other services in Finland, Sweden,
Estonia and the Netherlands. All of the Group companies
engage in economic activities in the countries they are
domiciled in and pay taxes for their operations in accor-
dance with the local regulations. Terveystalo’s tax footprint
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Sustainable economic growth
reporting covers all of the Group’s Finnish companies. For
Sweden and Feelgood, the tax footprint is reported for the
period of Terveystalo’s ownership. As the share of revenue
represented by the subsidiaries operating in Estonia and
the Netherlands is still low compared to the Group as a
whole, the other countries’ share of the tax footprint is
presented as a combined figure.
In 2021, our tax footprint totaled EUR 191.0 (152.3)
million. The tax footprint is an indicator of the total tax
revenue generated for society by Terveystalo’s business
activities. In addition, we paid a total of EUR 316.3 (283.2)
million in fees to private practitioners, who pay their indi-
vidual taxes separately. The taxes paid by private practitio-
ners are not included in Terveystalo’s tax footprint.
Terveystalo’s tax footprint in Finland
MEUR
Performance-based statutory payments related to personnel
TyEL employee insurance premiums (employer’s share)
Unemployment insurance contributions (employer’s share)
Accident insurance premiums and group life insurance premiums + other social security costs
Employer’s health insurance contributions
Social security costs outside Finland
Taxes withheld from salaries1)
Taxes paid
Value-added tax2)
Real estate tax
Income tax (cash-based)
Asset transfer tax
Taxes on dividend payments
Total tax footprint
2021
62.0
50.6
5.3
0.7
5.1
0.4
76.4
52.5
29.1
0.3
20.7
0.4
1.9
2020
47.8
38.6
4.3
0.7
3.5
0.6
65.1
39.5
21.3
0.1
17.2
0.1
0.8
191.0
152.3
1) In addition, a total of EUR 316.3 (283.2) million in fees was paid to self-employed persons working as subcontractors and responsible for paying
taxes at their own initiative.
2) Value-added tax is a significant factor for companies in the health care sector, as private healthcare companies are not, as a rule, eligible to
deduct value-added tax.
Terveystalo’s tax footprint by country in 2021
MEUR
Finland
Sweden and others
Total
2021
182.8
8.2
191.0
57
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Taxes in Terveystalo's operations
Procurement
Terveystalo does not deduct VAT from
its procurement; it mainly bears the
burden of the VAT because as a general
rule, private healthcare companies
are not eligible to deduct VAT.
Independent Practitioners
Terveystalo pays fees to independent
practitioners, who in turn pay and file
their own taxes.
Sale of healthcare services
Personnel
Terveystalo pays accrual-based statutory
payments related to personnel, and
withholds taxes from salaries.
Customers
Customer fees for healthcare services
are exempted from VAT in accordance
with the Value Added Tax Act.
Some services, such as cosmetic surgery,
are however not VAT. In such cases,
Terveystalo collects and pays VAT.
Sustainable economic growth
Procurement
Terveystalo
Sale of healthcare services
Terveystalo pays transfer tax when it
expands its network through acquisitions.
Shareholders
Terveystalo withholds and pays taxes
on dividends to the shareholders of the
lister company.
Terveystalo pays income taxes
based on its taxable profit.
Terveystalo pays real estate taxes
on buildings and properties.
58
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Responsible consumption and climate action
Responsible consumption
and climate action
We are committed to the targets agreed
upon in international climate summits
for the mitigation of climate change.
Our goal is carbon neutrality in 2022
and zero emissions from our own
operations in 2030. We promote the
conservation and sustainable use of
natural resources in our supply chains
by reducing plastic consumption,
recycling, increasing the efficiency of
our material management and reducing
the number of small orders. Our digital
services enable us to simultaneously
improve service availability and reduce
our customers’ travel times and the
emissions generated by travel.
59
Responsible consumption and climate action
Area
Target
Indicator
Target
2021
2020
2019
Previous climate target:
Reducing the carbon footprint
Reducing the carbon footprint by 40% by 2030
(using 2018 as the baseline)1)
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
- 40% by 2030
1,565.6
2,168.6
2,141.2
New climate targets (set in
2021) Reducing the carbon
footprint
Carbon neutrality in 2022, zero emissions from own opera-
tions in 20302) Between 2022 and 2030, we will compensate
for any remaining greenhouse gas emissions by investing in
certified carbon dioxide emission compensation projects.
Reduction of direct (Scope 1) and indirect
(Scope 2) greenhouse gas emissions
compared to 2018 (6,316.8 tCO2)
-100% by 2030
-89%
-66%
-17%
We will reduce direct and indirect CO2 emissions
(Scope 1 and Scope 2) by 80% by 2025
(using 2018 as the baseline)
Zero emissions from own operations in 20302)
Energy consumption
We will purchase 100% green electricity in Finland by 20253)
Waste recovery
We will minimize waste in all of our operations
and forward all waste to be recovered
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
Reduction of direct (scope 1) and indirect
(Scope 2) greenhouse gas emissions
compared to 2018 (6,316.8 tCO2)
Share of green electricity of all purchased
electricity, %
-80% by 2025
664.0
2,165.4
5,255.8
-100% by 2030
-89%
-66%
-17%
100% by 2025
-89%
62%
The recovery rate of waste generated at
Terveystalo units, %4)
The recycling rate of waste generated at
Terveystalo units, %4)
100% by 2025
100% by 2025
100%
64%
99%
61%
Mixed waste intensity (mixed waste [metric
tons] relative to total revenue [100 million])
Annual reduction
6.4
6.0
4.9
SDG
13
13
13
13
13
12
12
12
1) Location based.
2) Between 2022 and 2030, we will compensate for any remaining greenhouse gas emissions by investing in certified carbon dioxide emission compensation projects. Our aim is to eventually discontinue compensation
measures and to achieve zero emissions in our own operations by 2030. The calculation of Scope 2 emissions is market-based. The calculation of the market-based figure is based on the emission factor of the electricity
purchased by Terveystalo, while the location-based figure is calculated according to a factor based on the source distribution of local energy production.
3) In the units where we purchase electricity ourselves.
4) Excludes waste fractions that cannot be recycled or recovered under any circumstances, such as hazardous waste.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
We updated our environmental policy
and expanded iso 14001:2015 environ-
mental management system certifica-
tion to include group services
In line with Terveystalo’s environmental policy, we build
a sustainable relationship with the environment. Our
environmental policy is guided by Terveystalo’s values
and strategy, which the management and personnel have
undertaken to comply with.
We operate in line with the principles of sustainable
development in order to reduce and eliminate environme-
ntal risks. We comply with all applicable laws, regulations
and procedures in place in our industry to ensure patient
safety.
Terveystalo carbon
neutral in 2022 and
zero emissions from
our own operations
in 2030. ”
60
Our environmental goals are as follows:
•
•
•
•
Development of environmental management and
awareness at all organizational levels
Identification, anticipation and monitoring of direct
and indirect environmental impacts
Reduction of environmental impacts in our day-to-
day operations
Development of practices that promote sustainable
development
We prevent adverse environmental impacts by,
for example:
•
•
•
•
•
•
•
•
reducing energy consumption and transitioning to
carbon-neutral energy,
reducing the volume of waste created in our opera-
tions and increasing our recycling rate,
optimizing the life-cycle of health care equipment,
with due consideration for technological develop-
ment,
taking environmental perspectives into account in
our travel and car policy,
developing digital services,
by planning and implementing pharmaceutical
services in an up-to-date manner,
taking environmental perspectives into account
in centralized procurement and ensuring efficient
inventory management, and
taking sustainable development and environmental
perspectives into account in our network and busi-
ness premises projects.
Terveystalo’s environmental program covers all of our
clinics in Finland and its appropriateness is evaluated in
quality management and environmental management
system audits. Some of our clinics are ISO 14001:2015
certified. In 2021, we expanded ISO 14001:2015 certifica-
tion to include our Group services.
New climate targets: carbon neutrality
in 2022, zero emissions from own
operations in 2030
We set ambitious new climate targets in late 2021. Our
goal is to reduce our carbon footprint so that Terveystalo is
carbon neutral in 2022 and we will achieve zero emissions
in our own operations in 2030. Between 2022 and 2030,
we will compensate any remaining greenhouse gas emis-
sions by investing in certified CO2 emission compensation
projects. Our aim is to eventually discontinue compensa-
tion measures and to achieve zero emissions in our own
operations by 2030.
A further goal is to reduce our direct and indirect CO2
emissions (Scope 1 and Scope 2) by 80 percent by 2025
(using 2018 as the baseline). As regards energy consump-
tion, our target is for green electricity to account for 100
percent of the electricity we purchase for our operations in
Finland. The recycling and recovery of waste is another key
theme in our environmental responsibility, with the goal
being to minimize waste in all our operations. The indica-
tors we use for this are the mixed waste intensity and the
Responsible consumption
and climate action
recovery rate and recycling rate of waste generated
at Terveystalo’s units.
Our carbon footprint was
reduced by 69 percent
In 2021, Terveystalo’s carbon footprint from Scope 1 and
Scope 2 emissions (market-based) totaled 644.0 (2,165.4)
tCO2-eq., which was 69 (59) percent lower than in 2020.
Terveystalo’s carbon footprint consists mainly of the
production of the electricity consumed by properties,
emissions generated by transport and travel as well as the
waste generated in hospitals and clinics. The emissions
GHG-emissions development
10,000
8,000
6,000
334.9
4,000
2,000
357.7
0
5,981.9
2018
4,898.1
2019
287.2
1,878.2
2020
245.5
418.5
2021
Direct (Scope 1) GHG emissions, CO2e
Indirect (Scope 2)* GHG emissions, CO2e
*Market based Scope 2
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Responsible consumption
and climate action
generated by Terveystalo’s operations are reduced, for
example, by increasingly transitioning to green electricity
and prioritizing low-emission vehicles.
Emissions
We report the direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions arising from our operations –
and part of our indirect Scope 3 emissions – in accordance
with the GHG standard.
(15,944) MWh. Since January 2020, the company’s ele-
ctricity portfolio (electricity purchased for properties) is
zero-CO2 green electricity. Zero-CO2 electricity purchased
for 2021 totaled 12,696 (9,934) MWh, representing appro-
ximately 89 (62) percent of the company’s electricity con-
sumption. The remainder, 1,499 (6,010) MWh, corresponds
to 418.5 (1,878.2) metric tons of CO2 equivalent (tCO2e,
market-based). As regards energy consumption, our target
is for green electricity to account for 100% of the electri-
city we purchase for our operations in Finland.
Scope 1
Scope 3
As we do not, for the most part, own or control the proper-
ties at which we operate, our greenhouse gas emissions
mostly consist of the emissions from our fleet of cars and
the trucks used for imaging operations. The emissions
arising from our own driving and driving under our direct
control are calculated based on fuel consumption. In 2021,
Scope 1 CO2 emissions totaled 245.5 (287.2) metric tons
of carbon dioxide equivalent (tCO2e).
Scope 2
Indirect Scope 2 greenhouse gas emissions arise from the
production of electricity purchased by Terveystalo and
the production of district heating consumed at properties
controlled by Terveystalo. In 2021, electricity purchases
for properties controlled by Terveystalo totaled 14,159
For indirect Scope 3 emissions, we report emissions arising
from work-related travel by employees and waste created
by the company’s operations.
We aim to avoid unnecessary work-related travel by
encouraging the use of remote meetings whenever
possible. In 2021, our personnel flew a total of 0.3 (0.3)
million kilometers in work-related travel, equaling 39 (37)
tCO2e. With regard to reimbursable work-related travel, our
personnel traveled a total of 1.9 (1.6) million kilometers,
equaling 322.1 (273.4) tCO2e. We encourage our personnel
to choose low-emissions vehicles as company cars. The
average emissions of the company cars used by the Group
amount to 92 (118) g CO2e/km.
The indirect emissions arising from waste totaled 36.6
(30.2) tCO2e in 2021.
61
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Responsible consumption
and climate action
Terveystalo has a low CO2 emissions
intensity
Terveystalo’s CO2 emissions intensity is low due to the
nature of the Group’s operations. In 2021, Terveystalo’s
emissions intensity (Scope 1 and Scope 2, market-based)
relative to revenue amounted to 0.6 gCO2e/EUR (2020:
2.2 gCO2e/EUR). Relative to the number of employees, the
emissions intensity was 0.12 (0.44) tCO2e.
Digital services improve access to care
and reduce environmental effects
Our digital services enable us to simultaneously improve
service availability and reduce our customers’ travel times
and the emissions generated by travel. In 2021, the num-
ber of digital appointments increased by 48 percent year-
on-year, amounting to one million. Remote appointments
through digital channels or over the phone accounted for
25 (26) percent of all appointments.
Minimization and utilization of waste
Greenhouse gas emissions / Carbon footprint
The recycling and recovery of waste is another key theme
in our environmental responsibility, with our goal being to
minimize mixed waste in all operations and forwarding as
large a share of our waste as possible to be recovered. The
indicators we use for this are the mixed waste intensity and
the recovery rate and recycling rate of waste generated
at Terveystalo’s units. We are committed to reducing the
plastic waste generated by our operations in accordance
with the EU’s plastic strategy by improving our recycling
efforts and reviewing the packaging options offered by
our suppliers when possible. We also keep a close eye on
our medical waste and try to minimize it by increasing the
efficiency of our inventory management. The COVID-19
pandemic also influenced the amount of waste generated
in 2021, as the use of protective equipment needed for
COVID-19 testing, vaccination and the protection of staff
and customers increased during the year. The amount
of mixed waste was also increased by the renovations of
several units.
Metric tons of CO2 eq.
Direct (Scope 1)
Transport managed by Terveystalo
Indirect (Scope 2)
Purchased electricity in Finland
(market-based)2)
Purchased electricity in Finland
(location-based)
Scope 1 and 2 (market-based) total
Change from 2018
Change from previous year
Scope 1 and 2 (location-based) total
Change from 2018
Change from previous year
Indirect (Scope 3)
Business travel
Waste
2021
245.5
418.5
1,320.1
664.0
-89%
-69%
1,565.6
-36%
-28%
374.5
36.6
2020
287.2
1,878.2
1,881.41)
2,165.4
-66%
-59%
2,168.6
-12%
1%
312.5
30.2
2019
357.7
4,898.1
1,784.1
5,255.8
-17%
-17%
2,141.1
-13%
-13%
400.3
25.6
2018
334.9
5,981.9
2,125.4
6,316.8
N/A
N/A
2,460.30
N/A
N/A
270.5
29.7
1) The reported Scope 2 figure for 2020 was erroneous, which is why the comparison figure presented here differs
from the previously reported figure.
2) The calculation of the market-based figure is based on the emission factor of the electricity purchased by Terveystalo,
while the location-based figure is calculated according to a factor based on the source distribution of local energy production.
62
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Emissions intensity
Emissions intensity:
Scope 1+2/revenue, gCO2-eq./EUR
Emissions intensity:
Scope 1+2 /full-time equivalent, tCO2-eq.
Scope 2 marked-based
Waste
Metric tons
Documents subject to data protection
Mixed waste
Hazardous waste
Cardboard
Waste paper
Total waste
Purchased electricity
MWh
Purchased electricity
of which green electricity (CO2-free)
share of electricity consumption, %
Emissions (CO2-eq.) from non-green electricity
(Scope 2 market-based)
2021
120
72
27
23
12
254
2021
2020
2019
0.6
0.1
2020
106
59
22
28
13
278
2021
14,195
12,696
89%
418.5
2.2
0.4
2019
122
50
23
24
13
232
2020
15,944
9,934
62%
1,878.2
5.0
1.1
2018
101
58
19
22
13
212
2019
16,219
0
0%
4,898.1
Includes electricity purchasing in those Finnish units in which we purchase electricity ourselves.
63
Plastic recycling project
In late 2018, Terveystalo launched a plastic
recycling project in collaboration with the
company’s waste management service
provider Lassila & Tikanoja.
The project began from the idea of an
operating room nurse that was piloted at
the Ruoholahti unit in Helsinki. The aim is to
expand the project to cover all of Terveystalo’s
hospital units. Helsinki Ruoholahti, Turku
Pulssi, Turku Aninkainen, Helsinki Kamppi,
Pori Lääkäritalo, Seinäjoki and Joensuu are
already included in the project.
The project involves collecting and ana-
lyzing plastic waste that can be recovered
for use in insulation, as material or as energy.
This concerns the recycling of clean company
plastic, which is different from the consumer
plastic collected from households and break
rooms.
The new processing line opened at L&T’s
recycling plant in Merikarvia enables the more
Responsible consumption
and climate action
diverse processing of plastic, which means
that plastic can be recycled as an industrial
raw material instead of being incinerated.
The shared goal of the project is to increase
the recycling rate and separate collection
of plastic and thereby reduce the volume
of mixed waste.
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Reporting
principles
65
66
69
Corporate responsibility
reporting principles
Responsibility themes
and material topics
GRI Index
64
64
Terveystalo
Annual Report 2021
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Corporate responsibility reporting principles
We report on corporate responsibility
as part of our annual report. The
Responsibility section describes
Terveystalo’s responsibility and
responsibility efforts and their results in
line with the GRI Standards (GRI) Core
reporting guidelines. The Statement of
Non-Financial Information as required
by the Accounting Act is included in the
Report of the Board of Directors found
in the Financials section of the Annual
Report.
Our reporting meets the requirements of the EU Directive
regarding the disclosure of non-financial and diversity
information as well as the Finnish accounting legislation.
The required non-financial information is disclosed in the
Corporate Governance Statement and the Report of the
Board of Directors.
In our corporate responsibility reporting, we focus on
the responsibility themes and aspects that are the most
material for our operations in accordance with our corpo-
rate responsibility program. The material aspects of corpo-
rate responsibility were defined in the materiality analysis
we conducted in 2019. In addition to materiality, we have
aimed to take into account the other reporting principles
of the GRI Standards in our reporting.
Terveystalo is committed to complying with the ten
principles of the UN Global Compact (UNGC) initiative
regarding human rights, labour rights, the environment
and anti-corruption. This report is a Communication on
Progress (COP) in accordance with the initiative. The
reported Global Compact principles are listed in the GRI
Index.
Our corporate responsibility reporting covers the repor-
ting period 1 January –31 December, 2021. The Annual
Report is available in Finnish and English. The report for
2020 was published in February 2021.
Scope of reporting and assurance
In addition to our operations, our Code of Conduct and
operating principles also apply to the independent practi-
tioners working at Terveystalo. In addition, we require our
suppliers to approve the Supplier Code of Conduct. Unless
otherwise stated, this report does not cover other aspects
of our outsourcing business, non-integrated acquired enti-
ties, independent subsidiaries or suppliers. Responsibility
reporting does not include Feelgood unless otherwise
stated. This report describes our progress in our key
objectives and commitments related to our most material
responsibility themes.
Unless otherwise stated, the performance data given in
this report covers the operations that have been comple-
tely integrated into Terveystalo and are an integral part
of Terveystalo’s network. The sections on the personnel
and environment cover the personnel and operations of
Terveystalo, excluding non-integrated acquired entities
and independent subsidiaries. Our emissions reporting
complies with the CHG requirements.
The report has not been externally verified.
65
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Responsibility themes
and material topics
The reported topics have been selected based on materiality.
Material GRI topics and
Terveystalo’s own material
corporate responsibility topics
GRI topic /
standard
GRI indicator
or Terveystalo’s
own indicator
Responsibility
theme
Material GRI topics and
Terveystalo’s own material
corporate responsibility topics
GRI topic /
standard
GRI indicator
or Terveystalo’s
own indicator
Own topic: Quality index:
high clinical and expe-
rienced quality, good
availability of care and
preventive care
Use of the WHO Surgical Safety Checklist
in surgical operations
Prescriptions for drugs affecting the
central nervous system in relation to
visits to a physician
Duration of sickness absence issued on the
day of the operation (median)
Repair of the rotator cuff and the anterior
cruciate ligament
Days until the next available appointment,
clinics (T3)
NPS, net promoter score for appointments
eNPS, employee Net Promoter Score
Quality index % total
Days until the next available appointment T3,
public services
Reimbursed patient claims / appointments
with a physician
Near misses/hazardous incidents
No indicator defined
Ethical business
Prevention of corruption and bribery
GRI 205: Anti-corruption
(2016)
205-2 Communication and training about
anti-corruption policies and procedures
Compliance
Own topic: Compliance
Ensuring data protection
and information security
GRI 418: Customer
privacy protection (2016)
205-3 Total number and nature of confirmed
incidents of corruption
Own indicator: Employees who have
completed Compliance training
102-16 Values, principles, standards and
norms of behavior
102-17 Mechanisms for advice and concerns
about ethics
418-1 Substantiated complains received
concerning breaches of customer privacy
and loss of customer data
Respecting human rights
Responsible marketing
GRI 412: Human Rights
Assessment (2016)
412-2 Employee training on human rights
policies or procedures
GRI 417: Marketing
and labelling
417-3 Incidents of non-compliance
concerning marketing communications
Responsible use of artificial
intelligence
GRI 418: Customer
privacy protection (2016)
418-1 Substantiated complains received
concerning breaches of customer privacy
and loss of customer data
Compliance with fair competition
GRI 206: Anti-
competitive behavior
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly practices
Responsibility
theme
Good health and
well-being
The quality and effectiveness
of care
Availability of care
Ensuring patient safety
Percentage of preventive work of
occupational health appointments
Promoting the well-being of
customers and preventing illnesses
High-quality service
Development of new service
innovations and operating methods
66
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Responsibility
theme
Material GRI topics and
Terveystalo’s own material
corporate responsibility topics
GRI topic /
standard
GRI indicator
or Terveystalo’s
own indicator
Responsible work
Employee well-being at work
Ensuring occupational safety
Own topic: Employer
recommended by the
personnel
Own indicator: eNPS,
employee Net Promoter Score
Own indicator: Sickness absences
GRI 401:
Employment (2016)
401-1 New employee hires and
employee turnover
GRI 403: Occupational
health and safety (2018)
403-1 Occupational health and safety
management system
Responsibility
theme
Sustainable
economic
growth
403-2 Hazard identification,
risk assessment and incident investigation
403-3 Occupational health services
403-4 Worker participation,
consultation and communication on
occupational health and safety
403-6 Promotion of worker health
403-7 Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
403-8 Workers covered by an occupational
health and safety management system
403-9 Work-related injuries
Employee diversity
Personnel development
GRI 405: Diversity and
equal opportunity
405-1 Diversity of governance bodies
and employees
GRI 404: Training and
education (2016)
404-2 Programs for upgrading employee
skills and transition assistance programs
Material GRI topics and
Terveystalo’s own material
corporate responsibility topics
GRI topic /
standard
GRI indicator
or Terveystalo’s
own indicator
Responsible tax policy and tax payment
GRI 207: Tax (2019)
207-1 Approach to tax
207-2 Tax governance, control,
and risk management
207-3 Stakeholder engagement and
management of concerns related to tax
207-4 Country-by-country reporting
Creation of economic
value added for society
and shareholders
Own topic: Tax footprint Own indicator: Tax footprint
GRI 201: Economic
performance (2016)
201-1 Direct economic value
generated and distributed
Own indicator: Revenue growth
Responsible purchasing practices and
the degree of domestic purchasing
GRI 414: Supplier
social assessment
414-1 New suppliers that were screened
using social criteria
GRI 308: Supplier
environmental
assessment
308-1 New suppliers that were screened
using environmental criteria
Job creation nationwide
Own indicator:
Employee benefit expenses
67
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Material GRI topics and
Terveystalo’s own material
corporate responsibility topics
GRI topic /
standard
GRI indicator
or Terveystalo’s
own indicator
Reducing the carbon footprint
GRI 305: Emissions (2016) 305-1 Direct (Scope 1) GHG emissions
Contact us
We hope that our readers find this report interesting and informative, and we
welcome feedback and questions.
305-2 Energy indirect (Scope 2)
GHG emissions
305-3 Other indirect (Scope 3) GHG emissions
305-4 GHG emissions intensity
Own indicator: Share of green electricity
of all purchased electricity
For more information, please contact:
Kati Kaksonen
Vice President, Corporate Communications, IR & CR
Tel. +358 10 345 2034
kati.kaksonen@terveystalo.com
Material efficiency
and waste recycling
Own topic: Minimization
and recovery of waste
Own indicator:
Mixed waste intensity
Own indicator: The recovery rate of waste
generated at Terveystalo units, %
Own indicator: The recycling rate of waste
generated at Terveystalo units, %
GRI 306: Waste (2020)
306-1 Waste generation and significant
waste-related impacts
306-2 Management of significant
waste-related impacts
306-3 Waste generated
Responsibility
theme
Responsible
consumption and
climate action
68
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
GRI Index
GRI
Standard
GRI 102: General disclosure
GRI
content
Organizational profile
Location
Additional
information
Global
Compact
SDG
GRI
Standard
GRI
content
Governance structure
Location
Additional
information
Global
Compact
SDG
102-1
102-2
Name of the organization
Front cover
Activities, brands, products, and services
Terveystalo in brief, p. 3
102-3
Location of headquarters
https://www.terveystalo.com/en/
company/contacts/
102-4
Location of operations
Terveystalo in brief, p. 3
102-5
102-6
102-7
102-8
Ownership and legal form
Terveystalo in brief, p. 3
Markets served
Terveystalo in brief, p. 3
Scale of the organization
Terveystalo in brief, p. 3
Information on employees and
other workers
Responsible work, p. 47, 51, 53
6
8
102-18
Governance structure
Corporate Governance Statement,
p. 73–78
Stakeholder engagement
102-40
List of stakeholder groups
Stakeholder engagement, p. 32
Responsibility related
matters are being
handled by the Board
of Directors.
102-41
Collective bargaining agreements
GRI-index
102-42
Identifying and selecting stakeholders
Stakeholder engagement, p. 32
102-43
Approach to stakeholder engagement
Stakeholder engagement, p. 32
102-44
Key topics and concerns raised
Stakeholder engagement, p. 32
Terveystalo respects the
freedom of association.
100% of our employees
are under a collective
bargaining agreement
apart from the manage-
rial employees.
3
102-9
Supply chain
Ethical business, p. 43-45
102-10
Significant changes to the organization
and its supply chain
CEO's Review, p. 5–6
102-11
Precautionary Principle or approach
GRI-index
102-12
External initiatives
102-13
Membership of associations
Strategy
Terveystalo contributes to the
achievement of sustainable
development goals, p. 27–28
Stakeholder engagement, p. 32,
Our key commitments and
responsibility indices, p. 28
102-14
Statement from senior decision-maker
CEO's Review, p. 5–6
Ethics and integrity
102-16
Values, principles, standards,
and norms of behavior
Terveystalo’s strategy, p. 13,
Ethical business, p. 43–46,
69
Terveystalo follows the
Precautionary Principle.
7
Reporting practice
102-45
Entities included in the consolidated
financial statements
17
102-46
Defining report content
and topic Boundaries
102-47
List of material topics
10
8, 16
102-48
Restatements of information
Principles of consolidation, p. 126
Materiality analysis as the foundation
of our responsibility efforts, p. 33,
Corporate responsibility reporting
principles, p. 65 , Responsibility
themes and material topics p. 66-68
Terveystalo’s responsibility themes,
p. 23 , Responsibility themes and
material topics p. 66–68
Corporate responsibility reporting
principles, p. 65
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
GRI
Standard
GRI
content
102-49
Changes in reporting
102-50
Reporting period
Location
Corporate responsibility reporting
principles, p. 65
Corporate responsibility reporting
principles, p. 65
Additional
information
Global
Compact
SDG
GRI
Standard
GRI
content
Location
Additional
information
Global
Compact
SDG
GRI 206: Anti-competitive behavior
206-1
Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices
GRI-index
No identified cases
for 2021.
16
102-51
Date of most recent report
GRI-index
18 Feb 2021
102-52
Reporting cycle
102-53
102-54
Contact point for questions
regarding the report
Claims of reporting in accordance
with the GRI Standards
102-55
GRI content index
102-56
External assurance
GRI 103: Management approach
Corporate responsibility reporting
principles, p. 65
Corporate responsibility reporting
principles, p. 65
Corporate responsibility reporting
principles, p. 65
Corporate responsibility reporting
principles, p. 65
Corporate responsibility reporting
principles, p. 65
103-1
103-2
Explanation of the material topic
and its boundary
The management approach
and its components
103-3
Evaluation of the management approach
Responsibility management,
p. 29–31
Responsibility management,
p. 29–31
Responsibility management,
p. 29–31
Economic standards
GRI 201: Economic performance
201-1
Direct economic value generated
and distributed
Sustainable economic growth,
p. 55–56
GRI 205: Anti-corruption
205-2
205-3
Communication and training about
anti-corruption policies and procedures
Confirmed incidents of corruption
and actions taken
Ethical business, p. 44–45
Ethical business, p. 45
70
GRI 207: Tax
207-1
Approach to tax
207-2
207-3
Tax governance, control, and risk
management
Stakeholder engagement and
management of concerns related to tax
207-4
Country-by-country reporting
Sustainable economic growth,
p. 56–57
Sustainable economic growth,
p. 56–57
Sustainable economic growth,
p. 56–57
Sustainable economic growth,
p. 56–57
Environmental standards
GRI 305: Emissions
305-1
Direct (Scope 1) GHG emissions
305-2
Energy indirect (Scope 2) GHG emissions
305-3
Other indirect (Scope 3) GHG emissions
305-4
GHG emissions intensity
GRI 306: Waste
Responsible consumption
and climate action, p. 60–62
Responsible consumption
and climate action, p. 60–62
Responsible consumption
and climate action, p. 60–62
Responsible consumption
and climate action, p. 62–63
306-1
Waste generation and significant
waste-related impacts
Responsible consumption
and climate action, p. 62–63
306-2
Management of significant
waste-related impacts
Responsible consumption
and climate action, p. 62–63
306-3
Waste generated
Responsible consumption
and climate action, p. 62–63
8
16
10
10
7,8
12, 13
7,8
9, 12,
13
7,8
12, 13
7,8
12, 13
8
8
8
12
12
12
The property owner
handles waste treat-
ment, in cases where
Terveystalo is not res-
ponsible for waste treat-
ment. Otherwise, L&T
is our contract partner.
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
GRI
Standard
GRI
content
Location
Additional
information
Global
Compact
SDG
GRI
Standard
GRI
content
Location
Additional
information
Global
Compact
SDG
GRI 308: Supplier environmental assessment
308-1
New suppliers that were screened
using environmental criteria
GRI-index
Our Supplier Code
of Conduct includes
requirements related
to the environment.
8
12
GRI 405: Diversity and equal opportunity
405-1
Diversity of governance
bodies and employees
GRI 412: Human rights assessment
Responsible work, p. 47, 54
6
8
Responsible work, p. 51–52
6
8
412-2
Employee training on human rights
policies or procedures
Ethical business, p. 44–45
GRI 414: Supplier social assessment
414-1
New suppliers that were screened
using social criteria
GRI-index
GRI 417: Marketing and labelling
Respecting human
rights is part of Terveys-
talo's Code
of Conduct learning
and training.
Our Supplier Code
of Conduct includes
requirements related to
the social responsibility.
1, 2
8, 16
2, 4, 5
8, 16
417-3
Incidents of non-compliance concerning
marketing communications
Ethical business, p. 45
No incidents
in year 2021.
10
16
GRI 418: Customer privacy
418-1
Substantiated complaints concerning
breaches of customer privacy and losses
of customer data
GRI-index
In 2021, the Data Protec-
tion Authority requested
a report from Terveysta-
lo on two separate pri-
vacy-related complaints.
16
Social standards
GRI 401: Employment
401-1
New employee hires and
employee turnover
GRI 403: Occupational health and safety (2018)
403-1
403-2
Occupational health and safety
management system
Hazard identification, risk assessment,
and incident investigation
Responsible work, p. 47, 51, 53
Responsible work, p. 47–49
403-3
Occupational health services
Responsible work, p. 47–49
403-4
403-5
Worker participation, consultation,
and communication on occupational
health and safety
Worker training on occupational
health and safety
Responsible work, p. 49, 51–52
Responsible work, p. 49–50
403-6
Promotion of worker health
Responsible work, p. 47–50
403-7
403-8
Prevention and mitigation of occupational
health and safety impacts directly linked
by business relationships
Workers covered by an occupational
health and safety management system
Responsible work, p. 48–50
Responsible work, p. 49
403-9
Work-related injuries
Responsible work, p. 49, 54
403-10
Work-related ill health
Responsible work, p .49, 54
GRI 404: Training and education
Average hours of training per
year per employee
Responsible work, p. 49–50
Programs for upgrading employee skills
and transition assistance programs
Responsible work, p. 49–50
404-1
404-2
71
3, 8
3, 8
3, 8
3, 8
3, 8
3, 8
3, 8
3, 8
3, 8
3, 8
4, 8
4, 8
6
6
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Corporate
Governance
73 Corporate Governance Statement
86 Remuneration Policy
91 Remuneration Report
72
72
Terveystalo
Annual Report 2021
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Corporate governance
statement
I. Introduction
Governance at Terveystalo Plc (hereinafter referred to
as “Terveystalo” or the “Company”) is based on appli-
cable laws, the rules and recommendations of Nasdaq
Helsinki Ltd (hereinafter referred to as the “Helsinki Stock
Exchange”), and the Company’s Articles of Association.
In addition, the Company follows the Finnish Corporate
Governance Code 2020 (“Corporate Governance Code”),
issued by the Securities Market Association and available
on its website at www.cgfinland.fi. Terveystalo comp-
lies with all the recommendations in the Corporate
Governance Code. Terveystalo’s Corporate Governance
Statement has been prepared in accordance with the
Corporate Governance Reporting section of the Corporate
Governance Code.
This statement has been reviewed and approved by
Terveystalo’s Audit Committee and Board of Directors,
and it has been prepared separately from the Report of
the Board of Directors. The statement is available on the
Company website at: https://www.terveystalo.com/en/
company/investors/corporate-governance/.
II. Descriptions concerning
corporate governance
Terveystalo Plc is a Finnish public limited liability
company domiciled in Helsinki. The parent company,
Terveystalo Plc, and its subsidiaries form the Terveystalo
Group (hereinafter referred to as the “Group”). The
responsibility for the administration and operations
of Terveystalo Group lies with the governing bodies of
the parent company, Terveystalo Plc. These governing
bodies include the Annual General Meeting, the Board of
Directors, and the CEO. The AGM elects the members of
the Board of Directors on the basis of the proposal of the
Shareholders’ Nomination Board consisting of the largest
shareholders. The work of the Board of Directors is aided
by two committees. The Board elects the committee
members from amongst its members. The CEO appointed
by the Board manages the operations of Terveystalo
Group, assisted by the rest of the Executive Team. The
work of the Board of Directors, its committees, the CEO,
and the rest of the Executive Team is governed by the
Company’s corporate governance principles, adopted
by the Board of Directors. These principles include the
Charters of the Board and its committees, the division
73
Terveystalo's governance structure
General meeting
Shareholders'
Nomination Board
Audit
Board of Directors
Audit Committee
Remuneration Committee
Internal Control and
Risk Management
Chief Executive Officer
Executive team
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Board of Directors
According to Terveystalo’s Articles of Association, the
Board of Directors has a minimum of five (5) and a maxi-
mum of eight (8) ordinary members. The Annual General
Meeting of Shareholders elects the members of the Board
of Directors. The Board of Directors elects the Chair from
among their members. In 2021, the Annual General Meet-
ing elected seven members to the Board of Directors. Bio-
graphical details are provided on the following page.
In accordance with shareholdings on 1 September
2021, Terveystalo’s Nomination Board consists of the rep-
resentatives of the Company’s four largest shareholders
and the Chair of the Board of Directors. In accordance with
the above, the following persons continued as members
of Terveystalo’s Nomination Board from 10 September
2021 onwards: Risto Murto (Varma Mutual Pension
Insurance Company), Matts Rosenberg (Rettig Group AB),
Peter Therman (Hartwall Capital), Olli Lehtilä (OP Group),
and Kari Kauniskangas (Chair of the Board of Directors of
Terveystalo Plc). There were no changes in the composi-
tion of the Nomination Board in 2021.
In its organizing meeting held on 10 September 2021,
the Nomination Board re-elected Risto Murto as its Chair.
The Shareholders’ Nomination Board forwarded its pro-
posals for the Annual General Meeting to Terveystalo’s
Board of Directors on 23 December 2021. In 2021, the
Nomination Board convened 5 times. The attendance rate
of members was 100 percent.
of responsibilities between the decision-making bodies,
and the principles concerning the arrangement of internal
control and risk management. The Company’s governance
structure is described in the chart on the previous page.
Annual General Meeting
The Annual General Meeting is Terveystalo’s highest deci-
sion-making body. The Annual General Meeting is held
annually on a date determined by the Board of Directors,
within six (6) months of the end of the financial year.
The Annual General Meeting deals with matters
falling within its competence pursuant to the Finnish
Limited Liability Companies Act and Terveystalo’s Articles
of Association, and any possible other matters. An
Extraordinary General Meeting is convened when neces-
sary. More detailed information about the Annual General
Meeting is provided in Terveystalo’s Articles of Association,
which can be found on the company website at: https://
www.terveystalo.com/en/company/investors/corpora-
te-governance/. The Annual General Meeting for 2021
was held on 25 March 2021. The decisions of each Annual
General Meeting can be found on Terveystalo website at:
https://www.terveystalo.com/en/company/investors/
corporate-governance/annual-general-meeting/.
Shareholders’ Nomination Board
In accordance with the decision of the Annual General
Meeting, the Shareholders’ Nomination Board (hereinafter
referred to as the “Nomination Board”) annually prepares
proposals to the next Annual General Meeting concerning
the number of the Members of the Board and their ele-
ction and remuneration. It also identifies candidates for
Members of the Board. The Nomination Board consists
of the Chair of the Company’s Board of Directors and,
generally, representatives of the Company’s four largest
shareholders. If the ownership of the Company’s fifth lar-
gest shareholder exceeds ten (10) percent of all the shares
and votes in the Company, the five largest shareholders
shall be represented in the Nomination Board. The com-
position of the Nomination Board is determined based
on the shareholdings on the first bank day in September
each calendar year. The Chair of the Board of Directors
convenes the first meeting of the Nomination Board.
The Nomination Board elects a Chair from amongst its
members. Subsequent meetings of the Nomination Board
are convened by the elected Chair. If more than half of
the members of the Nomination Board are present, they
constitute a quorum. The Nomination Board has a written
Charter which includes a more detailed description of the
election process and the duties of the Nomination Board
members as well as the procedures of the Nomination
Board’s meetings. A description of the main contents of
the Charter of the Nomination Board can be found on
the Company website at: https://www.terveystalo.com/
en/company/investors/corporate-governance/sharehol-
ders-nomination-board/.
74
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Dag Andersson
Kari Kauniskangas
Åse Aulie Michelet
Niko Mokkila
b. 1962, M.Sc. (Econ.), Finnish citizen. Chairman of the
Board of Directors since 2019. Independent of the
company and its largest shareholders.
b. 1952, M. Sc. Pharm. Norwegian citizen. Member of
the Board of Directors since 2016. Independent of the
company and its largest shareholders.
b. 1979, M.Sc. (Tech.), M.Sc. (Econ.), Finnish citizen.
Member of the Board of Directors since 2020.
Independent of the company.
b. 1961, BA (Hons) Stockholm School of Economics, MBA
Insead, Swedish citizen. Member of the Board of Directors
since 2019. Independent of the company and its largest
shareholders.
Committee memberships:
Member of the Remuneration Committee
Main occupation:
President and CEO of XVIVO Perfusion AB
Committee memberships:
Chairman of the Remuneration Committee, member of
the Shareholders’ Nomination Board
Main occupation:
Board Professional
Primary working experience:
2008–2018 Diaverum AB (formerly Gambro Health Care),
President and CEO 1998–2007 Mölnlycke Health Care AB,
multiple executive positions, most recently President of
the Surgical Division
Primary working experience:
2008–2017, Fiskars Corporation, President and CEO
1999–2007 Amer Sports Corporation, multiple executive
positions, most recently Senior Vice President, Sales &
Distribution and Head of Winter & Outdoor division
Main positions of trust:
Chairman of the Board of Directors of GHP International
Main past positions of trust:
2018–2019 Diaverum Arabia, Chairman of the Board of
Directors, 2009–2011, Terveystalo, Member of the Board
of Directors, 2015–2020 Nolato, Member of the Board of
Directors, 2018–2020 GHP AB, Member of the Board of
Directors
Shareholding in Terveystalo as of 31 December, 2021:
4,888
Main positions of trust:
2020– Ahlström Capital Oyj, Chairman of the Board of
Directors, 2021– Ahlström Invest B.V., Chairman of the
Supervisory Board, 2019– Veho Oy AB, Chairman of the
Board of Directors
Main past positions of trust:
2018–2019 Raisio Plc, Vice Chairman of the Board of
Directors, 2008–2010 Wärtsilä Corporation, Member of
the Board of Directors
Shareholding in Terveystalo as of 31 December, 2021:
10,992
75
Committees:
Member of the Remuneration Committee
Committee memberships:
Member of the Audit Committee
Main occupation:
Board Professional
Relevant work history:
Managing Director of Teres Medical Group AS, Managing
Director of Marine Harvest ASA and multiple managerial
positions at GE Healthcare
Key positions of trust:
Chairman of the Board of Spin Chip Diagnostics AS, Csam
Health Group AS and BI Norwegian Business School,
Member of the Board of Directors of Odfjell SE
Past key positions of trust:
Chairman of the Board of Directors of Photocure ASA,
Member of the Board of Directors of Royal Greenland AS,
Cermaq ASA, Norske Skog ASA, Orkla ASA, and Yara ASA
Shareholding in Terveystalo as of 31 December, 2021:
28,951
Main occupation:
Managing Director, Head of Investments,
Hartwall Capital Oy Ab.
Relevant work history:
2007–2019, Altor Equity Partners, multiple positions,
most recently Director, 2005–2007, Merrill Lynch, Analyst
Key positions of trust:
2021– Duell Yhtiöt Oy, Member of the Board of Directors,
2020– Konecranes Plc, Member of the Board of Directors,
2019–Remeo Oy, Member of the Board of Directors,
2019– LeaseGreen Group Oy, Chairman of the Board
of Directors
Past key positions of trust:
2016–2021 Realia Group Oy, Member of the Board of
Directors, 2018–2019 Trioplast Industrier AB, Member of
the Board of Directors
Shareholding in Terveystalo as of 31 December, 2021:
3,193
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Kristian Pullola
Tomas von Rettig
Katri Viippola
b. 1973, M.Sc (Econ), Finnish Citizen. Member of the Board
of Directors since 2021. Independent of the company and
its largest shareholders.
Committee memberships:
Chairman of the Audit Committee
Main occupation:
Advisor and board professional
Primary work experience:
2017–2020 Nokia Corporation, Executive Vice President
and CFO. 2006–2016 multiple executive and managerial
positions in finance and treasury at Nokia Corporation,
most recently Senior Vice President, Corporate Controller
Main positions of trust:
2020– Antilooppi real estate investment company,
Chairman of the Board of Directors, 2021– Kemira Oyj,
Member of the Board of Directors, 2021– Eduhouse Oy,
Chairman of the Board of Directors
b. 1980, BBA (Bachelor of Business Administration), CEFA
(Certified European Financial Analyst). Finnish citizen.
Vice Chairman of the Board of Directors since 2018.
Independent of the company.
Committee memberships:
Member of the Audit Committee
Main occupation:
2019– Chairman of the Board of Directors,
Rettig Group Oy Ab
Relevant work history:
2016–2019 Rettig Group Oy Ab, President and CEO,
Several management positions at Rettig Group Oy Ab
2008–2016, 2006–2008 Skandinaviska Enskilda
Banken Ab
Key positions of trust:
Chairman of the Board of Directors of Purmo Group Oy,
Member of the Board of Directors of EQ Plc
Main past positions of trust:
2010–2020 Ilmarinen Mutual Pension Insurance
Company, Member of the Board of Directors and
Chairman of the Audit Committee
Past key positions of trust:
Nordkalk Oy, Bore Oy, Roof Productions Oy, Chairman of
the Board of Directors. Finlayson Oy, Member of the Board
of Directors
Shareholding in Terveystalo as of 31 December, 2021:
1,783
Shareholding in Terveystalo as of 31 December, 2021:
7,944
b. 1976, Executive MBA, Master of Arts, Finnish
citizen. Member of the Board of Directors since 2018.
Independent of the company.
Committee memberships:
Member of the Remuneration Committee
Main occupation:
2016– Varma Mutual Pension Insurance Company, SVP,
HR and Communications
Relevant work history:
2013–2015 Keva, HR and Administrative Director, HR
Director, 2008–2013 Yle (Finnish Broadcasting Company),
Head of Personnel Development, HR Manager,HR
Consultant, 2002–2008 Yle, Yle News and Aamu-tv
morning show, Journalist and News Anchor
Key positions of trust:
The Finnish Broadcasting Company Yle, Vice Chairman of
the Board of Directors, Economic Information Office TAT,
Member of the Board of Directors
Past key positions of trust: -
Shareholding in Terveystalo as of 31 December, 2021:
6,327
76
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
According to the Board's assessment, all the members of
the Board of Directors are independent of the Company.
Dag Andersson, Kari Kauniskangas, Åse Aulie Michelet
and Kristian Pullola are in addition independent of major
shareholders of the Company. According to the Board
of Directors’ assessment, the following members of the
Board are not independent of major shareholders of the
Company due to their main occupations: Niko Mokkila
(Managing Director, Head of Investments, Hartwall Capital
Oy Ab.), Katri Viippola (Varma Mutual Pension Insurance
Company, SVP, HR and Communications) and Tomas von
Rettig (Chairman of the Board of Directors, Rettig Group Oy Ab).
In accordance with the decision of the Annual
General Meeting of 2020, Kari Kauniskangas (Chair), Dag
Andersson, Lasse Heinonen, Åse Aulie Michelet, Niko
Mokkila Katri Viippola, and Tomas von Rettig were mem-
bers of the Board of Directors until 25 March 2021.
Diversity of the Board of Directors
The Company’s principles concerning the diversity of the
Board of Directors came into effect on 27 September
2017. The Board of Directors updated the diversity policy
on 10 February 2021. The Company regards the diversity
of the Board of Directors as a material factor, which sup-
ports the Company’s business and its development as well
as achievement of the Company’s strategic targets. The
work of the Board of Directors requires understanding of
differences in cultures, values, and business practices.
Diversity is assessed from different perspectives, including
age, gender, education, and professional background. Both
genders shall be represented on the Board of Directors. In
planning the composition of the Board of Directors, the
Nomination Board considers the composition of the Board
from the perspective of the Company’s current and future
business needs, taking into account the diversity of the
Board. In 2021, the Company’s Board of Directors met the
diversity criteria. The age span of Board members is 41-69
years. Two of the Board members are women and five are
men.
Description of the work of
the Board of Directors
The Board of Directors has adopted a written Charter
of the Board on 23 January 2018 and updated it on 10
February 2021. It supplements the provisions of the
Articles of Association and the applicable laws and regu-
lations. The Charter of the Board of Directors describes
the Board’s composition, election process of the directors
reporting directly to the CEO, responsibilities of the Board,
meeting arrangements, and Terveystalo’s executive mana-
gement’s reporting to the Board of Directors. The CEO
attends Board meetings.
The Chief Financial Officer (CFO), General Counsel,
and other members of the Executive Team attend Board
meetings upon invitation by the Board of Directors. The
Board of Directors has general competence to decide and
to act in matters that do not fall within the competence of
the General Meeting or the CEO’s general authority under
law or the Company’s Articles of Association. The Board of
Directors is responsible for the Company’s governance and
the appropriate arrangement of its operations. In addition,
the Board of Directors is responsible for ensuring appropri-
ate supervision of the Company’s accounting and asset
management. The Board of Directors decides on matters
of principle and on any issues that could have broad-ran-
ging implications for the Company. It decides on major
corporate plans and transactions. The Board of Directors
also establishes limits for capital expenditure, investments,
divestments, and financial commitments. The Board of
Directors’ responsibilities also include reviewing and
approving the strategic objectives and strategic plans of
the Company and its various business functions as well as
monitoring their implementation. The Board of Directors
also reviews and approves the Company’s financial targets.
In addition, the Board of Directors monitors and assesses
the Company’s financial reporting system, approves the
Company’s financial reports, and monitors the Company’s
external audit process. It also ensures that the Company
has defined the operating principles of internal control,
internal auditing, and risk management, and monitors
compliance with these principles. In all situations, the
Board of Directors shall act in the best interest of the
Company and its shareholders. The Board of Directors
appoints and dismisses the CEO, supervises the CEO’s
actions, and approves the CEO’s service contract. It also
approves the CEO’s remuneration and other benefits upon
the recommendation of the Remuneration Committee,
within the framework of the Remuneration Policy pre-
sented to the Annual General Meeting. Upon the proposal
of the CEO, the Board of Directors appoints the rest of the
Executive Team reporting directly to the CEO and approves
77
their service contracts and remuneration based on the
recommendation of the Remuneration Committee. In
addition, the CEO shall consult the Chair of the Board of
Directors on dismissal of members of the Executive Team
reporting directly to the CEO. The number of terms or the
age of Board members has not been limited. A descrip-
tion of the main contents of the Charter of the Board
of Directors can be found at: https://www.terveystalo.
com/en/company/investors/corporate-governance/
board-of-directors/.
The Board of Directors may establish committees to
support the Board with the preparation and performance
of its duties and responsibilities. The Board of Directors
determines the size and composition of such commit-
tees and approves their charters. In 2021, the Board of
Directors convened 20 times. The average attendance rate
at Board meetings was about 96 percent. Attendance rate
by member is shown in a separate table under Attendance
of Board members at Board and Committee meetings in
2021.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Committees of the
Board of Directors
The Company’s Board of Directors has established two
committees to improve the efficacy of the work of the
Board: the Audit Committee and the Remuneration
Committee.
Audit Committee
The Audit Committee carries out its responsibilities
under its Charter adopted by the Board of Directors on
23 January 2018 and updated on 10 February 2021. The
Audit Committee assists the Board of Directors in per-
forming and monitoring its supervisory duties related to
the financial reporting process and auditing. In addition,
the Audit Committee assists the Board of Directors in
supervising matters related to financial reporting, internal
control, internal auditing, and risk management. The
Audit Committee monitors and assesses the financial
reporting system, the quality and integrity of the financial
statements and other financial reports, and the Company’s
financial performance. In addition, the Audit Committee
monitors and assesses the statutory audit of the finan-
cial statements, consolidated financial statements, and
the annual, half-year, and interim reports. The Audit
Committee also monitors and assesses the efficiency of
the Company’s internal control, internal auditing, and risk
management systems and assesses the performance of
internal auditing. Furthermore, the Audit Committee eva-
luates the qualifications and independence of the external
auditor and, in particular, the provision of non-audit ser-
vices to the Company, prepares the proposal for the elec-
tion of the external auditor, and monitors compliance with
laws and regulations. The Audit Committee prepares the
proposal for the remuneration and election or re-election
of the external auditor and submits its recommendation
for the appointment of the external auditor to the Board
of Directors. The Audit Committee monitors and asses-
ses how agreements and other legal acts between the
Company and its related parties meet the requirements of
the ordinary course of business and arm’s -length terms. In
addition, the Audit Committee shall ensure that the Board
of Directors is aware of matters which may significantly
impact the Company’s financial condition or business ope-
rations. A description of the main contents of the Charter
of the Audit Committee can be found at: https://www.
terveystalo.com/en/company/investors/corporate-gover-
nance/board-of-directors/.
The Audit Committee consists of at least three mem-
bers appointed by the Board of Directors. The Audit
Committee has a Chair, elected by the Board of Directors.
The members of the Audit Committee must meet the
expertise and independence criteria and other criteria
applicable to Audit Committee members of publicly listed
companies in Finland. These provide, for example, that
the majority of the Audit Committee members shall be
independent of the Company, and at least one member
shall be independent of the major shareholders of the
Company.
Lasse Heinonen served as Chair of the Audit
Committee, and Niko Mokkila and Tomas Von Rettig
served as Committee members until 25 March 2021.
As of 25 March 2021, the Audit Committee members
comprised Niko Mokkila and Tomas Von Rettig, as well
as Kristian Pullola as the Chair. The Audit Committee
convened 5 times in the financial year 2021. The average
attendance rate of the Committee members was 100 per-
cent. Attendance rate by member is shown in a separate
table under Attendance of Board members at Board and
Committee meetings in 2021.
Remuneration Committee
The Remuneration Committee carries out its responsibi-
lities under its Charter adopted by the Board of Directors.
The Charter of the Remuneration Committee was
adopted on 23 January 2018 and updated on 10 February
2021. The Board's Remuneration Committee prepares
Terveystalo's Remuneration Policy for Governing Bodies
and Remuneration Report to the Company's management.
The Remuneration Committee prepares the appointment
of the CEO of the Company and the rest of the senior
management team. It also assists the Board of Directors
with any major management reorganizations based on the
preparation and proposals by the CEO. The Remuneration
Committee assists the Board of Directors with the eva-
luation and remuneration of the CEO and the rest of the
Executive Team reporting directly to the CEO, oversees the
Company’s remuneration policies, schemes, and plans, as
well as reviews appropriate succession planning procedu-
res for the Executive Team. A description of the main con-
tents of the Charter of the Remuneration Committee can
be found at: https://www.terveystalo.com/en/company/
investors/corporate-governance/board-of-directors/.
The Remuneration Committee consists of a minimum
of three members elected by the Board of Directors from
among its number. The members of the Remuneration
Committee must meet the independence criteria app-
licable to such committee members of publicly listed
companies in Finland, including that the majority of the
members of the committee must be independent of the
Company. Remuneration Committee members must
possess the expertise and experience required for the
performance of the duties and responsibilities of the
Remuneration Committee. Desirable qualifications for
members of the Remuneration Committee include expe-
rience in business management, corporate governance,
human resources management, and personnel and execu-
tive remuneration.
The Remuneration Committee establishes its own
schedule and meets as frequently as necessary to carry
out its responsibilities under its Charter, and in any event
at least twice a year. Kari Kauniskangas served as the Chair
of the Remuneration Committee and Dag Andersson,
Åse Aulie Michelet, and Katri Viippola are Committee
members until 25 March 2021 and as of 25 March 2021.
The Remuneration Committee convened 4 times during
the financial year. The average attendance rate of the
Committee members was 100 percent. Attendance rate
by member is shown in a separate table under Attendance
of Board members at Board and Committee meetings in
2021.
78
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Attendance of Board Members at Board and Committee Meetings in 2021
Chief Executive Officer
Name
Kari Kauniskangas
Dag Andersson
Åse Aulie Michelet
Niko Mokkila
Kristian Pullola
Katri Viippola
Tomas von Rettig
Attendance at
Board meetings*
Attendance at Audit
Committee meetings*
Attendance at Remuneration
Committee meetings*
20/20
15/20
19/20
20/20
16/16
20/20
20/20
4/4
5/5
4/4
5/5
1/1
4/4
4/4
4/4
4/4
Members of the Board of Directors until 25 March 2021
Lasse Heinonen
* Attendance rates cover meetings held during each member’s term of office.
79
The CEO is responsible for the day-to-day management
of the company and for implementing the Company
strategy in accordance with the instructions and orders
issued by the Board of Directors. The CEO undertakes the
execution of measures approved by the Board of Directors
and oversees preparations for strategically important
measures. The CEO ensures that the management of the
Company is adequately arranged, and that the Company’s
accounting complies with the applicable legislation. The
CEO also ensures the appropriate arrangement of the
Company’s administration and asset management. Ville
Iho has served as the CEO for Terveystalo since late 2019.
Biographical details of the CEO are provided below under
Group Management.
Group Executive Team and
management system
The Company’s CEO serves as the Chair of the Executive
Team. In 2021, the Executive Team also included the Chief
Medical Officer and the Officers and Senior Vice Presidents
responsible for digitalization, finances, HR, legal, as well as
the various business lines and clinic network. The share
holdings of the members of the Executive Team and their
controlled entities on 31 December 2021 are presented
below.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Ville Iho
President and CEO
Petri Bono
CMO
Juha Juosila
Chief Digital Officer
Petri Keksi
Senior Vice President, Growth businesses
Born 1969, M.Sc. (engineering), Finnish citizen. President
and Chief Executive Officer from 6 December 2019.
Relevant work history:
CEO of Nurminen Logistics Plc, multiple managerial
positions at Finnair, most recently as COO, Deputy CEO,
and acting CEO
Key positions of trust:
The Finnish Association of Private Care Providers,
Chairman of the Board of Directors, Confederation
of Finnish Industries (EK), Member of the Executive
Committee and of the Labor Committee
Shareholding in Terveystalo as of 31 December, 2021:
0
80
Born 1970, M.D., specialist in oncology, adjunct professor.
Finnish citizen. Chief Medical Officer and member of the
Terveystalo Executive Team since 2019.
Born 1972, MSc (Econ), Finnish citizen. Chief Digital
Officer since 2016, Member of the Executive Team since
2016
Relevant work history:
Hospital District of Helsinki and Uusimaa (HUS), Deputy
Chief Medical Officer, Helsinki University Hospital (HUCH),
Chief Medical Officer, HUS Comprehensive Cancer Center,
Director
Relevant work history:
Director of Business Development and Strategy of
Sanoma Pro Ltd, Chief Marketing and Technology Officer
of Realia Group Oy, several managerial positions at MTV
Sisällöt Oy (MTV3) and Sonera Plc
b. 1974, M.Sc (Econ), Finnish Citizen. SVP, Growth busines-
ses and Member of the Executive Team since 2021
Relevant work history:
Several management positions at Terveystalo since
2009, most recently as Business Director for Oral Health,
previously Director of M&A
Shareholding in Terveystalo as of 31 December, 2021:
92,585
Key positions of trust:
Association of Finnish Private Healthcare Providers,
Vice Chairman of the Board of Directors, Instru Science
Foundation, Chairman of the Board of Directors, Finnish
Medical Association, Member of the Quality Council, TILT
therapeutics, Oncorena and Faron Pharmaceuticals, mem-
ber of the Scientific Advisory Board
Past positions of trust:
Member of the Board of Directors at HUS Kiinteistöt Oy
and HYKS Instituutti Oy, Vice Chairman of the Board of
Directors at Orion Research Foundation
Shareholding in Terveystalo as of 31 December, 2021:
0
Past key positions of trust:
Member of the Boards of Directors of Realia Isännöinti
Oy, Huoneistokeskus Oy, Huoneistomarkkinointi
Oy, Realia Management Oy, SKV Kiinteistönvälitys
Oy, Sentraali Oy and Jokakoti Oy (currently Oikotie
Asunnot Oy), a deputy Member of the Board of Directors
of Oy Suomen Uutisradio Ab
Shareholding in Terveystalo as of 31 December, 2021:
87,435
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Ilkka Laurila
CFO
Siina Saksi
Senior Vice President, Medical clinic network
Elina Saviharju
Senior Vice President, Legal
Veera Siivonen
Senior Vice President, Consumer business
Born 1977, MSc (Econ), MSc (Forestry), Finnish citizen.
Chief Financial Officer since 2015, Member of the
Executive Team since 2015.
Born 1966, MSc (Econ), EMBA, Finnish citizen. Senior Vice
President, Medical clinic network since 2019, Member of
the Executive Team since 2016
Born 1981, LL.B, LL.M (Harvard), Finnish citizen. SVP,
Legal and member of the Terveystalo Executive Team
since 2020.
Born 1980, M.Sc. Tech, Industrial Engineering, Finnish
citizen. SVP, Consumer business since 2021 and member
of the Terveystalo Executive Team since 2020.
Relevant work history:
Terveystalo Head of Treasury and Finance and Head of
Procurement, Associate Director of Rahoituksen neu-
vontapalvelut Inspira Oy, managerial positions at Ernst &
Young Oy
Key positions of trust:
Confederation of Finnish Industries (EK), Member of the
Economy and Tax Committee, Hurtti-Paino Oy, Member of
the Board of Directors. Since 21 January 2021, member of
the Board of Directors of Musti Group Plc
Shareholding in Terveystalo as of 31 December, 2021:
281,900
Relevant work history:
Chief Operating Officer, Clinic Network, Business Director,
Western and Central Finland at Terveystalo, Senior Vice
President, HR Specialist Sales at Pohjola Insurance Ltd,
Country Manager of Tryg Finland at Tryg Forsikring A/S,
Finnish Branch, and a member of Tryg’s Sweden-Finland
Executive team at Tryg A/S, several managerial positions
at Tryg A/S, If P&C Insurance Company Ltd, Merita Bank
Plc and Kansallis-Osake-Pankki
Shareholding in Terveystalo as of 31 December, 2021:
50,559
Relevant work history:
Senior Associate at Avance Attorneys involved, inter alia,
in healthcare M&A transactions as well as on intellectual
property and regulatory issues related to healthcare ser-
vices, Life Sciences IP Litigation Associate, Paul Hastings
LLP (New York City) and Technology Associate, Roschier
Attorneys
Shareholding in Terveystalo as of 31 December, 2021:
0
Relevant work history:
SVP, Marketing and Communications in 2020, several
leading positions in Sanoma Corporation, as, inter alia
Vice President, Portfolio Development and Marketing
of Sanoma News & Feature and Marketing Director and
Head of Strategy and Business Development for Helsingin
Sanomat, Business manager in Blyk Services Oy and mul-
tiple international managerial positions in Nokia Mobile
Phones
Shareholding in Terveystalo as of 31 December, 2021:
348
81
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Responsibility
Corporate Governance
Financials
Minttu Sinisalo
Senior Vice President, Human Resources
Mikko Tainio
Senior Vice President, Public Partnerships
Marja-Leena Tuomola
Senior Vice President, Corporate health
Born 1980, MSc (Econ), Finnish citizen. SVP HR and mem-
ber of the Executive Team since 2020.
Relevant work history:
Multiple HR leadership positions at Finnair, most recently
VP, People and Culture at Finnair Operations business
unit, August Associates HR manager and management
consultant
Key positions of trust:
Hakonen Solutions Oy, Member of the Board of Directors
Past key positions of trust:
A-Talent Recruiting Oy, Member of the Board of Directors,
Finnair Pension Fund Board member and Chairman of the
Board
Shareholding in Terveystalo as of 31 December, 2021:
0
Born 1979, M.Sc (Econ), Finnish citizen. Senior Vice
President, Public Partnerships and Member of the
Executive Team since 2020.
Born 1962, LL.M., eMBA, Finnish citizen. Senior Vice
President, Corporate health and Member of the Executive
Team since 2021.
Relevant work history:
Managing Director at Finnair Cargo Oy and before that
several managerial positions at Finnair Plc
Past key positions of trust:
Member of the logistics committee of Confederation of
Finnish Industries EK.
Shareholding in Terveystalo as of 31 December, 2021:
518
Relevant work history:
President & COO Schibsted Finland (formerly Sanoma
Digital Finland), previously held several management
positions in the Sanoma Group, including as SVP Business
& Digital Operations Development
Key positions of trust:
Suomi Broadcast Networks Holdings Oy, Member of the
Board of Directors
Shareholding in Terveystalo as of 31 December, 2021:
1,000
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TerveystaloAnnual Report 2021 Year 2021
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Financials
The current information on the Executive Team can
be found from the Company’s website: https://www.terve-
ystalo.com/en/company/investors/corporate-governance/
ceo-and-executive-team/.
The Executive Team meets once or twice a month
or as needed. It assists the CEO with tasks such as the
preparation and execution of the Company strategy, busi-
ness plans, matters of principle, and any other important
matters. In addition, the rest of the Executive Team assists
the CEO in ensuring the flow of information and working
internal cooperation. The Company’s Board of Directors
decides on the nomination and remuneration of Executive
Team members.
Subsidiaries – operative business
Group Organization
The CEO, CFO, and General Counsel usually serve as
members of the subsidiaries’ Board of Directors. From the
perspective of business operations, the Group subsidiaries
operate in accordance with the Group’s management sys-
tem. The Group’s operative business activities are mainly
carried out by Suomen Terveystalo Oy, Terveystalo Julkiset
Palvelut Oy and Terveystalo Kuntaturva Oy in Finland and
by Feelgood Företagshälsovård AB in Sweden. Terveystalo
Healthcare Oy is the Group’s purchasing company.
III. Descriptions of internal
control procedures and the
main features of risk
management systems
Terveystalo PLC
The parent company of the Group
Risk management
Terveystalo Healthcare Holding Oy
Financing
Terveystalo Healthcare Oy
Group's centralized procurement
Suomen Terveystalo Oy and
other operative companies
The operative business
Risk management is part of Terveystalo’s management
system. The Company applies a risk management policy
adopted by the Board of Directors. The purpose of risk
management is to ensure fulfilment of the customer pro-
mise, patient and occupational safety, high quality of the
operations, financial performance, business continuity, a
good public image of the Company, and corporate social
responsibility.
Risk management is an integral part of the planning
processes as well as the monitoring and reporting routines
in Terveystalo Group. It is implemented in the day-to-day
83
management and activities at all levels of the organization.
Risk management must be consistent and commensu-
rable. It is important to understand the causes and conse-
quences of risks and to ensure that the risk management
measures are correct and properly targeted.
The objectives of risk management include,
among others:
• Ensuring business continuity
•
Ensuring the achievement of strategic and operative
objectives
• Managing risks associated with financial transactions
• Supporting decision-making
• Ensuring top quality care and patient safety
• Ensuring employees’ expertise and occupational safety
Avoiding operational risks and risks of damage and
•
minimizing damage if a risk is realized
Ensuring data security, data protection,
and environmental responsibility
•
• Improving risk awareness within the organization
•
Identifying opportunities associated with risk-taking,
improving risk tolerance
Identifying development opportunities within
the operations
•
• Gaining the trust of external and internal stakeholders
Terveystalo strives to proactively identify, analyse and
manage major risks. Risk management is an integral part
of management. It contributes to strategic development,
helps managers make informed choices, puts measures
in an order of priority, takes into account opportunities,
uncertainties, and their effects, and distinguishes between
alternative approaches.
The Board of Directors is responsible for risk manage-
ment and its adequacy and adopts the risk management
policy. The CEO is responsible for organizing risk manage-
ment in the Group. The rest of the Executive Team support
the CEO in implementing risk management, monitoring
operational risks, assessing risks, and implementing
measures related to risks.
Risk management process
Risks are assessed on all levels of Terveystalo Group’s orga-
nization. Terveystalo identifies risks using, for example,
performance indicators, market statistics, effectiveness
data, customer feedback, register data, inspection reports
and inquiries from the authorities, occupational safety risk
surveys, incident information, results of internal audits
and audits, and competitor information. Terveystalo's risk
management is assessed annually in internal and exter-
nal audits of the ISO 9001: 2015 quality system, the ISO
14001: 2015 environmental system and the ISO 13485
quality system for application development.
Internal control
In its operations, the Company applies a risk manage-
ment and internal control policy, adopted by the Board of
Directors. The objectives of internal control related to the
financial reporting process are to ensure that Terveystalo’s
financial reporting is reliable; that interim reports and
financial statements are prepared in accordance with the
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
accounting principles and policies applied by Terveystalo
and give essentially correct information of the Company’s
finances; and that regulations and principles of ope-
ration are complied with. Internal control is based on
Terveystalo’s risk management system, business culture,
and respective practices. The Company values, Code of
Conduct, and Group policies and principles, such as the
risk management and internal control policy, financial
policy, procurement policy, credit policy, disclosure policy,
and approval authorizations, guide the internal control.
The purpose of compliance is to ensure compliance with
corporate governance principles throughout the Company
and the accuracy of financial reporting. It aims to create
a uniform control environment by applying appropriate
internal control principles in the various business proces-
ses. Terveystalo uses WhistleB, a whistleblower system
open for everyone. This channel enables anonymous
reporting of observed or suspected misconduct at: www.
report.whistleb.com/terveystalo.
Generally, financial reporting related policies are owned
by the Chief Financial Officer. Internal control is carried out
by the Board of Directors, Audit Committee, operational
management and, in respect of the financial reporting
process, the employees in financial administration.
Terveystalo’s Board of Directors bears overall responsibility
for internal control and risk management in the Company.
The Board of Directors has delegated the practical imple-
mentation of an efficient control environment and control
measures related to the reliability of financial reporting
to the CEO. The Chief Financial Officer is responsible
for the control environment of financial reporting. The
CFO acts as the owner of reporting risks, reporting to
the Audit Committee and the Board of Directors on risk
management and internal control. Control involves various
measures, such as the revision of financial reports, the
balancing of accounts, subledgers, and system transfers,
logical analyses of reported figures, and reference analyses
of forecasts and realizations. Monitoring of monthly per-
formance in relation to the specified targets is an essential
factor. These control measures are carried out at different
organizational levels.
IV. Other information
provided in the statement
Internal audit
The primary objective of internal audit is to support the
Board of Directors, other corporate bodies, and the mana-
gement in performing their control duties. The Company
has outsourced internal audit to be carried out by autho-
rized public accountants. On the basis of a report drafted
by the authorized public accountants, the Company
adopts a plan of appropriate measures and monitors the
fulfilment of that plan. The internal audit function reports
to the Audit Committee on the audits carried out in accor-
dance with its annual audit plan. The report will be brought
before the Board of Directors if deemed necessary by the
Audit Committee.
The key principles applied in the Company’s internal
audit are the principles of independence, objectivity and
confidentiality. The purpose of internal audit is to produce
impartial and independent information for the Board of
Directors and the management. Internal audit focuses, in
particular, on issues that are important both in the long
and short term from the perspective of strategy, business,
and operations. When preparing the audit plan and estab-
lishing the scope and focus areas of internal audit, the
following matters are typically considered: business-driven
internal audit, internal audit relating to the Company’s
risks and strategy execution, and internal audit focusing
on Corporate Governance and Compliance. The planning
and risk assessment process of internal audit also includes
reviewing the annual plans and work results of the other
second line of defence players. In 2021, audits were con-
ducted on the payroll administration processes and the
management of outsourcing partnerships, as well as on
Terveystalo's Heimo development function and its proces-
ses. Terveystalo’s quality system has been certified in
accordance with the ISO 9001:2015 standard. Compliance
is assessed regularly through internal audits and audits
conducted by an external accredited party. The Company’s
internal quality function ensures that the organization
complies with the quality standards in accordance with the
certificate.
Related party transactions
To identify related party transactions, the Company
keeps a record of the individuals and legal persons falling
amongst its related parties. According to the Company’s
definition, related parties include the Group companies,
members of the Board of Directors, the CEO and the rest
of the Executive Team, including close family members
of the aforementioned as well as entities in which the
aforementioned have control, joint control, or significant
influence. In agreements and other legal acts between
the Company and its related parties, the ordinary course
of business of the Company and market conditions shall
be followed. If a transaction with the Company’s related
parties were not part of the ordinary course of business of
the Company or if it deviated from arm’s length terms, the
decision on entering such related party transaction should
be made by the Company’s Board of Directors. With regard
to agreements or other legal acts between the Company
and its related parties, provisions on conflicts of interest
shall be observed, as applicable, and the persons conne-
cted to the related party in question shall not participate
in the decision-making process regarding the related party
transaction.
The Company has documented guidelines to identify
related party transactions as well as procedures to notify
the Company thereof and to handle such transactions. The
Company’s financial administration monitors related party
transactions as part of the Company’s normal reporting
and control procedures and submits regular reports on
related party transactions to the Audit Committee. The
Audit Committee monitors and evaluates transactions
between the Company and its related parties to ensure
that they are in the ordinary course of business and at
arm’s length. Material transactions between the Company
and its related parties are presented annually in Notes to
the Consolidated Financial Statements.
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TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
the Company, regardless of whether the abovementioned
threshold is met or not. Terveystalo publishes all executive
transactions officially reported to the Company in a stock
exchange release. The executives and persons involved
in the preparation of the Company’s financial reviews, i.e.,
those who participate in the preparation or publication of
interim reports and annual financial statements/financial
statement releases shall not, directly or indirectly, carry
out transactions with the Company’s financial instruments
themselves or on behalf of a third party, or advise anyone
to do so, during a silent period of 30 calendar days prece-
ding the publication of the Company’s each interim report
and annual financial statements release and on the date of
publication of such a report.
Auditor
The Company’s auditor in 2021 was Authorised Public
Accountants KPMG Oy Ab. APA Henrik Holmbom, elected
by the Annual General Meeting 2020, and re-elected by
the Annual General Meeting 2021 served as the auditor in
charge. Auditor’s fees in 2021 for statutory audit totalled
EUR 275,150 and fees for other services totalled EUR
41,245.50. Auditor’s fees are presented without VAT.
Main procedures of insider
management
Terveystalo complies with the EU Market Abuse Regulation
(MAR), the Finnish Securities Markets Act, the guideli-
nes and regulations issued by the European Securities
and Markets Authority (ESMA) and the Finnish Financial
Supervisory Authority (FIN-FSA), and the Guidelines for
Insiders published by Nasdaq Helsinki Oy. The insider
policy adopted by the Company’s Board of Directors
supplements the applicable insider regulation and spe-
cifies the procedures of the Company’s insider manage-
ment.
The Company has identified persons in charge of
insider management tasks and their substitutes. The
Company does not have a permanent, company-specific
insider list. Instead, it has project-specific insider lists. In
accordance with MAR, the Company has specified the
members of the Board of Directors, the CEO, the CFO,
and the Senior Vice President, Legal as executives, as
well as the SVPs of business lines with profit and loss res-
ponsibility. The executives must specify the persons and
legal persons closely associated with them and disclose
them to Terveystalo as their related parties. Terveystalo’s
executives and their related parties must report to the
Company and FIN-FSA their transactions with Terveystalo’s
financial instruments that exceed the limit specified
by FIN-FSA for a calendar year (EUR 5,000). In order for
Terveystalo to monitor compliance with the above noti-
fication obligation, Terveystalo has recommended that
executives and their related parties unofficially report all
transactions with Terveystalo’s financial instruments to
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Responsibility
Corporate Governance
Financials
Terveystalo remuneration
policy for governing bodies
1. Introduction
This remuneration Policy of Terveystalo Plc is the Policy
referred to in reporting requirements of the Finnish
Corporate Governance Code for listed companies issued
by the Securities Market Association on November 1,
2019. This policy presents the governance and principles
of remuneration for governing bodies at Terveystalo
Group. This policy has been approved by the Board of
Directors of Terveystalo Plc. It will be presented to the
Annual General Meeting in the spring 2022.
Adjustments have been made to the remuneration
policy reviewed by the Annual General Meeting in the
spring 2021 regarding the CEO’s long-term incentive
opportunity, to clarify the definition of the maximum
earning opportunity.
Remuneration at Terveystalo is based on the principles
of performance, fairness and competitiveness. These
remuneration principles apply to all Terveystalo emp-
loyees and the purpose is to ensure that Terveystalo as
an employer attracts motivated and competent profes-
sionals. Remuneration shall support the achievement of
Terveystalo’s strategic goals, align management’s priorities
with the interests of Terveystalo’s shareholders, encourage
behaviour consistent with Terveystalo’s values, and reward
excellent performance.
The Company’s compensation philosophy is based on
the underlying principle of shareholder value creation. The
incentives are aligned with the Company’s business stra-
tegy. The objective is to reward concrete achievements in
implementing the company’s strategy and in achieving its
business targets. The Company’s compensation structures
are designed to be competitive in the relevant market.
According to the pay for performance principle, incentive
plans place emphasis on performance to ensure that
management achieves its goals.
Remuneration is designed to attract and retain the desi-
red talent and to motivate the employees to deliver the
strategy and to maximize shareholder value creation. The
targets and rewards in the incentive systems are balanced
between long-term value creation and efficient achieve-
ment of short-term goals.
This policy describes the principles and governance
of the remuneration paid to the Company’s Board of
Directors and to the CEO of Terveystalo. In the event that a
Deputy was appointed to the CEO position, the same prin-
ciples would apply to the Deputy CEO.
The Board of Directors may make minor amendments
to the remuneration arrangements regarding the CEO
described in the policy for regulatory, exchange control,
tax or administrative purposes or to take account of chan-
ges in the legislation.
2. Description of the decision-
making process
The Shareholders’ Nomination Board reviews and prepares
the remuneration principles for the members of the Board
of Directors, defined in this policy. The Shareholders’
Nomination Board also prepares its proposal for the
remuneration of the members of the Board of Directors
annually. The proposal shall be based on the principles
defined in this policy. The AGM makes the final decision
on the Board of Directors’ remuneration. According to
the decision of the AGM, the Chairman of the Board of
Directors is a member of the Shareholders’ Nomination
Board as his/her role in providing insight regarding the
Board of Directors’ work and composition is crucial.
The Board of Directors reviews and approves the remu-
neration principles for the CEO defined in this policy based
on preparatory work carried out by the Board of Directors’
Remuneration Committee. The Board of Directors also
decides on the salary, incentive schemes and associated
targets of the CEO based on preparatory work carried
out by the Board of Directors’ Remuneration Committee.
All share-based incentive schemes are decided by the
Board of Directors based on the preparatory work of the
Remuneration Committee.
The CEO normally participates in the Remuneration
Committee’s meetings, except for matters relating to the
service terms and remuneration of the CEO.
The governance principles in decision-making on
remuneration in the Company follow principles aimed at
ensuring the prevention of and for the management of
conflicts of interest. The underlying principle is that the
corporate organ which elects the respective corporate
organ also decides on its remuneration. The Company
observes the rules set in its Code of Conduct, the Finnish
Companies Act and the Finnish Corporate Governance
Code which stipulate governance procedures and rules for
the avoidance of conflicts of interest. The decision-making
process described above aims at guaranteeing that the
decisions are fair and unbiased.
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Financials
3. Description of the
remuneration of the
Board of Directors
The purpose of the Board remuneration is to ensure that
Terveystalo has a Board consisting of highly competent
professionals representing a diverse and relevant mix of
skills, capabilities and experience. The Board of Directors’
remuneration shall be transparent, reasonable and compa-
rable to market levels. The Board of Directors’ remunera-
tion is designed to align the Board’s interests with those
of all shareholders.
The Shareholders’ Nomination Board prepares and
presents its proposal on the remuneration of the mem-
bers of the Board of Directors to the AGM. The proposal
should take into account the relevant market level and the
time and effort required from the members of the Board
of Directors, as well as additional responsibilities assigned
to the members, such as chairmanship of the Board of
Directors or its Committees.
Remuneration of the Board of Directors
Remuneration
element
Annual
remuneration
Purpose and link to strategy
Description
The annual remuneration should be sufficient
to attract, retain and motivate high-performing
individuals.
The Shareholders’ Nomination Board prepares and presents its pro-
posal on the remuneration of the members of the Board of Directors
to the AGM based on what the AGM decides on the Board’s remune-
ration annually. The proposal should take into account the relevant
market level and the time and effort required from the members of
the Board of Directors, as well as additional responsibilities assigned
to the members, such as chairmanship of the Board of Directors or
its Committees. The annual remuneration is paid as a combination
of Terveystalo shares and cash or fully in cash.
Meeting fees
The meeting fees are intended to link part
of the remuneration to the time and effort
required from the members of the Board
of Directors in respect of the meetings.
Meeting fees are paid in cash.
Travel expenses
Intended to reimburse the members of the
Board of Directors for reasonable costs and
expenses related to their work.
The members of the Board are entitled to reimbursement for
reasonable travel expenses related to their work.
87
Decision-making procedure
Shareholders' Nomination Board
Responsible for proposing the Board’s remuneration.
Annual General Meeting of shareholders
Responsible for deciding the
Board’s remuneration.
Board of Directors
Responsible for deciding the remuneration paid to the
CEO and the Executive Team members.
Responsible for deciding short-term and long-term
incentive plans based on company level targets.
Remuneration Committee
Responsible for preparing
remuneration-related matters and
proposals for the Board.
CEO
Executive Team
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
CEO fixed remuneration
Remuneration element
Purpose and link to strategy
Description
Base salary
Base salary provides a core compensation for the role and attracts, retains
and motivates high-calibre individuals.
Base salary is set by the Board of Directors, taking into account a number of factors, such as:
•
•
•
•
recognition of the value of an individual’s personal performance and contribution to the
business
the individual's skills and experience
internal salary levels
relevant external market conditions
Base salary is reviewed annually.
Benefits and insurance coverage
Insurance coverages and other benefits that are in line with local market
practices attract and retain high-calibre individuals.
Taxable fringe benefits, standard Terveystalo personnel benefits, and other benefits are inclu-
ded in the base salary.
Insurances include leisure time accident insurance, travel insurance and management liability
insurance.
The Board of Directors has a possibility to decide on supplementary defined contribution
pension in line with local market practices. In such case the maximum annual pension contri-
bution may not exceed 20 percent of annual base salary.
4. Description of the
remuneration of the CEO
Terveystalo’s approach to the remuneration of the CEO is
that the remuneration should align the interest of the CEO
with those of the company’s shareholders. Terveystalo
uses various remuneration elements to attract, motivate
and retain high performing individuals with the right skills,
capabilities and mindset. Performance correlates with
reward level, and this promotes sustained high perfor-
mance and focus to business targets and strategy execu-
tion. The remuneration structure and level should be com-
parable to the relevant national and industry benchmarks.
The CEO is encouraged to accumulate and maintain a
personal shareholding in Terveystalo.
Remuneration components, grounds
for determining variable remuneration
components and proportional shares
of overall remuneration
The remuneration of the CEO is defined to be compe-
titive with a significant part of the remuneration being
performance-based.
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Financials
CEO variable remuneration
Up-to-date descriptions of ongoing incentive plans are published on the Terveystalo website, www.terveystalo.com.
Remuneration element
Purpose and link to strategy
Description
Short-term incentives (STI)
The STI is aimed at driving short-term (annual) per-
formance against specific Group targets and indivi-
dual objectives based on key strategic
priorities for the year.
Long-term incentives (LTI)
LTI is aimed at driving long-term performance
against specific group targets, as well as committing
the CEO to the company and aligning the
CEO’s interests with the interests of the
shareholders.
Performance is measured over a one-year period and potential rewards are paid in the following year. The terms of the Short-Term
Incentive plan are described on the company website.
Performance criteria:
• Performance criteria are set annually by the Board based on the key priorities for the financial year. Criteria may include both
•
financial and non-financial criteria. Reaching maximum level requires exceptional performance.
Following the end of the performance period the Board of Directors confirms the achievement of the criteria and determines
the amount of the payout.
Incentive opportunity:
•
Incentive opportunity at maximum level of performance may not exceed 120 percent of the annual base salary.
The terms and conditions for each Long-Term Incentive plan are decided by the Board of Directors. The terms of ongoing Long-Term
Incentive plans are described on the company website.
Performance criteria:
• Performance criteria for each plan are set by the Board of Directors based on the key priorities for the performance period.
•
Reaching the maximum level requires exceptional performance.
Following the end of the performance period the Board of Directors confirms the achievement of the criteria and determines
the amount of the payout.
• The LTI performance period shall, as a rule, be no fewer than three years. Performance criteria for each plan are set by the
Board of Directors based on the key priorities for and within the performance period.
Discretion and claw-back:
• The Board of Directors is entitled, subject to a particularly weighty reason, to change or cancel the incentive payout or to
postpone its payment, and, in exceptional cases, such as intentional misstatement of financials underlying the measures,
to recover rewards paid prior to said misconduct.
Incentive opportunity:
• The Board of Directors decides on LTI allocation on individual level.
• At the maximum level, the amount of incentives paid in the same year may not exceed, at grant, 220 percent of the annual
base salary.
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TerveystaloAnnual Report 2021
in this policy. If the deviation concerns Board remune-
ration, the decision-making may involve an annual or
extraordinary shareholder meeting as applicable in the
individual circumstances. The deviation and its grounds
shall be reported in the next annual remuneration Report
and presented to the next AGM as part thereof.
Year 2021
Responsibility
Corporate Governance
Financials
Proportion of remuneration elements
Supplementary information
The remuneration of the CEO is defined to be competitive
with a significant part of the remuneration being perfor-
mance-based. Incentive opportunity at maximum level
performance of STI is 120 percent of the annual base
salary. For the LTI, the amount of incentives paid in the
same year may not exceed, at grant, 220 percent of the
annual base salary.
Other key terms applicable to the ser-
vice contract
Share ownership requirement
To encourage building a meaningful shareholding in
Terveystalo, the CEO is expected to retain at least 50 per-
cent of the net shares received based on the LTI plans until
his/her share ownership in Terveystalo corresponds to at
least his/her annual gross base salary.
Termination of the service contract and
severance pay
Regarding the termination of the service contract and
severance pay of the CEO, the agreement may be ter-
minated by both parties by giving six (6) months’ notice.
Should the Company terminate the agreement, the
Company is required to pay an additional severance pay,
equivalent to 12 month’s base salary.
As a benchmarking approach, the Remuneration
Committee reviews market benchmark data from Finnish
and, where necessary, international healthcare companies
of a similar size and complexity to Terveystalo when set-
ting total remuneration packages for the CEO. This is used
more as a guide than a direct determinant of pay levels.
Other factors considered include each individual’s role and
experience, as well as Company performance and personal
performance.
Terms for deferral and possible clawback of
remuneration
Clawback provisions apply to LTI and STI plan awards in
exceptional circumstances. The Board of Directors is entit-
led, subject to a particularly weighty reason, to change or
cancel the incentive payout or to postpone its payment,
and, in exceptional cases, such as intentional misstate-
ment of financials underlying the measures, to recover
rewards paid prior to said misconduct.
Previously agreed or granted awards
The Board reserves the right to make any remuneration
payments and/or payments for loss of office (including
exercising any discretions available to it in connection with
such payments) notwithstanding that they are not in line
with the Policy set out above where the terms of the pay-
ment were agreed prior to the presentation of this Policy
to the AGM.
5. Temporary deviation
The Board of Directors may temporarily deviate from any
sections of the Policy and from any contents of the Policy
based on its full discretion in any of the circumstances and
on any of the grounds described below:
a structural change (change in the Company’s cor-
•
porate, group, business or organizational structure or a
material change in its ownership structure),
a personnel change (such as changes in the Board
•
of Directors or in the top management of the Company
or need to recruit a new CEO or Deputy to the CEO),
• other exceptional or unexpected event or change
or materially changed circumstances in the Company or
in its business or operating environment or a material
change in the Company’s strategy or business plan,
• material change in the Company’s financial position
or outlook,
regulatory or judicial changes, changes in govern-
•
mental or administrative orders or in taxation or taxa-
tion practice, or
• other change or circumstances not specified above
if the Board of Directors, after careful consideration,
deems that a deviation is necessary or advisable in
order to safeguard the Company’s long-term interests
or sustainability such as, without limitation, in order to
ensure the continuity of the Company’s management.
The procedure to be followed in the deviation from this
Policy shall be the same as the decision-making procedure
for the implementation of this Policy described elsewhere
90
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Remuneration report
Terveystalo’s remuneration principles
are based on performance, fairness and
competitiveness. Remuneration supports
the achievement of Terveystalo’s strategic
goals and the long-term financial success
of the Company. The remuneration
policy and the decision-making process
is described in more detail in the
remuneration policy for governing bodies.
Terveystalo’s revenue and profitability have improved stea-
dily over the last five years, excluding the exceptional year
2020. The positive business development is also reflected
in remuneration levels. In remuneration development,
the figures for 2017 are not fully comparable due to a
change in the ownership structure and listing in the stock
exchange in 2017.
91
Remuneration development 2017–2021:
Total remuneration, EUR
(rounded to the nearest thousand)
Chair of the Board
Vice Chair of the Board
Other members of the Board, on average
CEO
Salary development of average employees1)
20172)
50,000
25,000
25,000
675,000
58,000
2018
102,000
54,000
50,000
910,000
55,000
2019
91,000
62,000
53,000
938,000
62,000
2020
101,000
67,000
57,000
367,000
62,000
2021
102,000
69,000
56,000
640,000
65,000
1) Salary development of average employees has been calculated by dividing the personnel costs for each year (excluding other social security
costs) by the average number of personnel.
2) Not comparable due to a change in the ownership structure and listing in the stock exchange in 2017.
Changes in the remuneration of the Board after 2017
are due to a change in the ownership structure and listing
in the stock exchange, and the Board remuneration was
determined to correspond to the market level by the
decision of the AGM 2018. The remuneration level was
reviewed in 2020.
In accordance with the remuneration policy, remu-
neration of the CEO is strongly based on performance,
and a significant share of the overall remuneration of the
CEO consists of short-term and long-term incentives. The
targets of the incentive schemes are directly linked to the
Company performance, and the Company’s positive finan-
cial development in 2017-2018 is reflected in the remune-
ration of the CEO. A CEO change took place at the end of
2019, and in 2020, remuneration of the CEO exceptionally
only consisted of the base salary. In 2021, the CEO's remu-
neration includes short-term incentives for the year 2020.
As a part of company’s mitigation measures due to the
corona epidemic, the CEO's short-term incentive earning
opportunity was restricted to 50 percent of the normal.
The average salary development of employees has
shown a rising trend with the exception of year 2018,
when the number of personnel increased, and the struc-
ture changed due to acquisitions. Approximately 65 per-
cent of the personnel is covered by collective agreements,
and the general increases determined in the collective
agreements guide the salary development of this person-
nel group.
Revenue
Target of at least 5% growth annually
MEUR
1,500
1,250
1,000
750
500
250
0
1,030.7
986.4
1,154.6
689.5
744.7
2017
2018
2019
2020
2021
Adjusted EBITA and EBITA-%
Target 12-13% of revenue
MEUR
150
125
100
75
50
25
0
141.0
115.1
101.9
87.7
73.0
2017
2018
2019
2020
2021
Adjusted EBITA, MEUR
Adjusted EBITA, % of revenue
%
30
25
20
15
10
5
0
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Remuneration of the Board of Directors
for the financial year 2021
Terveystalo’s Annual General Meeting, held on 25 March,
2021, resolved in accordance with the proposal of the
Shareholders’ Nomination Board that the Chair of the
Board of Directors will be paid an annual remuneration
of EUR 85,000, the Vice Chair an annual remuneration of
EUR 50,500, the members an annual remuneration of EUR
40,250, and the Chair of the Audit Committee EUR 50,500.
In addition, an attendance fee of EUR 625 will be paid for
members of the Board of Directors and Committee mem-
bers residing in Finland, EUR 1,300 for members residing
elsewhere in Europe, and EUR 2,600 for members residing
outside of Europe for each Board and Committee meeting
that they attend. For Board and Committee meetings
that are held by telephone or other electronic means, the
attendance fee is EUR 625. Travel costs are reimbursed
based on the company’s travel policy.
The annual remuneration of the Board is paid as a com-
bination of company shares (40%) and cash (60%). The
Company will reimburse the transaction costs and capital
transfer tax related to trading. Attendance fees are paid in
cash.
The following table presents the remuneration paid to
the Board of Directors during the financial year 2021:
Remuneration of the CEO for the financial year 2021
The following table presents the remuneration paid to the CEO during the financial year 2021:
Name
Ville Iho, CEO
Fixed annual salary
(including taxable
benefits), EUR
Short-term
incentives, EUR
Remuneration based
on long-term incentive
schemes, EUR
In total,
EUR
400,000
240,000
-
640,000
In 2021, the CEO's compensation consisted of the fixed
annual salary and the short-term incentives paid for 2020.
The 2020 short-term incentives were based on Adjusted
EBITA as well as eNPS and NPS scores.
In the performance period 2021, the short-term incen-
tives were based on the following indicators: Adjusted
EBITA, revenue, NPS score, productivity, eNPS score and
employee turnover. Based on the short-term incentive
program, the CEO will receive a payment of EUR 434,000
in the spring 2022, which corresponds to 136 percent of
the target earnings.
Annual fee,
total,EUR1)
Annual fee in
shares, EUR
Annual fee in
cash, EUR
Other financial
benefits, EUR2)
Meeting fees of the
Board of Directors and
Board's Committees, EUR
In total,
EUR
Name
Kari Kauniskangas
Tomas von Rettig
Åse Aulie Michelet
Katri Viippola
Dag Andersson
Niko Mokkila
Kristian Pullola
(from 25 March, 2021)
85,000
50,500
40,250
40,250
40,250
40,250
50,500
33,993
20,189
16,090
16,090
16,090
16,090
20,189
50,464
29,988
23,902
23,902
23,902
23,902
29,988
As members of the Board until 25 March, 2021:
Lasse Heinonen
-
-
-
1) Total annual compensation consists of stock award (40%) and cash compensation (60%).
2) Other financial benefits include transfer tax fees for the annual fees paid in shares.
92
544
323
257
257
257
257
323
-
16,875
101,875
18,900
69,400
16,925
16,875
57,175
57,125
13,800
54,050
16,250
56,500
10,000
60,500
6,875
6,875
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
The CEO’s allocated earning opportunity in the long-term incentive schemes
(the President and CEO Ville Iho):
Long-term
incentive plan Grant date
Earning opportunity
(maximum number of
shares granted)*
Vesting date
(end of performance
period)
Pay-out year
(subject to the
achievement of
performance targets)
Number
of shares
vested*
Bridge Plan 2021–2022
April 28, 2021
58,600
December 31, 2022
2023
Plan ongoing
Performance Share Plan
(PSP) 2021–2023
April 28, 2021
88,000
December 31, 2023
2024
Plan ongoing
* Gross number of shares from which the applicable payroll tax will be withheld upon payment and the remaining net amount paid in shares
In the performance periods 2021–2022 and 2021–2023, the performance criteria for the share-based long-term incen-
tive schemes are based on the Total Shareholder Return (TSR) as well as digital footprint, which consists of productivity
and digital sales indicators.
93
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Report of the
Board of Directors
and consolidated
financial statements
94
94
Terveystalo
Annual Report 2021
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Contents
96
Report of the Board of the Directors
119 Consolidated financial statements, IFRS
119
120
121
122
123
123
123
123
125
126
127
127
127
128
128
129
129
130
130
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
1. Corporate information
2.
Accounting policies for the consolidated
financial statements
2.1
Basis of preparation
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
Application of new and amended IFRSs and
new IFRIC agenda decisions
Critical accounting estimates and judgments
Principles of consolidation
Foreign currency transactions
Property, plant and equipment
Investment properties
Goodwill and other intangible assets
Impairment
2.10
Leases
2.11 Financial assets and liabilities
2.12
Inventories
2.13 Employee benefits
95
95
Terveystalo
Annual Report 2021
131
131
131
131
131
132
132
2.14 Provisions and contingent liabilities
145 16. Impairment testing of cash-generating
2.15 Revenue recognition
2.16 Segment information
2.17 Government grants
2.18 Operating profit
2.19 Earnings per share
2.20
Income taxes
units including goodwill
147 17. Investment properties
147 18. Associated companies
148 19. Share-based payments
149 20. Financial assets and liabilities – carrying
amount, fair value and fair value hierarchy
132 3. Business combination
136 4. Revenue
137 5. Segment information
138 6. Other operating income
138 7. Material and services
138 8. Employee benefit expenses
138 9. Depreciation, amortisation and impairment
139 10. Other operating expenses
140 11. Financial income and expenses
140 12. Taxes
140
12.1
140
141 13. Earnings per share
142 14. Property, plant and equipment
143
144 15. Intangible assets
145
14.1 Right-of-use assets and lease liabilities
12.2 Deferred tax assets and liabilities
15.1 Development expenditure
Income taxes
21.2
21.3 Credit risk
Interest rate risk and currency risk
21.1 Financial risk management
150 21. Financial risks
150
150
151
151
152
152 22. Trade and other receivables
153 23. Cash and cash equivalents
153 24. Share capital and invested non-restricted
21.5 Capital management
21.4 Liquidity risk
equity reserve
154 25. Financial liabilities
155 26. Trade and other payables
155 27. Provisions
156 28. Defined benefit plans
157 29. Collateral and contingent liabilities
157 30. Related party transactions
159 31. Group companies
160
31.1 Changes in the Group structure
160 32. Group’s key financial ratios
161 33. Calculation of financial ratios and alternative
performance measures
163 34. Reconciliation of alternative performance
measures
165 35. Subsequent events
166 Parent company’s financial
statements, FAS
166 Parent company’s statement of income
166 Parent company’s statement of financial position
167 Parent company’s statement of cash flows
168 Parent company’s accounting policies and
measurement and recognition principles and methods
168 Notes to the parent company’s financial statements
172 Signatures to the financial statements
and Board of Director’s report
173 Auditor’s Report
177 Information for shareholders
179 Contact information
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo Board of Directors’ Report 2021
Operating environment
The impacts of the COVID-19 pandemic on healthcare and the market continued in 2021.
In privately produced healthcare services, growth in digital services and remote appointments continued to be
strong and new operating models have become part of normal operations. Demand for COVID-19 -related services also
continued to grow, with test volumes remaining high and vaccinations initiated at the end of 2020 continued throug-
hout the year 2021. As the year progressed, demand for most health services returned to normal. Demand for mental
health services and for preventive and well-being services grew strongly. At the end of the year, visits related to various
infections were also increasing.
In Sweden, demand for occupational health was negatively impacted by the COVID-19 pandemic, as customers pos-
tponed occupational health projects. The third quarter was also seasonally soft due to the impact of summer holidays.
The demand picked up during the fourth quarter, and activity and volumes were at a good level. Major projects relating
to occupational health services that were postponed due to the pandemic were agreed to be launched during 2022.
The contraction of non-urgent care in the private and public healthcare sectors during the period when COVID-19
restrictions have been in place has resulted in a significant treatment gap in other illnesses. The dismantling of the
queues for non-urgent care in the public sector will require more extensive use of private healthcare services in the
aftercare of the pandemic. According to the Finnish Institute for Health and Welfare (THL), in Finland 140,032 patients
were awaiting treatment in August 2021. Of them, 9,539 (6.8 percent) had been waiting for non-urgent specialized care
for more than six months. In August 2021, the number of people who had waited for treatment for more than six mon-
ths had decreased by 8,189 compared to a year earlier. The situation is similar in Sweden, where 169,000 fewer surge-
ries have been performed during the pandemic and the queuing situation has deteriorated significantly. In December
2021, 162,234 people in Sweden were waiting for a surgery or procedure (www.skr.se). In 2021, the Norbotten region
in northern Sweden sought partnerships from Nordic private providers to facilitate the dismantling of the queues for
surgeries. Terveystalo was chosen as one of the suppliers in a frame agreement.
The Government’s proposal on the reform of social and healthcare services was approved by the Parliament in June
2021. Under the proposal, the responsibility for the organization of social and healthcare services will be transferred
to the 21 well-being services counties to be established and the City of Helsinki. The first county elections in Finland
were held in January 2022, and the elected well-being services county councils will commence the new era of social and
96
healthcare services. The county councils will decide on the well-being services county and service strategies, principles
of the service network, service level of emergency services, budget and financial planning of the well-being services
county and appointment of members to governing bodies. The term of office of the county council is four years, com-
mencing on March 1, 2022.
As a result of the social welfare and healthcare reform, some of Terveystalo’s outsourcing agreements for public ser-
vices will need to be renegotiated so that the new contractual terms will enter into force at the beginning of 2026 at the
latest. Furthermore, there will be restrictions on the subcontracting practices for public services produced as outsour-
ced services, but these will not have a significant impact on Terveystalo.
With the most extensive network of clinics and hospitals as well as its broad range of services, the company belie-
ves that it is an attractive partner for different customer groups in the management of the pandemic as well as the
post-pandemic clearing of queues and closing of the treatment gap. Terveystalo’s diverse customer base and service
selection will also mitigate the impacts on its business from any significant changes in demand for individual services.
As a leading occupational healthcare service provider, Terveystalo has an important role in supporting the business sec-
tor in the return to normal and in the resumption of operations after the crisis has passed.
The impacts of COVID-19 and the
measures taken by Terveystalo
During 2021, Terveystalo’s service production was again characterized by various COVID-19-related services as well as
well-being and digital services, which saw substantial year-on-year growth in demand.
The company’s liquidity and financing situation remained strong. During the review period, the company fulfilled the
covenant requirement included in the financing agreement that reflects relative indebtedness.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Key figures
Terveystalo Group,
MEUR
Revenue
Adjusted EBITDA,* 1)
Adjusted EBITDA, %* 1)
EBITDA1)
EBITDA, %1)
Adjusted EBITA* 1)
Adjusted EBITA, %* 1)
EBITA1)
EBITA, %1)
Adjusted EBIT* 1)
Adjusted EBIT, %* 1)
EBIT
EBIT, %
Return on equity (ROE), %1)
Equity ratio, % 1)
Earnings per share (EUR)
Net debt
Gearing, %1)
Net debt/adjusted EBITDA (last 12 months)1)
Total assets
Adjusted EBITDA (last 12 months),
excluding IFRS 16* 1)
Net debt, excluding IFRS 16
Adjusted net debt/adjusted EBITDA (last 12 months),
excluding IFRS 16* 1)
Average personnel in person-years
97
2021
1,154.6
206.1
17.8
201.8
17.5
141.0
12.2
136.7
11.8
114.4
9.9
110.1
9.5
13.6
42.2
0.63
519.0
85.2
2.5
1,448.6
156.9
340.6
2.2
5,643
2020
986.4
162.8
16.5
158.3
16.1
101.9
10.3
97.4
9.9
71.6
7.3
67.2
6.8
8.2
42.1
0.36
490.9
85.9
3.0
1,361.0
118.0
312.4
2.6
4,900
Change, %
17.1
26.6
-
27.4
-
38.4
-
40.3
-
59.7
-
64
-
-
-
75.9
5.7
-
-
6.4
33.0
9.0
-
15.2
Terveystalo Group,
MEUR
Personnel (end of period)
Private practitioners (end of period)
Responsibility
Quality index2)
Net Promoter Score (NPS), appointments
Employee Net Promoter Score (eNPS)
Mixed waste intensity3)
2021
9,805
5,754
94.6
83.0
32
6.42
2020
8,253
5,057
94.2
82.8
18
6.00
Change, %
18.8
13.8
0.4
0.2
77.8
6.7
*) Adjustments are material items outside the ordinary course of business, associated with acquisition-related expenses,
restructuring-related expenses, gain on sale of assets, strategic projects, and other items affecting comparability.
1) Alternative performance measure. In addition to the IFRS figures, Terveystalo presents additional, alternative performance
indicators which the company monitors internally and which provide the company management, investors, stock market
analysts, and other stakeholders with important additional information concerning the company’s financial performance,
financial position, and cash flows. These performance indicators should not be reviewed separate from the IFRS figures and
they should not be considered to replace the IFRS figures.
2) The quality index consists of seven effectiveness indicators that describe the clinical and experienced quality, access to care,
and the proportion of preventive care.
3) Amount of mixed waste (metric tons) relative to total revenue (100 million)
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Outlook
Group revenue
•
•
•
•
•
•
The market environment has normalized and the demand for health services is broad based and strong.
However, growth is restricted by supply.
The demand for services related to COVID-19 is expected to remain good. However, predicting the volume is
difficult. The overall demand for health services is expected to remain at a high level. The demand for digital ser-
vices is expected to continue to grow.
Demand from corporate customers for preventive and statutory occupational health services is expected to
develop favorably. Demand for medical care is strong. Significant changes in the employment rate may be refle-
cted in the underlying demand.
Overall demand is expected to remain strong in the private customer segment. Significant changes in consumer
confidence may be reflected in the underlying demand.
Demand from the public sector is expected to remain strong in occupational health, service sales, and staffing
services. Revenue from the outsourcing business is expected to remain stable.
Demand in the Swedish occupational health market is expected to develop favorably due to pent-up demand in
the wake of the pandemic. However, the spreading of the Omicron variant and new restrictions have resulted in
uncertainty of demand in the short term.
These views are based on the expected development of demand for Terveystalo’s services within the next six months,
compared with the past six months.
Revenue for 2021 grew by 17.1 percent year-on-year and amounted to EUR 1,154.6 (986.4) million. Revenue increased
year-on-year in all customer groups. Revenue from corporate customers increased by 15.0 percent due to the increased
demand for preventive occupational health services and sales of COVID-19 testing services to corporate customers.
Revenue from private customers increased by 12.8 percent, mainly driven by COVID-19-related services, the growth
of well-being services and services relating to certain specialties. Revenue from public sector customers increased by
11.2 percent. Revenue from service sales to public sector customers increased substantially and revenue from staffing
services also grew despite the shortage of physicians restricting the growth during the second half of the year. Full-year
revenue from the outsourcing business decreased slightly due to the expiry of contracts at the end of 2020. In the
fourth quarter, revenue from the outsourcing business increased as a result of the commencement of the agreement
on outsourcing the Kannelmäki health center, child welfare services business and invoicing for COVID-19-related addi-
tional services. Revenue from insurance companies developed favorably.
The demand for primary care appointments normalized during the second half of the year and exceeded the number
of appointments for the comparison period. Appointments relating to general infections and otorhinolaryngologic
diseases were below normal until the fourth quarter of the year, but increased at a strong rate towards the end of the
year. The demand for specialist medical services in fields such as orthopedics, gynecology, ophthalmology, and derma-
tology continued to grow throughout the year. Revenue from surgical procedures and imaging services also increased
year-on-year. The demand for well-being services remained good, with revenue increasing by 19 percent to EUR 107.8
(90.7) million. The demand for digital appointments1) continued strong growth, and their number increased by 48
percent to approximately a million (700,000) appointments. Including calls, the total number of remote appointments
was approximately 2.0 (1.8) million during the year. Remote appointments through digital channels or over the phone
accounted for approximately 25 (26) percent of all appointments in 2021. The total number of customer appointments
increased by 16 percent to more than 8 (6.9) million customer appointments. Demand for COVID-19-related services
continued to be strong throughout the year. Terveystalo performed approximately 500,000 (230,000) COVID-19 tests2)
during the year. There were 253 (253) business days in 2021.
The external revenue of the Sweden and others segment (Feelgood consolidated as of July 1, 2021) amounted to
EUR 36.9 million.
1) Does not include the digital appointments of the Sweden and others segment.
2) Excludes sample collection services.
98
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Revenue breakdown
2021
MEUR
Corporate customers
Private customers
Public sector customers
Outsourcing
Staffing services
Service sales, occupational health and others
Finland in total
Sweden and others*
Total
2021
481.7
333.2
302.8
121.1
87.6
94.0
1,117.7
36.9
1,154.6
2020
418.8
295.4
272.2
121.4
83.1
67.7
986.4
0.0
986.4
Change, %
15
12.8
11.2
-0.2
5.4
38.8
13.3
> 200.0
17.1
* Consists of the Group’s business operations in Sweden, Estonia and the Netherlands. Feelgood (Sweden) was consolidated
1 July 2021. Estonia and the Netherlands did not have a significant effect on revenue during the reporting period.
Revenue breakdown 2021
% of total revenue 2021
Total
1,154.6
MEUR
(986.4)
42% Corporate
29% Private
26% Public
3% Sweden and others
Feelgood (Sweden) consolidated as of 1 July 2021.
99
Revenue breakdown 2020 and 2021
MEUR
1,200
1,000
800
600
400
200
0
17%
1,155
37
94
88
121
333
482
986
68
83
121
295
419
2020
2021
Corporate
Private
Public
Staffing services
Service sales, occupational
health and other
Sweden and others
Revenue breakdown
Corporate customers
Corporate customers constitute Terveystalo’s largest customer group. Terveystalo’s corporate customers consist of
the company’s occupational health customers, excluding municipal occupational healthcare customers, which are
included in the public sector customer group. The company provides statutory occupational health services and other
occupational health and well-being services for corporate customers of all sizes. Terveystalo is the largest provider of
occupational health services in Finland in terms of revenue and the number of end users. Terveystalo provides occupa-
tional healthcare services for over 25,000 companies in Finland, which have approximately 650,000 occupational health
customers.
Revenue from corporate customers for 2021 increased by 15.0 percent to EUR 481.7 (418.8) million.
Revenue from preventive occupational health services1) increased year-on-year, as activity for basic occupational health
services, such as guidance and counseling, health examinations, and disability risk assessments, normalized during the
first half of the year and remained at a good level throughout the year. Revenue was also increased by COVID-19 testing
services offered to companies, with nearly 350,000 (160,000) COVID-19 tests performed during the year as a whole. The
average prices of testing decreased year-on-year due to increased supply and competition. Demand for primary care
appointments not relating to COVID-19 remained clearly below the normal level due to the low number of infections
during the first half of the year, but then began to recover during the third quarter, and the number of primary care
appointments exceeded the level of the comparison period in the fourth quarter. Demand for well-being services2) was
strong throughout the year, with sales increasing by approximately 17 percent year-on-year. The strongest growth was
again seen in mental well-being services. The use of digital services increased by 41 percent to approximately 793,000
(562,000) appointments. The number of end customers in occupational health
care increased year-on-year.
1) The statutory task of occupational healthcare is to prevent work-related adverse health effects. Preventive services include,
for example, workplace surveys to examine the conditions and exposures at the workplace; health examinations; suggested
measures to improve work conditions and to promote the employees’ ability to work; guidance and counseling; participa-
tion in the planning and implementation of measures that maintain work ability; promotion of coping at work and, when
necessary, referrals to rehabilitation in case of reduced work ability; guidance in first aid preparedness at the workplace; and
assessment and monitoring of the quality and impact of occupational healthcare activities.
2) Well-being services include, for example, physiotherapy, mental well-being services (psychologists and psychotherapists),
nutritional therapy, work ability coaching, and massage services.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Private customers
Private customers are Terveystalo’s second-largest customer group. Private customers include private individuals and
families. The company’s strong brand, easy access to services without long waiting times, extensive service portfolio for
private customers, families, and senior citizens, and personalized digital services give Terveystalo a competitive edge
over other private operators and public healthcare services and encourage customers to invest in their own health.
Services for private customers are paid for either by the customers themselves or by their insurance companies.
Revenue from private customers for 2021 grew by 12.8 percent year-on-year and amounted to EUR 333.2 (295.4)
million. Demand for appointments with general practitioners was still clearly below the normal level in the first half of
the year due to the low number of infections. However, the demand normalized during the second half of the year and
the number of appointments exceeded that of the comparison period in the fourth quarter. The demand for specia-
list medical services in fields such as orthopedics, gynecology, ophthalmology, and dermatology continued to grow
throughout the year. Revenue from surgical operations and imaging services also grew year-on-year. The demand for
well-being services, such as mental well-being and physical therapy services, remained strong throughout the year
with revenue growing by 22 percent year-on-year. Demand for oral health services was negatively affected by the con-
tinuation of the COVID-19 pandemic, and revenue decreased slightly year-on-year. Revenue from insurance companies
increased clearly year-on-year. The number of digital appointments increased by 71 percent to approximately 108,000
(63,300) appointments. COVID-19 testing increased the sales of laboratory services considerably. More than 86,000
(36,000) COVID-19 tests were performed on private customers in 2021. The number of occupational healthcare custo-
mers using private services and revenue from that segment grew substantially year-on-year.
Revenue from public sector customers for 2021 grew by 11.2 percent year-on-year and amounted to EUR 302.8
(272.2) million. Revenue from the outsourcing business remained at the comparison period’s level and amounted to
EUR 121.1 (121.4) million. Revenue was decreased by the expiry of several minor partial outsourcing agreements at the
end of 2020. Revenue was increased by the invoicing of additional services related to COVID-19. In the fourth quarter,
revenue was also positively affected by the commencement of the agreement on outsourcing the Kannelmäki health
center and the child welfare services business, which was not carried out in the comparison period.
Revenue from staffing services increased by 5.4 percent to EUR 87.6 (83.1) million. The demand for staffing services
was high throughout the year, with the growth of revenue being restricted mainly by the limited supply of physicians.
The demand for nurse staffing services was also strong, mainly in services related to COVID-19.
Revenue from service sales as well as services provided for municipal occupational health customers and other
public sector customers increased by 38.8 percent year-on-year to EUR 94.0 (67.7) million. This resulted mainly from
the strong demand for services related to COVID-19, as well as occupational health business that increased through
acquisitions and new agreements. Digital appointments increased to over 133,000 (74,500) consultations. In addition,
the sales of well-being services grew by 22 percent year-on-year. Over 65,000 (29,500) COVID-19 tests1) were performed
for public sector customers in 2021. In addition to testing, Terveystalo served as a partner to public healthcare services
in sample collection, and activity in this area remained high.
1) Excludes sample collection services.
Sweden and others
Public sector customers
Terveystalo’s public sector customer group consists of Finnish public sector organizations, such as municipalities,
municipal federations and hospital districts as well as municipal occupational health customers. Terveystalo’s broad
nationwide platform, digital offering, good reputation and established brand, as well as its thorough expertise and expe-
rience in healthcare services throughout the chain of care, make Terveystalo an attractive partner for the public sector.
Services for public sector customers are mainly financed from budgets of municipalities, municipal federations and hos-
pital districts. The services offered to public sector customers include full and partial outsourcing, healthcare staffing
services, specialized care services, other healthcare services as well as occupational health services for municipalities,
municipal federations and hospital districts. Occupational health services covered approximately 80,000 persons.
Terveystalo expanded its operations to the Swedish market by acquiring Feelgood and becoming one of the leading
occupational health operators in Sweden. Terveystalo has approximately 700 employees in Sweden, serving custo-
mers digitally and in person at approximately 120 locations. The company provides occupational health, management
development and substance abuse prevention services as well as digital private healthcare and well-being services.
Terveystalo serves approximately 8,300 corporate customers in Sweden, which have approximately 825,000 emplo-
yees covered by occupational health. In addition to Sweden, Terveystalo operates at a small scale in Estonia and the
Netherlands.
The external revenue of the Sweden and others segment for 2021 amounted to EUR 36.9 million. Demand for occu-
pational health was seasonally soft during the third quarter due to the impact of summer holidays. The demand picked
up during the fourth quarter, and activity and volumes were at a good level. Demand was particularly strong in orga-
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Financials
nization and leadership consultation, while the supply of professionals restricted the growth to some extent. Revenue
also increased due to the acquisition of Dalarnas Företagshälsa in the third quarter. While large customers postponed
occupational health projects due to COVID-19, alternative projects with small and medium-sized customers have been
started successfully. The Swedish operations were consolidated into Terveystalo’s reporting as of July 1, 2021.
Financial performance
The Group’s 2021 adjusted earnings before interest, taxes, and amortization (EBITA) increased by 38.4 percent to EUR
141.0 (101.9) million, representing 12.2 (10.3) percent of revenue. Material expenses and service purchases increased
by 9.2 percent year-on-year and amounted to EUR 488.9 (447.6) million. Employee benefit expenses increased by 21.9
percent year-on-year and amounted to EUR 378.2 (310.2) million. Expenses were increased by higher personnel costs
due to services related to COVID-19 as well as personnel costs attributable to acquisitions. Personnel costs in the com-
parison period were reduced by temporary layoffs, temporary reductions in pension contributions and the postpone-
ment of recruitment. Other operating expenses increased by 22.1 percent to EUR 89.2 (73.0) million mainly due to hig-
her IT, marketing and administrative costs. Costs in the comparison period were reduced by cost adjustment measures.
Adjusted EBITDA increased by 26.6 percent year-on-year to EUR 206.1 (162.8) million.
Adjusted operating profit amounted to EUR 114.4 (71.6) million. Operating profit (EBIT) amounted to EUR 110.1
Financial position
Terveystalo’s liquidity position is good. Cash and cash equivalents at the end of the financial period amounted to EUR
38.1 (77.1) million. The total assets of the Group amounted to EUR 1,448.6 (1,361.0) million.
Equity attributable to owners of the parent company totaled EUR 608.9 (571.4) million. The increase was due to
the growth of retained earnings. The non-controlling interest amounted to EUR 0.0 (-) million. The dividends paid by
Terveystalo for the 2020 financial period totaled EUR 0.26 per share (or approximately EUR 33 million), and they were
paid in two equal tranches on April 7, 2021 and November 10, 2021.
Gearing (including lease liabilities) was 85.2 (85.9) percent and net debt amounted to EUR 519.0 (490.9) million.
During the review period, the company fulfilled the covenant requirement included in its financing agreement that
reflects relative indebtedness. In the second quarter, the company entered into a new short-term financing agreement
of EUR 70 million, with the loan drawn in full during the review period. The financing agreement includes an option to
postpone the repayment to 2023. The company is planning to replace the financing agreement with long-term finan-
cing during 2022. At the end of the financial period, the unused part of credit based on financing agreements and bank
accounts with a credit facility amounted to EUR 55.5 million.
Return on equity for the financial period was 13.6 (8.2) percent. The equity ratio was 42.2 (42.1) percent.
(67.2) million, and profit before tax was EUR 100.7 (56.6) million.
Seasonal variation and the impact of the number of business days
Net financial expenses decreased to EUR 9.0 (10.0) million. Taxes on income increased to EUR 20.3 (10.8) million.
Profit for the period was EUR 80.4 (45.8) million, and earnings per share were EUR 0.63 (0.36).
Cash flow from operating activities increased to EUR 195.2 (143.7) million. Cash flow from operating activities was
favorably affected by higher revenue, the improved result and the decrease in committed net working capital.
Cash flow from investing activities was EUR -108.1 (-36.0) million. The change from the comparison period was mainly
attributable to increased investments in acquisitions. Cash flow from financing activities amounted to EUR -126.1 (-71.2)
million. The difference to the comparison period was mainly attributable to higher dividends paid, acquisition of treasury
shares, acquisition of non-controlling interests and the drawing down of short-term loans.
The Sweden and others segment’s 2021 adjusted earnings before interest, taxes, and amortization (EBITA)
amounted to EUR 0.8 million, representing 2.1 percent of revenue. Seasonally low operating volume in the third quarter
weighed down profitability, with the lower activity not being coupled with corresponding flexibility in expenses. In the
fourth quarter, the seasonally high operating volume and better margins increased profitability compared to year earlier.
Terveystalo’s revenue from corporate and private customers has typically been lower during the vacation seasons, par-
ticularly in July and August. The number of business days has an effect on the revenue and earnings development, par-
ticularly when comparing quarterly performance. Because of the seasonal nature of business, the required net working
capital varies during the year. Variation is caused by the timing of pension and VAT payments, vacation pay obligations
and service fees related to occupational healthcare, etc.
Investments and acquisitions
Net investments* for the financial period January 1–December 31, 2021, including M&A, amounted to EUR 125.4 (41.2)
million. The Group’s net cash capital expenditure, excluding acquisitions, amounted to EUR 42.6 (32.7) million and
the corresponding non-cash capital expenditure came to EUR 4.7 (5.3) million. The investments consisted mainly of
investments in IT system projects (including ERP and EMR), digital application and service development, medical equip-
ment, and the network. With respect to gross investments, the relative proportions of investments in intangible and
tangible assets remained at the same level as in the comparison period. Development investments amounted to EUR
9.7 (2.2) million.
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During 2021, Terveystalo made eleven acquisitions to complement its business. The Group acquired Espoon
Statement of non-financial information
Keskuksen Hammaslääkärit Oy (dental services), Attentio Oy (rehabilitation and therapy services), Keltaisen Kartanon
Kuntoutus Oy (auxiliary business name Nuorten Sutela, demanding child welfare services), Helsinki Hospital Oy (deman-
ding surgery), the business of Fysiopiste Mervi Nivukoski (physical therapy), Sivupersoona Oy (speech therapy and
language interpretation), Dalarnas Företagshälsa AB (occupational health), Ankkuri’s child welfare services, Medimar
Scandinavia Ab (medical clinic on the Åland Islands) and Suomen Hierojakoulut Oy (massage therapist training).
On June 14, 2021, Terveystalo acquired 72.1 percent of the share capital of Feelgood Svenska AB (publ), the parent
company of the Sweden-based Feelgood Group. At the same time, Terveystalo made a recommended mandatory cash
offer to the remaining shareholders of Feelgood to tender all of their shares in Feelgood to Terveystalo for a considera-
tion of SEK 5.70 (approximately EUR 0.57) in cash per share. On July 27, 2021, Terveystalo announced that, at the end of
the extended acceptance period on July 26, 2021, Terveystalo owned in aggregate 97.4 percent of the shares and votes
in Feelgood. Terveystalo further announced that the acceptance period of the offer will not be extended and, accor-
dingly, the offer was closed. Feelgood’s shares were delisted from Nasdaq Stockholm on August 6, 2021. Terveystalo
initiated a mandatory redemption procedure concerning Feelgood’s remaining shares, and ownership of the remaining
shares was obtained in December 2021, resulting in 100 percent ownership of Feelgood.
Vantaa City Executive Board approved the sale of AITO Työterveys - Vantaan Työterveys Oy to Terveystalo on
November 30, 2021. The agreement was signed at the end of December after the appeal period had ended, and owner-
ship was transferred in February 2022. The agreement also includes providing occupational health services to the City
of Vantaa for 4 years as of February 1, 2022.
* Net investments do not include increases in right-of-use assets related to leases for business premises. Net investments
include the acquisition of non-controlling interests.
Personnel
The number of Terveystalo’s employed staff on December 31, 2021 was 9,805 (8,253). Of the increase, 668 employees
were attributable to the Feelgood acquisition. The number of personnel was also increased by recruitment related to
services associated with COVID-19 and digitalization. In full-time equivalent, the average number of staff was 5,643
(4,900). The number of private practitioners was 5,754 (5,057).
Terveystalo is the largest private health care service provider in Finland in terms of revenue and network. Terveystalo is
also a leading occupational health provider in the Nordic region. The company offers a wide variety of primary health
care, specialized care, and well-being services for corporate and private customers and the public sector. Terveystalo’s
digital services are available 24/7, regardless of time and place. Health and well-being services are also provided by
Terveystalo’s over 360 clinics across Finland. In Sweden, Terveystalo offers occupational health services at 120 clinics.
Terveystalo employs in total more than 15,500 health and well-being professionals. Terveystalo is listed on the Helsinki
Stock Exchange and has a predominantly Finnish ownership. In 2021, Terveystalo had 1.3 million individual customers
in Finland and some 8 million customer visits were made, of which a quarter took place in remote channels.
Terveystalo reports on its corporate responsibility work as part of the Annual Report1). This section summarizes the
key themes targets and results. The responsibility section in its entirety can be found on pages 21-71.
Terveystalo’s sustainability and corporate responsibility efforts are guided by the company Code of Conduct, values,
and strategic goals as well as the sustainability themes that are essential to Terveystalo stakeholders. The results of
Terveystalo’s sustainability efforts are monitored regularly. Terveystalo is committed to promoting the principles of
the UN Global Compact initiative and the goals of sustainable development. The company respects all internationally
recognized human rights.
Terveystalo’s systematic management of corporate responsibility is aimed at ensuring that the company achieves its
responsibility targets. The continuous improvement model ensures that Terveystalo’s services will continue to create
value for customers in the future.
The most significant risks related to material non-financial themes are assessed and sought to be mitigated as part of
the company’s overall risk management process. There is a constant shortage of educated professionals in the industry,
while the need for and demand for health and well-being services is growing. The main non-financial risks are related
to the availability of health care professionals and thus the access to care. The aim is to mitigate these risks by, among
other things, automating routine tasks, utilizing technology, and allocating resources according to the need for care. In
addition, the company continues to strive to strengthen its position as the most attractive workplace in the industry by
developing, among other things, multi-professional cooperation, and leadership.
The table below is a summary of the key aspects, targets, and achievements of Terveystalo’s sustainability efforts in
its Finnish operations in 2021.
1) Responsibility reporting does not include Feelgood figures unless otherwise stated.
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TerveystaloAnnual Report 2021 Year 2021
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Targets and achievements
Good health and well-being
Area
Quality index:
High clinical and
experienced quality,
access to care and
preventive care
Target
Indicator
Use of the WHO Surgical Safety Checklist in over 99% of surgical operations
Use of the WHO Surgical Safety Checklist in surgical
operations
Target
Over 99%
Prescriptions for drugs affecting the central nervous system in relation to
visits to a physician below 3.5%
Prescriptions for drugs affecting the central nervous
system in relation to visits to a physician
< 3.5%
Duration of sickness absence issued on the day of the operation (median),
repair of the rotator cuff and the anterior cruciate ligament > 28 days
Duration of sickness absence issued on the day
of the operation (median),repair of the rotator
cuff and the anterior cruciate ligament
Percentage of preventive work of occupational health appointments
over 60%
Percentage of preventive work of occupational
health appointments
Days until next available appointment, clinics (T3) below 1.00
T3, i.e. the third available appointment
< 28
> 60%
< 1.00
> 74
14
100
Appointment NPS
eNPS
Quality index, %
T3, i.e. the third available appointment with a physician < 7.00
T3, i.e. the third available appointment with a nurse
< 1.00
Reimbursed patient claims / appointments with
a physician
Near misses/hazardous incidents
Appointment NPS over 74
eNPS at least 14 in 2021
Quality index total
Days until next available appointment (T3) public services
< 7.00 for a physician, < 2 for a nurse
Access to care,
public services
Patient safety
103
2021
99.8%
4.3%
2020
97.8%
4.6%
32
36
2019
97.2%
-
42
70.2%
67.8%
67.5%
1.61
83.0
32
94.6
6.5
1
1.17
82.8
18
94.2
5.6
1
0.98
72.5
9
96.4
11.7
1
0.0019%
0.0021%
0.0025%
50.0%
57.0%
61%
SDG
3
3
3
3
3
3
3
3
3
3
3
3
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Ethical business
Area
Target
Indicator
Employees who have completed
orientation training on the Code
of Conduct and correct action
Suppliers who have approved the
Supplier Code of Conduct
100% of our employees have completed the training
100% of our suppliers have approved the Supplier Code of Conduct
Percentage of employees who have completed
the training relative to all employees
Percentage of suppliers who have approved the
Supplier Code of Conduct relative to all suppliers
(of suppliers representing 80% of total purchases)
Responsible work
Area
Target
Occupational safety
Accident rate below the sector average
Personnel’s well-being
Reducing sickness absences
Indicator
Accident rate
Sickness absences
Employer recommended
by the personnel
Improving the employee promoter score
eNPS
Sustainable economic growth
Area
Tax footprint
Revenue growth
Target
We openly disclose our tax footprint annually
Minimum annual growth 5%
Indicator
Tax footprint, EUR million
Revenue growth, %
The people we employ
We create jobs
Employee benefit expenses, EUR million
The figures include the whole Group.
104
Target
100%
100%
Target
< 35
(sector average)
-
31 by 2025
Target
-
5%
-
2021
2020
2019
SDG
66.0%
52.3%
-
80%
80%
60%
2021
15
4.4%
32
2021
191.0
17.7 %
378.2
2020
25
3.8%
18
2020
152.3
-4.3%
310.2
2019
27
3.8%
9
2019
149.8
38.4%
314.3
16
16
SDG
8
8
8
SDG
8
8
8
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Responsible consumption
and climate action
Area
Target
Indicator
Target
2021
2020
2019
SDG
Previous climate target:
Reducing the carbon footprint
Reducing the carbon footprint by 40% by 2030
(using 2018 as the baseline)1)
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
-40% by 2030
1,565.6
2,168.6
2,141.2
New climate targets (set in 2021)
Reducing the carbon footprint
Carbon neutrality in 2022, zero emissions from own operations in 2030.2) Between
2022 and 2030, we will compensate for any remaining greenhouse gas emissions
by investing in certified carbon dioxide emission compensation projects.
Reduction of direct (Scope 1) and indirect
(Scope 2) greenhouse gas emissions compared
to 2018 (6,316.8 tCO2)
-100% by 2030
-89%
-66%
-17%
We will reduce direct and indirect CO2 emissions (Scope 1 and Scope 2)
by 80% by 2025 (using 2018 as the baseline)
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
-80% by 2025
664.0
2,165.4
5,255.8
Zero emissions from own operations in 20302)
Energy consumption
We will purchase 100% green electricity in Finland by 20253)
Waste recovery
We will minimize waste in all of our operations and forward all
waste to be recovered
Reduction of direct (Scope 1) and indirect
(Scope 2) greenhouse gas emissions compared
to 2018 (6,316.8 tCO2)
Share of green electricity of all purchased
electricity, %
The recovery rate of waste generated at
Terveystalo units, %4)
The recycling rate of waste generated at
Terveystalo units, %4)
100% by 2025
100% by 2025
100% by 2025
1) Location based
2) Between 2022 and 2030, we will compensate for any remaining greenhouse gas emissions by investing in certified carbon dioxide emission compensation projects.
Our aim is to eventually discontinue compensation measures and to achieve zero emissions in our own operations by 2030. The calculation of Scope 2 emissions is
market-based. The calculation of the market-based figure is based on the emission factor of the electricity purchased by Terveystalo, while the location-based figure
is calculated according to a factor based on the source distribution of local energy production.
3) In the units where we purchase electricity ourselves.
4) Excludes waste fractions that cannot be recycled or recovered under any circumstances, such as hazardous waste.
Mixed waste intensity (mixed waste [metric tons]
relative to total revenue [100 million])
Annual reduction
105
-100% by 2030
-89%
-66%
-17%
89%
100%
64%
6.4
62%
99%
61%
6.0
-
-
-
4.9
13
13
13
13
13
12
12
12
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Good health and well-being
Quality is an inseparable part of Terveystalo’s corporate responsibility. The entire Terveystalo staff is responsible
for ensuring that our customers receive appropriate, effective, and safe high-quality care. The cornerstones of
Terveystalo’s quality assurance system are patient safety and the national legislation governing the industry.
Quality comprises clinical, operational and the customer’s and professional’s experienced quality. Our quality
assurance system is a management system that provides a framework for managing quality and effectiveness
at all levels of the organization.
The strategic priority areas, joint processes, and measurability guide toward consistent high quality. Continuous imp-
rovement of operations is an essential part of our quality efforts. The quality work aims to ensure the availability
of our services, safeguard and improve patient safety, provide an excellent and constantly improving customer
experience, implement data protection and information security, comply with recommendations, and develop the
effectiveness of treatment. The quality steering group monitors the achievement of the quality objectives quarterly
using quality indicators.
Patient safety is the foundation for quality in health care
Clinical quality is a continuously monitored and developed key element of Terveystalo’s quality efforts. Clinical quality
refers to the patient receiving the right treatment at the right time and in the right manner, and that treatment has no
avoidable adverse effects. Service quality, safety, customer orientation and productivity are ensured through consistent
operating methods, the continuous training of experts as well as modern premises and technology. The patient safety
is managed by monitoring the number of procedure and clinic-specific post-surgery infections, hazardous events, offi-
cial requests for clarifications, and the decisions of the Patient Insurance Center, among other measures. Terveystalo
ensures the safety and effectiveness of the provided pharmacotherapy by medication plans, operating guidelines, and a
basic range of drugs.
Each year, the themes, priorities, and strategy of patient safety at Terveystalo are chosen by the Group’s patient
safety team and confirmed by the quality steering group. This work is supported by internal and external audits. In 2021,
the patient safety themes were improving the patient safety culture and data protection. The priorities were pharma-
cotherapy permits, treatment of patients’ first-aid situations as well as aseptic behavior and hand hygiene. The clear
structures and strategy of patient safety are aimed at effective cooperation to improve patient safety within clinics,
throughout the organization, with the supervisory authorities and particularly in practical work with patients.
A good patient safety culture means having an open atmosphere in which employees can highlight any short-
comings or hazards (near misses/hazardous incidents) they observe in their work treating patients, without fear of
sanctions or blame. Shortcomings and hazardous incidents are addressed openly and carefully to ensure that the issue
106
does not reoccur. Terveystalo conducted a patient safety culture survey in 2021 as part of the patient safety theme year
2021. The aim of the survey was to assess how patient safety is visible in Terveystalo’s day-to-day operations, what the
personnel’s perceptions are regarding the realization of patient safety, the current level of patient safety at Terveystalo
and what issues we should focus on in the development of our patient safety culture. The feedback received from pro-
fessionals who work with patients provided valuable input for development efforts. Based on the results, development
measures will be started at the unit, regional and Group levels.
The quality index measures clinical and experienced quality
Terveystalo continuously develops its services, the quality and effectiveness of provided care and the service expe-
rience of customers. Clinical, experienced and process results are measured based on international best practices.
Terveystalo uses a quality index that consists of four components: high clinical quality, availability of care, preventive
care and experienced quality from the professional’s perspective and the patient’s perspective. Terveystalo’s quality
index is comprised of seven key indicators: use of the WHO Surgical Safety Checklist in surgical operations, prescriptions
for drugs affecting the central nervous system relative to the number of physician’s appointments, duration of sickness
absence issued on the day of operation for repair of the rotator cuff and the anterior cruciate ligament, percentage
of preventive work of occupational health appointments, availability of care as measured by T3 (the third available
appointment), Net Promoter Score (NPS) for appointments, employee Net Promoter Score (eNPS).
In 2021, Terveystalo continued to develop quality and effectiveness of the reporting and also adopted new quality
indicators. Terveystalo publishes a set of quality indicators, which is updated continuously on the company’s website.
Use of the WHO Surgical Safety Checklist in surgical operations
Terveystalo performs surgeries in its network of 18 hospitals. WHO Surgical Safety Checklist is systematically applied
before the start of each procedure. It is a standard list of questions to check safety issues relevant for the operation. In
2021, the WHO Surgical Safety Checklist was used in 99.8 (97.8) percent of the operations performed.
Prescriptions for drugs affecting the central nervous system relative to the number of physician’s appointments
When used appropriately, drugs affecting the central nervous system are effective and necessary. However, because
of their adverse effects, their use requires careful discretion by a physician. Terveystalo has a special project aimed at
promoting the safe use of drugs affecting the central nervous system according to clinical guidelines in patient care.
To harmonize prescription practices, detailed guidelines for prescribing drugs affecting the central nervous system
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
have been prepared based on legislation, Current Care Guidelines, Smart to Avoid Recommendations, guidelines issued
by the National Supervisory Authority for Welfare and Health, and operating models proven in clinical work. In 2021,
at Terveystalo clinics prescriptions for drugs affecting the central nervous system were written for 4.3 (4.6) percent of
visits to a physician.
Duration of sickness absence issued on the day of operation for repair of the rotator cuff and the anterior cruciate
ligament
Terveystalo’s surgical operations aim to provide swift high-quality care pursuant to care criteria to quickly restore the
patient’s functional capacity and ability to work. Terveystalo systematically develops the treatment chain for its surgery
patients. The aim is to enable faster recovery and return to work. Correctly prepared surgery implemented without delay
as well as a plan for early rehabilitation and return to work play a key role in this. The average length of sickness absence
issued on the day of operation for surgical repair of the rotator cuff and the anterior cruciate ligament was 32 (36) days
in 2021.
Percentage of preventive work of occupational health appointments
Work not carried out is expensive for Finnish companies. Therefore, it pays to invest in work ability management
through preventive measures. Effective work ability management requires that organizations know what kinds of risks
to work ability they manage. To support management, Terveystalo surveys the organisation’s health and work ability
risks through targeted health examinations. As part of occupational health examinations, an electronic, scientifically
validated health survey is always carried out as a self-assessment of employees. Based on the survey, possible risks
related to health and work ability can be identified. With the survey, measures can be targeted particularly to those with
significant risks. In 2021, preventive work accounted for 70.2 (67.8) percent of Terveystalo’s occupational health check-
ups.
Availability of care as measured by T3 (the third available appointment), clinics
Terveystalo continuously develops the availability of care by managing the balance between supply and demand as well
as by developing digital services and the work of professionals. The availability of care is measured by the T3 indicator,
which is the number of days until the third available non-urgent appointment at Terveystalo clinics. The T3 indicator
for appointments with a physician was 1.61 (1.17) in 2021. In addition to physical appointments, the availability of care
is enhanced by digital general practitioner appointments available 24/7, with an average waiting time of seconds. In
addition, digital mental well-being services also lower the threshold for seeking treatment.
Net Promoter Score (NPS) for appointments
Terveystalo aims to stand out by providing an excellent experience in all customer encounters. The company develops
its services by listening to customers and utilizing new technology. NPS (Net Promoter Score) is used as the most
important indicator of customer satisfaction. Terveystalo collects feedback with SMS and browser-based surveys and
is continuously adding NPS measurements at new customer encounter points. In 2021, the NPS for Terveystalo’s
appointments was 83 (83). The NPS for hospital services remained at a high level at 94.7 (94.4).
Employee Net Promoter Score (eNPS)
Terveystalo aims to be the most attractive workplace for professionals. The professional survey is one of Terveystalo’s
most important tools for improving internal procedures and supervisor work. The survey is aimed at all of Terveystalo’s
professionals, including private practitioners. In the employee survey, the employee Net Promoter Score (eNPS) is used
as a key indicator of well-being and coping at work. The eNPS figure indicates the proportion of employees and private
practitioners who would recommend Terveystalo as a workplace to others. Terveystalo’s eNPS continued to develop
favorably in 2021 and rose to a good level at 32 (18). The professionals’ experience at Terveystalo improved in all key
areas in 2021.
Excellent availability of primary health services
Fast and timely access to care is one of the biggest challenges of Finnish primary health care. Terveystalo has developed
health centers’ operating models over the longer term to ensure easy access to care. The goal is a health center with no
queues, one that maintains a high level of clinical quality while delivering a good customer and employee experience.
In primary health care, Terveystalo partners with several municipalities and joint authorities. The company produces
health center appointment services at 17 municipal health centers. At the start of October 2021, Terveystalo started
operating the Kannelmäki health center in partnership with the City of Helsinki and is now providing services for the
20,000 residents of the area. Terveystalo is also participating in a service voucher pilot in Espoo, where customers can
choose a private service provider as their health center by using a service voucher issued by the city.
In Terveystalo health centers, the average T3 time indicating the availability of non-urgent appointments (the third
available appointment) was 6.5 (5.6) days in 2021. The target is less than 7 days for doctor’s services and less than 1
day for nurse’s services. The availability of care was excellent nationwide at Terveystalo’s health centers throughout the
year. The availability of oral health care also remained at a good level at Terveystalo’s 12 outsourced dental clinics des-
pite the continued COVID-19 pandemic. The average T3 time for non-urgent dentist’s appointments was 35 (30) days
for the year.
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Financials
Ethical business
Respecting human rights
Values and ethics are emphasized in Terveystalo’s work through the requirements of the sector. Terveystalo’s business
is guided by legislation governing the sector and private health care services as well as the requirements set by autho-
rities. The work of healthcare professionals is also guided by the ethical standards of professional groups. In addition,
Terveystalo’s own Code of Conduct provides an overarching guideline that is shared by everyone at Terveystalo. The
Code of Conduct addresses a wide range of topics, including anti-corruption and bribery, compliance with fair compe-
tition and environmental requirements, privacy protection, patient safety, employee equality, non-discrimination and
freedom of association.
Terveystalo does not tolerate any form of discrimination, harassment, bullying, racism or inappropriate treatment, nor
does Terveystalo condone the use of child labor, any form of forced labor or other human rights violations in its own
operations or its supply chain. Terveystalo respects the human rights set out in the UN Declaration of Human Rights as
well as the workers’ rights defined by the International Labor Organization (ILO) and related international conventions.
The company is committed to the UN Global Compact initiative and its principles pertaining to human rights and labor
rights. Terveystalo’s suppliers are also expected to comply with these principles and respect internationally recognized
human rights. Principles related to human rights are included in Terveystalo’s Code of Conduct and Supplier Code of
Conduct.
Training to comply with the code of conduct and ethical requirements
In 2021, Terveystalo updated its orientation training on correct action and the Code of Conduct. An entirely new
course was created for employees and practitioners who engage in clinical work, while the course designed for admi-
nistrative employees was updated with new questions. The purpose of the courses is to build an understanding of why
compliance and ethical responsibility are important and how they are related to the day-to-day actions and decisions
by everyone at Terveystalo. A further goal of the training is to create a better understanding of key themes related to
ethics, including fair competition, the avoidance of conflicts of interest, the prevention of bribery, data protection and
reporting misconduct. In 2021, 7 485 Terveystalo employees (6 032 salaried employees, 66.0 (52.3) percent of the total
salaried employees in Finland) completed the training and received a passing grade. The goal is that 100 percent of
employees complete the Code of Conduct training. The updated Code of Conduct has been well received by our emplo-
yees – it has had a positive effect on the experienced significance and sustainability of work.
Anti-corruption and bribery
In the area of anti-corruption and bribery, Terveystalo complies with the law and other applicable regulations.
Terveystalo is also committed to the UN Global Compact initiative and its anti-corruption principles. Terveystalo’s opera-
tions are also guided by company’s Code of Conduct. The prevention of corruption is included in Terveystalo’s Code of
Conduct, which addresses the giving and accepting of gifts and hospitality, sponsorships, accepting and making dona-
tions, understanding and avoiding conflicts of interest as well as the rules pertaining to lobbying. At Terveystalo, gifts
or other benefits that could affect business decisions or have considerable personal or financial value are not offered,
given, requested, or accepted. Terveystalo does not make financial contributions to political parties or fund the election
campaigns of individual candidates. No incidents of corruption were reported in 2021.
The responsibility of suppliers is ensured by the supplier code of conduct
Each year, Terveystalo buys services, materials and supplies for its clinics from more than 4,000 suppliers. Consequently,
the network of service providers and suppliers of goods – and good supplier cooperation – play a key role in our ope-
rations. Terveystalo wants contractual service providers and suppliers of goods to be aware of Terveystalo’s significant
role in society. Terveystalo also wants suppliers to commit to taking responsibility for the economic, social, and environ-
mental impacts of their operations. To ensure the responsible conduct of suppliers, contractual suppliers and suppliers
participating in tendering processes have to approve the Supplier Code of Conduct, which includes guidelines and
requirements pertaining to anti-corruption and bribery, human rights, fundamental rights at work, occupational health
and safety, taxation and environmental responsibility. At the end of 2021, 80 (80) percent of suppliers representing 80
percent of Terveystalo’s total procurement volume had approved the Supplier Code of Conduct. Terveystalo also uses a
supplier self-assessment form that covers topics such as compliance with the Supplier Code of Conduct.
Ensuring data protection and information security for patients
Privacy protection is a core value for Terveystalo. At Terveystalo, everyone’s privacy is respected. Special attention is
paid to the appropriate and legally compliant processing of personal data. The company provides its personnel with
training and instructions on the processing of personal data and emphasize the particular confidentiality and protection
of patient data. The realization of data protection is the responsibility of everyone who works for Terveystalo.
The digitalization of health care presents significant opportunities for improving the availability and effectiveness of
care as well as the early identification of risks. Terveystalo has made significant investments in the development of digi-
tal services and tools. As digital services increase in importance, modifying the industry, the requirements concerning
data protection and information security increase accordingly.
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Financials
Terveystalo stores patient information in information security certified patient information systems. Terveystalo’s
patient information systems used in Finland are category A systems and they have undergone information security
certification in accordance with the regulations related to providing Kanta services. In addition, Terveystalo’s data
protection and information security is regularly audited internally and by a third party according to the ISO 9001:2015
certification.
Terveystalo applies the appropriate physical, technical, and administrative protection measures to protect data from
misuse. These measures include, among others, control and filtering of network traffic, use of encryption techniques
and safe data centers, appropriate access control, controlled granting of access rights and supervision of their use,
giving instructions to staff participating in personal data processing and risk management related to the planning,
implementation, and maintenance of our services. Terveystalo chooses its subcontractors carefully and uses agree-
ments and other arrangements to ensure that they process data in compliance with the law and good data protection
practices.
Responsible work
Competent and committed personnel form the foundation for Terveystalo’s operations. There are shortages of compe-
tent professionals in many places, and the most significant risks of the line of operation related to personnel are related
to the availability and retention of competent professionals. To manage these risks, the company offers diverse career
and development opportunities in a wide range of jobs and supports the well-being and work performance of its profes-
sionals. The objective is to be the most attractive employer in the industry for physicians as well as other professionals.
Equality, fairness and non-discrimination are important principles that Terveystalo is committed to observing.
Terveystalo is a significant employer in Finland. At the end of 2021, Terveystalo had 9,805 (8,253) employees and
5,644 (5,057) independent practitioners in Finland. In 2021, Terveystalo acquired the Swedish occupational health com-
pany Feelgood, and got 668 new employees and 110 practitioners in Sweden. Terveystalo also made 11 other comple-
mentary acquisitions during the year, which increased our number of personnel by 172.
Terveystalo’s goal is to be the best and most attractive employer in our industry. Terveystalo has worked systemati-
cally toward this goal for several years, and studies show that Terveystalo is the most popular employer in the industry in
Finland among both students and professionals in the field. One of the key indicators of well-being and coping at work
in Terveystalo is the employee Net Promoter Score (eNPS) (which also includes private practitioners). The eNPS figure
indicates the proportion of our employees and private practitioners who would recommend Terveystalo as a workplace
to others. In the 2021 professional survey, the employee Net Promoter Score (eNPS) continued to develop favorably,
rising to a record-high level of 32 (18). The exit turnover of Terveystalo’s personnel in Finland was 14.0 (17.1) percent.
The health and safety of employees
Permanent and fixed-term employees are covered by statutory insurance with respect to workplace accidents and
occupational diseases. In addition to observing the statutory requirements, Terveystalo provides a comprehensive
range of primary healthcare, specialized healthcare, and well-being services to employees, such as direct access to
physiotherapy and digital services to support mental well-being. Low-threshold services to support mental well-being
provide employees with the opportunity to confidentially discuss anything they might have on their mind. Brief psy-
chotherapy is also included in Terveystalo’s occupational health services. Terveystalo aims to recognize challenges
related to work ability and occupational health at an early stage and seek solutions to these challenges through effec-
tive cooperation with occupational health services. Terveystalo Occupational Healthcare provides occupational health
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Promoting diversity, equality and non-discrimination
Terveystalo observes the principles of equality, fairness, and non-discrimination. At Terveystalo no one is discriminated
based on race, age, ethnic or national origin, nationality, language, religion, belief, opinions, health status, disability,
sexual orientation or other personal reasons or circumstances. In recruitment, Terveystalo focuses on the person’s pro-
fessional competence, the ability to take responsibility and the will to improve company’s operations and themselves.
To realize these principles, Terveystalo Plc and its subsidiaries in Finland prepare company-specific personnel plans,
training plans, equality and non-discrimination plans and define targets for improvement.
In accordance with the diversity policy of the Board of Directors, the objective is to have a balanced gender distri-
bution in the Board of Directors. In 2021, two of the seven members of the Board of Directors were women. Five of the
eleven Management Group members were women.
The remuneration of Terveystalo’s personnel is based on the principles of performance, equal treatment and
competitiveness. For jobs that fall under collective agreements, such as nurses, the pay categories correspond to the
classifications specified in the collective agreements. Pay is also influenced by job-specific responsibility supplements
and the employee’s years of experience. For senior salaried employees, pay is determined based on the position and the
demands of the job as well as other factors, including competence, experience, performance and results. The company-
specific equality plans are focused on the equality of remuneration and aimed at promoting equal pay. Gender, for
example, cannot be a factor that influences pay.
services for the personnel throughout Finland. Terveystalo Occupational Healthcare holds the ISO 9001:2015 Quality
System Certificate awarded by Labquality Oy. All of our employed staff in Finland are covered by statutory pension secu-
rity and parental leave benefits.
During the COVID-19 pandemic, Terveystalo has invested significantly in maintaining personnel’s work ability and
medical care under the exceptional circumstances. Terveystalo’s personnel have operated in the eye of the storm of
the COVID-19 pandemic. Sickness absences among our personnel increased slightly and the sickness absence rate in
Finland was 4.4 (3.8) percent of hours worked.
There were no fatal accidents or accidents leading to serious injuries at Terveystalo in 2021. Terveystalo’s accident
frequency in Finland was 15 (25) in 2021, which is clearly below the average in the health care industry (35).
Competence development
The systematic and business-driven development of our personnel is especially important for Terveystalo’s future suc-
cess. Smooth work and appropriate, responsible supervisory work ensure personnel’s well-being, which in turn benefits
customers through better care and a positive customer experience. Terveystalo provides professional training and
opportunities for learning on the job. Terveystalo has invested particularly in the development of leadership and super-
visory work as well as supporting on-the-job self-study by increasing online learning, for example.
In 2021, Terveystalo launched Toward Better Leadership, a development program aimed at all managers and super-
visors at Terveystalo. The program is underpinned by the changes in management required for the implementation of
new strategy as well as Terveystalo’s new leadership principles: people orientation, high performance and sustainability.
In addition to launching the leadership program, Occupational Health Sparring events for occupational health care
professionals were organized, a project to develop the well-being at work of occupational health nurses was started,
training on the implementation of new tools and operating models was provided and a wide range of training activities
aimed at various professional groups to support their professional development were organized. Terveystalo also provi-
ded training to its various personnel groups on data protection, information security and our Code of Conduct.
In 2021, Terveystalo provided a total of 79,847 (63,864) hours of training, which corresponds to 8.7 (7.5) hours per
salaried employee. In addition to internal training, Terveystalo engages in research and education cooperation with
several universities and promotes youth employment with trainee programs.
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Financials
Sustainable economic growth
Responsible consumption and climate action
Responsible business is also financially profitable and sustainable. Terveystalo creates value for customers, society, and
shareholders by continuously developing the clinical, operational, and experienced quality of its work, enabling faster
access to treatment, reducing sickness absences, and employing directly and indirectly more than 15,500 people.
Terveystalo is a significant employer, taxpayer, and provider of health services in Finland.
Terveystalo produce services in Finland not only in the form of occupational health services for employers but also
in the form of purchased services for the public sector and directly to private customers. Well-functional occupational
health keeps the economy going. By providing public services, Terveystalo saves the taxpayers’ money because it can
offer high-quality health services cost efficiently. By choosing public sector services, the customer also reduces queues
in the public sector, both in dental care and other health care. In Sweden, a market Terveystalo expanded into by acqui-
ring Feelgood in 2021, Terveystalo mainly produces diverse preventive occupational health services, helping Swedish
companies and their employees achieve a higher level of well-being.
Terveystalo’s operations produce economic added value for various stakeholders. The key stakeholders include
shareholders, customers, personnel, Terveystalo’s private practitioners, suppliers, service providers, and society. The
most important cash flows consist of revenue generated from service sales and the operations of private practitioners,
expenses arising from purchases from suppliers and service providers, dividends paid to shareholders, salaries paid to
personnel, as well as taxes and investments.
In 2021, Terveystalo’s revenue and other operating income totaled EUR 1,158.0 (989.1) million. The goods, mate-
rials and services purchased from suppliers amounted to EUR 488.9 (447.6) million. Salaries and remuneration and
the related social security contributions amounted to EUR 378.2 (310.2) million. Net financial expenses to creditors
amounted to EUR 9.0 (10.0) million. Dividends paid to our shareholders in 2021 based on the results of the previous
fiscal year amounted to EUR 33.1 (16.5) million. Terveystalo invested a total of EUR 42.6 (32.7) million to business deve-
lopment.
In 2021, Terveystalo’s tax footprint totaled EUR 191.0 (152.3) million. In addition, a total of EUR 316.3 (283.2) million
was paid to private practitioners, who pay their individual taxes independently. Private practitioners’ taxes are not inclu-
ded in Terveystalo’s own tax footprint.
The figures include the whole Group.
111
•
Terveystalo is committed to the targets agreed upon in international climate summits for the mitigation of climate
change. Terveystalo’s goal is carbon neutrality in 2022 and zero emissions from our own operations in 2030. The con-
servation and sustainable use of natural resources in Terveystalo’s supply chains is promoted by reducing plastic con-
sumption, recycling waste, increasing the efficiency of material management, and reducing the number of small orders.
Medical waste at Terveystalo’s units is also being reduced. Digital services also enable to simultaneously improve service
availability and reduce customers’ travel times and the emissions generated by travel.
In line with Terveystalo’s environmental policy, Terveystalo builds a sustainable relationship with the environment.
The environmental policy is guided by Terveystalo’s values and strategy, which the management and personnel have
undertaken to comply with. Terveystalo operates in line with the principles of sustainable development to reduce and
eliminate environmental risks. Terveystalo complies with all applicable laws, regulations and procedures in place in the
industry to ensure patient safety.
Terveystalo’s environmental goals are as follows:
• Development of environmental management and awareness at all organizational levels
Identification, anticipation, and monitoring of direct and indirect environmental impacts
•
• Reduction of environmental impacts in our day-to-day operations
• Development of practices that promote sustainable development
Adverse environmental impacts are prevented by, for example:
reducing energy consumption and transitioning to carbon-neutral energy,
reducing the volume of waste created in our operations and increasing our recycling rate,
•
•
• optimizing the life cycle of health care equipment, with due consideration for technological development,
•
•
•
•
taking environmental perspectives into account in our travel and car policy,
developing digital services,
by planning and implementing pharmaceutical services in an up-to-date manner,
taking environmental perspectives into account in centralized procurement and ensuring efficient inventory
management, and
taking sustainable development and environmental perspectives into account in our network and business
premises projects.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo’s environmental program covers all clinics in Finland and its appropriateness is evaluated in quality mana-
gement and environmental management system audits. Some of the clinics are ISO 14001:2015 certified. In 2021,
Terveystalo expanded ISO 14001:2015 certification to include its Group services.
Terveystalo set ambitious new climate targets in late 2021. The goal is to reduce the carbon footprint so that
Terveystalo’s operations in Finland are carbon neutral in 2022 and zero emissions in own operations will be achieved in
2030. Between 2022 and 2030, any remaining greenhouse gas emissions will be compensated by investing in certified
CO2 emission compensation projects. The aim is to eventually discontinue compensation measures and to achieve zero
emissions in own operations by 2030.
A further goal is to reduce direct and indirect CO2 emissions (Scope 1 and Scope 2) by 80 percent by 2025 (using
2018 as the baseline). As regards energy consumption, the target is for green electricity to account for 100 percent
of the electricity purchased for Terveystalo’s operations in Finland. The recycling and recovery of waste is another
key theme in Terveystalo’s environmental responsibility, with the goal being to minimize waste in all operations. The
indicators used for this are the mixed waste intensity and the recovery rate and recycling rate of waste generated at
Terveystalo’s units.
In 2021, Terveystalo’s carbon footprint from Scope 1 and Scope 2 emissions (market-based) totaled 664.0 (2,165.4)
tCO2-eq., which was 69 (59) percent lower than in 2020. Terveystalo’s carbon footprint consists mainly of the production
of the electricity consumed by properties, emissions generated by transport and travel as well as the waste generated
in hospitals and clinics. The emissions generated by Terveystalo’s operations are reduced, for example, by increasingly
transitioning to green electricity and prioritizing low-emission vehicles.
Emissions
Terveystalo reports the direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions arising from its operations –
and part of indirect Scope 3 emissions – in accordance with the GHG standard.
Scope 1
Terveystalo does not, for the most part, own or control the properties at which it operates, the greenhouse gas emis-
sions mostly consist of the emissions from the company’s fleet of cars and the trucks used for imaging operations. The
emissions arising from own driving and driving under direct control are calculated based on fuel consumption. In 2021,
Scope 1 CO2 emissions totaled 245.5 (287.2) metric tons of carbon dioxide equivalent (tCO2e).
Scope 2
Indirect Scope 2 greenhouse gas emissions arise from the production of electricity purchased by Terveystalo and
the production of district heating consumed at properties controlled by Terveystalo. In 2021, electricity purchases
112
for properties controlled by Terveystalo totaled 14,195 (15,944) MWh. Since January 2020, the company’s electricity
portfolio (electricity purchased for properties) is zero-CO2 green electricity. Zero-CO2 electricity purchased for 2021
totaled 12,696 (9,934) MWh, representing approximately 89 (62) percent of the company’s electricity consumption. The
remainder, 1,499 (6,010) MWh, corresponds to 418.5 (1,878.2) metric tons of CO2 equivalent (tCO2e, market-based). As
regards energy consumption, the target is for green electricity to account for 100 percent of the electricity purchased
for operations in Finland.
Scope 3
For indirect Scope 3 emissions, emissions arising from work-related travel by employees and waste created by the
company’s operations are reported.
At Terveystalo unnecessary work-related travel is aimed to be avoided by encouraging the use of remote meetings
whenever possible. In 2021, Terveystalo’s personnel flew a total of 0.3 (0.3) million kilometers in work-related travel,
equaling 39 (37) tCO2e. Regarding reimbursable work-related travel, the personnel traveled a total of 1.9 (1.6) million
kilometers, equaling 322.1 (273.4) tCO2e. Terveystalo encourages its personnel to choose low-emissions vehicles as
company cars. The average emissions of the company cars used by the Group amount to 92 (118) g CO2e/km. The indi-
rect emissions arising from waste totaled 36.6 (30.2) tCO2e in 2021.
Terveystalo’s CO2 emissions intensity is low due to the nature of the Group’s operations. In 2021, Terveystalo’s emis-
sions intensity (Scope 1 and Scope 2, market-based) relative to revenue amounted to 0.6 gCO2e/EUR (2020: 2.2 gCO2e/
EUR). Relative to the number of employees (FTE), the emissions intensity was 0.12 (0.44) tCO2e.
The recycling and recovery of waste is another key theme in Terveystalo’s environmental responsibility, with the
goal being to minimize mixed waste in all operations and forwarding as large a share of the waste as possible to be
recovered. The indicators used for this are the mixed waste intensity and the recovery rate and recycling rate of waste
generated at Terveystalo’s units. Terveystalo is committed to reducing the plastic waste generated by its operations in
accordance with the EU’s plastic strategy by improving recycling efforts and reviewing the packaging options offered by
suppliers when possible. Terveystalo also keep a close eye on the medical waste and tries to minimize it by increasing
the efficiency of inventory management. The COVID-19 pandemic also influenced the amount of waste generated in
2021, as the use of protective equipment needed for COVID-19 testing, vaccination and the protection of staff and cus-
tomers increased during the year. The amount of mixed waste was also increased by the renovations of several units.
According to the company's assessment, the environmental aspects do not involve significant risks due to the
nature of the company's operations.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
EU taxonomy
The EU taxonomy is a classification system for sustainable finance that seeks to establish criteria for determining envi-
ronmentally sustainable business. The regulation, which entered into force in July 2020, lays the foundations for the
EU’s taxonomy by setting out the general conditions that economic activity must meet to be classified as sustainable
from climate’s perspective. Large companies must report the share of sustainable business in their business in accor-
dance with taxonomy criteria.
At present, EU taxonomy mainly concerns the economic activities that play the most important role in mitigating and
adapting to climate change. As a result, many industries, such as health care services, are almost completely excluded
from the Scope of the current taxonomy.
Terveystalo has determined its taxonomic eligibility by examining its activities in relation to the economic activi-
ties listed in the taxonomy and their NACE codes. Only one of Terveystalo’s businesses is classified in taxonomy (12.1
Residential care activities, NACE code Q87).
As a result of the assessment, it has been found that the significance of Terveystalo’s taxonomic functions is negli-
gible in terms of indicators. The key figures are the share of taxonomy-eligible operations (percent) in terms of net sales,
operating costs and investments. According to the company’s estimate, 0 percent of Terveystalo’s net sales, operating
costs and investments are eligible with the current taxonomy and 100 percent non-eligible.
Terveystalo strives to minimize the environmental impact of its operations and to promote the digitalisation of
health care, but these measures are not included in the current taxonomy. Terveystalo’s environmental responsibility is
described in the Responsibility section of Annual Report and in the Board of Directors’ report.
Shares, shareholders, and Board authorizations
At the end of December 2021, Terveystalo’s market value was EUR 1,516 (1,285) million and the closing price was EUR
11.84 (10.04). In 2021, the highest price of Terveystalo’s share on Nasdaq Helsinki Ltd was EUR 12.56 (12.66), the lowest
price EUR 10.10 (7.40) and the average price EUR 11.34 (9.67). A total of 32.0 (26.6) million shares were traded in 2021.
At the end of the reporting period, the number of Terveystalo shares registered in the Trade Register was 128,036,531.
The following tables list the largest shareholders, distribution of ownership and owner groups. The management share-
holding are listed in the Financial Statements in note 30.
The largest registered shareholders on December 31, 2021
Name
Varma Mutual Pension Insurance Company
Rettig Group AB
Pohjola Insurance Ltd
Hartwall Capital
OP Life Assurance Company Ltd
Elo Mutual Pension Insurance Company
Ilmarinen Mutual Pension Insurance Company
Mandatum Life Insurance Company
LocalTapiola Mutual Insurance Company
Åbo Akademi University Foundation
Number
of shares
22,151,945
21,153,191
8,530,332
8,431,690
7,112,915
4,392,951
3,882,000
3,436,209
2,600,000
1,816,242
% of shares
Votes
% of votes
17.30
16.52
6.66
6.59
5.56
3.43
3.03
2.68
2.03
1.42
22,151,945
21,153,191
8,530,332
8,431,690
7,112,915
4,392,951
3,882,000
3,436,209
2,600,000
1,816,242
17.30
16.52
6.66
6.59
5.56
3.43
3.03
2.68
2.03
1.42
Ten largest, in total
83,507,475
65.22
83,507,475
65.22
The list is based on the register of shareholdings maintained by Euroclear, and it does not include nominee-registered
shares.
According to its own notification and its custodian’s notification, Lannebo Fonder owns in total 3.34 percent of all
shares.
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TerveystaloAnnual Report 2021 Year 2021
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Corporate Governance
Financials
Distribution of ownership, December 31, 2021
Shareholder groups, December 31, 2021
Number of shares
Number of
shareholders
% of
shareholders
Number of
securities
% of
securities
Number
of votes
% of votes
Shareholders by sector
Number of shares
% of shares
1–100
101–500
501–1,000
1,001–5,000
5,001–10,000
10,001–50,000
50,001–100,000
100,001–500,000
500,001–
Total
12,093
9,924
2,011
1,338
137
113
22
30
25
47.07
38.63
7.83
5.21
0.53
0.44
0.09
0.12
0.10
576,425
2,499,640
1,563,527
2,719,972
993,220
2,318,299
1,628,154
6,359,924
0.45
1.95
1.22
2.12
0.78
1.81
1.27
4.97
576,425
2,499,640
1,563,527
2,719,972
993,220
2,318,299
1,628,154
6,359,924
109,377,370
85.43
109,377,370
25,693
100.0
128,036,531
100.00
128,036,531
15,718,797
12.28
15,718,797
0
0
0
0
0
0
0
0
0
128,036,531
100
128,036,531
100
of which nominee-registered
Non-transferred, total
In general account
In special accounts, total
Total issued
11
0
114
0.45
1.95
1.22
2.12
0.78
1.81
1.27
4.97
85.43
100.00
12.28
0
0
0
Households
Public entities
Financial and insurance institutions
Companies
Non-profit institutions
Foreign owners
Total
Of which nominee-registered
8,941,603
31,915,493
32,179,768
15,036,371
3,043,364
21,201,135
112,317,734
15,718,797
7.96
28.42
28.65
13.39
2.71
18.88
100.00
12.28
Notifications of major shareholdings
On 10 September 2021, Terveystalo Plc received a notification pursuant to Chapter 9, Section 5 of the Finnish
Securities Markets Act from Hartwall Capital Oy Ab (HC Holding Oy Ab). According to the notification, the total number
of shares and votes held by Hartwall Capital fell below the 10 percent threshold on 9 September 2021. Hartwall Capital’s
previous holding totalled 11.27 percent (14,431,690 shares) of all Terveystalo’s outstanding shares. The previous
ownership has been announced in connection with the IPO and no flagging notification has thus been made.
Share-based incentive schemes and the Board’s authorizations
On 9 February, Terveystalo Plc’s Board of Directors approved a new performance period covering years 2022-2024 of
the long-term share-based incentive plan for key personnel. During the performance period 2022-2024, the perfor-
mance indicators on the basis of which share rewards may be paid are absolute Total Shareholder Return (TSR) and
relative TSR (compared to the OMX HKI benchmark CAP GI index).
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Terveystalo’s Board of Directors confirms the total amount of shares earned after the end of the performance period.
The share rewards that may be paid based on the 2022–2024 earning period will be paid in Terveystalo Plc shares after
the end of the performance period, provided that the performance targets set for the program by the Board are achie-
ved. The maximum number of shares to be paid based on this plan is 696,000 shares. Taxes and tax-like payments to
the recipient are deducted from the share reward, after which the remaining net amount is paid to the participants in
shares.
No more than approximately 70 people selected by the Board are eligible to participate in the program, including
members of Terveystalo’s Executive Team.
Terveystalo applies a share ownership requirement to the members of the Executive Team. Each member of the
Executive Team is expected to retain at least 50 percent of the net shares received under the long-term incentive plan
until his or her shareholding in Terveystalo is at least equal to his or her annual gross base salary.
The Performance Share Plan is based on a rolling 3-year performance period structure, with a new performance
period starting at the beginning of each year if so decided by the Board. The Board decides on the participants, per-
formance measures and targets as well as earning opportunities on an annual basis. The purpose of the program is to
align the objectives of shareholders and key personnel to increase the company’s value in the long term, and to commit
key personnel to implementing Terveystalo’s strategy by offering them a competitive, share-based incentive program.
The establishment of the program and its main terms were announced in a stock exchange release published on 2
December, 2020.
The Board’s authorizations
The Board has been authorized to resolve on the repurchase of the company’s own shares using the unrestricted equity
of the company. The authorization covers a maximum of 12,803,653 own shares in total, which corresponds to approxi-
mately 10 percent of the company’s currently registered shares.
The Board has also been authorized to resolve on the issuance of shares and special rights entitling to shares as
referred to in Chapter 10, Section 1 of the Finnish Companies Act. The authorization covers a maximum of 12,803,653
own shares in total, which corresponds to approximately 10 percent of the company’s currently registered shares. The
authorization can be used for the financing or execution of acquisitions or other business arrangements, to strengthen
the balance sheet and financial position of the company, for implementing share-based incentive plans or the payment
of the annual compensation payable to the members of the Board of Directors, or for other purposes as determined by
the Board of Directors.
Share buyback program
On 28 October, 2021 the Board of Directors of Terveystalo Plc decided to launch a buyback program for Terveystalo’s
own shares based on the authorisation granted by Terveystalo’s Annual General Meeting on 25 March 2021.
The repurchases of the shares began on 29 October, 2021 and ended on 28 December, 2021. During that period,
Terveystalo repurchased 1,000,000 of its own shares for an average price per share EUR 11.25. The shares were acqui-
red at the market price quoted at the time of acquisition in trading organised by Nasdaq Helsinki Ltd on a regulated
market.
The purpose of the share buyback program was to optimize the Company’s capital structure through reduction of
capital. The repurchase of own shares will reduce the Company’s unrestricted equity. The repurchased 1,000,000 shares
will be cancelled. Following the repurchases, Terveystalo holds a total of 1,730,000 own shares, which represents appro-
ximately 1.35 percent of all shares in Terveystalo Plc.
Dividend Policy and distribution of profits
for 2021 proposed by the Board
The objective of Terveystalo’s Dividend Policy is to distribute a minimum of 40 percent of earnings per share in divi-
dends. The current financial performance, development potential, financial position, and capital requirements are taken
into account. In 2021, earnings per share were EUR 0.63 (0.36).
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.28 (0.26) per share totaling
EUR 35.6 (33.1) million be paid based on the balance sheet adopted for the financial year ended 31 December 2021.
The dividend would be paid in two instalments as follows:
•
The first dividend instalment of EUR 0.14 per share would be paid to the shareholders who are registered in the
shareholders’ register of the Company maintained by Euroclear Finland Ltd on the record date of the first divi-
dend instalment on 11 April 2022. The Board of Directors proposes that the first dividend instalment would be
paid on 20 April 2022.
115
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
•
The second dividend instalment of EUR 0.14 per share would be paid to shareholders who are registered in the
shareholders’ register of the Company maintained by Euroclear Finland Ltd on the record date of the second
dividend instalment on 10 October 2022. The Board of Directors proposes that the second dividend instalment
would be paid on 19 October 2022. The Board of Directors also proposes that the Annual General Meeting would
authorize the Board of Directors to resolve, if necessary, on a new record date and date of payment for the
second dividend instalment should the rules of Euroclear Finland Ltd or statues applicable to the Finnish book-
entry system change or otherwise so require. No substantial changes have occurred in the company’s financial
position since the end of the financial year. The company’s liquidity is good and, in the Board’s opinion, will not
be jeopardized by the proposed distribution of profits.
Decisions of the Annual General Meeting 2021
and the first Board meeting
The Annual General Meeting of Terveystalo Plc was held on 25 March 2021 in Helsinki, Finland. The Annual General
Meeting adopted the financial statements for the financial year 2020 and discharged the members of the Board of
Directors and the CEO from liability. The Annual General Meeting approved the remuneration report for governing
bodies and decided to support the amended remuneration policy for governing bodies which was presented to the
Annual General Meeting.
The Annual General Meeting decided, in accordance with the proposal of the Board of Directors, that a dividend of
EUR 0.13 per share (totaling approximately EUR 16.5 million with the current number of shares) be paid based on the
balance sheet adopted for the financial year ended 31 December 2020. The dividend was paid to a shareholder regis-
tered in the Company’s shareholders’ register maintained by Euroclear Finland Ltd on the dividend record date of 29
March 2021. The dividend was paid on 7 April 2021.
Further, the Board of Directors was authorized to resolve in its discretion on the payment of dividend as follows: The
amount of dividend to be paid based on the authorization shall not exceed EUR 0.13 per share. The authorization is valid
until the opening of the next Annual General Meeting. Unless the Board of Directors decides otherwise for a justified
reason, the authorization will be used to pay dividend one time during the period of validity of the authorization. In this
case the Board of Directors will make a separate resolution on the payment of dividend so that the dividend would pre-
liminarily be paid by the end of November 2021. The Company shall make separate announcement of such resolution
and confirm the final record and payment dates in such announcement. The dividend to be paid based on a resolution
of the Board of Directors will be paid to a shareholder registered in the Company’s shareholders’ register maintained by
Euroclear Finland Ltd on the dividend record date.
The number of members of the Board of Directors was confirmed to be seven (7). Dag Andersson, Kari Kauniskangas,
Åse Aulie Michelet, Niko Mokkila, Katri Viippola, and Tomas von Rettig were re-elected as members of the Board and
Kristian Pullola was elected as a new member of the Board.
KPMG Oy Ab was re-elected as the Company’s auditor. KPMG Oy Ab has notified that Henrik Holmbom, APA, would be
acting as the principal auditor.
As proposed by the Board of Directors, the Annual General Meeting resolved to authorize the Board of Directors to
resolve on the repurchase and/or on the acceptance as pledge of the Company’s own shares using the unrestricted
equity of the Company. The authorization covers a maximum of 12,803,653 shares, which corresponds to approxima-
tely 10 percent of all shares in the Company. In addition, as proposed by the Board of Directors, the Annual General
Meeting resolved to authorize the Board of Directors to decide on the issuance of shares and the issuance of special
rights entitling to shares referred to in Chapter 10, Section 1 of the Companies Act. The authorization covers a maxi-
mum of 12,803,653 shares, which corresponds to approximately 10 per cent of all shares in the Company. These autho-
rizations are effective until the end of the next Annual General Meeting, however no longer than until 30 June 2022.
As proposed by the Board of Directors, the Annual General Meeting resolved to authorize the Board of Directors to
decide on donations in a total maximum of EUR 150,000 for charitable or corresponding purposes. The authorization
will remain effective until the end of the next Annual General Meeting 2022, however no longer than for a period of 18
months from the date of the resolution of the Annual General Meeting.
The new Board elected Kari Kauniskangas as Chairman of the Board and Tomas von Rettig as Vice Chairman of the
Board. Kristian Pullola was elected Chairman of the Audit Committee and Tomas von Rettig and Niko Mokkila were
elected members. Kari Kauniskangas was elected Chairman of the Remuneration Committee and Dag Andersson, Åse
Michelet and Katri Viippola were elected members of the Committee.
116
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Corporate governance
Terveystalo Plc’s Corporate Governance Statement, Remuneration Policy, and Remuneration Report for 2021 will be
published as part of the Annual Review in week 7.
Activities following the end of the financial period
On 1 February 2022, Feelgood acquired Länshälsan Uppsala, an occupational health care provider. Revenue of the com-
pany was approximately SEK 40 million in 2020 and the company has approximately 30 employees.
The acquisition of Vantaan Työterveys Oy was completed on 1 February, 2022.
On 9 February, 2022, the Board of Directors of Terveystalo Plc decided on a new performance period of the share-ba-
sed incentive scheme for 2022–2024.
The most significant short-term risks and uncertainty factors
Terveystalo’s risk management is governed by the risk management policy approved by the Board. The policy defines
goals, principles, organizations, responsibilities and practices for risk management. The management of financial risks
complies with the Group’s financing policy approved by Terveystalo’s Board.
The risks and uncertainty factors described below are considered to potentially have a significant impact on the
company’s business operations, financial results and future outlook within the next 12 months. The list is not intended
to be exhaustive.
•
•
The company’s business operations rely on its capacity to identify, recruit, and retain competent and professio-
nal healthcare professionals, employees and executives. The increased supply of services and increased compe-
tition may affect the availability of healthcare professionals, particularly in major cities. Turnover in key emplo-
yees involves the risk of losing knowledge and expertise.
The development and implementation of information system projects and services, service products, and opera-
ting models involves risks. The company is gradually replacing its operating systems and support systems as well
as creating new digital customer solutions, which increases the overall risk related to information systems. Risk
management is an essential aspect of the systems integration and deployment processes.
117
•
•
•
•
•
•
•
•
The company may not be able to find suitable acquisition targets or expansion opportunities under favorable
terms, and the integration of acquisition targets is not necessarily realized as planned.
The company’s business is very dependent on functioning information systems, data communication and
external service providers. Interruptions can result from hardware failure, software failure or cyber threats. Long-
lasting malfunction of information systems or payment transfers can lead to significant loss of sales and decline
in customer satisfaction.
Endangered information security or privacy can lead to losses and claims for damages and endanger reputation.
The global pandemic and the related restrictive measures may have a significant impact on consumer behavior,
demand for healthcare services, and the company’s expected financial development. The Emergency Powers Act
and other regulations pertaining to emergency circumstances give the public sector the power to intervene in
service production and even take private sector resources into public use if necessary.
The restrictions complicate supply chain operations globally, which reduces the availability of the personal prote-
ctive equipment necessary in service provision, among other things.
Changes in the competitive landscape, new competitors entering the markets and increasing price competition
may have a negative impact on the company’s profitability and growth potential.
Corporate responsibility aspects are increasingly important for customers, such as ensuring the responsibility
of the product supply chain, fair and equal treatment of employees, avoidance of corruption and protection of
the environment. Possible failures associated with corporate responsibility would mean negative publicity for
Terveystalo and could cause operational and financial damage. Challenges related to Terveystalo’s corporate
responsibility work include communicating the corporate responsibility principles to the key stakeholders and
ensuring the responsibility of the product and service supply chain.
The company is a party to, and may become a party to, legal action or administrative procedures initiated by the
authorities, patients or third parties. According to the company’s opinion, its currently pending legal obligations
and court cases are not significant in nature.
Risk management at Terveystalo and risks related to the company’s business are described in more detail at the compa-
ny’s website and in the company’s Annual Review.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
General Meeting of Shareholders 2022
The Annual General Meeting of Terveystalo Plc will be held on Thursday, April 7, 2022 in Helsinki.
Terveystalo Plc
Board of Directors
118
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Consolidated financial statements, IFRS
Consolidated statement of comprehensive income
Note
1.1.-31.12.2021
1.1.-31.12.2020
EUR mill.
Note
1.1.-31.12.2021
1.1.-31.12.2020
4, 5
1,154.6
6
7
8
9
10
11
11
12
3.4
-488.9
-378.2
-91.7
-89.2
110.1
0.8
-9.9
-9.0
-0.3
100.7
-20.3
80.4
80.5
-0.0
986.4
2.7
-447.6
-310.2
-91.2
-73.0
67.2
0.5
-10.6
-10.0
-0.6
56.6
-10.8
45.8
45.8
0.0
Other comprehensive adjustments
Items that may be reclassified to profit or loss
Translation differences from foreign operations
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations
28
Other comprehensive income for the period, net of tax
Total comprehensive income
Total comprehensive income attributable to:
Owners of the parent company
Non-controlling interest
Earnings per share for profit attributable to the shareholders of the parent
company, in euro
Basic earnings per share
Diluted earnings per share
13
13
The notes are an integral part of the Consolidated financial statements.
-0.8
0.1
-0.6
79.8
79.8
0.0
0.63
0.63
-
-
-
45.8
45.8
0.0
0.36
0.36
EUR mill.
Revenue
Other operating income
Materials and services
Employee benefit expenses
Depreciation, amortisation and impairment losses
Other operating expenses
Operating profit
Financial income
Financial expenses
Net finance expenses
Share of results in associated companies
Profit before taxes
Income tax expense
Profit for the period
Profit attributable to
Owners of the parent company
Non-controlling interests
119
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Consolidated statement of financial position
EUR mill.
ASSETS
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
Other intangible assets
Investment properties
Investments in associates
Loan receivables
Deferred tax assets
Other non-current assets
Total non-current assets
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total current assets
Non-current assets held for sale
TOTAL ASSETS
120
Note
31 Dec 2021
31 Dec 2020
EUR mill.
Note
31 Dec 2021
31 Dec 2020
14
14
15, 16
15
17
18
20
12
20
22
23
23
72.0
172.5
848.6
175.2
0.5
0.6
0.1
5.4
0.8
67.6
172.4
781.8
152.2
0.5
2.2
0.3
4.4
-
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capital
Invested non-restricted equity reserve
Treasury shares
Retained earnings
Equity attributable to equity holders of the Company total
Non-controlling interest
TOTAL EQUITY
Non-current liabilities
1,275.8
1,181.3
Non-current financial liabilities
6.4
128.3
38.1
172.8
-
1,448.6
6.8
95.1
77.1
179.0
0.8
1,361.0
Non-current lease liabilities
Deferred tax liabilities
Provisions
Other liabilities
Total non-current liabilities
Current liabilities
Current financial liabilities
Current lease liabilities
Current tax liabilities
Provisions
Trade and other payables
Total current liabilities
TOTAL LIABILITIES
0.1
492.8
-18.0
134.0
608.9
0.0
608.9
257.9
131.4
28.5
8.5
15.6
441.9
120.9
47.1
13.3
2.5
214.1
397.9
839.7
20, 21, 25
20, 21, 25
12
27
20, 21, 25
20, 21, 25
27
26
TOTAL EQUITY AND LIABILITIES
1,448.6
The notes are an integral part of the consolidated financial statements.
0.1
492.8
-6.7
85.3
571.4
-
571.4
302.3
141.1
26.0
7.7
9.4
486.6
87.2
37.3
13.5
2.4
162.7
303.1
789.6
1,361.0
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Consolidated statement of cash flows
EUR mill.
Cash flows from operating activities
Profit before income taxes
Adjustments for
Non-cash transactions
Depreciation, amortisation and impairment losses
Change in provisions
Other non-cash transactions
Gains and Losses on sale of property, plant, equipment and other changes
Net finance expenses
Changes in working capital
Trade and other receivables
Inventories
Trade and other payables
Interests received
Income taxes paid
Net cash from operating activities
Note
1.1.-31.12.2021
1.1.-31.12.2020
EUR mill.
Note
1.1.-31.12.2021
1.1.-31.12.2020
100.7
56.6
Acquisition of subsidiaries, net of cash acquired
Cash flows from investing activities
9
27
11
91.7
0.9
1.3
-0.1
9.0
-17.0
0.6
28.4
0.3
-20.7
195.2
91.2
1.0
-0.8
0.0
10.0
5.3
-1.2
-1.4
0.2
-17.2
143.7
Acquisition of property, plant and equipment
Acquisition of intangible assets
Investments to associated companies
Proceeds from sale of financial assets
Acquisition of business operations, net of cash acquired
Long-term loans granted
Proceeds from sale of property, plant and equipment
Dividends received
Net cash from investing activities
Cash flows from financing activities
Acquisition of non-controlling interests
Acquisition of treasury shares
Repayment of non-current borrowings
Proceeds from current borrowings
Repayment of current borrowings
Payment of lease liabilities
Payment of hire purchase liabilities
Interests and other financial expenses paid
Dividends paid
Net cash from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Exchange rate differences
Cash and cash equivalents at 31 December
3
14
15
3
3
24
25
25
25
25
25
-65.3
-21.0
-22.1
-
0.0
-0.1
-
0.5
0.0
-108.0
-12.7
-11.3
-41.9
77.0
-46.5
-42.4
-5.9
-9.3
-33.1
-126.1
-39.0
77.1
-0.1
38.1
-2.0
-13.0
-20.1
-0.5
0.0
-0.6
-0.2
0.4
0.0
-36.0
-
-
-41.5
40.0
-
-37.7
-5.5
-10.0
-16.5
-71.2
36.5
40.6
-
77.1
121
The notes are an integral part of the consolidated financial statements.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Consolidated statement of changes in equity
Equity attributable to owners of the parent company
Equity attributable to owners of the parent company
EUR mill.
Invested
non-restricted
equity reserve
Share
capital
Treasury
shares
Retained
earnings
Equity 1 Jan 2021
0.1
492.8
-6.7
85.3
Comprehensive income
Profit for the period
Other comprehensive
income
Transactions with owners
Acquisition of treasury shares
Share-based payments
Dividends
Transactions with non-
controlling interests
Non-controlling interest on
acquisition of subsidiary
Transactions with non-
controlling interest
-
-
-
-
-
-
-
-
-
-
-
-
-
-11.3
-
-
-
-
80.5
-0.6
-
1.9
-33.1
-
0.1
Total
571.4
80.5
-0.6
-11.3
1.9
-33.1
-
0.1
Equity 31 Dec 2021
0.1
492.8
-18.0
134.0
608.9
Non-control-
ling interests
Total
equity
EUR mill.
Share
capital
Invested
non-restricted
equity reserve
Treasury
shares
Retained
earnings
0.0
571.4
Equity 1 Jan 2020
0.1
492.8
-6.7
55.1
Non-control-
ling interests
Total
equity
0.0
541.2
Total
541.2
Comprehensive income
Profit for the period
Transactions with owners
Share-based payments
Dividends
-
-
-
-
-
-
-
-
-
Equity 31 Dec 2020
0.1
492.8
-6.7
The notes are an integral part of the consolidated financial statements.
45.8
45.8
0.0
45.8
0.9
-16.5
85.3
0.9
-16.5
571.4
-
-
-
0.9
-16.5
571.4
0.0
-
-
-
-
80.4
-0.6
-11.3
1.9
-33.1
12.8
12.8
-12.8
0.0
-12.7
608.9
122
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
1. Corporate information
Terveystalo Plc is a Finnish public limited liability company organised under the laws of Finland and domiciled
in Helsinki, Finland. The parent company, Terveystalo Plc, is listed on the Nasdaq Helsinki. Terveystalo Group
(“the Group”, “Terveystalo”) consists of the parent company and 36 subsidiaries. More information on subsidiaries
is presented in note 31. A copy of the consolidated financial statements is available at the Group’s website
www.terveystalo.com, from Terveystalo Oyj / Corporate Communications, Jaakonkatu 3, 00100 Helsinki, Finland,
or via e-mail at investors@terveystalo.com.
Terveystalo is a leading private healthcare service provider in Finland. The company offers general practice and spe-
cialist medical care, diagnostic services, outpatient surgery, dental services and other adjacent services to cor-
porate, private and public sector customers.
In its meeting on 9 February 2022 the Board of Directors of Terveystalo Plc approved the publishing of these con-
solidated financial statements. According to the Finnish Limited Liability Companies Act, shareholders have the right
to approve or reject the financial statements in the Annual General Meeting held after the publication of the financial
statements. The Annual General Meeting also has the right to make a decision to amend the financial statements.
2. Accounting policies for the
consolidated financial statements
2.1 Basis of preparation
The consolidated financial statements of Terveystalo have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union. The consolidated financial statements have been prepa-
red in compliance with the IAS and IFRS standards as well as the SIC and IFRIC interpretations in force on 31 December
2021. The consolidated financial statements also comply with the regulations of Finnish accounting and company
legislation complementing the IFRS.
The consolidated financial statements are presented in millions of euro and have been prepared under the historical
cost basis, unless otherwise stated in the accounting principles. All figures presented have been rounded, and conse-
quently the sum of individual figures may deviate from the presented aggregate figure. Key figures have been calcu-
lated using exact figures.
123
2.2 Application of new and amended IFRSs and new
IFRIC agenda decisions
New and amended standards applied in the financial year 2021
The Group has applied as from 1 January 2021 the following new and amended standards that have come into effect:
Amendment to IFRS 16 – Covid-19-Related Rent Concessions
The amendment allows the lessees not to account for rent concessions as lease modifications if the concessions are a
direct consequence of the Covid-19 pandemic and only if certain conditions are met. The impacts of the amendments
on Terveystalo’s consolidated financial statements have not been significant.
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform
– Phase 2
Amendments address issues affecting financial statements when changes are made to contractual cash flows and
hedging relationships as a result of interest rate benchmark reform. Amendments assist companies in providing useful
information about the effects of interest rate benchmark reform on financial statements. The impacts of the amend-
ments on Terveystalo’s consolidated financial statements have not been significant.
New IFRIC agenda decisions
IFRS interpretation committee (IFRIC) finalised in April 2021 its agenda decision Configuration or Customisation Costs in
a Cloud Computing Arrangement. In this agenda decision the interpretation committee considered, whether, applying
IAS 38, the customer recognises an intangible asset in relation to configuration or customisation of the application
software, and if an intangible asset is not recognised, how the customer accounts for the configuration or custo-
misation costs. The impacts of the agenda decision on Terveystalo’s consolidated financial statements have not been
significant.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Adoption of new and amended standards and interpretations applicable in future
financial years
Amendments to IFRS 3 – Reference to the Conceptual Framework
(effective for financial years beginning on or after 1 January 2022)
* = not yet endorsed for use by the European Union as of 31 December 2021.
Amendments to IAS 37 – Onerous Contracts
(to be applied from 1 January 2022)
When an onerous contract is accounted for based on the costs of fulfilling the contract, the amendments clarify that
these costs comprise both the incremental costs and an allocation of other direct costs. The impacts of the amend-
ments on Terveystalo’s consolidated financial statements are not expected to be significant.
Annual Improvements to IFRS Standards 2018–2020
(to be applied from 1 January 2022)
IFRS 9: This amendment clarifies that – for the purpose of performing the ’10 percent test’ for derecognition of financial
liabilities – in determining those fees paid net of fees received, a borrower includes only fees paid or received between
the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf.
IFRS 16: The amendment removes the illustration of payments from the lessor relating to leasehold improvements.
The example was not clear as to why such payments are not a lease incentive.
The annual improvements are not expected to have a significant impact on Terveystalo’s consolidated financial sta-
tements.
Amendments to IAS 16 – Proceeds before Intended
(to be applied from 1 January 2022)
Under the amendments, proceeds from selling items before the related item of PPE is available for use should be
recognised in profit or loss, together with the costs of producing those items. The impacts of the amendments on
Terveystalo’s consolidated financial statements are not expected to be significant.
The amendment updates a reference in IFRS 3 and made further amendments to avoid unintended consequences of
updating the reference. The impacts of the amendments on Terveystalo’s consolidated financial statements are not
expected to be significant.
IFRS 17 Insurance Contracts*
(to be applied from 1 January 2023)
The new standard for insurance contracts will help investors and others better understand insurers’ risk exposure,
profitability and financial position. This standard replaces IFRS 4 standard. The impact of the standard on Terveystalo’s
consolidated financial statements is not expected to be significant.
Amendments to IAS 1 – Classification of Liabilities as Current or Non-current*
(effective for financial years beginning on or after 1 January 2023, early application is permitted)
The amendments are to promote consistency in application and clarify the requirements on determining if a liability
is current or non-current. The impacts of the amendments on Terveystalo’s consolidated financial statements are not
expected to be significant.
Amendments to IAS 1 – Disclosure of Accounting Policies*
(effective for financial years beginning on or after 1 January 2023, early application is permitted)
The amendments clarify the application of materiality to disclosure of accounting policies to help companies provide
useful accounting policy disclosures. The impacts of the amendments on Terveystalo’s consolidated financial
statements are not expected to be significant.
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Amendments to IAS 8 – Definition of Accounting Estimates*
(effective for financial years beginning on or after 1 January 2023, early application is permitted)
The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting
estimates, with a primary focus on the definition of and clarifications on accounting estimates. The impacts of the
amendments on Terveystalo’s consolidated financial statements are not expected to be significant.
Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single
Transaction*
(effective for financial years beginning on or after 1 January 2023, early application is permitted)
The amendments narrow the initial recognition exemption (IRE) and clarify that the exemption does not apply to tran-
sactions such as leases and decommissioning obligations which give rise to equal and offsetting temporary differences.
The impacts of the amendments on Terveystalo’s consolidated financial statements are not expected to be significant.
Amendments to IFRS 17 – Comparative Information*
(effective for financial years beginning on or after 1 January 2023)
Amendment to IFRS 17 to alleviate mismatches in comparative information arising from the different transition requi-
rements of IFRS 9 and IFRS 17. The impacts of the amendments on Terveystalo’s consolidated financial statements are
not expected to be significant.
Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture*
(available for optional adoption, effective date deferred indefinitely)
The amendments address the conflict between the existing guidance on consolidation and equity accounting and
require the full gain to be recognised when the assets transferred meet the definition of a ’business’ under IFRS 3
Business Combinations.
2.3 Critical accounting estimates and judgements
The preparation of the financial statements requires management to make certain estimates and assumptions that are
based on management’s best view of the circumstances prevailing at the reporting date, prior experience and assump-
tions about future events related, among other, to the expected development of the Group’s economic environment in
terms of sales and cost level. However, it is possible that the realised outcomes differ from the estimates and assump-
tions used in the financial statements. In addition, the application of the accounting policies requires judgement, espe-
cially when the current IFRS standards have alternative accounting, valuation and presentation methods.
The Group monitors the realisation of the estimates and assumptions and changes in the underlying factors on a
regular basis together with the operating units by using several internal and external information sources. Changes in
estimates or assumptions are recognised in the period when the estimate or assumption is revised, and in the future
periods if the change affects the subsequent periods.
The critical issues requiring management’s judgement are presented below:
Intangible assets in connection with business combinations
IFRS 3 requires the acquirer to recognise intangible assets separately from goodwill if certain criteria are met.
Recognising intangible assets separately at fair value requires management to estimate the expected future cash
flows. Management has used available market information when possible in determining the fair values. If no market
information of the asset has been available, the measurement of the intangible asset is based on the historical yield of
the asset and the planned use in operations. The valuations are based on discounted cash flows and estimated disposal
or replacement prices, and the valuation requires management to make estimates of the future use of the asset and
impact on the company’s financial position.
Management believes that the used estimates and assumptions are reasonable for measurement of fair values. In
addition, the Group’s property, plant and equipment and intangible assets are assessed to determine whether there is
any indication of impairment at least at each reporting date.
The valuation of contingent considerations
Management makes discretionary decisions and estimates when determining the valuation of deferred contingent
considerations in business combinations. Judgement is applied especially when estimating the expected amount of
payments and those are based on potential scenarios for future returns, amounts paid under different scenarios and the
probability of each scenario.
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Lease contracts
Terveystalo’s lease contracts include both termination and extension options. Group uses the options in managing lease
contracts to ensure flexible use of premises in Group’s businesses. Management uses judgment to determine the use of
termination and extension options and assesses the lease termination dates and lease terms. Based on management’s
judgment, the termination options which relate to perpetual lease contracts for premises that are significant will not be
used and such lease contracts are recognised as long-term lease contracts.
Impairment testing
Impairment testing for cash-generating units to which goodwill has been allocated is carried out at least annually.
Besides goodwill, the Group has no other intangible assets with an indefinite useful life. The recoverable amounts of
cash generating units are estimated based on the calculations of their value in use. Preparation of these calculations
requires use of estimates. Even though management believes that the used estimates and assumptions are appropri-
ate, the estimated recoverable amounts may differ from the actual results.
Provisions
The most significant provisions in the statement of financial position relate mainly to onerous contracts as well as reti-
rement obligations related to some leased premises. Management makes estimates mainly concerning the total loss of
the onerous contracts.
2.4 Principles of consolidation
Subsidiaries
The consolidated financial statements include the parent company Terveystalo Plc and all its subsidiaries where over 50
percent of the voting rights are controlled by the parent company or the parent company otherwise controls the com-
pany. The Group controls an entity when it is exposed to or has rights to variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity.
The subsidiaries are included in the consolidated financial statements starting from the date on which control com-
mences until the date on which control ceases.
All subsidiaries are consolidated by using the acquisition method. The consideration transferred for the acquisition
of a subsidiary comprise assets transferred, liabilities incurred, and the equity interests issued by the Group measured
at fair value. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at fair value at the acquisition date. On an acquisition by acquisition basis, non controlling interest in
the acquiree is measured either at fair value or at value, which equals the proportional share of the non controlling inte-
rest in the identifiable net assets acquired.
All acquisition costs, except costs related to issue of debt or equity securities, are recognised as an expense as incur-
red. Transactions treated separately from the acquisition are recognised through the income statement and are not
included in the consideration transferred. Any contingent consideration is measured at fair value and it is classified eit-
her as a liability or equity. Contingent consideration classified as a liability is measured at fair value at the end of repor-
ting period and the resulting profit or loss is recognised in the statement of income. Contingent consideration classified
as equity is not remeasured.
If the Group gains control in stages in the acquiree, the existing interest will be measured at fair value through profit
or loss.
Goodwill arising from an acquisition is recognised as the excess of the aggregate of the consideration transferred,
the amount of non controlling interests in the acquiree and previously held equity interest in acquiree over the fair
value of the Group’s share of the identifiable net assets acquired. If the consideration transferred is less than the fair
value of the net assets of the subsidiary acquired, the resulting gain is recognised in profit or loss.
Intra-group transactions, receivables, liabilities and unrealised gains, as well as the distribution of profits within the
Group are eliminated in the preparation of the consolidated financial statements. Accounting policies of subsidiaries
have been aligned where necessary to correspond to the Group’s principles.
Transactions with non-controlling interests that do not result in the loss of control are treated as equity transactions
– in other words, as transactions with owners when they are acting as owners. The difference between the fair value of
the consideration paid or received and the book value of the portion of the net assets acquired or disposed is recogni-
sed in equity.
When the Group ceases to have control or significant influence, any retained interest in the entity is measured at fair
value through profit or loss.
Associates
Associates are entities over which the Group has significant influence. Significant influence generally arises when the
Group holds over 20 percent of the voting rights, or otherwise has significant influence, but no control over the entity.
Associates are consolidated using the equity method. They are initially recognised at cost, which includes transac-
tion cost. If the Group’s share of the associated company’s losses exceeds the carrying amount of the investment, the
investment is recognised at zero value in the consolidated statement of financial position. Recognition of further losses
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exceeding the carrying amount is discontinued, unless the Group has incurred legal or constructive obligations on
behalf of the associate.
Unrealised gains resulting from the transactions between the Group and associates are eliminated according to the
Group’s share of ownership. Goodwill relating to an associate is included in the carrying amount of the investment. The
Group’s share of the associated company’s profit or loss for the period is separately disclosed below net finance expen-
ses. Adjustments have been made when necessary to the associate’s accounting policies to align to those of the Group.
At each reporting date, the Group reviews the carrying amounts of the investments in associates to determine whet-
her there is any objective indication of impairment. If any such evidence of impairment exists, then the impairment loss
is determined. An impairment loss is the amount by which the carrying amount of an investment in associate exceeds
its recoverable amount. An impairment loss is recognised in the statement of income.
If the Group’s ownership interest in an associate is reduced, but significant influence is retained, only the relative
portion of previously recognised amounts in other comprehensive income and the value of the investment in the con-
solidated financial statements are recognised in the statement of income as part of the gain or loss.
2.5 Foreign currency transactions
The consolidated financial statements are presented in euros which is the functional and presentation currency of the
parent company. Transactions in foreign currencies are translated into respective functional currency at the exchange
rate prevailing on the transaction date. Gains and losses arising from transactions denominated in foreign currency and
from translation of monetary items are recognised in profit or loss as financial income or expenses.
The functional currency of the acquired Feelgood group is Swedish krona which differs from Group’s presentation
currency, and thus its statement of income, statement of cash flows and statement of financial position have been
translated into presentation currency as follows:
Statement of income and statement of cashflows are translated at average exchange rates
Statement of financial position is translated at the closing exchange rate at the reporting date
•
•
• All resulting exchange differences are recognised in other comprehensive income
2.6 Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and
impairment losses. Depreciation is recognised on a straight-line basis over the estimated useful lives of
items of property, plant and equipment. Land is not depreciated.
The estimated useful lives are as follows:
Magnetic resonance imaging equipment
Buildings
Machinery and equipment
Improvements to office premises
Right-of-use assets
10 years
10–40 years
2–7 years
2–10 years
1–16 years
Premises used in operations are depreciated on a straight line basis over a 40 year depreciation period. Property,
plant and equipment also includes artwork which is not depreciated.
Right-of-use assets are depreciated over the shorter of the useful life or lease term. If the use of call option is certain,
right-of-use asset is depreciated over the useful life.
Gains and losses on the sale and disposal of property, plant and equipment are presented in other operating income
or other operating expenses.
Maintenance expenditure are not included in the carrying amounts of property, plant and equipment. When parts of
the magnetic resonance imaging equipment are replaced, the Group capitalises the replacement costs as a separate
item.
The residual values and useful lives of property, plant and equipment are reviewed at each reporting date.
2.7 Investment properties
Investment property refers to properties held by the Group in order to earn rental income or for capital appreciation
or both. Apartments, which are not used in business operations, are mainly accounted for as investment properties.
Investment properties are measured at acquisition cost and depreciated on a straight-line basis over a 40-year depre-
ciation period.
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2.8 Goodwill and other intangible assets
Goodwill
Goodwill arising in a business combination is recognised as the excess of the aggregate of the consideration transfer-
red, the amount of non-controlling interests in the acquiree and previously held equity interest in acquiree over the fair
value of the Group’s share of the identifiable net assets acquired.
Goodwill is not amortised but tested for impairment annually. For impairment testing, goodwill is allocated to cash
generating units or groups of cash generating units. Goodwill is measured at cost less accumulated impairment losses.
An impairment loss in respect of goodwill is not reversed.
Gain or loss on disposed unit includes also the carrying amount of goodwill.
Other intangible assets
Other intangible assets include software and licenses, as well as acquired companies’ customer relationships, trade-
marks and other intangible assets. Intangible assets are recognised initially at cost if the cost of the asset can be measu-
red reliably and if it is probable that the future economic benefits attributable to the asset will flow to the Group.
Cloud computing arrangements which meet the definition of an intangible asset are recognized as intangible assets.
Configuration and customisation costs which do not meet the definition of an intangible asset and which are distinct
from the cloud computing arrangement, are recognised as an expense as the service is received. Configuration and
customisation costs which are not distinct from the cloud computing arrangement, are recognised as prepaid expenses
in the statement of financial position and expensed over the expected duration of the cloud computing arrangement.
Intangible assets acquired in a business combination are recognised at fair value at the acquisition date separately
from goodwill, if the assets meet the definition of an asset, are identifiable or rise from contractual or legal rights.
Other intangible assets are measured at cost and amortised on a straight line basis over the known or estimated use-
ful lives.
The Group has no intangible assets other than goodwill with indefinite useful lives.
Amortisation periods used for intangible assets are as follows:
Immaterial rights
Other intangible assets
Software
Customer agreements and related customer relationships
Trademarks
3–10 years
3–5 years
5 years
2–12 years
20 years or shorter useful life
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Research and development
Research expenditure are recognised as an expense as incurred in the statement of income. Development expenditure
are capitalised as intangible assets when certain capitalisation criteria are met. Development expenditure that do not
qualify for the capitalisation are recognised as an expense. The estimated useful lives of capitalised development expen-
diture are 3–5 years.
2.9 Impairment
Tangible and intangible assets
At the end of each reporting period, the Group assesses whether there are any indications of impairment. If any indica-
tions of an impairment exist, the recoverable amount of the asset is determined. For goodwill and intangible assets not
yet available for use, the recoverable amount is determined annually, irrespective of whether there is any evidence of
impairment. Evidence of impairment is assessed at the level of the Group’s operating segments i.e. at the lowest unit
level, which is largely independent of the other units and whose cash flows can be distinguished from the cash flows of
equivalent units.
The recoverable amount of an asset is the higher of its fair value less costs to sell or value in use. The value in use is
the amount of future cash flows of an asset or cash generating unit discounted to present value. The discount rate used
is the pre-tax discount rate which reflects the market view on the time value of money and specific risks related to the
asset.
An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The impair-
ment loss is recognised in the statement of income. If impairment loss is related to a cash generating unit, the impair-
ment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash generating unit, and
then to reduce the carrying amounts of the other assets on a pro rata basis. The useful life of an asset, which is subject
to depreciation or amortisation, is reassessed when an impairment loss is recognised. The impairment loss recognised
for other assets than goodwill is reversed if there has been a change in estimates used to determine the recoverable
amount. The reversal of the impairment loss cannot exceed the carrying amount of the asset if impairment loss had not
been recognised. Impairment loss recognised for goodwill is not reversed.
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Financial assets
At the end of each reporting period the Group evaluates indicators of potential impairment of a single financial asset or
a group of financial assets.
The Group recognises an expected credit loss for trade receivables and contract assets based on simplified approach.
Expected credit loss rates have been calculated using historical information of actual impairment losses and current
conditions and the Group’s view of the economic conditions over the expected lives of the receivables have been taken
into account.
2.10 Leases
Group as a lessee
The Group assesses whether a contract is or contains a lease at inception of a contract. A contract is or contains a lease
if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. A
lessee recognises a right-of-use asset and a lease liability on statement of financial position at the lease commence-
ment date.
A lease term is determined as the non-cancellable period of a lease. The lease term includes periods covered by an
option to extend or terminate the lease, if the Group is reasonably certain to exercise the extension option or not to
exercise the termination option. Perpetual lease contracts related to significant premises are accounted for as long-
term lease contracts as, according to management judgment, the termination options for such contracts will not be
used. The lease term for such contracts is determined based on the Group’s strategy and network plan.
The Group does not recognise short-term leases (a lease that has a lease term of 12 months or less) and leases for
which the underlying asset is of low value. The lease payments associated with such leases are expensed on a straight-
line basis.
Initially a right-of-use asset is measured at cost, which comprises the amount of the initial measurement of the lease
liability, any lease payments made at or before the commencement date, less any lease incentives, any initial direct
costs incurred by the Group, and an estimate of restoration costs to be incurred by the Group. If a lease contains several
lease components, they are accounted for separately.
Subsequently right-of-use assets are measured at cost less any accumulated depreciation and any accumulated
impairment losses and adjusted for any remeasurements of the lease liability. A right-of-use asset is depreciated from
the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease
term. If the Group is reasonably certain to exercise the purchase option, the right-of-use asset is depreciated over its
useful life.
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The book value and useful life of a right-of-use asset are reviewed where necessary but at least annually and an
impairment loss is recognised if there is a change in expectations of the future economic benefits.
A lease liability is initially measured at the present value of the lease payments that are not paid at the commence-
ment date. The Group uses incremental borrowing rate as the discount rate. A lease liability includes fixed payments,
including in-substance fixed payments; variable lease payments that depend on an index or a rate, initially measured
using the index or rate as at the commencement date; amounts expected to be payable under a residual value guaran-
tee, and the exercise price under a purchase option that Terveystalo is reasonably certain to exercise.
Subsequently a lease liability is measured at amortised cost using the effective interest method. It is remeasured
when there is a change in future lease payments arising from change in an index or rate, if there is a change in the
Terveystalo’s estimate of the amount expected to be payable under a residual value guarantee or if the Group changes
its assessment of whether it will exercise a purchase, extension or termination option. When a lease liability is remeasu-
red in this way, a corresponding adjustment is made to the carrying amount of the right-to-use asset or is recorded in
the statement of income if the carrying amount of the right-of-use asset has been reduced to zero.
2.11 Financial assets and liabilities
Financial assets
The Group’s financial assets are classified at fair value through the statement of income or at amortised cost.
Classification is based on the purpose of the acquisition of the item and is made upon initial recognition.
Financial assets at fair value through the statement of income comprise of derivate assets, non-quoted equity instru-
ments and loan receivables. Realised or unrealised gains and losses arising from changes in fair values are recognised in
the statement of income in the period in which they are incurred.
Financial assets at amortised cost consist of trade receivables and other receivables. They are measured at amorti-
sed cost and they are included in non-current assets unless the Group has an intention to hold the instrument for less
than 12 months from the reporting date, in which case they are included in current assets.
The Group has not had financial assets at fair value through other comprehensive income during the periods 2020 or
2021.
Financial asset is derecognised when the contractual rights to the cash flows expire, or the financial asset is transfer-
red to another party and the Group substantially transfers all the risks and rewards of ownership to another party.
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Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank deposits available on demand, and other short-term highly liquid
investments. Items included in cash and cash equivalents have original maturities of
three months or less from the acquisition date.
Financial liabilities
The Group’s financial liabilities are measured at fair value through the statement of income or at amortised cost.
Financial liabilities at fair value through the statement of income comprise derivative liabilities and contingent consi-
derations. Realised or unrealised gains and losses arising from changes in fair values are recognised in the statement of
income in the period in which they are incurred.
Financial liabilities at amortised cost include loans from financial institutions, lease liabilities, hire purchase liabilities
and trade and other payables. They are initially recognised at fair value which is based on the consideration received.
Transaction costs are included in the initial amount recognised and subsequently the financial liability is measured at
amortised cost using the effective interest method.
Financial liabilities are included in non-current and current liabilities and they can be either interest-bearing or
non-interest-bearing. Financial liabilities are classified as current liabilities, unless the Group has an unconditional right
to postpone the payment of the liability to at least 12 months from the reporting date.
The Group has not had financial liabilities at fair value through other comprehensive income during the periods 2020
or 2021.
Financial liability is derecognised when the Group either settles the liability or has been legally discharged from the
obligation related to the liability either through a legal process or by the borrower.
2.12 Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is determined by using
FIFO (first in, first out) method. Net realisable value is the cost of inventory less obsolescence allowance.
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2.13 Employee benefits
Pension benefits
Pension plans are classified as either defined contribution plans or defined benefit plans. In defined contribution plans,
the Group makes fixed contributions into the plan. The Group has no legal or constructive obligation to make additional
payments if the pension insurance company is unable to pay pension benefits earned by employees in the reporting
period or in previous periods. Contributions made into defined contribution plans are recognised through profit or loss
in the reporting period which they relate.
A defined benefit plan is a pension plan under which the Group itself has the obligation to pay retirement benefits
and bears the risk of change in the value of plan liability and assets. The liability recognised on the statement of finan-
cial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end
of reporting period less fair value of plan assets. The pension liability is presented in other non-current liabilities in the
statement of financial position. The defined benefit obligation is calculated annually by an independent actuary using
the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of high-quality corporate or government bonds with approximating
terms to maturity and that are denominated in the currency in which the benefits are expected to be paid.
Actuarial gains and losses related to remeasurements of a defined benefit plan are recognised directly in the other
comprehensive income. Interest and other expenses related to defined benefit plans are recognised directly in the
statement of income. If a plan is amended or curtailed, the portion of the changed benefit related to past service by the
employees, or the gain or loss on curtailment, is recognised directly in the statement of income when the plan amend-
ment or curtailment occurs.
Share-based payment transactions
The benefits granted in accordance with the incentive plan are measured at fair value at the grant date and are expen-
sed on a straight-line basis over the vesting period. The share-based payments settled with equity instruments
are not revalued subsequently, and cost from these arrangements is recognised as an increase in equity. The cash-sett-
led share-based incentives are valued at fair value at each reporting date until the settlement date and recognised as a
liability.
The expensed amount of the benefits is based on the Group’s estimate of the amount of benefits to be paid in accor-
dance with the fulfilment of service and performance-based vesting conditions at the end of the vesting period. Market
conditions are considered in determining the fair value of the benefit. Instead, the non-market criteria, like profitability,
are not considered in measuring the fair value of the benefit but are taken into account when estimating the final
amount of benefits. The estimate is updated at each reporting date and changes in estimates are recorded through the
statement of income.
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2.14 Provisions and contingent liabilities
A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, and
it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can
be made of the amount of the obligation. Provisions are recognised at the present value of the expenditure required
to fulfil the obligation. If the obligation can be partially compensated by a third party, the compensation is treated as a
separate asset, but only when it is virtually certain that the compensation will be received.
A provision is recognised for contracts when the unavoidable costs of meeting the obligations under the contract
exceed the economic benefits expected to be received under it.
A contingent liability is a possible obligation arising as a result of past events, and whose existence will be confirmed
only when an uncertain future event takes place, not wholly within control of the entity. Also, a present obligation which
probably does not require a cash settlement or on which the value cannot be reliably estimated is considered as a con-
tingent liability. Contingent liabilities are disclosed in the notes.
2.15 Revenue recognition
The Group’s revenue consists mainly of occupational healthcare services, general practice and clinic hospital opera-
tions, dental services as well as diagnostic services. The Group also provides diverse primary healthcare, special health-
care and child welfare services for public sector as well as massage and rehabilitation services. The Group’s customer
contracts include primarily one performance obligation, which is typically a single appointment, and the transaction
prices are mainly fixed. In some cases, the transaction price includes a variable consideration such as a discount or
penalty. Possible variable considerations are assessed at each reporting date and are allocated to one or more perfor-
mance obligations. The terms of payment and payment periods in customer contracts vary, but payment time is nonet-
heless clearly below one year. Consequently, customer contracts do not include a significant financing component.
Revenue is recognised to the extent that the Group expects to be entitled to in exchange for the goods and services
taking into account the terms and conditions of the customer contracts and business practices.
Revenue from individual appointments is recognised at a point in time as the service has been completed. For
long-term contracts for predetermined services or a bundle of services, revenue is recognised as Terveystalo fulfils the
performance obligation by performing the promised service. The Group’s long-term contracts are assessed to include a
single performance obligation where the services provided by the Group are integrated into a single bundle of services.
The customer simultaneously receives and consumes the benefits from the service and, consequently, the criteria for
recognising revenue over time is met. For long-term contracts, Terveystalo measures the progress towards complete
satisfaction of the performance obligation by applying the input method, in which the revenue is recognised based on
time elapsed. The Group views that the used method best describes the transfer of control for the services provided.
Estimated costs and revenues will be re-assessed regularly during performing the services. Revisions in profit estimates
as well as projected potential losses on contracts are charged through the statement of income in the period in which
they become known. The Group has not incurred any substantial costs for obtaining customer contracts.
Regarding private practitioners, Terveystalo acts as the principal and recognises revenue on a gross basis. Fees
related to purchasing these services are recognised in materials and services expenses.
2.16 Segment information
Group’s business in Finland is divided into three regions which are the Group’s operating segments: Capital region,
Central Units and Regional Units. During 2021, a fourth operating segment, Sweden and other, was formed in the Group
due to the acquisition of Feelgood group. The operating segment consists of the Group’s operations in Sweden, Estonia
and Netherlands. Monitoring of profitability is primarily based on geographical areas. In addition to the regional struc-
ture, the Group functions include finance and administration, HR and legal, IT, communication, marketing and investor
relations, business development and digitalisation, as well as medical quality and service management. Terveystalo’s
chief operating decision maker is the CEO.
2.17 Government grants
Government grants are presented in other operating income as far as they do not relate to acquired assets. Grants are
recognised when there is reasonable assurance that grants will be received, and the Group will comply with the condi-
tions associated with the grants.
2.18 Operating profit
IAS 1 standard does not define operating profit. The Group has defined it as follows: Operating profit is calculated by
adding other operating income to revenue, deducting costs related to materials and services, deducting costs related
to employee benefits, depreciation, amortisation and impairments as well as other operating expenses.
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2.19 Earnings per share
Basic earnings per share is calculated by dividing profit or loss attributable to the shareholders of the parent company
by the weighted average number of shares outstanding during the financial period. The Group’s share-based incentive
plan has a dilution effect related on the earnings per share.
3. Business combinations
During the year 2021, the Group has made ten corporate acquisitions and one business acquisitions. The acquisition of
Feelgood Svenska AB group is presented separately, whereas other smaller acquisitions are disclosed in aggregate.
2.20 Income taxes
Income taxes primarily include current and deferred taxes. Tax related to items recognised directly in equity or in other
comprehensive income is also recognised in equity or in other comprehensive income. Current tax assets and liabilities
are measured at the amount expected to be received from or paid to taxation authorities, using the rates and laws that
have been enacted by the date of the statement of financial position. Income taxes include any adjustment to tax in
respect of previous years.
Deferred tax is recognised in respect of all temporary differences between the carrying amounts of assets and liabi-
lities for financial reporting purposes and the amounts in taxation. Deferred tax is not recognised in the initial recogni-
tion of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor
taxable profit nor loss at the date of the transaction. Deferred tax is not recognised for non-tax-deductible goodwill or
for subsidiaries’ retained earnings to the extent that it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred taxes relate primarily to the difference between the book value and tax base of capitalised
customer relationships and trademarks, and to provisions related primarily to onerous contracts.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against
which they can be used and using the losses is considered probable.
Deferred taxes are calculated using tax rates enacted by the reporting date.
Acquisition of Feelgood Svenska AB group
On 14 June 2021 Terveystalo Healthcare Oy acquired 72.14 percent of the shares of Feelgood Svenska AB (publ) which
is the parent company of the Swedish Feelgood group. At the same time, Terveystalo Healthcare announced a recom-
mended mandatory cash offer for all the remaining shares of Feelgood for a consideration of SEK 5.70 (approximately
EUR 0.57) in cash per share. The cash offer ended on 26 July 2021 and through the cash offer Terveystalo ownership
in Feelgoods shares and votes reached 97.42 percent. In August 2021, Terveystalo initiated a mandatory redemption
procedure for the remaining shares in Feelgood and Feelgood’s shares were delisted from Nasdaq Stockholm on
August 6.
Feelgood is one of Sweden’s leading healthcare companies. Feelgood employs approximately 700 employees who
serve customers both digitally and physically on 120 locations in Sweden. Feelgood offers services within occupational
healthcare, organisation and leadership, substance abuse in the workplace, as well as digital private healthcare and well-
being services. Feelgood was listed on Nasdaq Stockholm. The acquisition is Terveystalo’s first step in expanding its pre-
sence and services to the Swedish market. The deal brings together two industry leading platforms that complement
each other in terms of people, service offering and geographical network and provides significant potential for value
creation.
Immediately before obtaining control, Terveystalo Healthcare’s ownership in Feelgood was 2.8 percent. The carrying
amount of previous ownership corresponded its fair value at the acquisition date and the business combination achie-
ved in stages did not have an impact on the profit and loss. Feelgood has been consolidated to Group’s financial state-
ments from the end of June 2021 onwards.
The following tables summarise the consideration transferred, acquisition date preliminary fair values of the assets
acquired and liabilities assumed, non-controlling interest and the cash flow impact of the acquisition.
Consideration transferred
EUR million
Purchase price, payable in cash
Total consideration transferred
47.2
47.2
132
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
The non-controlling interest from the acquisition has been recognised at fair value. The fair value of the non-controlling
interest was determined based on the consideration of SEK 5.70 offered by Terveystalo Healthcare in the cash offer and
the number of shares held by the minority at the acquisition date. After the acquisition date, Terveystalo has acquired
the remaining non-controlling interests and reached a 100 percent ownership in Feelgood in December 2021.
The accounting for the business combination is provisional at the reporting date. The fair value measurement of the
assets acquired and the liabilities assumed is partly ongoing at the reporting date and are subject to adjustments until
the valuation is finalised. Customer relationships, trademarks and technology related intangible assets were recognised
in the preliminary determination of fair values and the combined preliminary fair value of these assets was measured
at EUR 18.0 million. A deferred tax liability of EUR 3.7 million was recognised for the beforementioned assets. The fair
values of customer relationships and trademarks have been determined through the use of income approach which
requires an estimate or forecast of expected future cash flows. The fair value of technology has been determined using
the estimated replacement cost. The acquisition resulted preliminary in a goodwill amounting to EUR 41.4 million. The
goodwill is attributable to skills of the workforce and synergies expected to be achieved. The recognised goodwill is not
deductible for tax purposes.
The fair value of the acquired trade and other receivables amounts to EUR 16.6 million which materially corresponds
their carrying amount and for which the risk of impairment has been deemed non-significant.
The Group incurred acquisition-related expenses of EUR 1.5 million related to consulting and valuation services. The
expenses have been included in other operating expenses in the consolidated statement of income.
The revenue recognised from the acquisition during the year 2021 was EUR 36.9 million and the impact to the result
of the period was EUR -0.7 million.
If the acquisition had occurred on 1 January 2021, management estimates that the Group’s consolidated revenue
during the year 2021 would have been EUR 1,194.1 million and the consolidated result for the period would have been
EUR 80.7 million.
Identifiable assets acquired and liabilities assumed, non-controlling interest and goodwill
EUR million
Property, plant and equipment
Right-of-use assets
Other intangible assets
Deferred tax assets
Other non-current assets
Trade and other receivables
Cash and cash equivalents
Financial liabilities
Lease liabilities
Deferred tax liabilities
Other non-current liabilities (pension obligations)
Trade and other liabilities
Total identifiable net assets acquired
Non-controlling interest
Goodwill
Cash flow impact of the acquisition
EUR million
Cash paid
Less: cash and cash equivalents acquired
Cash flow impact at the acquisition date
Acquisition of non-controlling interests
Total cash flow impact of the acquisition
133
2.0
10.7
18.1
0.1
0.1
16.6
2.7
-3.9
-9.9
-3.7
-1.9
-12.2
18.6
12.8
41.4
47.2
-2.7
44.5
12.7
57.2
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Other acquisitions
•
•
•
•
•
On 28 February 2021 Terveystalo Healthcare Oy acquired 100 percent of the shares of the therapy service provider
Attentio Oy.
On 28 February 2021 Terveystalo Healthcare Oy acquired 100 percent of the shares of the dental clinic Espoon
Keskuksen Hammaslääkärit Oy.
On 31 March 2021 Terveystalo Healthcare Oy acquired 100 percent of the shares of the advanced child welfare ser-
vice provider Keltaisen Kartanon Kuntoutus Oy.
On 30 April 2021 Terveystalo Healthcare Oy acquired 100 percent of the shares of the medical clinic Helsinki
Hospital Oy.
On 31 August 2021 Terveystalo Healthcare Oy acquired 100 percent of the shares of the therapy service provider
Sivupersoona Oy.
• On 31 August 2021 Suomen Terveystalo Oy acquired the business of Fysiopiste Mervi Nivukoski.
•
On 1 September 2021 Feelgood Företagshälsovård AB acquired 100 percent of the Swedish occupational health pro-
vider Dalarnas Företagshälsa AB.
On 1 October 2021 Terveystalo Healthcare Oy acquired 100 percent of the shares of the advanced child welfare
service provider Hoitokoti Ankkuri Oy and an indirect 100 percent ownership in Ankkurin Huoltamo Oy, Jyväskylän
Lastensuojelupalvelut Oy, Terapiatelakka Oy ja Lastensuojelupalvelut Väylä Oy.
On 29 October Suomen Terveystalo Oy acquired 94 percent of the shares of the medical clinic Medimar Scandinavia
Ab. A non-controlling interest of EUR 15 thousand was recognised in the acquisition. The non-controlling interest is
measured based on the proportionate share of the acquired identifiable net assets.
•
•
• On 30 November Terveystalo Healthcare Oy acquired 100 percent of the shares of the Suomen Hierojakoulut Oy.
The following table summarises the acquisition date fair values of the consideration transferred as well as the recogni-
sed amounts of assets acquired and liabilities assumed at the acquisition date. The statement of financial position of
acquired companies has been prepared in accordance with IFRS and Terveystalo’s accounting principles in all material
respect. The following table is partially preliminary, and the information has been consolidated, because the acquisi-
tions are not material individually.
134
Consideration transferred
EUR mill.
Purchase price, payable in cash
Contingent consideration
Total consideration transferred
Identifiable assets acquired and liabilities assumed
EUR mill.
Cash and cash equivalents
Intangible assets
Property, plant and equipment
Right-of-use assets
Inventories
Trade and other receivables
Financial liabilities
Lease liabilities
Trade and other payables
Deferred tax liabilities
Total identifiable net assets acquired
Goodwill
24.0
7.3
31.4
3.6
5.5
0.9
7.2
0.2
3.5
-0.8
-7.2
-6.6
-1.0
5.4
26.0
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
As a result of these business combinations, a preliminary goodwill amounting to EUR 26.0 million was recognised.
The goodwill is attributable to skills of the workforce and synergies expected to be achieved. EUR 0.4 million of the
recognised goodwill is deductible in taxation. The cash flow impact of the acquisitions was EUR 20.3 million.
In these business combinations, the Group has acquired customer relationships. The fair value of customer contracts
and related customer relationships included in other intangible assets has been determined on the basis of the esti-
mated duration of customer relationships and the discounted net cash flows from existing customer contracts.
The fair value of the acquired trade and other receivables amounted to EUR 3.5 million, for which the risk of impair-
ment has been deemed as non-significant.
The Group has incurred acquisition related expenses of EUR 0.9 million related to transfer tax, consulting, valuation
or equivalent services. The expenses have been included in other operating expenses.
The contributed revenue recognised from the acquisitions during 2021 was EUR 15.7 million and the impact to the
result for the period was EUR 0.7 million.
If the acquisition had occurred on 1 January 2021, management estimates that the Group’s consolidated revenue in
2021 would have been EUR 1,176.6 million and the consolidated result for the period would have been EUR 79.2 million.
Consideration transferred
EUR mill.
Purchase price, payable in cash
Contingent consideration
Total consideration transferred
The following table summarises the acquisition date fair values of the consideration transferred as well as the recogni-
sed amounts of assets acquired and liabilities assumed at the acquisition date. The statement of financial position of
acquired companies has been prepared in accordance with IFRS and Terveystalo’s accounting principles in all material
respect. The following table is partially preliminary, and the information has been consolidated, because the acquisi-
tions are not material individually.
Business combinations during 2020
Identifiable assets acquired and liabilities assumed
During the year 2020, the Group acquired three businesses and has made two corporate acquisitions.
•
On 31 March 2020 Suomen Terveystalo Oy acquired the business from Varkauden fysiokeskus. Acquisition includes
a contingent consideration that was treated as part of the consideration transferred and recognised as a liability at
the date of acquisition with a fair value EUR 0.1 million. The contingent consideration is tied to the future sales to be
incurred.
On 1 August 2020 Suomen Terveystalo Oy acquired the occupational health business activities of Keski-Satakunnan
Työterveydenhuolto.
On 30 August 2020 Suomen Terveystalo Oy acquired the business of Keski-Lapin Hammashuolto. The acquisition
includes a contingent consideration that was treated as part of the consideration transferred and recognised as a
liability at the date of acquisition with a fair value EUR 30 thousand. The contingent consideration is tied to the future
sales to be incurred.
On 31 October 2020 Terveystalo Healthcare Oy acquired 100 percent of the shares of the medical center MedInari Oy.
On 31 December 2020 Terveystalo Healthcare Oy acquired 100 percent of the shares of the sleep clinic Vitalmed Oy.
The acquisition includes a contingent consideration that was treated as a part of the consideration transferred and
recognised as a liability at the date of the acquisition with a fair value of EUR 0.4 million. The contingent considera-
tion is tied to the future sales to be incurred.
•
•
•
•
EUR mill.
Cash and cash equivalents
Intangible assets
Trade and other receivables
Trade and other payables
Deferred tax liabilities
Total identifiable net assets acquired
Goodwill
135
2.4
0.5
2.9
0.1
0.5
0.1
-0.2
-0.1
0.5
2.5
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
As a result of these business combinations, a goodwill amounting to EUR 2.5 million was recognised. The goodwill is
attributable to skills of the workforce and synergies expected to be achieved. EUR 0.5 of the goodwill recognised is tax
deductible as it was recognised from business acquisitions.
In these business combinations, the Group has acquired customer relationships. The fair value of customer contracts
and related customer relationships included in other intangible assets has been determined on the basis of the esti-
mated duration of customer relationships and the discounted net cash flows from existing customer contracts.
The fair value of the acquired trade and other receivables amounted to EUR 0.1 million, for which the risk of impair-
ment has been deemed as non-significant.
The Group has incurred acquisition related expenses of EUR 0.1 million thousand related to transfer tax, consulting,
valuation or equivalent services. The expenses have been included in other operating expenses.
The contributed recognised revenue from this acquisition during 2020 was EUR 0.5 million. The impact of the busi-
ness combinations during the year to the result for the period has not been material.
If the acquisition had occurred on 1 January 2020, management estimates that the Group’s consolidated revenue in
2020 would have been EUR 989.0 million and the consolidated result for the period would have been EUR 45.8 million.
4. Revenue
The Group’s distribution of revenue is based on the customer types. The Group does not have customers whose reve-
nue exceeds 10 percent of the Group’s total revenue. Terveystalo offers its primary and outpatient secondary health
care services to three distinct customer groups: corporate customers, private customers and public customers.
Corporate customers constitute Terveystalo’s largest customer group. Terveystalo’s corporate customers consist
of the company’s occupational health care customers, excluding municipal occupational health care customers. The
company provides statutory occupational health services and other occupational health and well-being services for
corporate customers of all sizes. Terveystalo is the largest provider of occupational healthcare services in Finland in
terms of revenue and the number of end-users. Terveystalo provides occupational healthcare services for over 25,000
companies.
Private customers are Terveystalo’s second-largest customer group. Private customers include private individuals
and families. The company’s strong brand, easy access to services without long waiting times, leading service portfolio
for private customers, families, and senior citizens, and personalised digital services give Terveystalo a competitive edge
over public health care services and encourage customers to invest in their own health. Services for private customers
are paid for either by the customers themselves or by their insurance companies.
136
Terveystalo’s public customer group is made up of Finnish public sector organisations, such as municipalities, muni-
cipal federations, and hospital districts, as well as municipal occupational health care customers. Terveystalo’s broad
nationwide platform, digital offering, good reputation, and established brand, as well as its thorough expertise and
experience in health care services throughout the chain of care, make Terveystalo an attractive partner for the public
sector. Terveystalo’s services for public sector customers are mainly financed from budgets of municipalities, municipal
federations, and hospital districts. The services offered to public sector customers include full and partial outsourcings,
health care staffing services, specialised care services, other health care services, as well as occupational health care
services for municipalities, municipal federations, and hospital districts.
Disaggregation of revenue
EUR mill.
Corporate
Private
Public
Outsourcing
Staffing services
Service sales, occupational health and others
Finland
Sweden and other *
Total
1.1.-31.12.2021
1.1.-31.12.2020
481.7
333.2
302.8
121.1
87.6
94.0
1,117.7
36.9
1,154.6
418.8
295.4
272.2
121.4
83.1
67.7
986.4
0.0
986.4
* Consists of Group’s operations in Sweden, Estonia and Netherlands. The impact of Estonia and Netherlands to the revenue of the financial
year has not been material.
Timing of satisfying performance obligations
EUR mill.
At a point in time
Over time
Total
1.1.-31.12.2021
1.1.-31.12.2020
1,030.1
124.5
1,154.6
861.8
124.5
986.4
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Balances in the statement of financial position
EUR mill.
31.12.2021
31.12.2020
Reconciliation of the total of the reportable segment’s adjusted EBITA to Group’s profit
before taxes
Contract assets
Contract liabilities
15.0
6.1
5.6
2.2
EUR mill.
Profit before taxes
The Group will satisfy performance obligations related to the contract liabilities within one year.
5. Segment information
Terveystalo’s operating segments are Capital region, Central units, Regional units and Sweden and other. Group reports
the operating segments in Finland as one reportable segment based on the IFRS 8 aggregation criteria as same services
are offered in all Finnish regions, customer types are similar, methods used to provide services are similar and regula-
tory environment and operational risks are same. Terveystalo’s reportable segments are:
Share of profits in associated companies
Net finance expenses
Amortisation and impairment losses
Adjustments*
Adjusted EBITA
*Additional information on adjustment is presented in the note 34.
Non-current assets by geographical areas
1.1-31.12.2021
100.7
0.3
9.0
26.6
4.3
141.0
•
•
Finland
Sweden and other
Segment information
1.1-31.12.2021
EUR mill.
Revenue
Revenues from external customers
Revenues from transactions with other
operating segments of the same entity
Total revenue
Adjusted EBITA
Depreciations
137
Non-current assets include property, plant and equipment, right-of-use assets, goodwill, other intangible assets,
investment properties and investments in associates.
Finland
Sweden
and other
Internal
eliminations
EUR mill.
Finland
Sweden and other
Total
Total
1,117.7
0.1
1,117.7
140.2
62.3
36.9
0.2
37.2
0.8
2.8
-
-0.3
-0.3
-
-
1,154.6
-
1,154.6
141.0
65.1
31 Dec 2021
1,197.8
71.6
1,269.4
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
6. Other operating income
9. Depreciation, amortisation and impairment
EUR mill.
Rental income
Gains on sale of property, plant and equipment
Other items
Total
7. Materials and services
EUR mill.
Purchases of materials
Change in inventories
External services
Total
8. Employee benefit expenses
EUR mill.
Wages and salaries
Share-based payments
Pension expenses - defined contribution plans
Other social security costs
Total
Number of personnel at the end of the reporting period
138
1.1.-31.12.2021
1.1.-31.12.2020
EUR mill.
1.1.-31.12.2021
1.1.-31.12.2020
1.2
0.2
2.1
3.4
1.1
0.2
1.5
2.7
Depreciation and amortisation by asset type
Intangible assets
Trademarks
Customer relationships
Other intangible assets
Total
1.1.-31.12.2021
1.1.-31.12.2020
Buildings
Property, plant and equipment
-34.8
-0.6
-453.4
-488.9
-35.5
1.3
-413.4
-447.6
Machinery and equipment
Improvement to premises
Total
Right-of-use assets
Investment property
Depreciation and amortisation total
1.1.-31.12.2021
1.1.-31.12.2020
Impairment losses by asset groups
-314.1
-1.9
-50.6
-11.7
-378.2
9,805
-261.6
-0.9
-38.6
-9.0
-310.2
8,253
Other intangible assets
Other property, plant and equipment
Improvement to premises
Associated companies
Impairment total
Total depreciation, amortisation and impairment losses
-4.5
-10.0
-10.8
-25.3
-0.0
-13.6
-5.5
-19.2
-45.9
-0.0
-90.3
-0.0
-0.0
-0.0
-1.2
-1.3
-91.7
-4.1
-17.8
-8.2
-30.2
-0.0
-13.8
-5.1
-18.9
-42.0
-0.0
-91.1
-0.0
-0.0
-0.0
-
-0.1
-91.2
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
10. Other operating expenses
Specification of other operating expenses
EUR mill.
External services
Operating and maintenance expenses for premises and equipment
ICT expenses
Non-statutory personnel expenses
Leases and charges
Travel expenses
Marketing and communication
Acquisition related expenses
Other costs
Total
1.1.-31.12.2021
1.1.-31.12.2020
In thousands of euro
1.1.-31.12.2021
1.1.-31.12.2020
Auditor’s fees
-3.0
-19.2
-31.7
-4.8
-4.1
-4.3
-7.3
-2.3
-12.3
-89.2
-2.4
-17.5
-27.1
-4.0
-3.5
-3.6
-4.6
-0.1
-10.3
-73.0
Audit and auditor’s statements based on laws and regulations
Audit, KPMG
Auditor’s statements based on laws and regulations, KPMG
Total
Non audit services
Assurance services, KPMG
Tax services, KPMG
Other services, KPMG
Total
Auditor’s fees total
Auditor’s fees have been presented excluding valued added tax.
-275.2
-4.6
-279.7
-
-2.2
-34.5
-36.7
-316.4
-145.5
-3.2
-148.7
-0.9
-1.0
-17.0
-18.9
-167.6
139
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
11. Financial income and expenses
EUR mill.
Interest income on loans and other receivables
Dividend income
Change in fair value of interest rate derivatives, no hedge accounting
Total financial income
Interest expense on loans from financial institutions
Interest expenses on lease liabilities
Other financial expenses
Total financial expenses
Net finance expenses
12. Taxes
12.1 Income taxes
Income taxes in the statement of income
EUR mill.
Current tax for the reporting year
Income taxes for previous periods
Change in deferred taxes
Total income taxes
140
1.1.-31.12.2021
1.1.-31.12.2020
EUR mill.
1.1.-31.12.2021
1.1.-31.12.2020
Reconciliation of the Group’s tax rate to the Finnish tax rate
0.3
0.0
0.6
0.8
-5.5
-3.9
-0.5
-9.9
-9.0
0.2
0.0
0.3
0.5
-5.9
-4.2
-0.5
-10.6
-10.0
Profit or loss before taxes
Tax using the parent company’s tax rate
Tax rates in foreign jurisdictions
Tax exempt income
Non-deductible expenses
Share of profit in associated companies
Recognition of previously unrecognised tax losses
Tax losses for which no deferred taxes are recognised
Taxes from previous periods
Other
Total income taxes in the statement of income
100.7
-20.1
0.0
0.2
-0.8
-0.1
0.1
0.0
0.1
0.3
-20.3
56.6
-11.3
-0.0
0.2
-0.1
-0.1
0.2
-0.0
-0.0
0.4
-10.8
1.1.-31.12.2021
1.1.-31.12.2020
Deferred tax assets 2021
12.2 Deferred tax assets and liabilities
-23.4
-0.0
3.1
-20.3
-15.8
-0.0
5.1
-10.8
EUR mill.
Provisions
Leases
Interest rate derivatives
Other temporary differences
Total
1 Jan 2021
Business
combinations
Recognised in
the statement
of income
Translation
differences
31 Dec 2021
1.4
1.2
0.2
1.6
4.4
-
0.0
-
0.0
0.1
0.2
0.1
0.0
0.6
0.9
-
-0.0
-
-0.0
-0.0
1.5
1.4
0.2
2.3
5.4
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Deferred tax liabilities 2021
Deferred tax liabilities 2020
EUR mill.
1 Jan 2021
Business
combinations
Recognised in
the statement
of income
Translation
differences 31 Dec 2021
EUR mill.
Reversal of goodwill amortisation
Business combinations
Depreciation difference
Loan withdrawal expense
Interest rate derivatives
Other temporary differences
Total
2.8
22.4
0.6
0.2
-
0.1
26.0
-
4.2
-
-
-
0.5
4.6
0.1
-3.1
0.8
-0.1
0.1
0.0
-2.2
-
-0.0
-
-
-
-0.0
-0.0
2.9
23.5
1.3
0.1
0.1
0.6
28.5
The Group has no material deductible temporary differences, unused tax losses or unused tax credits for which no deferred tax asset has been
recognised.
Reversal of goodwill amortisation
Business combinations
Depreciation difference
Loan withdrawal expense
Other temporary differences
Total
1 Jan 2020
Business
combinations
Recognised in
the statement
of income
31 Dec 2020
2.6
27.1
0.2
0.2
0.2
30.3
-
0.1
-
-
-
0.1
0.2
-4.8
0.4
-0.1
0.0
-4.3
2.8
22.4
0.6
0.2
0.1
26.0
The Group has no material deductible temporary differences, unused tax losses or unused tax credits for which no deferred tax asset has been
recognised.
Deferred tax assets 2020
EUR mill.
Provisions
Leases
Interest rate derivatives
Other temporary differences
Total
1 Jan 2020
Business
combinations
Recognised in
the statement
of income
31 Dec 2020
1.2
1.0
0.3
1.3
3.7
-
-
-
-
-
0.2
0.2
-0.1
0.3
0.7
1.4
1.2
0.2
1.6
4.4
13. Earnings per share
Result attributable to the equity holders of the company, EUR mill.
Weighted average number of outstanding shares, in thousands
Diluted average number of outstanding shares, in thousands
Basic earnings per share for result attributable to the equity holders of the company, EUR
Diluted earnings per share for result attributable to the equity holders of the company, EUR
1.1.-31.12.2021
1.1.-31.12.2020
80.5
127,180
127,700
0.63
0.63
45.8
127,307
127,860
0.36
0.36
141
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
14. Property, plant and equipment
2021
EUR mill.
Land and water,
buildings and
constructions
Machinery and
equipment
Improvement
to premises
Other tangible
assets and
advances paid
Acquisition cost 1 Jan 2021
2.1
127.4
Business combination
Additions
Disposals
Translation differences
Transfers between items
-
-
-
-
-
2.6
13.5
-0.4
-0.0
1.3
Acquisition cost 31 Dec 2021
2.1
144.4
Accumulated depreciation
and impairment losses
1 Jan 2021
Depreciation and impairment
losses for the reporting period
Accumulated depreciation
and impairment losses
31 Dec 2021
Carrying amount 1 Jan 2021
Carrying amount 31 Dec 2021
-1.1
-0.0
-1.1
1.0
1.0
-88.1
-13.6
-101.7
39.3
42.6
49.5
0.4
1.7
-0.0
-0.0
3.4
55.0
-24.1
-5.5
-29.6
25.5
25.4
1.8
0.0
5.8
-
-
-4.7
3.0
-
-
-
1.8
2.9
2020
EUR mill.
Acquisition cost 1 Jan 2020
Business combination
Additions
Disposals
Transfers between items
Acquisition cost 31 Dec 2020
Accumulated depreciation
and impairment losses
1 Jan 2020
Depreciation and impairment
losses for the reporting period
Accumulated depreciation
and impairment losses
31 Dec 2020
Carrying amount 1 Jan 2020
Carrying amount 31 Dec 2020
Total
180.8
3.0
21.1
-0.5
-0.0
-
204.4
-113.3
-19.2
-132.4
67.6
72.0
Land and water,
buildings and
constructions
Machinery and
equipment
Improvement
to premises
Other tangible
assets and
advances paid
2.1
-
-
-
-
2.1
-1.1
-0.0
-1.1
1.0
1.0
115.6
0.0
12.4
-0.5
-0.1
127.4
-74.3
-13.8
-88.1
41.3
39.3
44.1
-
5.1
-0.0
0.3
49.5
-19.0
-5.1
-24.1
25.1
25.5
1.9
-
0.0
-
-0.1
1.8
-
-
-
1.9
1.8
Total
163.8
0.0
17.5
-0.5
-
180.8
-94.4
-18.9
-113.3
69.5
67.6
142
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
14.1 Right of-use-assets and lease liabilities
Right-of-use-assets
2021
EUR mill.
Acquisition cost 1 Jan 2021
Business combination
Additions
Disposals
Translation differences
Acquisition cost 31 Dec 2021
Accumulated depreciation and impairment losses 1 Jan 2021
Depreciation for the reporting period
Accumulated depreciation and impairment losses 31 Dec 2021
Carrying amount 1 Jan 2021
Carrying amount 31 Dec 2021
Premises
234.9
17.3
29.7
-3.0
-0.1
278.7
-76.8
-42.2
-119.0
158.1
159.7
Other right-
of-use assets
38.9
0.6
1.8
-0.2
-0.0
41.1
-24.6
-3.7
-28.3
14.3
12.7
Total
273.8
17.9
31.5
-3.2
-0.1
319.8
-101.4
-45.9
-147.3
172.4
172.5
143
2020
EUR mill.
Acquisition cost 1 Jan 2020
Additions
Disposals
Acquisition cost 31 Dec 2020
Accumulated depreciation and impairment losses 1 Jan 2020
Depreciation for the reporting period
Accumulated depreciation and impairment losses 31 Dec 2020
Carrying amount 1 Jan 2020
Carrying amount 31 Dec 2020
Lease liabilities
2021
EUR mill.
Carrying amount 1 Jan 2021
Transactions
Payment of lease liabilities
Carrying amount 31 Dec 2021
Premises
Other right-
of-use assets
214.7
26.2
-6.0
234.9
-38.3
-38.5
-76.8
176.4
158.1
37.9
1.3
-0.3
38.9
-21.1
-3.5
-24.6
16.8
14.3
Premises
Other right-
of-use assets
161.7
40.2
-38.6
163.3
16.8
2.1
-3.8
15.1
Total
252.6
27.5
-6.3
273.8
-59.4
-42.0
-101.4
193.2
172.4
Total
178.5
42.4
-42.4
178.5
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
2020
EUR mill.
Acquisition cost 1 Jan 2020
Business combination
Additions
Disposals
Goodwill
Customer
relationships
Trademarks
Other intangible
assets and
advances paid
847.2
2.5
-
-
153.7
0.5
-
-
82.9
-
-
-
Acquisition cost 31 Dec 2020
849.8
154.2
82.9
Accumulated amortisations and
impairment losses 1 Jan 2020
Amortisation and impairment
losses for the reporting period
Accumulated amortisations and
impairment losses 31 Dec 2020
Carrying amount 1 Jan 2020
Carrying amount 31 Dec 2020
-68.0
-
-68.0
779.2
781.8
-79.5
-17.8
-97.3
74.2
56.9
-25.1
-4.1
-29.2
57.8
53.6
Total
1,144.9
3.0
19.9
-0.0
1,167.8
-203.7
-30.2
61.0
-
19.9
-0.0
80.9
-31.1
-8.2
-39.3
-233.9
29.9
41.6
941.2
933.9
Premises
Other right-
of-use assets
178.7
17.1
-34.1
161.7
19.4
1.0
-3.6
16.8
Goodwill
Customer
relationships
Trademarks
Other intangible
assets and
advances paid
849.8
67.3
-
-
-0.4
916.6
-68.0
-
-68.0
781.8
848.6
154.2
12.3
-
-
-0.1
166.5
-97.3
-10.0
-107.4
56.9
59.1
82.9
6.0
-
-
-0.1
88.8
-29.2
-4.5
-33.7
53.6
55.1
Total
198.1
18.1
-37.7
178.5
Total
1,167.8
90.6
25.1
-0.0
-0.5
80.9
5.1
25.1
-0.0
-0.0
111.0
1,282.9
-39.3
-10.8
-50.0
41.6
61.0
-233.9
-25.3
-259.1
933.9
1,023.8
2020
EUR mill.
Carrying amount 1 Jan 2020
Transactions
Payment of lease liabilities
Carrying amount 31 Dec 2020
15. Intangible assets
2021
EUR mill.
Acquisition cost 1 Jan 2021
Business combination
Additions
Disposals
Translation differences
Acquisition cost 31 Dec 2021
Accumulated amortisations and
impairment losses 1 Jan 2021
Amortisation and impairment losses
for the reporting period
Accumulated amortisations and
impairment losses 31 Dec 2021
Carrying amount 1 Jan 2021
Carrying amount 31 Dec 2021
144
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
15.1 Development expenditure
Other intangible assets include development expenditure as follows:
16. Impairment testing of cash-generating
units including goodwill
2021
EUR mill.
Acquisition cost 1 Jan 2021
Business combination
Additions
Translation differences
Acquisition cost 31 Dec 2021
Accumulated amortisations and impairment losses 1 Jan 2020
Amortisation
Accumulated amortisations and impairment losses 31 Dec 2021
Carrying amount 1 Jan 2020
Carrying amount 31 Dec 2021
2020
EUR mill.
Acquisition cost 1 Jan 2020
Additions
Acquisition cost 31 Dec 2020
Accumulated amortisations and impairment losses 1 Jan 2020
Amortisation
Accumulated amortisations and impairment losses 31 Dec 2020
Carrying amount 1 Jan 2020
Carrying amount 31 Dec 2020
145
Goodwill is not amortised but it is tested for impairment at least annually.
Goodwill arising from business combinations has been allocated to cash-generating units as shown in the table
below. Geographical areas consist of units with their own budgets and performance measurement, but they use shared
resources and are centrally managed.
31 Dec 2021
EUR mill.
Regional units
Capital region
Central units
Sweden and other
Total
31 Dec 2020
Goodwill
%
EUR mill.
Goodwill
385.2
237.0
184.1
42.3
848.6
45.4%
27.9%
21.7%
5.0%
Regional units
Capital region
Central units
100.0%
Total
369.7
230.2
181.8
781.8
%
47.3%
29.4%
23.3%
100.0%
In financial year 2021 there were four cash generating units, in comparison to three in financial year 2020. The fourth
cash generating unit, Sweden and other, was formed in the Group due to the acquisition of Feelgood group in 2021. The
recoverable amounts of the cash-generating units are based on value-in-use calculations which have been calculated
using discounted cash flow projections. The key assumptions used in the calculations are terminal period revenue
growth rate, profitability (EBIT %) and the discount rate. The projections are based on the budgets and estimates for the
years 2022–2025 including the long-term growth which have been approved by the management.
6.4
2.1
9.7
0.0
18.2
-2.9
-2.6
-5.5
3.5
12.8
4.2
2.2
6.4
-1.9
-1.0
-2.9
2.3
3.5
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
The assumptions used in impairment
calculations in 2021
The length of impairment testing period
Terminal period revenue growth rate
Profitability (EBIT %) during the terminal period
Discount rate (Pre-tax WACC)
Discount rate (Post-tax WACC)
Regional
units
4 years
2.0%
9.7%
6.5%
5.6%
4 years
4 years
4 years
2.0%
11.7%
6.5%
5.6%
2.0%
10.1%
6.5%
5.6%
2.0%
5.4%
6.1%
5.2%
Capital region
Central units
Sweden
and other
Sensitivity analysis
The assumptions used in impairment calculations in
2020
Regional units
Capital region
Central units
The length of impairment testing period
5 years
5 years
5 years
Terminal period revenue growth rate
Profitability (EBIT %) during the terminal period
Discount rate (Pre-tax WACC)
Discount rate (Post-tax WACC)
2.0%
8.5%
7.1%
6.1%
2.0%
10.5%
7.1%
6.1%
2.0%
10.6%
7.1%
6.1%
Revenue growth during the terminal period is based on flat growth factor which corresponds to long-term target
inflation of the European Central Bank. Profitability during the terminal period is based on the assumed organic growth
under normal market situation, general development in health care services market and long-term estimates by the
Group’s management.
The discount rate used in impairment testing has been Pre-tax WACC of which the components are risk-free interest
rate, risk premiums, industry-specific beta, industry-specific cost of debt, and industry specific equity / debt ratios.
Based on the impairment testing, there is no need for recognition of impairment losses. All cash generating units’
value in use exceeded their carrying amount.
146
The Group has assessed the sensitivity of the impairment testing to the effect of the most critical assumptions used in
the calculation. The table below shows the required change in a single assumption that the recoverable amount would
fall below the carrying amount.
Variable
Terminal period revenue growth rate
Regional Units
Capital Regions
Central Unit
Sweden and other
Profitability (EBIT %) during the terminal period
Regional Units
Capital Regions
Central Unit
Sweden and other
Discount rate (Pre-tax WACC)
Regional Units
Capital Regions
Central Unit
Sweden and other
2021
2020
Decrease over 4.1 percentage points
Decrease over 4.4 percentage points
Decrease over 12.4 percentage points
Decrease over 10.4 percentage points
Decrease over 15.1 percentage points
Decrease over 23.9 percentage points
Decrease over 3.7 percentage points
-
Decrease over 5.6 percentage points
Decrease over 4.8 percentage points
Decrease over 9.7 percentage points
Decrease over 8.1 percentage points
Decrease over 8.7 percentage points
Decrease over 9.8 percentage points
Decrease over 2.8 percentage points
-
Increase over 4.4 percentage points
Increase over 3.4 percentage points
Increase over 10.9 percentage points
Increase over 6.9 percentage points
Increase over 12.8 percentage points
Increase over 11.7 percentage points
Increase over 3.5 percentage points
-
When assessing the recoverable amounts of cash generating units, management believes that no reasonably possible
change in any of the key variables used would lead to a situation where the recoverable amount of the cash generating
units would fall below their carrying amount.
TerveystaloAnnual Report 2021 18. Associated companies
Terveystalo has the following associated companies which are all consolidated using the equity method. The Group has
no individually material associates.
Domicile
Ownership
Voting rights
Finland
Finland
Finland
20.4%
20.0%
0.0%
2021
0.6
-0.3
20.4%
20.0%
48.0%
2020
2.2
-0.6
Year 2021
Responsibility
Corporate Governance
Financials
17. Investment properties
Carrying amount of investment properties
EUR mill.
Carrying amount at the beginning of the period
Depreciation
Carrying amount at the end of the period
1.1.-31.12.2021
1.1.-31.12.2020
0.5
-0.0
0.5
0.6
-0.0
0.5
Associated companies
Etsimo Healthcare Oy
Olo-apteekki Oy
Terveyden Tuottajat Oy
Income and expenses related to investment properties
EUR mill.
Rental income from investment properties
Operating expenses for investment properties
Total
1.1.-31.12.2021
1.1.-31.12.2020
Summarised financial information on associated companies
0.1
-0.0
0.1
0.1
-0.0
0.1
EUR mill.
Carrying amount
Group’s share of total comprehensive income
Income and expenses relating to investment properties are presented based on the Group’s ownership in the
investment properties. There are no other contractual obligations related to investment properties.
Fair values of investment properties
Investment
Koy Jyväskylän Väinönkatu 30
Value per m2
(In thousands
of euro)
Total value
(In thousands
of euro)
0.4–0.5
556–679
m2
1,348
The value of Kiinteistö Oy Jyväskylän Väinönkatu has been determined based on the Group’s share of
ownership (16.81%).
147
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
19. Share-based payments
Performance Share Plan 2021–2023
Performance Share Plan 2021–2023 is targeted to Terveystalo’s key employees. The long-term share-based payment
plan is based on a rolling 3-year performance period structure, with a new performance period starting each year if so
decided by the Board. The Board decides on the participants, performance measures and targets as well as earning
opportunities on an annual basis. Rewards are conditional on the fulfilment of a three-year service condition and perfor-
mance conditions tied to financial targets that are set separately. The reward is granted and settled in Terveystalo sha-
res on top of which Terveystalo pays taxes and tax-related expenses. The plan is fully accounted for as an equity settled
share-based payment. The plan’s impact (including the tax impact) to the result for the period has been EUR 0.8 million
and the expected total cost of the plan is EUR 4.2 million. 56 persons are included in the arrangement.
Bridge Plan
Bridge Plan is targeted for President and CEO. Rewards are conditional on the fulfilment of a two-year service condi-
tion and performance conditions tied to financial targets that are set separately. The reward is granted and settled in
Terveystalo shares on top of which Terveystalo pays taxes and tax-related expenses. The plan is fully accounted for as an
equity settled share-based payment. The plan’s impact (including the tax impact) to the result for the period has been
EUR 0.1 million and the expected total cost of the plan is EUR 0.5 million.
Plan
Grant date
Maximum number of share awards
Outstanding at 1 Jan
Granted share awards during the period
Forfeited share awards during the period
Exercised share awards during the period
Outstanding at 31 Dec
Fair value of the share award at grant date
End of the performance period
End of the vesting period
Vesting conditions
Exercised
148
2021
Plan
1 Apr 2021
642,000
Grant date
Maximum number of share awards
-
Outstanding at 1 Jan
622,000
24,000
Granted share awards during the period
Forfeited share awards during the period
-
Exercised share awards during the period
598,000
13.5
Outstanding at 31 Dec
Fair value of the share award at grant date
31 Dec 2023
End of the performance period
30 Apr 2024
Service condition, total Shareholder Re-
turn (TSR), productivity and digital sales
End of the vesting period
Vesting conditions
In shares and cash
Exercised
2021
24 May 2021
58,600
-
58,600
-
-
58,600
14.1
31 Dec 2022
30 Apr 2023
Service condition, total Shareholder Return
(TSR), productivity and digital sales
In shares and cash
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Performance Share Plan 2018–2020
Performance Share Plan 2018–2020 is targeted to Terveystalo’s key employees. The plan consists of three vesting
periods which consists of a one-year performance period and a two-year waiting period. The performance periods are
calendar years 2018, 2019 and 2020. Rewards are conditional on the fulfilment of a three-year service condition and
performance conditions tied to financial targets that are set separately. The reward is granted and settled in Terveystalo
shares on top of which Terveystalo pays taxes and tax-related expenses. The plan is fully accounted for as an equity
settled share-based payment. The plan’s impact (including the tax impact) to the result for the period has been EUR 0.5
million and the expected total cost of the plan is EUR 2.5 million. 72 persons are included in the arrangement.
Plan
Grant date
2020
2019
2018
30 April 2020
27 March 2019
30 Jan 2018
Maximum number of share awards
660,836
-
-
-
-
-
8.8
31 Dec 2020
30 Apr 2023
943,000
553,114
-
33,400
-
519,674
9.0
31 Dec 2019
30 Apr 2022
943,000
-
-
-
-
-
6.9
31 Dec 2018
30 Apr 2021
Service condition, total Shareholder Return (TSR) and profitability
In shares and cash
Outstanding at 1 Jan
Granted share awards during the period
Forfeited share awards during the period
Exercised share awards during the period
Outstanding at 31 Dec
Fair value of the share award at grant date
End of the performance period
End of the vesting period
Vesting conditions
Exercised
149
20. Financial assets and liabilities – carrying amount,
fair values and fair value hierarchy
EUR mill. 31 Dec 2021
Financial assets
Non-current
Loan receivables
Unquoted equity investments
Current
Trade receivables
Contract assets
Cash and cash equivalents
Interest rate derivatives
Total
Financial liabilities
Non-current
Loans from financial
institutions
Hire purchase liabilities
Contingent considerations
Current
Loans from financial instituti-
ons
Hire purchase liabilities
Trade payables
Contingent considerations
Interest rate derivatives
Total
Financial assets and
liabilities at fair value
Financial assets
and liabilities at
amortised cost
Carrying
amount
Fair
value
Fair value
hierarchy
0.1
0.8
-
-
-
0.6
1.6
-
-
5.4
-
-
-
2.8
1.2
9.4
-
-
0.1
0.8
0.1
0.8
Level 2
Level 3
103.4
103.4
103.4
15.0
38.1
-
15.0
38.1
0.6
15.0
38.1
0.6
156.5
158.1
158.1
Level 2
249.8
249.8
249.8
8.1
-
115.6
5.3
57.1
-
-
8.1
5.4
8.1
5.4
Level 3
115.6
115.6
5.3
57.1
2.8
1.2
5.3
57.1
2.8
1.2
Level 3
Level 2
435.8
445.2
445.2
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
EUR mill. 31 Dec 2020
Financial assets and
liabilities at fair value
Financial assets
and liabilities at
amortised cost
Carrying
amount
Fair
value
Fair value
hierarchy
21. Financial risks
21.1 Financial risk management
Financial assets
Non-current
Loan receivables
Current
Trade receivables
Contract assets
Cash and cash equivalents
Total
Financial liabilities
Non-current
Loans from financial institutions
Hire purchase liabilities
Contingent considerations
Current
Loans from financial institutions
Hire purchase liabilities
Trade payables
Contingent considerations
Interest rate derivatives
Total
0.3
-
-
-
0.3
-
-
1.0
-
-
-
0.9
1.1
3.1
-
0.3
0.3
Level 2
80.2
5.6
77.1
80.2
5.6
77.1
80.2
5.6
77.1
162.9
163.2
163.2
290.5
11.8
-
81.4
5.8
40.1
-
-
290.5
290.5
11.8
1.0
81.4
5.8
40.1
0.9
1.1
11.8
1.0
81.4
5.8
40.1
0.9
1.1
429.6
432.6
432.6
Level 3
Level 3
Level 2
The Group is exposed to various financial risks in its normal business activities. The objective of the Group’s risk mana-
gement is to minimise the negative effects of changes in the financial markets on the Group’s result and valuation. The
Group’s main financial risks are interest rate risk, credit risk and liquidity risk. The Group’s risk management principles
are approved by the Board of Directors and the Group’s financial department is responsible for the implementation
of the principles. The Group’s financial department identifies and assesses risks and acquires instruments needed to
hedge against them.
21.2 Interest rate risk and currency risk
The Group’s interest rate risk arises from its loans from financial institutions issued at floating rate.
In 2021, the Group’s average interest rate for loans from financial institutions has been 0.9 percent (2020: 1.1 per-
cent). If the interests would have been one percentage point higher it would have caused an increase of EUR 3.7 million
in interest expenses during the year 2021. (2020: EUR 3.8 million).
The Group does not apply hedge accounting according to IFRS 9. The Group’s subsidiaries have the following open
interest rate derivative contracts at the reporting date:
•
•
Interest rate swap agreements based on which the Group pays fixed 0.19, 0.21, 0.50 and 0.51 percent interest
rate and receives variable interest on EUR 50.0, 25.0 and 30.0 million loan capital.
Floor agreements, in which the interest rate floor has been set to 0.00 percent on EUR 50.0, 25.0 and 30.0 mil-
lion loan capital.
Besides Finland, the Group has operations in Sweden, Estonia and the Netherlands and is thereby exposed to currency
risk arising from Swedish krona. As billing and purchasing of the Group companies is conducted in the local currency,
the transaction risk exposure for Terveystalo is insignificant. During the year 2021, the Group incurred foreign exchange
losses of 0.4 million.
Financial assets and liabilities classified at fair value hierarchy level 3 consist of unquoted equity investments and contingent considerations
from business combinations. The measurement of unquoted equity investments is based on the managements estimate of future cash flows
arising from the investments and the measurement of contingent considerations is based on the amounts specified in purchase agreements
and the management estimate on whether the consideration will be realised. The effect on earnings arising from the changes of fair values of
financial assets and liabilities classified at fair value hierarchy level 3 has been EUR 0.5 million (2020: EUR 0.5 million).
150
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
21.3 Credit risk
Maturity analysis of liquidity risk
The majority of the Group’s incoming cash flows are payments from established institutions, public sector and com-
panies with appropriate credit rating. However, the Group’s trade receivables include credit risk. Credit risk is managed
mainly by monitoring the customer’s credit rating on a regular basis and by co-operating with collection agencies. In
addition, the Group’s customers include private people whose invoicing is primarily carried out in connection with the
rendering of services.
The Group has no major customer specific risk concentrations and its credit risk is diversified. Credit risk is managed
by monitoring the amount, maturity distribution and turnover of trade receivables. Credit risk is also monitored on a
client by client basis.
The Group has assessed the potential impact of Covid-19 to credit risk of trade receivables. Based on the assess-
31 Dec 2021
EUR mill.
Loans from financial institutions
Lease liabilities
Hire purchase liabilities
Trade payables
Interest rate derivatives
Carrying
amount
Contractual
cash flows
1 year
1–2 years
2–5 years Over 5 years
365.4
178.5
13.3
57.1
1.2
373.5
186.4
13.7
57.1
1.4
118.6*
48.9
5.5
57.1
1.1
42.8
42.0
4.3
-
0.2
89.4
212.0
72.8
3.8
-
0.0
-
22.8
-
-
-
288.6
22.8
ment, the Group’s view is that the credit risk has not significantly increased.
Total
615.4
631.9
231.2
The Group’s maximum credit risk is equal to the carrying amount of financial assets at the reporting date.
The maturity distribution of the Group’s trade receivables is disclosed in note 22 Trade and other receivables.
* Includes a EUR 70 million loan drawn for the Feelgood acquisition which will be refinanced during 2022. The financing agreement includes an
option to defer the payment until 2023. The Group plans to replace the agreement with a long-term financing agreement during 2022.
21.4 Liquidity risk
The Group aims to assess and monitor continuously the amount of funding required by business operations, in order
to ensure sufficient liquidity to finance its operations, to repay maturing loans as well as to carry out investments and
acquisitions of companies according to the growth strategy. The Group’s cash and cash equivalents comprise cash in
bank accounts, cash in hand and cash payments not yet recorded into the Group’s bank accounts (cash in transit) at the
reporting date.
The Group manages liquidity risk by monitoring unused liquidity reserves and forecasting future cash flows.
The Group has an overdraft facility and undrawn credit facilities, of which EUR 55.5 million remained unused at the
reporting date (2020: EUR 48.0 million).
31 Dec 2020
EUR mill.
Loans from financial institutions
Lease liabilities
Hire purchase liabilities
Trade payables
Interest rate derivatives
Carrying
amount
Contractual
cash flows
1 year
1–2 years
2–5 years Over 5 years
371.9
178.5
17.6
40.1
1.1
383.5
193.1
18.2
40.1
1.2
84.9
42.1
6.0
40.1
0.5
44.3
37.5
5.2
-
0.5
87.5
254.3
79.3
6.9
-
0.1
-
34.2
-
-
-
340.6
34.2
The table below presents a contractual maturity analysis of financial liabilities. The cash flow figures are
Total
609.3
636.1
173.6
undiscounted, and they include both interest payments and repayments of principals. Interest payments which are
based on variable rates have been presented using variable rates as of the end of the reporting date.
151
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
21.5 Capital management
The objective of the Group’s capital management is to support business operations and to ensure competitive opera-
ting conditions with optimal capital structure, as well as to enable the implementation of the strategy.
Specification of prepaid expenses
EUR mill.
Derivatives
In addition to operative cash flows the capital structure is managed by potential share issues, acquisition of treasury
Personnel related prepaid expenses
shares by increase or repayment of financial liabilities, possible conversions between equity and financial liabilities, as
well as through operative decisions on investments and growth and potential disposals of assets in order to reduce liabi-
lities.
The development of the Group’s capital structure is monitored, amongst other things with the following: change in
Current tax receivables
Other prepaid expenses
Total
2021
2020
0.6
0.0
0.1
7.3
7.9
-
0.1
3.3
4.5
7.9
net debt, ratio of net debt to operating margin, and the cash flow forecast.
The Group’s net debt to equity ratio (gearing) was 85.2 percent at the reporting date (2020: 85.9 percent). The ratio
is calculated by dividing interest bearing net debt with equity. The net debt includes interest bearing liabilities less inte-
rest bearing receivables and cash and cash equivalents. The Group’s interest bearing liabilities were EUR 557.2 million
at the reporting date (2020: EUR 568.0 million). A significant part of the interest bearing liabilities consists of loans from
financial institutions.
During the reporting period the Group has recognised final credit losses and expected credit losses on trade receivables
and contract assets through the statement of income totaling EUR 1.6 million (2020: EUR 1.2 million). Impairment loss
provision is based on simplified approach. Estimated impairment loss rates have been calculated using historical infor-
mation of actual impairment losses and current conditions and the Group’s view of the economic conditions over the
expected lives of the receivables have been taken into account.
Based on the Group’s view, the carrying amount of trade receivables corresponds to the maximum credit risk if the cont-
22. Trade and other receivables
Carrying amounts of trade and other receivables
EUR mill.
Non-current
Loan receivables
Total non-current receivables
Current
Trade receivables
Other receivables
Prepaid expenses
Contract assets
Total
152
ractual parties are unable to meet their obligations related to trade receivables.
The fair value of other receivables and prepaid expenses corresponds with their carrying amount.
Ageing of trade receivables and recognised credit losses 2021
2021
2020
0.1
0.1
103.4
2.0
7.9
15.0
128.3
0.3
0.3
80.2
1.4
7.9
5.6
95.1
EUR mill.
Contract assets
Not past due
Past due
Less than 30 days
31–90 days
91–180 days
Over 180 days
Total
Trade receivables
and contract
assets total
Expected
credit loss
Recognised
expected
credit loss
Carrying
amount
15.0
92.0
6.5
2.1
1.7
2.8
120.1
-0.1%
-0.1%
-0.3%
-1.1%
-6.4%
-50.9%
-0.0
-0.1
-0.0
-0.0
-0.1
-1.4
-1.6
15.0
91.9
6.5
2.1
1.6
1.4
118.4
Information about credit risk related to trade receivables is stated in note 21 Financial risks.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Ageing of trade receivables and recognised credit losses 2020
24. Share capital and invested non-restricted equity reserve
EUR mill.
Not past due
Past due
Less than 30 days
31–90 days
91–180 days
Over 180 days
Total
Trade
receivables
total
Expected
credit loss
Recognised
expected
credit loss
Carrying
amount
78.6
4.5
1.1
0.5
2.2
87.0
0.1%
0.5%
2.0%
10.0%
45.8%
-0.1
-0.0
-0.0
-0.1
-1.0
-1.2
78.5
4.5
1.1
0.5
1.2
85.8
EUR mill.
1 Jan 2020
31 Dec 2020
1 Jan 2021
Acquisition of
treasury shares
31 Dec 2021
Number of
outstanding
shares, 1,000 pcs
Number
of treasury
shares,
1,000 pcs
Number
of shares
total,
1,000 pcs
Share
capital
Invested
non-restricted
equity reserve
Treasury
shares
127,307
127,307
127,307
-1,000
126,307
730
730
730
1,000
1,730
128,037
128,037
128,037
-
128,037
0.1
0.1
0.1
-
0.1
492.8
492.8
492.8
-
492.8
-6.7
-6.7
-6.7
-11.3
-18.0
Total
486.1
486.1
486.1
-11.3
474.9
Information about credit risk related to trade receivables is stated in note 21 Financial risks.
23. Cash and cash equivalents
The Group’s cash and cash equivalents at 31 December 2021, amounting to EUR 38.1 million (2020: EUR 77.1 million)
consist of cash in hand and bank as well as, cash payments on the bank settlement account at the reporting date.
The carrying amounts in the statement of financial position correspond to the maximum amount of credit risk if the
contractual parties are unable to meet their obligations. However, no significant counterparty risks are associated with
cash and cash equivalents. The fair value of cash and cash equivalents correspond to their carrying amounts.
.
153
Shares and share capital
On 31 December 2021, the amount of shares is 128,036,531 of which amount of outstanding shares is 126,306,531
and amount of treasury shares is 1,730,000. On October 28 2021 the Board of Directors of Terveystalo Plc decided to
launch a buyback program for Terveystalo’s own shares based on the authorisation granted by Terveystalo’s Annual
General Meeting on 25 March 2021. The repurchases of the shares began on 29 October 2021 and ended on 28
December 2021. During that period, Terveystalo repurchased 1,000,000 of its own shares for an average price per
share EUR 11.25. The shares were acquired at the market price quoted at the time of acquisition in trading organised
by Nasdaq Helsinki Ltd on a regulated market. The purpose of the share buyback program was to optimise the Group’s
capital structure through reduction of capital. The repurchased 1,000,000 shares will be cancelled.
The Company has single share class. The shares have no nominal value. All shares issued have been paid in full. Each
share has one vote at the Annual General Meeting and equal rights to dividend and other distribution of assets.
Terveystalo PLC’s share is listed on Nasdaq Helsinki Oy. The trading code is TTALO. Terveystalo PLC’s shares belong to
the book-entry system maintained by Euroclear Finland Oy.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Invested non restricted equity reserve
25. Financial liabilities
Invested non-restricted equity reserve consists of other investments similar to equity and the subscription price of
shares to the extent that it has not been recorded in share capital according to specific resolution. According to the
current Finnish Companies Act subscription price of new shares is recognised in the share capital, unless it has not been
according to Issuance Resolution fully or partly recognised in invested non restricted equity reserve.
Distributable funds
On 31 December 2021, the distributable funds of the parent company totaled EUR 542.6 million including the profit
of the financial period 2021 of EUR 43.8 million. The Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.28 (0.26) per share totaling EUR 35.6 (33.1) million be paid based on the statement of financial posi-
tion adopted for the financial year ended 31 December 2021. The dividend would be paid in two instalments as follows:
•
•
The first dividend instalment of EUR 0.14 per share would be paid to the shareholders who are registered in the
shareholders’ register of the Company maintained by Euroclear Finland Ltd on the record date of the first divi-
dend instalment on 11 April 2022. The Board of Directors proposes that the first dividend instalment would be
paid on 20 April 2022.
The second dividend instalment of EUR 0.14 per share would be paid to shareholders who are registered in the
shareholders’ register of the Company maintained by Euroclear Finland Ltd on the record date of the second
dividend instalment on 10 October 2022. The Board of Directors proposes that the second dividend instalment
would be paid on 19 October 2022. The Board of Directors also proposes that the Annual General Meeting would
authorise the Board of Directors to resolve, if necessary, on a new record date and date of payment for the
second dividend instalment should the rules of Euroclear Finland Ltd or statues applicable to the Finnish book-
entry system change or otherwise so require.
The dividend proposed by the Board of Directors to the Annual General Meeting is not deducted from distributable
equity until approved by the Annual General Meeting of Shareholders.
No material changes have taken place in the company’s financial position since the end of the financial year. The
liquidity of the company is good and the proposed allocation of funds, in the view of the Board of Directors, does not
endanger the company’s solvency.
1 Jan 2021
Cash flows
Business
combinations
Other
changes
Translation
differences
31 Dec 2021
Non-cash changes
371.9
17.6
178.5
567.9
-11.5
-5.9
-42.4
-59.8
-0.0
-
-0.0
-0.0
365.4
13.3
178.5
557.2
4.8
-
17.1
21.9
0.3
1.6
25.3
27.1
Non-cash changes
1 Jan 2020
Cash flows
Business
combinations
Other
changes
Translation
differences
31 Dec 2020
373.1
17.7
198.0
588.8
-1.5
-5.5
-37.8
-44.7
-
-
-
-
0.3
5.3
18.1
23.8
-
-
-
-
371.9
17.6
178.5
567.9
EUR mill.
Loans from financial
institutions
Hire purchase liabilities
Lease liabilities
Total
EUR mill.
Loans from financial
institutions
Hire purchase liabilities
Lease liabilities
Total
The Group’s loan agreement includes covenant based on which creditors can demand an immediate repayment of the
loans if a certain covenant limit is breached. The covenant relates to the ratio between EBITDA and net debt, which are
computed based on the IFRS standards effective as at the date of the loan agreement. The Group has met all covenant
terms and conditions during the reporting period and at the reporting date.
154
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
26. Trade and other payables
Carrying amounts of trade and other payables
EUR mill.
Trade payables
Other payables
Contract liabilities
Interest rate derivatives
Accrued expenses
Total
Specification of other payables
EUR mill.
Doctor’s fee liabilities
VAT liabilities
Other
Total
Specification of accrued expenses
EUR mill.
Personnel related accrued expenses
Interest liabilities
Other
Total
155
2021
57.1
75.9
6.1
1.2
73.9
214.1
2021
44.6
20.8
10.6
75.9
2021
67.1
0.2
6.6
73.9
40.1
64.8
2.2
1.1
54.5
162.7
2020
38.4
19.5
6.8
64.8
2020
52.2
0.3
1.9
54.5
27. Provisions
Carrying amounts of provisions
2020
EUR mill.
Non-current provisions
Current provisions
Total
EUR mill.
Onerous contracts
Other provisions
Total
2021
8.5
2.5
11.0
2021
6.6
4.4
11.0
2020
7.7
2.4
10.1
2020
5.8
4.3
10.1
Changes in provisions during the financial year 2021
EUR mill.
1 Jan 2021
Increase in provisions
Used provisions
31 Dec 2021
Onerous contracts
Other provisions
Total
5.8
2.0
-1.2
6.6
4.3
0.6
-0.5
4.4
10.1
2.6
-1.7
11.0
Changes in provisions during the financial year 2020
EUR mill.
1 Jan 2020
Increase in provisions
Used provisions
31 Dec 2020
Onerous contracts
Other provisions
Total
5.0
3.0
-2.2
5.8
4.1
0.4
-0.3
4.3
9.1
3.5
-2.5
10.1
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
28. Defined benefit plans
Due to the acquisition of Feelgood group in 2021, the Group assumed defined benefit plans in Sweden. These consists
of PSA and PA-KL plans which are closed and for which all the participants have either retired or left the Group. There
are no assets related to the Group’s defined benefit plans. The defined benefit plans determine the amount of pension
to be paid and the benefits to be paid for disability and at termination of employment. The benefits in these plans are
usually based on the length of employment and the level of final salary. The weighted average duration of the defined
benefit obligations was 9 years at the reporting date.
Applied actuarial assumptions
%
Discount rate
Inflation
2021
1.20
2.20
The discount rate is determined based on the yield of Swedish housing market bonds which have a length that approximates the Group’s
pension obligations.
Summary of the impact of the defined benefit plans in the financial statements
Sensitivity analysis of the relevant actuarial assumptions’
impact on defined benefit obligation
EUR mill.
Present value of the defined benefit obligations
Expenses related to defined benefit plans
Remeasurements of defined benefit obligations
Reconciliation of the defined benefit obligation
EUR mill.
1 Jan 2021
Business combinations
Interest expense (+) / income (-)
Benefits paid
Remeasurement of the obligation
Actuarial gain (-) / loss (+) from change in demographic assumptions
Actuarial gain (-) / loss (+) from change in financial assumptions
Experience adjustment gain (-) / loss (+)
Translation differences
31 Dec 2021
156
EUR mill.
0.5%-point increase in the principal assumption
Discount rate
Inflation
0.5%-point decrease in the principal assumption
Discount rate
Inflation
2021
-0.1
0.1
0.1
-0.1
An external actuary has performed the sensitivity analysis for one variable at a time while holding all other variables
constant and regardless of the actual volatility of the given variable. Consequently, the purpose of the analysis is not to
quantify expected change in the defined benefit obligation but to illustrate the sensitivity of the value of the obligation
to these variables.
2021
1.7
0.0
-0.1
2021
-
1.9
0.0
-0.1
-
-0.1
-
-0.0
1.7
TerveystaloAnnual Report 2021
31 Dec 2021
31 Dec 2020
2020
Sales
Purchases
Receivables
Payables
Associated companies
Other related parties
Total:
0.5
-
0.5
17.4
-
17.4
0.5
-
0.5
Year 2021
Responsibility
Corporate Governance
Financials
29. Collateral and contingent liabilities
EUR mill.
Business mortgages
Total
Securities for own debts
Deposits
Guarantees
Total
11.4
11.4
0.2
0.9
1.1
-
-
0.2
0.7
0.9
30. Related party transactions
Group’s related parties
The Group’s related parties include the parent company as well as subsidiaries and associated companies. In addition,
related parties include also the members of the Board of Directors, Group management and the CEO as well as their
close family members and entities in which they have control or joint control. Related party transactions which are
not eliminated in the preparation of Terveystalo’s consolidated financial statements are presented as related party
transactions.
The relationships of the parent company and the subsidiaries are disclosed in note 31 Group companies.
Compensation for the key management
Remuneration for CEO, in thousands of euro
Fixed pay
Other benefits
Short-term incentives
Share-based payments
Pensions (statutory)
Total
Renumeration for the CEO is presented on accrual basis.
Remuneration to members of the Executive team
(excluding CEO), in thousands of euro
Related party transactions
2021
Associated companies
Other related parties
Total:
157
Sales
Purchases
Receivables
Payables
0.7
-
0.7
12.5
-
12.5
0.2
-
0.2
1.1
-
1.1
Fixed pay
Other benefits
Short-term incentives
Share-based payments
Termination benefits
Pensions (statutory)
Total
Renumeration to members of the Executive team is presented on accrual basis.
1.5
-
1.5
2020
366.7
-
240.0
-
89.6
696.3
2020
1,499.9
43.5
424.1
209.1
656.2
387.5
3,220.4
2021
400.0
-
433.8
306.7
136.0
1,276.4
2021
1,754.1
41.8
880.2
611.6
-
436.5
3,724.3
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
2021
2020
Bonus Scheme
Annual fee
settled in
cash
Annual fee
settled in
shares
Meeting
fees
Other
financial
benefits*
Annual fee
settled in
cash
Annual fee
settled in
shares
Meeting
fees
Other
financial
benefits*
Remuneration to
Board of Directors,
in thousands of
euro
Kari Kauniskangas
(Chairman of the
board)
Tomas Von Rettig
Åse Aulie Michet
Katri Viippola
Dag Andersson
Niko Mokkila
Kristian Pullola**
Members of the Board
until 25 March 2021
Lasse Heinonen
Members of the Board
of Directors until 28
May 2020
Olli Holmström
Paul Hartwall
Total
50.5
30.0
23.9
23.9
23.9
23.9
30.0
-
-
-
34.0
20.2
16.1
16.1
16.1
16.1
20.2
-
-
-
15.0
17.0
16.4
15.0
15.3
15.0
12.5
3.1
-
-
0.5
0.3
0.3
0.3
0.3
0.3
0.3
-
-
-
* Other financial benefits include transfer tax fees for the annual fees paid in shares.
** Member of the Board of Directors from 2021.
158
51.0
30.3
24.2
24.2
24.2
24.2
-
34.0
20.2
16.1
16.1
16.1
16.1
-
16.0
18.0
19.1
15.4
17.3
9.4
-
0.5
0.3
0.3
0.3
0.3
0.3
-
30.3
20.2
14.8
0.3
Åse Aulie Michelet
The Company operates a bonus scheme, which is determined by the Board of Directors of the Company upon the
recommendation of the Remuneration Committee. The CEO and the members of the Executive Team are eligible to
participate in the bonus scheme in accordance with the Company’s bonus policy. Annual bonuses are payable based on
the attainment of key performance targets of the Company. The key performance targets of the CEO and the Executive
Team are based on the Company’s adjusted EBITA as well as the individual business and performance targets. The indivi-
dual business and performance targets are set by the manager of the participant in the bonus scheme.
The Board of Directors of Terveystalo Plc has resolved to establish a share-based incentive plan directed to the Group’s
key employees. More information on the share-based incentive plan is presented in note 19 Share-based payments.
Management holdings
Name
Kari Kauniskangas
Tomas Von Rettig
Katri Viippola
Dag Andersson
Niko Mokkila
Kristian Pullola
Ville Iho
Petri Bono
Juha Juosila
Ilkka Laurila
Siina Saksi
Elina Saviharju
Veera Siivonen
Minttu Sinisalo
Mikko Tainio
Petri Keksi
Marja-Leena Tuomola
Position
Chairman of the Board of Directors
Member of the Board of Directors
Member of the Board of Directors
Member of the Board of Directors
Member of the Board of Directors
Member of the Board of Directors
Member of the Board of Directors
Chief Executive Officer
Chief Medical Officer
Chief Digital Officer
Chief Financial Officer
SVP, Medical Clinic Network
SVP, Legal
SVP, Consumer Business
SVP, HR
SVP, Public Partnerships
SVP, Growth Businesses
SVP, Corporate Health
2021
10,992
7,944
28,951
6,327
4,888
3,193
1,783
-
-
87,435
281,900
50,559
-
348
-
518
92,585
1,000
206.0
138.7
109.3
2.2
208.4
138.8
120.8
2.3
-
-
-
-
5.4
5.4
-
-
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
31. Group companies
The Group’s parent company is Terveystalo Plc domiciled in Finland.
Subsidiaries as at 31 Dec 2021
Company name
Alna Sverige AB
Ankkurin Huoltamo Oy
Attentio Oy
EAM TTALO Holding Oy*
Evalua International Ltd. Oy
Evalua Nederland B.V.
Feelgood Företagshälsa Dalarna AB
Feelgood Företagshälsovård AB
Feelgood Företagshälsovård Södra AB
Feelgood Företagshälsovård Östersund AB
Feelgood Företagshälsövård Blekinge AB
Feelgood Online AB
Feelgood Primärvård AB
Feelgood Sjukvård AB
Feelgood Svenska AB
Hierojakoulu Relaxi Oy
Jyväskylän Hoitokoti Ankkuri Oy
Jyväskylän Lastensuojelupalvelut Oy
159
Domicile
Group’s share
Group’s voting rights
Company name
Domicile
Group’s share
Group’s voting rights
Sweden
Finland
Finland
Finland
Finland
Netherlands
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Finland
Finland
Finland
100.0%
100.0%
100.0%
0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
0.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Keltaisen Kartanon Kuntoutus Oy
Lastensuojelupalvelut Väylä Oy
Länshälsan Skåne AB
Medicin Direkt Östersund AB
Medimar Scandinavia Ab
Rela Estonia OÜ
Rela-hierojat Oy
Sivupersoona Oy
Suomen Hierojakoulut Oy
Suomen Terveystalo Oy
Terapiatelakka Oy
Terveystalo Estonia OÜ
Terveystalo Healthcare Holding Oy
Terveystalo Healthcare Oy
Terveystalo Julkiset palvelut Oy
Terveystalo Kuntaturva Oy
Terveystalo Tactus Oy
TT Ålands Tandläkarna Ab
Finland
Finland
Sweden
Sweden
Finland
Estonia
Finland
Finland
Finland
Finland
Finland
Estonia
Finland
Finland
Finland
Finland
Finland
Finland
100.0%
100.0%
100.0%
100.0%
94.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
94.3%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
* Evli Asset Management holds the ownership and voting rights of EAM TTALO Holding Oy by legal terms, but according to the agreement Ter-
veystalo has control over the company and acts as the principal, whereas EAM is an agent through the holding company. Based on this control
arising from contractual terms, the holding company is consolidated into the Group’s IFRS financial statements as a structured entity.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
31.1 Changes in the Group structure
Financial year 2021
The following mergers took place during the financial year 2021:
• 31.3.2021 MedInari Oy merged with Suomen Terveystalo Oy.
• 31.5.2021 VitalMed Oy merged with Suomen Terveystalo Oy.
• 31.8.2021 Espoon Keskuksen Hammaslääkärit Oy merged with Suomen Terveystalo Oy.
• 30.9.2021 Helsinki Hospital Oy merged with Suomen Terveystalo Oy.
• 31.12.2021 Rela-group Oy merged with Rela-hierojat Oy.
Financial year 2020
The following mergers took place during the financial year 2020:
• 31.1.2020 Etelä-Karjalan Työkunto Oy merged with Suomen Terveystalo Oy.
• 29.2.2020 Hardent Oy merged with Suomen Terveystalo Oy.
• 31.3.2020 TyöSyke Oy merged with Suomen Terveystalo Oy.
• 30.9.2020 Examinatio Magnetica Fennica Oy merged with Suomen Terveystalo Oy.
• 31.12.2020 Fertility Clinic Holding Oy merged with Suomen Terveystalo Oy.
32. Group’s key financial ratios
Terveystalo Group, EUR mill.
Revenue
Adjusted EBITDA* 1)
Adjusted EBITDA, %* 1)
EBITDA1)
EBITDA, %1)
160
2021
1,154.6
206.1
17.8
201.8
17.5
2020
986.4
162.8
16.5
158.3
16.1
2019
1,030.7
176.3
17.1
171.2
16.6
Terveystalo Group, EUR mill.
Adjusted EBITA* 1)
Adjusted EBITA, %* 1)
EBITA1)
EBITA, % 1)
Adjusted operating profit (EBIT)* 1)
Adjusted operating profit (EBIT), %* 1)
Operating profit (EBIT)
Operating profit (EBIT), %
Return on equity (ROE), %1)
Equity ratio, %1)
Earnings per share (€)
Net debt
Gearing, %1)
Net debt/Adjusted EBITDA1)
Total assets
Average personnel FTE
Personnel (end of period)
Private practitioners (end of period)
Adjusted EBITDA, excluding IFRS 16* 1)
Net debt, excluding IFRS 16
Net debt/Adjusted EBITDA, excluding IFRS 16* 1)
2021
141.0
12.2
136.7
11.8
114.4
9.9
110.1
9.5
13.6
42.2
0.63
519.0
85.2
2.5
2020
101.9
10.3
97.4
9.9
71.6
7.3
67.2
6.8
8.2
42.1
0.36
2019
115.1
11.2
110.0
10.7
86.5
8.4
81.4
7.9
10.3
39.9
0.43
490.9
548.20
85.9
3.0
101.3
3.1
1,448.6
1,361.0
1,359.3
5,643
9,805
5,754
156.9
340.6
2.2
4,900
8,253
5,057
118.0
312.4
2.6
4,943
8,685
5,068
131.4
366.4
2.8
* Adjustments are material items outside the ordinary course of business, and these relate to acquisition related expenses, restructuring relat-
ed expenses, gains and losses on sale of assets (net), strategic projects and other items affecting comparability.
1) Alternative performance measure. Terveystalo presents alternative performance measures as additional information to financial measures
defined in IFRS. Those are performance measures that the company monitors internally, and they provide management, investors, securities
analysts and other parties with significant additional information related to the company’s results of operations, financial position and cash
flows. These should not be considered in isolation or as substitute to the measures under IFRS.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
33. Calculation of financial ratios and alternative
performance measures
Net debt/Adjusted EBITDA (LTM) *
=
Interest-bearing liabilities - interest-bearing
receivables and cash and cash equivalents
Adjusted EBITDA (LTM)
Financial ratios
Earnings per share,
(EUR)
=
Profit for the period attributable to owners of the parent company
Average number of shares during the period
Net debt/Adjusted EBITDA (LTM),
excluding IFRS 16 *
=
Interest-bearing liabilities excluding lease liabilities -
interest-bearing receivables and cash and cash equivalents
Adjusted EBITDA (LTM), excluding IFRS 16
Terveystalo presents alternative performance measures as additional information to financial measures defined in IFRS.
Those are performance measures that the company monitors internally and they provide significant additional infor-
mation related to the company’s results of operations, financial position and cash flows to the management, investors,
securities analysts and other parties. These should not be considered in isolation or as substitute to the measures under
IFRS.
Alternative performance measures to the statement of income
The company presents the following alternative performance measures to the statement of income as in the
company’s view, they increase understanding of the company’s results of operations. In addition, the adjusted
alternative performance measures are widely used by analysts, investors and other parties and facilitates comparability
between periods.
Alternative performance measures to the statement of financial position
The company presents the following alternative performance measures to the statement of financial position as they
are, in the company’s view, useful indicators of the company’s ability to obtain financing and service its debt.
Adjusted EBITDA *
=
Earnings Before Interest, Taxes, Depreciation, Amortisation,
Impairment losses and adjustments
Return on equity, %
=
Profit/loss for the period (LTM)
Equity (including non-controlling interest) (average)
Equity ratio, %
=
Equity (including non-controlling interest)
Total assets - advances received
Gearing, %
=
Interest-bearing liabilities - interest-bearing
receivables and cash and cash equivalents
Equity
161
Adjusted EBITDA, % *
=
Earnings Before Interest, Taxes, Depreciation, Amortisation,
Impairment losses and adjustments
x 100%
x 100%
x 100%
Adjusted EBITA *
Adjusted EBITA, % *
=
=
Revenue
Earnings Before Interest, Taxes, Amortisation,
Impairment losses and adjustments
Earnings Before Interest, Taxes, Amortisation,
Impairment losses and adjustments
Revenue
x 100%
x 100%
Adjusted operating profit (EBIT) *
=
Earnings Before Interest, Taxes and Share of profits in
associated companies, and adjustments
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Adjusted operating profit (EBIT), % * =
in associated companies and adjustments
Earnings Before Interest, Taxes and Share of profits
Revenue
x 100%
EBITDA
=
Earnings Before Interest, Taxes, Depreciation
and Amortisation and Impairment losses
EBITDA, %
=
Earnings Before Interest, Taxes, Depreciation
and Amortisation and Impairment losses
Revenue
x 100%
EBITA
=
Earnings Before Interest, Taxes, Amortisation
and Impairment losses
EBITDA, %
=
Earnings Before Interest, Taxes,
Amortisation and Impairment losses
Revenue
Operating profit (EBIT)
=
Earnings Before Interest, Taxes and Share of profits
in associated companies
Operating profit (EBIT), %
=
in associated companies
Earnings Before Interest, Taxes and Share of profits
Revenue
x 100%
x 100%
Adjusted EBITDA, excluding IFRS 16 * =
Earnings Before Interest, Taxes, Depreciation, Impairment los-
ses and adjustments, excluding IFRS 16 lease adjustments
* Adjustments are material items outside the ordinary course of business and these relate to acquisition related expenses, restructuring
related expenses, gains and losses on sale of assets (net), strategic projects and other items affecting comparability.
162
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
34. Reconciliation of alternative performance measures
Return on equity, %
Profit/loss for the period
Equity (including non-controlling interest) (average)
Return on equity, %
Equity ratio, %
Equity (including non-controlling interest)
Total assets
Advances received
Equity ratio, %
Gearing, %
Interest-bearing liabilities
Interest-bearing receivables and cash and cash equivalents
Equity
Gearing, %
Net debt / Adjusted EBITDA
Interest-bearing liabilities
Interest-bearing receivables and cash and cash equivalents
Adjusted EBITDA
Net debt / Adjusted EBITDA
163
2021
80.4
590.1
13.6
2021
608.9
1,448.6
6.1
42.2
2021
557.2
38.2
608.9
85.2
2021
557.2
38.2
206.1
2.5
2020
45.8
556.3
8.2
2020
571.4
1,361.0
2.2
42.1
2020
568.0
77.1
571.4
85.9
2020
568.0
77.1
162.8
3.0
2019
54.1
526.5
10.3
2019
541.2
1,359.3
1.5
39.9
2019
588.8
40.6
541.2
101.3
2019
588.8
40.6
176.3
3.1
Adjusted EBITDA, EUR mill.
Profit (loss) for the period
Income tax expense
Share of profits in associated companies
Net finance expenses
Depreciation, amortisation and impairment losses
Adjustments*
Adjusted EBITDA
Adjusted EBITDA, %
Adjusted EBITDA
Revenue
Adjusted EBITDA, %
Adjusted EBITA, EUR mill.
Profit (loss) for the period
Income tax expense
Share of profits in associated companies
Net finance expenses
Amortisation and impairment losses
Adjustments*
Adjusted EBITA
2021
2020
2019
80.4
20.3
0.3
9.0
91.7
4.3
45.8
10.8
0.6
10.0
91.2
4.5
54.1
12.7
0.2
14.4
89.8
5.1
206.1
162.8
176.3
2021
206.1
1,154.6
17.8
2020
162.8
986.4
16.5
2019
176.3
1,030.7
17.1
2021
2020
2019
80.4
20.3
0.3
9.0
26.6
4.3
45.8
10.8
0.6
10.0
30.3
4.5
54.1
12.7
0.2
14.4
28.6
5.1
141.0
101.9
115.1
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Adjusted EBITA, %
Adjusted EBITA
Revenue
Adjusted EBITA, %
Adjusted operating profit (EBIT), EUR mill.
Profit (loss) for the period
Income tax expense
Share of profits in associated companies
Net finance expenses
Adjustments*
Adjusted EBITA
Adjusted operating profit (EBIT), %
Adjusted EBITA
Revenue
Adjusted EBIT, %
EBITDA, EUR mill.
Profit (loss) for the period
Income tax expense
Share of profits in associated companies
Net finance expenses
Depreciation, amortisation and impairment losses
EBITDA
164
2021
141.0
1,154.6
12.2
2021
80.4
20.3
0.3
9.0
4.3
114.4
2021
114.4
1,154.6
9.9
2020
101.9
986.4
10.3
2019
115.1
1,030.7
11.2
EBITDA, %
EBITDA
Revenue
EBITDA, %
2020
2019
45.8
10.8
0.6
10.0
4.5
71.6
2020
71.6
986.4
7.3
54.1
12.7
0.2
14.4
5.1
86.5
2019
86.5
1,030.7
8.4
EBITA, EUR mill.
Profit (loss) for the period
Income tax expense
Share of profits in associated companies
Net finance expenses
Amortisation and impairment losses
EBITA
EBITA, %
EBITA
Revenue
EBITA, %
2021
2020
2019
80.4
20.3
0.3
9.0
91.7
45.8
10.8
0.6
10.0
91.2
54.1
12.7
0.2
14.4
89.8
Operating profit (EBIT), EUR mill.
Profit (loss) for the period
Income tax expense
Share of profits in associated companies
Net finance expenses
201.8
158.3
171.2
EBIT
2021
201.8
1,154.6
17.5
2021
80.4
20.3
0.3
9.0
26.6
136.7
2021
136.7
1,154.6
11.8
2021
80.4
20.3
0.3
9.0
110.1
2020
158.3
986.4
16.1
2019
171.2
1,030.7
16.6
2020
2019
45.8
10.8
0.6
10.0
30.3
97.4
2020
97.4
986.4
9.9
54.1
12.7
0.2
14.4
28.6
110.0
2019
110.0
1,030.7
10.7
2020
2019
45.8
10.8
0.6
10.0
67.2
54.1
12.7
0.2
14.4
81.4
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Operating profit, (EBIT), %
EBIT
Revenue
EBIT, %
2021
110.1
1,154.6
9.5
2020
67.2
986.4
6.8
2019
81.4
1,030.7
7.9
Net debt / Adjusted EBITDA, excluding IFRS 16
Interest-bearing liabilities
Interest-bearing receivables and cash and cash equivalents
Adjusted EBITDA
Net debt/Adjusted EBITDA, excluding IFRS 16
2021
378.8
38.2
156.9
2.2
2020
389.5
77.1
118.0
2.6
2019
407.0
40.6
131.4
2.8
Adjustments based on subject area*, EUR mill.
2021
2020
2019
* Adjustments are material items outside the ordinary course of business, and these relate to acquisition related expenses, restructuring
Acquisition related expenses1)
Restructuring related expenses2)
Gain on sale of asset
Strategic projects and other items affecting comparability
Adjustments
Adjustments based on account group*, EUR mill.
Other operating income
Materials and services costs
Personnel expenses
Other operating expenses
Adjustments
3.1
0.3
-
0.8
4.3
2021
-0.4
-
0.3
4.4
4.3
0.5
1.6
-0.1
2.5
4.5
2020
-0.5
1.8
1.3
1.9
4.5
3.3
0.7
0.3
0.8
5.1
2019
-0.3
-
0.4
5.0
5.1
Adjusted EBITDA, excluding IFRS 16
2021
2020
2019
related expenses, gains and losses on sale of assets (net), strategic projects and other items affecting comparability.
1) Including transaction costs and expenses from integration of acquired businesses.
2) Including restructuring of network and business operations.
35. Subsequent events
Feelgood acquired on 1 February 2022 Länshälsan Uppsala, an occupational health care provider. Revenue of the
company was approximately SEK 40 million in 2020 and the company has approximately 30 employees.
The acquisition of Vantaan Työterveys Oy was completed on 1 February 2022.
On 9 February 2022, the Board of Directors of Terveystalo Plc decided on a new performance period of the share-based
incentive scheme for 2022–2024.
Profit (loss) for the period
Income tax expense
Share of profits in associated companies
Net finance expenses
Depreciation, amortisation and impairment losses
Adjustments*
IFRS 16 lease expense adjustment
Adjusted EBITDA, excluding IFRS 16
165
80.4
20.3
0.3
9.0
91.7
4.3
-49.2
156.9
45.8
10.8
0.6
10.0
91.2
4.5
-44.8
118.0
54.1
12.7
0.2
14.4
89.8
5.1
-45.0
131.4
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Parent company’s financial statement, FAS
Parent company’s statement of financial position
EUR
ASSETS
Non-current assets
Property, plant and equipment
Parent company’s income statement
EUR
Revenue
Materials and supplies
Employee benefit expenses
Wages and salaries
Social security expenses
Pension expenses
Other social security expenses
Depreciation, amortisation and impairment losses
Other operating expenses
Operating loss
Financial income and expenses
Other interest and financial income
From group companies
From others
Other interest and financial expenses
To group companies
To others
Loss before appropriations and taxes
Appropriations
Increase/decrease in depreciation in excess of plan
Group contributions
Taxes
Profit for the period
166
Note
1.1.-31.12.2021
1.1.-31.12.2020
Machinery and equipment
1.1
1.2
1.4
1.5
1.6
517,094
-1,333
924,670
-296
Investments
Holdings in group companies
Total non-current assets
-1,741,835
-2,027,165
Current assets
-247,805
-33,539
-136
-1,699,187
-3,206,740
3,478
56
-15,888
-22,655
-226,232
-47,089
-3,469
-1,635,698
-3,015,279
-
236
-39,503
-1,233
-3,241,749
-3,055,779
Receivables from group companies
Prepayments and accrued income
Total current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Share capital
Invested non-restricted equity reserve
Retained earnings
Profit for the period
Total equity
Liabilities
Current liabilities
Trade payables
-
58,000,000
-10,954,938
10,621
35,500,000
-6,496,468
Liabilities to group companies
Other liabilities
Accruals and deferred income
43,803,313
25,958,375
Total liabilities
TOTAL EQUITY AND LIABILITIES
Note
31 Dec 2021
31 Dec 2020
2.1
2.2
2.3
2.4
2.5
2.6
227
-
516,818,244
516,818,244
516,818,471
516,818,244
65,338,343
49,558,965
233,545
161,673
65,571,888
49,721,807
582,390,359
566,540,051
80,000
80,000
493,503,962
493,503,962
5,262,687
43,803,313
23,652,357
25,958,375
542,649,963
543,194,694
274,515
140,007
33,052,398
16,822,320
113,610
6,299,873
179,157
6,203,873
39,740,396
23,345,357
582,390,359
566,540,051
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
1.1.-31.12.2021
1.1.-31.12.2020
EUR
1.1.-31.12.2021
1.1.-31.12.2020
54,758,251
32,454,830
Purchase of tangible and intangible items
Cash flows from investing activities
Proceeds from sale of tangible and intangible items
136
3,469
Net cash from investing activities
-58,000,000
-35,550,124
Cash flows from financial activities
40,737
893
Acquisition of treasury shares
Change in group account
-10,129,778
Payment of hire purchase liabilities
9,997,111
298,840
Received group contribution
Dividends paid
Interest and other financial expenses paid
35,008
-
-
446,604
406,664
-11,093,468
-13,446,803
-363
-
-363
-11,248,346
22,330,218
-
35,500,000
-33,099,698
-35,008
-
40,016
40,016
-
-23,437,608
-37,365
54,000,000
-16,549,849
-1,233
-11,130,628
Net cash from financial activities
13,447,166
13,973,945
-14,014,650
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
-
-
-
-690
690
-
Parent company’s statement of cash flows
EUR
Cash flows from operating activities
Profit for the period before income taxes
Adjustments
Depreciations according to plan
Non-cash transactions
Financial income and expenses
Gains and losses on sale of property, plant, equipment
Other adjustments
Change in working capital
Change in trade and other receivables
Change in trade and other payables
Taxes
Net cash from operating activities
167
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Accounting policies of parent company’s financial statements
The financial statements of Terveystalo Oyj are prepared in accordance with Finnish Accounting Standards (FAS).
Measurement and recognition principles and methods
Holdings in group companies
The carrying amount of holdings in group companies consists of historical costs less impairments. If the estimated
future cash flows generated by a non-current asset are expected to be permanently lower than the balance of carrying
amount, an adjustment to the value must be made to write-down the difference as an expense. If the basis for the
impairment can no longer be justified at reporting date, it is reversed.
Property, plant and equipment, and depreciation
The carrying amount of property, plant and equipment consists of historical costs less depreciation and other deduc-
tions. Property, plant and equipment are depreciated using straight-line depreciation based on the expected useful life
of the asset.
The depreciation is based on the following expected useful lives:
• Machinery and equipment: 5 years
168
Notes to the statement of income
1.1 Revenue
EUR
Finland
Sweden
Total
1.2 Depreciation, amortisation and impairment losses
EUR
Depreciation
Total
1.3 Personnel
Average number of personnel during financial year
1.4 Other operating expenses
EUR
External services
ICT expenses
Non-statutory personnel expenses
Leases
Travel expenses
Marketing and communication
Other costs
Total
2021
469,436
47,658
517,094
2021
-136
-136
2020
924,670
-
924,670
2020
-3,469
-3,469
2021
4
2020
6
2021
-699,055
-23,453
-110,159
-6,813
-21,730
-177,298
-660,679
2020
-633,564
-29,014
-51,934
-14,560
-17,762
-423,979
-464,886
-1,699,187
-1,635,698
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Auditor’s fees
EUR
Audit and auditor’s statements based on laws and regulations
Audit, KPMG
Auditor’s statements based on laws and regulations, KPMG
Auditor’s fees total
1.5 Financial income and expenses
EUR
Other interest and financial income
From group companies
From others
Total
Other interest and financial expenses
To group companies
To others
Total
1.6 Appropriations
EUR
Increase/decrease in depreciation in excess of plan
Group contributions received
Appropriations total
169
Notes to the statement of the financial position
2.1 Property, plant and equipment
Machinery and equipment
EUR
Acquisition cost 1.1
Additions
Disposals
Acquisition cost 31.12
Accumulated depreciation and impairment losses 1.1
2020
Depreciation for the period
Accumulated depreciation and impairment losses 31.12
2021
2020
-72,740
-1,551
-74,291
2021
3,478
56
3,534
-15,888
-22,655
-38,542
-56,240
-
-56,240
-
236
236
-39,503
-1,233
-40,737
2021
-
2020
10,621
58,000,000
35,500,000
58,000,000
35,510,621
Carrying amount 1.1
Carrying amount 31.12
2.2 Investments
Holdings in group companies
EUR
Acquisition cost 1.1
Addition
Acquisition cost 31.12
Carrying amount 1.1
Carrying amount 31.12
2021
38,525
363
-
38,888
-38,525
-136
-38,661
-
227
2020
79,152
-
-40,627
38,525
-34,773
-3,752
-38,525
44,379
-
2021
2020
516,818,244
506,685,344
-
10,132,900
516,818,244
516,818,244
516,818,244
506,685,344
516,818,244
516,818,244
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Parent company ownerships:
Holdings in group companies
Terveystalo Healthcare Holding Oy
2021
100 %
2020
100 %
Unrestricted equity
Invested non-restricted equity reserve
EUR
At the beginning of the period
At the end of the period
2.3 Receivables from group companies
EUR
Trade receivables
Group account receivables
Prepayments and accrued income
Total
2.4 Changes in equity
Restricted equity
Share capital
EUR
At the beginning of the period
At the end of the period
Total restricted equity
170
2021
629,752
-
2020
1,146,591
6,203,314
Retained earnings
EUR
Retained earnings at the beginning of the period
Dividends paid
Acquisition of treasury shares
Retained earnings at the end of the period
64,708,591
42,209,060
Profit for the period
65,338,343
49,558,965
Total unrestricted equity
Total equity
2021
80,000
80,000
80,000
2020
80,000
80,000
80,000
Distributable equity
EUR
Invested non-restricted equity reserve
Retained earnings
Profit for the period
Total
Shares and share capital
2021
2020
493,503,962
493,503,962
493,503,962
493,503,962
2021
2020
49,610,731
40,202,206
-33,099,698
-16,549,849
-11,248,346
5,262,687
43,803,313
-
23,652,357
25,958,375
542,569,963
543,114,694
542,649,963
543,194,694
2021
2020
493,503,962
493,503,962
5,262,687
23,652,357
43,803,313
25,958,375
542,569,963
543,114,694
On 31 December 2021 the amount of shares is 128,036,531 of which 1,000,000 is held by Terveystalo PLC and 730,000
is held by EAM TTALO Holding Oy, company which is under the control of Terveystalo PLC.
On 28 October, 2021 the Board of Directors of Terveystalo Plc decided to launch a buyback program for Terveystalo’s
own shares based on the authorisation granted by Terveystalo’s Annual General Meeting on 25 March 2021.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
The repurchases of the shares began on 29 October, 2021 and ended on 28 December, 2021. During that period,
Terveystalo repurchased 1,000,000 of its own shares for an average price per share EUR 11.25. The shares were acqui-
red at the market price quoted at the time of acquisition in trading organised by Nasdaq Helsinki Ltd on a regulated
market.
The purpose of the share buyback program was to optimise the Company’s capital structure through reduction of
capital. The repurchase of own shares will reduce the Company’s unrestricted equity. The repurchased 1,000,000 shares
will be cancelled.
The company has single share class. The shares have no nominal value. All shares issued have been paid in full. Each
share has one vote at the Annual General Meeting and equal rights to dividend and other distribution of assets.
2.5.2 Liabilities to Group companies
EUR
Trade payables
Group account payables
Accruals and deferred income
Total
Terveystalo PLC’s share is listed on Nasdaq Helsinki Oy. The trading code is TTALO. Terveystalo PLC’s shares belong to
2.5.3 Accruals and deferred expenses
the book-entry system maintained by Euroclear Finland Oy.
Invested non restricted equity reserve
Invested non restricted equity reserve consists of other investments similar to equity and the subscription price of sha-
res to the extent that it has not been recorded in share capital according to specific resolution. According to the current
Finnish Companies Act, subscription price of new shares is recognised in the share capital, unless it has not been accor-
ding to Issuance Resolution fully or partly recognised in invested non-restricted equity reserve.
EUR
Personnel related accrued expenses
Income tax liability
Total
2.5 Liabilities
2.5.1 Current liabilities
EUR
Trade payables
Other liabilities to group companies
Other liabilities
Accruals
Total
171
Other notes
3. Collateral and other contingent liabilities
EUR
Suretyship
Guarantees
2021
274,515
2020
140,007
33,052,398
16,822,320
113,610
6,299,873
179,157
6,203,873
39,740,396
23,345,357
2021
263,318
2020
157,021
32,789,081
16,662,176
0
3,123
33,052,398
16,822,320
2021
847,935
5,451,938
2020
613,405
5,590,468
6,299,873
6,203,873
2021
2020
361,400,000
372,800,000
400,734
393,134
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Signatures to the financial statements and Board of Director’s report
Auditor’s note
Helsinki, 9 February 2022
A report on the audit has been issued today.
Kari Kauniskangas
Chairman of the Board of Directors
Dag Andersson
Member of the Board of Directors
Helsinki, 9 February 2022
Åse Aulie Michelet
Member of the Board of Directors
Niko Mokkila
Member of the Board of Directors
KPMG Oy Ab
Audit firm
Kristian Pullola
Member of the Board of Directors
Katri Viippola
Member of the Board of Directors
Henrik Holmbom
Authorised Public Accountant
Tomas von Rettig
Member of the Board of Directors
Ville Iho
President and CEO
172
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Auditor’s Report
To the Annual General Meeting of Terveystalo Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Terveystalo Plc (business identity code 2575979-3) for the year ended 31
December 2021. The financial statements comprise the consolidated statement of financial position, statement of
comprehensive income, statement of changes in equity, statement of cash flows and notes, including a summary of
significant accounting policies, as well as the parent company’s balance sheet, income statement, statement of cash
flows and notes.
We are independent of the parent company and of the group companies in accordance with the ethical require-
ments that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
To our best knowledge and understanding, the non-audit services that we have provided to the parent company
and group companies are in compliance with laws and regulations applicable in Finland regarding these services, and
we have not provided any prohibited non-audit services referred to in Article 5(1) of EU regulation 537/2014. The non-
audit services that we have provided have been disclosed in note 10 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In our opinion
Materiality
•
•
the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with International Financial Reporting Standards (IFRS) as adopted
by the EU.
the financial statements give a true and fair view of the parent company’s financial performance and financial
position in accordance with the laws and regulations governing the preparation of financial statements in
Finland and comply with statutory requirements.
The Scope of our audit was influenced by our application of materiality. The materiality is determined based on our
professional judgement and is used to determine the nature, timing and extent of our audit procedures and to evaluate
the effect of identified misstatements on the financial statements as a whole. The level of materiality we set is based
on our assessment of the magnitude of misstatements that, individually or in aggregate, could reasonably be expected
to have influence on the economic decisions of the users of the financial statements. We have also taken into account
misstatements that in our opinion are material for qualitative reasons for the users of the financial statements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Key Audit Matters
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The significant risks of material misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2)
are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of whether
there was evidence of management bias that represented a risk of material misstatement due to fraud.
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TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
The key
audit matter
How the matter was
addressed in the audit
The key
audit matter
How the matter was
addressed in the audit
Valuation of Goodwill and acquisition related Intangible Assets
(Accounting Principles for the Consolidated Financial Statements and the Notes 3, 15 and 16)
Revenue Recognition
(Accounting Principles for the Consolidated Financial Statements and the Note 4)
•
•
•
•
•
•
At the year-end 2021 the goodwill amounted to 849 M€
and accounted for 59 % of the consolidated total assets and
for 139 % of the consolidated equity. In 2021 goodwill has
increased with 67 M€, mainly relating to the acquisition of
Feelgood Svenska AB-Group.
Goodwill is tested for impairment at least annually. An impair-
ment is recognised when the recoverable amount is less than
the carrying value of the asset.
Terveystalo determines recoverable amounts for impairment
tests based on value in use. Preparation of cash flow projec-
tions underlying impairment tests requires management
judgments for profitability, long-term growth rate and
discount rate.
The acquisition-related recognised assets for customer
relationships and trademark and at the year-end 2021 were
in total 114 M€. Based on the preliminary Purchase Price
Allocation the Feelgood Svenska AB-Group acquisition
related recognised assets for customer relationships and
trademark totalled to 14 M€.
These assets have finite useful lives and are amortised on a
straight-line basis over their expected useful lives.
Given the high level of management judgment related to the
forecasts used and the significant carrying amounts involved,
valuation of goodwill and intangible assets is considered a
key audit matter.
•
•
•
•
We assessed the key assumptions used in
the impairment tests, such as profitabi-
lity, discount rate and long-term growth
rate. To analyse the forecasts, we applied
professional judgement in testing the key
assumptions and assessing the resulting
effects on the sensitivity analysis.
We involved KPMG valuation specialists
when assessing the appropriateness of
the assumptions used and the technical
accuracy of the calculations. This inclu-
ded a comparison to external market and
industry forecasts.
In respect of the acquisition-related intan-
gible assets we evaluated the recognition
and recoverability of these assets by
assessing the related calculations and the
underlying assumptions.
In addition, we considered the appropri-
ateness of the disclosures in respect of
goodwill, impairment testing and acquisi-
tion related intangible assets.
•
•
The consolidated revenue amounted to 1.155 M€ million and
consist of numerous types of individual service transactions
and service combinations generated to various customer and
payer groups in multiple business locations. Volumes of sales
transactions processed in the IT systems are substantial and
Terveystalo also uses a number of service pricing models and
client contract templates.
Given the variety and large number of sales transactions,
revenue recognition is considered a key audit matter.
•
•
•
•
•
As part of our audit procedures, we eva-
luated the sales-related internal control
environment, as well as tested the effecti-
veness of the key controls. We also perfor-
med substantive audit procedures, using
e.g. data-analytics.
We tested the effectiveness of the proces-
ses to enter and record sales transactions
as well as the sales pricing and invoicing
processes. We also tested inclusion of
relevant transactions in the appropriate
period in order to assess the accuracy of
revenue recognition.
We evaluated the IT systems relevant for
revenue recognition.
We tested controls over cash transactions
such as reconciliation routines.
We considered the appropriateness of the
disclosures presented for revenue in the
consolidated financial statements.
174
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Responsibilities of the Board of Directors and the Managing Director (CEO)
for the Financial Statements
The Board of Directors and the Managing Director (CEO) are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations
governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of
Directors and the Managing Director (CEO) are also responsible for such internal control as they determine is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Board of Directors and the Managing Director (CEO) are responsible for
assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, mat-
ters relating to going concern and using the going concern basis of accounting. The financial statements are prepared
using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group
or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain pro-
fessional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
175
•
•
•
•
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s (CEO) use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the parent company or the group to cease to continue
as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events so that the financial sta-
tements give a true and fair view.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activi-
ties within the group to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned Scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requi-
rements regarding independence, and communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the mat-
ter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Other Reporting Requirements
Information on our audit engagement
We have acted as auditors appointed by the Annual General Meeting uninterrupted for ten years. Terveystalo Plc
became a public interest entity on 13 October 2017.
Other Information
The Board of Directors and the Managing Director (CEO) are responsible for the other information. The other informa-
tion comprises the report of the Board of Directors and the information included in the Annual Report, but does not
include the financial statements and our auditor’s report thereon. We have obtained the report of the Board of Directors
prior to the date of this auditor’s report, and the Annual Report is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of
the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has
been prepared in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the finan-
cial statements and the report of the Board of Directors has been prepared in accordance with the applicable laws and
regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Helsinki, 9 February 2022
KPMG Oy Ab
Henrik Holmbom
Authorised Public Accountant, KHT
176
TerveystaloAnnual Report 2021 Year 2021
Responsibility
Corporate Governance
Financials
Information for shareholders
Annual general meeting
Annual General Meeting of Terveystalo Plc will be held on Thursday, 7 April, 2022 at 3.00 p.m. EEST. In order to prevent
the spread of the Covid-19 pandemic, the Annual General Meeting will be held without shareholders’ and their proxy
representatives’ presence at the meeting venue. Shareholders of the Company and their proxy representatives may
participate in the meeting and exercise shareholder rights only through voting in advance as well as by making counter-
proposals and presenting questions in advance. The notice to General Meeting of Shareholders, as well as the Board of
Directors’ proposals to the General Meeting have been published in stock exchange releases and on Terveystalo’s web-
site: https://www.terveystalo.com/Annual-General-Meeting-2022.
The right to attend
Each shareholder, who on the record date of the General Meeting, 28 March 2022, is registered in the Company’s sha-
reholders’ register maintained by Euroclear Finland Ltd, has the right to participate in the Annual General Meeting. A
shareholder whose shares are registered on his/her personal Finnish book-entry account is registered in the Company’s
shareholders’ register. Shareholders cannot participate in the meeting by any other means than voting in advance in the
manner instructed below as well as by making counterproposals and presenting questions in advance.
Registration and advance voting
Registration for the meeting and advance voting will begin on 25 February 2022 after the deadline for making counter-
proposals to be placed for a vote has ended. A shareholder who is registered in the Company’s shareholders’ register
and who wishes to participate in the Annual General Meeting by voting in advance, must register for the meeting and
vote in advance no later than by 31 March 2022 at 4.00 p.m. EEST by which time the registration and votes must be
received.
177
In connection with the registration, a shareholder is required to provide the requested information, such as name,
personal identification number or business ID, address and telephone number as well as the name and personal identi-
fication number of a possible proxy representative. The personal data given to Terveystalo Plc and Euroclear Finland Ltd
will be used only in connection with the General Meeting and with the processing of related registrations necessary.
Shareholders with a Finnish book-entry account may register and vote in advance on certain matters on the agenda
of the Annual General Meeting from 9.00 a.m. EET on 25 February 2022 until 4.00 p.m. EEST on 31 March 2022 by the
following manners:
a) through the Company's website at https://www.terveystalo.com/Annual-General-Meeting-2022.
The Finnish personal identity code or business ID and book-entry account number of the shareholder is needed for the
electronic voting in advance. When shareholders who are natural persons log into the service of Euroclear Finland Ltd
through the Company's website, they are directed to the strong electronic authentication. Strong electronic authenti-
cation can be conducted with online banking codes or a mobile certificate.
For shareholders that are legal persons, no strong electronic authentication is required. However, shareholders that
are legal persons must provide a book-entry number and other required information. If the shareholders that are legal
persons use suomi.fi electronic authorization, registration requires strong electronic identification, that can be con-
ducted with online banking codes or a mobile certificate, from the authorized representative.
b) by regular mail or email
A shareholder may send the advance voting form available on the Company’s website or corresponding information
to Euroclear Finland Ltd by regular mail to Euroclear Finland Oy, Yhtiökokous/Terveystalo Oyj, P.O. Box 1110, FI-00101
Helsinki or by email at yhtiokokous@euroclear.eu. If a shareholder participates in the meeting by sending the votes in
advance by regular mail or by email to Euroclear Finland Ltd, the delivery of the votes before ending of the registration
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
period and the advance voting shall constitute registration for the Annual General Meeting, if the above-mentio-
ned information required for the registration is delivered at the same time and the documents are received at the
latest by 31 March 2022 at 4.00 p.m. EEST.
Instructions relating to the advance voting may also be found on the Company's website https://www.terveys-
talo.com/Annual-General-Meeting-2022.
Proposal for the distribution of profits
On 31 December 2021, the parent company’s distributable funds totaled EUR 542.6 million, of which EUR 43.8
million was profit for the financial year. The Board of Directors proposes to the Annual General Meeting that a divi-
dend of EUR 0.28 per share (totaling approximately EUR 35.6 million with the current number of shares) be paid
based on the balance sheet adopted for the financial year ended 31 December 2021.
The dividend would be paid in two instalments as follows:
•
•
The first dividend instalment of EUR 0.14 per share would be paid to the shareholders who are registered
in the shareholders' register of the Company maintained by Euroclear Finland Ltd on the record date of the
first dividend instalment on 11 April 2022. The Board of Directors proposes that the first dividend instal-
ment would be paid on 20 April 2022.
The second dividend instalment of EUR 0.14 per share would be paid to shareholders who are registered in
the shareholders' register of the Company maintained by Euroclear Finland Ltd on the record date of the
second dividend instalment on 10 October 2022. The Board of Directors proposes that the second divi-
dend instalment would be paid on 19 October 2022. The Board of Directors also proposes that the Annual
General Meeting would authorize the Board of Directors to resolve, if necessary, on a new record date and
date of payment for the second dividend instalment should the rules of Euroclear Finland Ltd or statues
applicable to the Finnish book-entry system change or otherwise so require.
Basic share information
Listing: Nasdaq Helsinki Oy
Trading ticker: TTALO
ISIN code: FI4000252127
Sector: Health care Number of shares on December 31, 2021: 128,036,531
Financial reviews in 2022
In 2022, Terveystalo Plc will publish financial reports as follows:
Q1
Interim Report
January–March 2022 on
Thursday, 28 April 2022
H1
Half-Year Report
January–June 2022 on
Tuesday, 19 July 2022
Q3
Interim Report
January–September 2022 on
Thursday, 27 October 2022
The Financial reviews 2022 will be published at approximately 9:00 a.m. EET.
Financial reports are published in Finnish and English.
178
TerveystaloAnnual Report 2021
Year 2021
Responsibility
Corporate Governance
Financials
Silent period
Terveystalo observes a silent period of 30 days prior to the publication of interim reports and the year-end
result. During the silent period, Terveystalo does not comment on any business-related matters or meet with
any representatives of the capital markets.
Changes of address
Euroclear Finland Ltd maintains lists of Terveystalo Plc’s shares, shareholders, and options. Shareholders
who wish to make changes to their personal and contact information are kindly asked to contact their own
account operator directly. Terveystalo does not make such updates.
Evaluation of terveystalo as an investment
According to our knowledge, the following analysts follow Terveystalo Group regularly. The list is not necessa-
rily exhaustive. Terveystalo assumes no responsibility for any opinions of the analysts following the company.
Contact information
Customer service and appointment booking
+358 (0)30 6000
Exchange
+358 (0)30 63 311
The price of a call is 8.35 cents / call + 19.33 cents / min
for a mobile phone subscription and 8.35 cents / call
for a landline subscription + 3.20 cents / min.
Queuing is chargeable.
Carnegie Iiris Theman
+358 (0)9 618 71 241
iiris.theman@carnegie.fi
Nordea Sami Sarkamies
+358 9 5300 5176
sami.sarkamies@nordea.com
Danske Bank Panu Laitinmäki
+358 (0)10 2364 867
panu.laitinmaki@danskebank.com
OP Carlo Gylling
+358 10 252 4392
carlo.gylling@op.fi
Inderes Olli Vilppo
+358 (0)40 761 9380
olli.vilppo@inderes.fi
SEB Jutta Rahikainen
+358 9 616 28 713
jutta.rahikainen@seb.fi
Jefferies James Vane-Tempest
+44 207 029 8275
jvane-tempest@jefferies.com
KeplerCheuvreux, Jon Berggren
+ 46 8 723 51 76
jberggren@keplercheuvreux.com
179
Investor relations
Please email flagging notifications
to: investors@terveystalo.com
Vice president, communications, ir&cr
Kati Kaksonen, tel. +358 (0)10 345 2034
kati.kaksonen@terveystalo.com
Email addresses are of the format:
firstname.lastname(at)terveystalo.com
Press contacts
Expert interview requests for media:
Terveystalo media desk,
on weekdays from 9 am to 4 pm,
tel. +358 (0)50 358 1170
Terveystalo group services
and management
Terveystalo Piazza
Jaakonkatu 3 A, 6th floor
00100 Helsinki, Finland
TerveystaloAnnual Report 2021
TERVEYSTALO PLC
Jaakonkatu 3 A, 6th floor
00100 Helsinki, Finland
Exchange: 030 633 11
www.terveystalo.com
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