Annual Report
2023
Introduction
Terveystalo’s Annual Report 2023 consists of four sections:
Year 2023, Sustainability, Corporate Governance and Financials.
The Year 2023 section includes basic information on
Terveystalo’s business operations, market environment,
strategy and value creation. The Sustainability section describes
Terveystalo’s sustainability efforts and their results and is pre-
pared with reference to the GRI Standards.
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 information
for shareholders.
The Annual Report is available in Finnish and English.
Contents
Year 2023
3
4
5
7
8
9
Terveystalo in brief
Key figures
CEO's Review
Events in 2023
Trends influencing health care
Terveystalo's addressable markets
10 Operating environment
11
15
17
Strategy
Business areas
Financial targets and their achievement
18 Value creation model
20
21
Terveystalo as an investment
Information for shareholders
Sustainability
38
Terveystalo’s sustainability themes
39 Good health and well-being
51
63
76
83
84
Responsible work
Ethical business
Sustainable consumption and climate action
Reporting principles
Sustainability reporting principles
86 GRI Index
Corporate Governance
91
Corporate Governance Statement 2023
104 Terveystalo Remuneration Policy of Governing Bodies
110 Remuneration Report
24
25
26
27
30
37
Terveystalo and sustainability
Double materiality as the basis for sustainability efforts
Financials
Terveystalo's sustainability themes
Targets and achievements
Sustainability governance and management
Stakeholder engagement
115
Report of the Board of Directors
148 Financial statements
197 Auditor's Report
1
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Year 2023
3
4
5
7
8
9
10
11
15
17
18
20
21
Terveystalo in brief
Key figures
CEO's Review
Events in 2023
Trends influencing health care
Terveystalo's addressable markets
Operating environment
Strategy
Business areas
Financial targets and their achievement
Value creation model
Terveystalo as an investment
Information for shareholders
2
2
Terveystalo
Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
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 deliver data-driven integrated healthcare and ensure the
most effective preventive care and treatment. We develop
digital solutions that ensure a smooth everyday life for our
professionals, the best care outcomes for our customers and
help address the care gap in the industry.
Terveystalo is listed on the Helsinki Stock Exchange and
has a predominantly Finnish ownership.
Our values
Sweden
152
980
clinics offer occupational
health services
professionals
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 customers, 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 research. All of our deci-
sions are steered by care efficacy and
the well-being of our customers.
Reforming healthcare
We foster a culture of creativity and
continuous progress. We challenge
ourselves to build a more functional
healthcare for everyone and reform
the industry with an open-minded
use of technology.
3
Finland
Healthcare Service, Portfolio Businesses
clinics
377
14,500 professionals
1,286
Revenue
(EUR million)
1.8
million end customers of
occupational health
services in Finland
and Sweden
7.6
million customer
visits in Finland
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Key Figures
Revenue and Adjusted EBITA-%
Revenue breakdown
% of total revenue 2023
MEUR
1,500
1,250
1,000
750
500
250
0
%
30
25
20
15
10
5
0
1,259.1
1,286.4
1,154.6
1,030.7
986.4
2019
2020
2021
2022
2023
Revenue, MEUR
Adj. EBITA % of revenue
Total
1,286.4
MEUR
(1,259.1)
74% Healthcare Services
21% Portfolio Businesses
7% Sweden
-2% Others
Personnel and private practitioners
Terveystalo Group, EUR million
Revenue
2023
1,286.4
2022
1,259.1
2021
1,154.6
15,559
16,861
15,575
13,771
13,310
2019
2020
2021
2022
2023
Employed staff
Private practitioners
20,000
16,000
12,000
8,000
4,000
0
4
Adjusted EBITA*1)
Return on equity (ROE), %1)
Equity ratio, %1)
Earnings per share (EUR)
Gearing, % 1)
Net debt / adjusted EBITDA
(last 12 months)1)
Dividend per share
125.6
105.2
-7.6
36.5
-0.33
116.0
3.0
4.1
40.2
0.19
95.7
3.2
141.0
13.6
42.2
0.63
85.2
2.5
0.302)
0.28
0.28
Personnel (end of period)
9,824
10,933
9,805
Private practitioners (end of period)
6,092
5,928
5,754
#1
The preferred
employer in private
health care among
professionals7)
9.8%
Adjusted EBITA %
of revenue1)
85
NPS3), appointments
2.9
PEI index5)
3.0
Net debt/adjusted
EBITDA1)
19
eNPS4)
12.6%
Referral rate for brief mental
health psychotherapy6)
1) Adjusted earnings before impairment and amortization of intangible assets.
2) Board’s proposal.
3) Customer satisfaction, Net Promoter Score.
4) Employee promoter score.
5) The PEI index (Patient Enablement Instrument) is used to measure whether the patient feels that he is coping with his symptoms or
illness much better, better, as before, or worse after the reception. The scale is 1–4.
6) Proportion of relevant occupational health customers referred to brief psychotherapy.
7) Universum Professional Study 2023.
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
CEO Ville Iho:
We build smooth,
caring and effective
healthcare
In 2023, we made determined progress towards
our strategic and financial targets. Our customer
satisfaction was record high and we maintained
our position as the most attractive employer in
the industry while strengthening our profitability
in all our business segments.
Terveystalo had a strong year in 2023. Our revenue grew
by approximately 2 percent year-on-year to EUR 1,286
million. COVID-19 testing in the comparison period, expired
outsourcing contracts and the weakening of the Swedish
Krona, decreased revenue year-on-year. Without these
changes, the underlying organic growth was approximately
6 percent. Our profitability strengthened throughout the
year. Adjusted EBITA increased 19 percent to EUR 126 million,
representing 9.8 percent of revenue.
5
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
The profit improvement pro-
gram and efficiency measures
strengthened profitability in
all business segments
Our core business, Healthcare Services, had an excellent
year. The segment's revenue increased by approximately
6 percent to EUR 949 million. Revenue was boosted by a
more favourable customer and service mix and successful
pricing measures. The segment's profitability strengthened
thanks to the excellent progress of the profit improvement
program, improved operational efficiency, and a stronger
top line.
The profit improvement program and clear organ-
izational structure have brought excellent results and
created a solid foundation for the future. The program
exceeded the target set ahead of schedule and achieved
a run-rate profit improvement of EUR 60 million in 2023.
The adjusted EBITA impact for 2023 was EUR 37 million.
With the target exceeded, the estimated one-off costs of
the program will also increase slightly from the original
estimate.
The conditions for growth in Healthcare Services
remain favourable and demand is strong despite the
uncertain economic environment. Poor access to treatment
in public healthcare increases the demand for privately
produced services, notably through increasing health
insurance coverage.
Independent profitability improvement measures in
the portfolio businesses paid off, and the profitability of
the entire segment strengthened markedly year-on-year.
The segment's revenue decreased by approximately eight
percent due to the planned contraction of the outsourcing
agreement portfolio. The situation in the public pay
market is still pending due to the funding challenges of
the wellbeing services counties, and there are few new
tenders. It is not easy to see a substantial recovery in the
market before the second half of 2024.
Macroeconomic and exchange rate weakness
impacted the Sweden segment's revenue, which remained
at the 2022 level. The segment's profitability strengthened
clearly from the comparison period, with the exception
of the last quarter of the year. We reacted to the change
in the operating environment with a profit improvement
program launched at the end of 2023 with the aim of
strengthening the business area's structural profitability
by the end of 2025.
I am proud of the committed work of Terveystalo
employees. During 2023, we strengthened our profitability
significantly in all segments despite headwinds and with-
out compromising the high quality of our operations. Our
financial position is strong, and we are advancing with a
clear agenda towards our financial target of an adjusted
EBITA margin of 12 percent in 2025. Our earnings per share
excluding non-recurring items for 2023 were EUR 0.47.
The Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 0.30 be distributed.
We promote health
and human efficiency
As a company, we have a clear purpose: we fight for a
healthier life. We want to provide solutions to the biggest
sustainability challenges in healthcare and ensure timely
access to the most effective care while the population
ages and the need for care increases. The chronic short-
age of experts in the industry requires that the valuable
intellectual capital of healthcare professionals be utilised
in a sustainable way that creates value for society. These
themes are also at the core of our strategy. Investments
in data-driven integrated healthcare in line with our
strategy are paying off. We are at the forefront of our
industry in adopting technology that both streamlines
healthcare processes and improves customer value.
Our record-strong customer satisfaction shows that
Terveystalo employees can focus on the most important
thing: customer encounters. We have also maintained
our position as the preferred employer for professionals
in the field. Without committed professionals and strong
work communities, there is no Terveystalo. We invest
in the development of digital solutions that improve
the flow of work to enable professionals to focus on
meaningful matters. A healthy corporate culture and
humanely efficient leadership continue to support every-
day work. We will continue to be at the forefront of the
industry and build smooth, caring, and effective care for
our customers.
Meaningful Matters,
Ville Iho
6
We support the
UN Global Compact
Terveystalo has signed the UN Global
Compact initiative. We are committed
to continuing our work to integrate
the Global Compact's environmental,
human rights, labour, and anti-corrup-
tion principles into our operations,
culture, and value chain.
Ville Iho,
CEO of Terveystalo
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Events in 2023
Excellent progress of the profit improvement
program was clearly reflected in the results
During the fourth quarter of 2022, Terveystalo launched a profit improvement program,
which aims for an inflation-adjusted, annualized (run-rate) EBITA improvement of at least
EUR 50 million by the end of 2024. The measures under the program have focused on
growth and efficiency. We have strengthened growth by improving commercial oper-
ations, enhancing recruitment and retention of professionals and optimising resource
planning. Efficiency has been strengthened by improving customer and care paths,
optimising the physical network and procurement, improving productivity and simplify-
ing the operating model. The program exceeded its initial target ahead of schedule and
achieved a run-rate profit improvement of EUR 60 million in 2023. The adjusted EBITA
impact for 2023 was EUR 37 million.
Terveystalo is the number one
for healthcare professionals
For the fourth year in a row, health and pharmaceutical pro-
fessionals ranked Terveystalo as the most attractive place to
work in the health services sector. In the Universum's annual
Employer Image Survey, participants rated the employers
through questions on reputation, workplace culture, develop-
ment opportunities and salary. More than 1,500 health and
pharmaceutical professionals selected Terveystalo as the most
attractive place to work in the health services sector. The study
evaluates players from the public sector, private healthcare
companies and pharmaceutical companies.
Introduction of a ground-breaking Symptom
Assessment Tool and innovative clinical technology
to the occupational health product range
In our key customer segment of occupational health, we used technology
to improve care paths and brought new diagnostics to health promotion
with our partner Nightingale Health. Since June 2023, our new Symptom
Assessment Tool has directed our customers to the right specialist in the
right channel through AI-powered symptom mapping, streamlining both
access to care and the work of the professional. Nightingale's blood analy-
sis technology enables us to improve disease prevention by identifying the
risks of lifestyle diseases on a more individual basis.
7
Terveystalo established a sustainability-
linked financing framework and issued
a EUR 100 million bond
Terveystalo has established a sustainability-linked financing framework, within
which it can issue securities, such as bonds. Our sustainability-linked financing
framework combines sustainability with financing and helps investors under-
stand our core values and strong commitment to our sustainability targets.
We chose mental health treatment and customer satisfaction as key metrics
for the framework. In June, we successfully issued a EUR 100 million bond
linked to these sustainability targets. As a leading private healthcare provider,
we want to lead by example and reform healthcare in a sustainable way.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Trends influencing healthcare
Four key trends are strongly
influencing the healthcare
industry and creating growth
opportunities in our core markets.
Trend
Terveystalo’s response
Ageing
population
The Finnish population aged over 65 is expected to
grow by 170,000 over the next 10 years.1) Spending on
healthcare is on average three times higher compared to
the population under 65.2)
Demand for health care is growing, especially for services used by older
people. Terveystalo has the expertise and resources to prevent chronic
diseases, provide high-quality and effective care for older people, and
shorten the queues in the public sector.
Constrained
labour market
The shortage of professionals is the biggest challenge facing
the health sector. Finland is estimated to face a shortage of
around 3,000 doctors3) and 14,000 nurses4) by 2025.
Maintaining the position as the most attractive employer in the
industry and developing solutions that make professional work
more efficient are essential in a limited professional market.
Challenged
public health-
care systems
Finland’s Social and Healthcare Reform aims to curb the
healthcare cost growth. At the same time, the well-being
services counties are challenged by lengthening treat-
ment queues, tight budgets and labour shortages.
Publicly funded and privately provided healthcare in Finland is
expected to grow. Through smooth cooperation and division
of labour, the public and private sectors have the potential to
address the challenges of healthcare.
The trends are
supporting
growth
Digitalisation
& remote care
The benefits of digitalisation are essential to address the
challenges in healthcare. Digitalisation can improve the
access to services, quality, effectiveness and continuity
of care, increase self-service rates, improve cost-ef-
fectiveness, and streamline and enhance the work of
professionals.
Terveystalo has been developing its digital services over the long term.
More than half of Finns already use Terveystalo's digital services, with
more than 2.7 million users of the mobile app and web service. With
digital solutions, we make sure that our professionals want to work for
us and our customers get the best possible care. Our digital solutions
alleviate the shortage of professionals and the care gap and enable the
best medical and business outcomes as part of integrated care.
1) Statistics Finland Forecast 2023–33.
2) Statista, Kaiser Family Foundation health cost data, Terveystalo market and sales data. Calculations based on average spend based on age groups.
3) KT forecast in Ministry of Social and Healthcare publication "The situation and training needs of specialist doctors and dentists up to 2035".
4) Keva, Municipalities' labour force forecast 2030, Shortage for public sector.
8
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo’s addressable markets
Terveystalo operates in Finland in
occupational health, primary health
care, specialty care and well-being
services. In Sweden, Terveystalo is,
through its subsidiary Feelgood,
one of Sweden's leading occu-
pational health companies.
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
pension costs. This has effects on public health as well as
the total cost of health care. Terveystalo provides occupa-
tional health services in Finland to over 27,000 companies
and to a total of approximately 680,000 people through
its corporate customers.
Terveystalo’s addressable
market in Sweden
In Sweden, the total cost of health care is estimated at
around EUR 32.5 billion. About 82 percent is publicly
funded and provided. Privately provided health care
accounts for around 17 percent or EUR 5.7 billion, which
includes publicly funded and privately provided and
privately provided and funded health care. In Sweden, the
privately produced and financed market consists largely of
Terveystalo’s addressable
market in Finland
In Finland, the market of health care is estimated at around
EUR 15.8 billion. About 72 percent is publicly funded and
provided. Privately provided health care accounts for 28
percent, corresponding to EUR 4.5 billion, which includes
publicly funded and privately provided and privately pro-
vided and funded health care. The privately provided mar-
ket relevant to Terveystalo includes primary health care,
dental care, specialty care, occupational health care and
child welfare services. Terveystalo's share of this entire mar-
ket is about 25–30 percent. The privately provided market
is expected to grow by around 3–4 percent between 2022
and 2028. The rapid ageing of the population, the care
debt accumulated during the pandemic and the
challenges of public healthcare will increase the need
for privately provided care in the coming years.
Terveystalo’s addressable market
in Finland, 2017–2022E
EUR bn
CAGR 2.4%
4.0
1.1
4.0
1.1
4.2
1.2
4.2
1.3
4.3
1.2
4.5
1.3
2.1
2.1
2.1
2.0
2.1
2.3
0.8
0.9
0.9
0.9
0.9
0.9
Healthcare markets
EUR bn
33
27
6
16
11
11
5
5
2017
2018
2019
2020
2021
2022E
Finland
Sweden
Occupational healthcare
Private healthcare, consumer customers
Publicly funded private healthcare
Source: National Institute for Health and Welfare,
KELA, Statistics Finland
Private provision
Public provision
9
oral health services that are not offered by the public sec-
tor 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 in the Finnish
market.
The ageing of the population, lifestyle diseases,
lengthened care queues in the public sector, growing
awareness of health and well-being, and the increase in
voluntary health insurance are driving the growth of the
private healthcare market also in Sweden.
Terveystalo’s subsidiary Feelgood, which operates
in Sweden, offers services in occupational health and,
including; risk assessments, ergonomics and physiotherapy,
organisation and leadership, and harmful use. In addition,
the company provides private health care and well-being
services to its occupational care customers´ employees and
their families through the digital service Feelgood Plus.
The Swedish occupational health market is stable and
has a size of around 0.5 billion euros. Feelgood is Sweden's
third largest provider of occupational health services with
a market share of around 19 percent. The Swedish occu-
pational health system includes fewer services required
by law than the Finnish system. Occupational health
and private health services are also in different systems.
However, employers are interested in offering more
extensive occupational healthcare in order to reduce sick
leave and extend working careers. Terveystalo's subsidiary
Feelgood serves approximately 8,000 corporate customers
in Sweden, with a total of approximately 1.1 million occupa-
tional health end-customers.
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Operating environment
Target markets
In 2023, demand for healthcare services in Finland con-
tinued to be strong. Seasonal variations in demand and
booking rates normalised compared to the exceptional
comparison period. Demand for basic laboratory services
largely normalised to pre-pandemic levels. As the
pandemic receded, customer visits were focused on brick-
and-mortar as the demand for COVID-19 testing, digital
services, and remote appointments declined materially
year-on-year.
Demand from corporate and insurance customers
remained strong. In the public-pay market, staffing
services saw continued strong demand. In the second half
of the year, demand for out-of-pocket dental care services
and massage services was dampened by weaker con-
sumer confidence and purchasing power. The public-pay
private-provision market is yet to see a broader increase
in demand and new, smaller tenders have been limited to
digital services.
In Sweden, increased economic uncertainty during the
second half of the year affected the demand for organiza-
tion and leadership consultation and harmful use rehabili-
tation services, which are more sensitive to macroeconomic
changes.
Terveystalo continued to invest in the recruitment of
professionals throughout the year and was successful in
steadily increasing supply. To strengthen supply, develop-
ment efforts were increasingly shifted towards solutions
that enhance the work and productivity of professionals.
10
A tight labour market and inflation created increasing
pressure on operating costs, including wages, throughout
2023. The overall employment remains decent. However,
significant changes could affect the demand for occupa-
tional health services in Finland.
The long-term growth prospects for Terveystalo’s
addressable markets in Finland and Sweden are solid; the
underlying demand is strong, and megatrends, such as the
ageing population, digitalisation of healthcare, and length-
ening queues in public healthcare, support growth in the
future. As the most preferred employer, Terveystalo is
well-positioned to drive growth going forward, supported
by its strong market position.
nurses. In 2022, salary increases were 2.0% from 1 October
2022 onwards, and for 2023, the increases were in total
2.95 percent and came into effect on 1 November 2023. In
addition, the agreed, one-time instalment of 450 euros
was paid in June 2023. In other professions, wage inflation
is also present. The large majority of the physicians who
work in Terveystalo are private practitioners (approxi-
mately 96 percent), who are not in employment with the
company.
Terveystalo implements commercial initiatives to miti-
gate the effect of inflation as a part of the profit improve-
ment program. The successful pricing actions impact both
2023 and 2024 financials.
The impacts of inflation
Despite the stabilised inflation, some procurement catego-
ries had continued cost pressure. Terveystalo has actively
negotiated with its suppliers to limit the impact of inflation
on costs. Electricity prices levelled off from the comparison
period.
One of the key areas of the profit improvement
program is to fight inflation and reduce costs in selected
product and service categories.
A tight labour market, and continued inflation put
upward pressure on wages in healthcare services. In the
private healthcare sector, a two-year collective agreement
is binding for the duration of 1 May 2022 - 30 April 2024,
which applies to Terveystalo's largest group of employees,
The treatment
queues and regulatory
environment in Finland
The contraction of non-urgent care during COVID-19
restrictions resulted in a significant treatment gap for other
illnesses. Treatment queues for specialised care have con-
tinued to grow. In August 2023, close to 178,000 patients
were waiting for access to public provision of non-urgent
specialised medical care according to Finnish Institute for
Health and Welfare (THL). Of those patients, more than
30,500 (17.2 percent) had been waiting for more than half
a year to get treatment. In August 2023, the number of
patients who had been waiting for more than half a year
for treatment had grown by 9,400 from April 2023.
The responsibility for the organisation of social and
healthcare services was transferred to the 21 wellbeing
services counties and the City of Helsinki at the beginning
of 2023. The wellbeing services county councils decide on
the service strategies, principles of the service network,
service level of emergency services, budget and financial
planning of the well-being services county, and appoint-
ment of members to governing bodies. The wellbeing
services counties have launched smaller tenders such as
digital service solutions, but no decisions on larger tenders
from the private sector have so far been made.
The government program published in the summer
of 2023 aims to increase cooperation between private and
public healthcare and to improve the effectiveness and
cost-efficiency of the healthcare system. As a first concrete
measure, the government decided to raise Kela reimburse-
ments. The new Kela reimbursements came into effect on
1 January 2024 (https://www.kela.fi/medical-expenses). In
total, Kela compensations will be increased by EUR 500
million between 2024 and 2027, of which the state's finan-
cial contribution is EUR 335 million. The aim of increasing
the reimbursements is to shorten the treatment queues in
primary care. The measures of the government program
are estimated to support the growth of demand for pri-
vate service production and will bring new opportunities
for the implementation of publicly funded and privately
provided services.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
O U R P U R P O S E
We fight for a healthier life
by focusing on the meaningful matters.
Our strategy is to deliver integrated,
data-driven outpatient and preventive
care with best-in-class care outcomes and
people experience.
We target industry-leading profitability
and net positive societal impact.
Financial targets:
>5% annual revenue growth
>12% Adjusted EBITA-margin in 2025
<3.5 Net Debt/EBITDA
>40% pay-out ratio
11
11
Terveystalo
Annual Report 2023
Human being
at the centre
Functional
and humane
integrated
care
Reforming
healthcare
Steered by
medical science
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Strategy
Integrated care
We produce data-driven integrated
healthcare and ensure the most effective
prevention and care. Integrated care
enables us to combine various aspects
of healthcare into an effective whole.
Integrated care means that we:
• bring together health professionals and customers
• use integrated data from different sources to support
care and target prevention
• do effective prevention and aim for improvement
of the overall well-being of the customer
• offer fast access to care
• link the different stages of care into seamless
multi-professional and multi-channel care paths
• guide the customer and patient actively and
support continuity of care
• measure the benefits to the customer and the
effectiveness of the treatment
12
Achievements 2023:
Benefits of integrated care
• Medicine-based care guidance was further developed
through harmonised care paths. There are now approx-
imately 70 data-driven care paths in Terveystalo.
• As a result of developments in the continuum of care,
the uptake of diagnostics and referrals for follow-up
care increased to near pre-pandemic levels.
• All of Terveystalo’s occupational health customers
were given access to the Symptom Assessment Tool,
which is a CE-marked medical device that streamlines
the use of occupational health services by directing
the customer to the right specialist and the right
channel by assessing their symptoms with the help
of artificial intelligence.
• Nightingale’s blood analysis technology was inte-
grated into occupational health check-ups. The
technology detects susceptibility to lifestyle diseases
among the working-age population, thereby enabling
more effective prevention of diseases.
• Terveystalo aims to improve access to effective care
for depression and anxiety disorders. In 2023, this
objective was also included in Terveystalo’s sustai-
nability-linked financing framework.
• Selected specialties, such as the Children's Terveystalo,
orthopedics, sleep medicine, and mental wellbeing
services, grew strongly.
For patients: Effective care and
seamless customer experience
For insurance companies: Effective medical
outcomes and better cost management
For professionals: Smooth patient work –
possibility to focus on what matters most
For Terveystalo: Lower costs, maximum
value capture and better outcomes
For employers: Less sick leave, data-driven
prevention and healthy work communities
For society: Reduced healthcare spending
and better overall health
85
Customer
Net Promoter
Score, NPS1)
2.9
Treatment effectiveness
index, PEI2)
12.6
Referral rate for
brief mental health
psychotherapy3)
1) Net Promoter Score (NPS) for appointments.
2) The Patient Enablement Instrument (PEI) measures whether the customer feels they are coping with their symptoms or illness much better, better,
as before or worse after the appointment. The scale is from 1–4.
3) Percentage of relevant occupational health patients with diagnosis of depression or anxiety who have been referred for brief psychotherapy.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Strategy
The best workplace for professionals
At Terveystalo, our mission is to fight
for a healthier life. We are building a
humanely efficient workplace where
professionals can focus on what matters
the most - meeting the customer. We
want to ensure that professionals want
to work for us, are committed to us, and
can focus on what matters the most.
We aim to be the industry’s best and
most attractive employer.
The priorities of our
people strategy:
• Culture and leadership: We are strengthening a
culture of human efficiency, where people feel
comfortable, and work is smooth and productive.
• Professional growth: We strengthen career paths
from traineeship to retirement. We offer top-class
training in selected areas.
• Meaningful compensation: We develop meaningful
and effective reward and remuneration models to
strengthen professional performance, commitment,
and the attractiveness of Terveystalo.
• Focusing on what matters: We enable professionals to
focus on what matters - the customer - by developing
structures, tools, and processes to ensure a smooth
workflow.
• Proactive recruitment of professionals: We strengthen
early career recruitment and further develop our recruit-
ment and induction policies.
Achievements 2023:
• For the fourth year in a row, health and pharmaceutical
professionals selected Terveystalo the most attractive
place to work in the health services sector.
• We continued to invest strongly in recruitment of
professionals throughout the year and were successful
in steadily increasing supply. To strengthen supply,
we increasingly shifted development efforts towards
solutions that facilitate and enhance the work of
professionals.
• We also developed leadership skills and local work com-
munities. The professional survey in autumn showed that
these areas were perceived more positively than before.
• During 2023, Terveystalo simplified its operating
model and organisational structure as part of the profit
improvement program. These changes affected the
eNPS score (eNPS 28 in 2022).
13
19
eNPS, Employee Net
Promoter Score
15,500
professionals
2)
4.2/5
Leadership
Index score
#1
Most popular
employer in private
healthcare among
professionals¹)
1) Universum Professional Survey 2023.
2) Terveystalo Professional Survey,
Leadership Index.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Strategy
Digital solutions
We develop solutions that ensure a
smooth daily life for our professionals,
the best care outcomes, and preventive
care for our customers, and help solve
the care gap in the industry. Our
digital solutions are a key component
of effective integrated care.
Strategic priorities:
• We use data to identify and prevent health risks and
choose the right treatment.
• We are increasing overall capacity through digital
solutions to enable fast access to care in an optimised,
multi-channel production model.
• We streamline the professional's work by developing
tools and processes, multidisciplinary cooperation,
and productivity.
• We support continuity of care by guiding the customer
and professional throughout the care path from the
first contact to the end of the care path.
• We systematically measure the effectiveness of care
and develop our actions to improve outcomes.
14
Digital solutions enable the best medical and business outcomes as part of integrated care
Capitalise
population- and
organisation-
level data for
preventive care
Optimise access to care and
supply-demand balance
Strive for professional excellence and
quality
Digital appointment*
Improve care continuity and effectiveness
Symptoms
Care need
assessment
Specialist
Diagnostics
Surgery
Therapy
Outcomes
Modular, scalable, and adaptable architecture
Data & AI
Security & compliance
Physical appointment*
Commercial Excellence to capture the full business value
Achievements 2023:
• All of Terveystalo’s occupational health customers were
given access to the Symptom Assessment tool, which is
a CE-marked medical device that streamlines the use of
occupational health services by directing the customer
to the right specialist and the right channel by assessing
their symptoms with the help of artificial intelligence.
• On the basic IT systems front, we developed our
commercial capabilities, including in the area of
occupational health contracts.
• We digitised several care paths so that our customers
receive continuous care related to their treatment
through digital channels.
• We extended our digital service offering to the wellbe-
ing services counties.
• We made our professionals' everyday lives easier with
the Terveystalo Pro app, which allows them to manage
their work, as well as their tasks outside the office.
* General practitioner and occupational health physician
3.7 M
million visits to digital
services per month
92%
customer self-
service rate
2.7 M
million registered users
of digital services
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Business areas
Healthcare services
Healthcare Services business area offers
customers in Finland integrated care
paths from preventive occupational
health services to primary care services
and different fields of specialised care,
diagnostics, and day surgery. In
Healthcare Services, Terveystalo aims for
industry-leading profitability and
the best care outcomes.
Strategic priorities:
• We deliver integrated, data-driven outpatient and
preventive care with best-in-class care outcomes.
• We streamline the work of professionals and improve
efficiency, productivity, and continuity of care with
digital solutions.
• We strengthen the effectiveness
of care with our data-driven care paths.
• We improve the recruitment and retention of profes-
sionals. We free up professionals' time for patient-facing
work with tools and processes that improve productivity
and make the work smoother.
• We strengthen our commercial capabilities, such as
our pricing expertise.
Achievements 2023:
• Revenue increased due to improved sales mix and
successful pricing actions. Consumer customers and
corporate customers' share of revenue increased and
visits to basic laboratory services increased from the
comparison period.
• Profitability increased clearly despite the ending of
COVID-19 testing. Successful pricing actions and the
progress of the profit improvement program supported
profitability.
• The profit improvement program progressed well, and
the initial target was exceeded ahead of schedule. The
program has consisted, among others, of simplifying
the operating model, strengthening recruitment of pro-
fessionals, optimising procurement, the physical service
network, resource planning and customer steering.
• Customer satisfaction reached a record high level with
an NPS of 85 for appointments.
• As a result of developments in the continuum of care,
the uptake of diagnostics, and referrals for follow-up
care increased to near pre-pandemic levels.
• We used technology to develop care paths and, with
our partner Nightingale Health, brought new diagnos-
tics to preventive care. In addition, our new Symptom
Assessment Tool guides our customers to the right spe-
cialist in the right channel by assessing their symptoms
with the help of artificial intelligence, streamlining both
access to care and the work of the professional.
15
Target: Industry-leading profitability
and best care outcomes
948.6
Revenue,
EUR, million
109.0
Adj. EBITA,
EUR, million
11.5%
Adj. EBITA-margin, %
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Business areas
Portfolio business
The Portfolio Businesses segment
consists of businesses that aim for
independent value creation utilising
Terveystalo’s capabilities according
to their needs. Portfolio Businesses
include public sector outsourcing,
staffing services, and dental care, as
well as other businesses such as public
sector digital services, rehabilitation,
child welfare, and massage services,
as well as interpretation services.
Strategic priorities:
• Outsourcing services: We will offer new value-added
services to the wellbeing services counties and care-
fully select long-term partnerships.
• Staffing services: We are a partner of the well-being
services counties in planning medical resources, with
a particular focus on integrated value-added services.
• Dental care: We aim to strengthen profitability in a
consolidating market.
• Public digital health: We lead the market by pro-
viding profitable solutions that combine integrated
health services and digital tools.
• Other services: We seek stable, profitable growth
and value creation.
16
Achievements 2023:
• Profitability clearly improved year-on-year due to
the termination of low-margin outsourcing contracts,
successful pricing actions, and cost cuts. Revenue
decreased year-on-year due to terminated outsourcing
contracts.
• The wellbeing services county of South Ostrobothnia
selected Terveystalo as its digital platform provider.
Terveystalo develops cost-efficient digital solutions
and works with wellbeing services counties to promote
more effective social welfare and healthcare services in
an impactful and cost-efficient manner.
• The wellbeing services county of Central Finland chose
Terveystalo as the service provider for the Huhtasuo
Health Centre.
Target: Independent value
creation in each business area
8.7
Adj. EBITA,
EUR, million
267.2
Revenue, EUR, million
3.3%
Adj. EBITA-margin, %
Sweden
The Sweden segment consists of
Feelgood subsidiaries’ operations
in Sweden, which are focused on
occupational health and consultation
for organisational management and
harmful use. In Sweden, Terveystalo
aims for profitable growth in the
medium and long-term.
Strategic priorities:
Over the next two years, we will focus on profitable
growth and expand into health services.
• Profitable growth in occupational health: We
improve the profitability of existing businesses and
support growth through small acquisitions.
• Expanding into healthcare services: We strengthen
profitability by expanding into healthcare services
and integrated care paths, such as mental health
services or insurance-funded specialist care.
• Digital development synergies: We are introducing
the first Terveystalo digital tools to Sweden to
increase the efficiency of remote services.
Achievements 2023:
• Without the currency effect of the weakening of the
Swedish krona, revenue grew by 7.2 percent. A profit
improvement program was launched targeting a
structural change in the profitability in 2025.
• Feelgood made two complementary acquisitions
by acquiring Växjö Hälsoforum and Quality Care's
occupational health operations.
• Stefan Kullgren started as the Executive Vice President
of the Swedish Business Area and CEO of Feelgood.
Target: Profitable growth
3.7
Adj. EBITA,
EUR, million
92.5
Revenue, EUR, million
4.0%
Adj. EBITA-margin, %
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Financial targets and their achievement
Growth
Target
Annual revenue growth of at least 5 percent
through organic growth and acquisitions.
Profitability
Target
Adjusted EBITA margin of at least
12 percent in 2025.
Capital structure
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.
Dividends
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.
Outcome
2.2%
Outcome
9.8%
Outcome
3.0
Terveystalo’s revenue grew by 2.2%
to EUR 1,286.4 million.
Terveystalo’s EBITA grew by 19.4% to EUR 125.6 million,
representing 9.8% of revenue.
Net debt/adjusted EBITDA was 3.0
at the end of 2023.
Outcome
190.9%
The Board of Directors proposes that a dividend of
EUR 0.30 per share be paid for the financial year 2023.
This represents 190.9% of the net result and 63.8% of
the adjusted net result for the financial period.
Revenue
Target of at least 5% growth annually
Adjusted EBITA and EBITA-%
Target 12% of revenue in 2025
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.
1,259.1
1,286.4
1,154.6
1,030.7
986.4
2019
2020
2021
2022
2023
MEUR
1,500
1,250
1,000
750
500
250
0
17
MEUR
150
125
100
75
50
25
0
141.0
115.1
101.9
105.2
125.6
2019
2020
2021
2022
2023
Adjusted EBITA, MEUR
Adjusted EBITA, % of revenue
%
30
25
20
15
10
5
0
5
4
3
2
1
0
3.1
3.0
3.2
3.0
2.5
2019
2020
2021
2022
2023
EUR
0.5
0.4
0.3
0.2
0.1
0
%
200
160
120
80
40
0
0.26
0.28
0.28
0.30
0.13
2019
2020
2021
2022
2023*
Dividend/share, EUR
% of net profit
*Proposed dividend in total
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Value creation model
The foundation for value creation
Activities
People & culture
• Competent and committed personnel:
15,500 professionals, of whom more than
6,000 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 privacy and information security
• Stakeholder relations, stakeholder trust and
close cooperation with the public authorities,
industry organisations, insurance and pension
companies and sickness funds
18
Infrastructure
• 24/7 digital services
• 377 clinics in Finland
• 18 hospital units
• 31 dental clinics
• 80 Rela-massage units and 11 massage schools in
Finland
• 152 locations in Sweden offering occupational
health services, of which 91 are own clinics
Financial capital
• Net debt EUR 598 (567) million
• Equity EUR 515 (592) million
• Investments excluding M&A EUR 40 (60) million
Purchased materials and services
• Purchased materials and services
EUR 536 (526) million
• Electricity 18,252 (17,170) MWh, of which
70 (72) percent was green electricity
Our Purpose
Our purpose is to fight for a healthier life.
Our strategy
Our strategy is to deliver integrated, data-driven
outpatient and preventive care with best-in-class
care outcomes and people experience
We offer services to three customer groups:
1. Corporate customers
2. Consumer customers
3. Public sector
• Occupational health services
• GP and specialist services
• Diagnostics
• Surgeries and operations
• Outsourcing and staffing services
• Dental care
• Wellbeing and rehabilitation services
• Child welfare services
Approx.
Approx.
24/7
digital services
7.6 M
customer visits in
Finland in 2023
1.3 M
remote appointments
in Finland in 2023
TerveystaloAnnual Report 2023
Year 2023
Sustainability
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 85 (83)
Smooth care paths and digital services speed up
access to care.
• T3 (the third available non-urgent appointment
with a physician) at our clinics was 1.8 (1.9).
• Help is available via the chat function in seconds.
Sickness absences and the costs of work left undone
are reduced.
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 10.0 (12.0).
Biobank samples are used in clinical research to investi-
gate the causes of illnesses and develop treatments.
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 19 (28)
• Personnel sickness absence rate in Finland 4.0
(5.2), below the national average
• Accident frequency in Finland 20 (18)
• Studies show that Terveystalo is the most
attractive employer in its industry among
professionals.
We create value for our shareholders.
• Revenue growth 2 percent
• Adjusted EBITA growth 19 percent
• Earnings per share, excluding non-recurring
items, EUR 0.47
• Stable dividend distribution: dividend proposal
EUR 0.30 (0.28) per share
We are a significant employer and taxpayer.
• Wages and salaries paid EUR 375 (382) million
• Tax footprint EUR 212 (236) million
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 56 percent from year 2018.
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 was 100 (100) percent
• Waste recycling rate was 68 (67) percent
Our digital services enable us to simultaneously improve
service availability and reduce our customers’ travel times
and the emissions generated by travel.
19
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo as an investment
Terveystalo has a solid base for
increasing shareholder value.
Key value drivers
In terms of revenue and network, Terveystalo is the largest
private healthcare provider in Finland and one of the
leading players in occupational health in the Nordics. We
operate in a growing market, supported by healthcare
trends such as an ageing population, challenges in public
healthcare, increasing prevalence of chronic diseases and
digitalisation of healthcare. We leverage our core com-
petencies in the market, the most important of which
are advanced digital solutions, an extensive network
of clinics and expertise in integrated care.
Terveystalo is a pioneer in data-driven integrated
care, delivering the best care outcomes and excellent
customer and professional experience. Our digital
solutions alleviate the shortage of professionals and
care gap and enable the best medical and business
outcomes as part of integrated care.
Terveystalo is proven to be the most attractive
workplace in the industry for healthcare professionals.
In a constrained professional market, it is essential to
maintain the position as the most attractive employer
and to develop solutions that make professionals'
work more efficient.
Terveystalo's balance sheet is strong and the stable
cash flow generation allows Terveystalo to develop and
grow its business, as well as pay a steady dividend.
20
1
A leader in an inflation-resilient,
growing and profitable market,
supported by structural megatrends
2
A pioneer in outcome-based
integrated care
3
Leading digital capabilities
for omnichannel healthcare
provision
4
Preferred place to work in a
supply-constrained market
5
Strong cash flow and
stable balance sheet
2023–2024
2025–
Focus on strengthening
profitability at market growth
Opportunity to accelerate
profitable growth
Profit improvement
on track towards
industry-leading 12%
adjusted EBITA
margin in 2025
Strong cash flow
enables attractive
dividends and growth
investments
Target of annual
revenue growth
of at least 5%
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Information for shareholders
Annual General Meeting 2024
Registration and advance voting
Notice is given to the shareholders of Terveystalo Plc (the
“Company”) to participate in the Annual General Meeting
to be held on Tuesday, 26 March 2024 at 3:00 p.m. (EET)
in Scandic Grand Marina Congress Center at the address
Katajanokanlaituri 6, 00160 Helsinki, Finland. The reception
of participants and the distribution of voting tickets will
commence at the meeting venue at 2:00 p.m. (EET).
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 website: https://www.terveystalo.com/
Annual-General-Meeting-2024.
The right to attend
Each shareholder, who on the record date of the General
Meeting, 14 March 2024, is entered in the Company’s
shareholders’ register maintained by Euroclear Finland Oy,
has the right to participate in the Annual General Meeting.
A shareholder whose shares are registered on his/her per-
sonal Finnish book-entry account or equity savings account
is registered in the Company’s shareholders’ register.
Shareholders may also participate in the Annual General
Meeting by way of proxy representation or by voting in
advance.
Registration for the meeting and advance voting will
begin on 23 February 2024 at 9:00 a.m. (EET) and a
shareholder who is registered in the Company’s share-
holders’ register and who wishes to participate in the
Annual General Meeting must register for the meeting
and, if applicable, vote in advance no later than by 19
March 2024 at 4:00 p.m. (EET) by which time the regis-
tration and possible advance votes must be received by
the Company or Innovatics Oy.
Shareholders with a Finnish book-entry account
may register from 9:00 a.m. (EET) on 23 February 2024
until 4:00 p.m. (EET) on 19 March 2024 by the following
manners:
a) through the Company's website at https://www.
terveystalo.com/Annual-General-Meeting-2024
Electronic registration through the website requires
strong electronic authentication of the shareholder or
the shareholder’s proxy representative or legal repre-
sentative with a Finnish, Swedish or Danish bank ID or
mobile certificate.
b) by regular mail or email
A shareholder may send a notice of attendance
to Innovatics Oy by email addressed to agm@inno-
vatics.fi or by regular mail addressed to Innovatics Oy,
21
Yhtiökokous/Terveystalo Oyj, Ratamestarinkatu 13 A,
00520 Helsinki, Finland. Shareholder registering by mail
or e-mail shall submit the registration and advance vot-
ing form available on the Company's website at https://
www.terveystalo.com/Annual-General-Meeting-2024 or
equivalent information to Innovatics Oy.
In connection with the registration, a shareholder
is required to provide the requested information, such
as his/her name, personal identification number/date
of birth or business ID, address, telephone number and
e-mail address as well as the name and date of birth of
a possible authorized proxy representative, legal rep-
resentative or assistant. The personal data given to the
Company and Innovatics Oy will be used only in connec-
tion with the General Meeting and with the processing
of related registrations.
A shareholder, their possible authorized proxy
representative, legal representative, or assistant must
be able to prove their identity and/or right of repre-
sentation at the Annual General Meeting.
Further information on registration and advance
voting is available by telephone during the registration
period for the Annual General Meeting by calling
Innovatics Oy at +358 10 2818 909 on weekdays
from 9:00 a.m. to 12:00 noon and from 1:00 p.m.
to 4:00 p.m. (EET).
Proposal for the
distribution of profits
The parent company’s distributable funds totalled EUR
535.9 (530.8) million, of which EUR 40,5 (23,7) million is the
result for the financial year. The Board of Directors proposes
to the Annual General Meeting that a total dividend of
EUR 0.30 per share (which corresponds to a total of approx-
imately EUR 38 million with the current number of shares in
the Company) be paid based on the balance sheet adopted
for the financial year ended 31 December 2023. The dividend
would be paid in two instalments as follows:
• The first dividend instalment of EUR 0.15 per share
would be paid to shareholders who are entered in the
shareholders’ register of the Company maintained by
Euroclear Finland Oy on the record date of the first divi-
dend instalment 28 March 2024. The Board of Directors
proposes that the first dividend instalment would be
paid on 8 April 2024.
• The second dividend instalment of EUR 0.15 per share
would be paid to shareholders who are entered in the
shareholders’ register of the Company maintained by
Euroclear Finland Oy on the record date of the second
dividend instalment 9 October 2024. The Board of
Directors proposes that the second dividend instalment
would be paid on 16 October 2024. 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 Oy or statutes applicable to the Finnish
book-entry system change or otherwise so require.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Basic share information
Silent period
Listing: Nasdaq Helsinki Oy
Trading ticker: TTALO
ISIN code: FI4000252127
Sector: Healthcare
Number of shares on 31 December 2023: 127,036,531
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.
Evaluation of Terveystalo
as an investment
According to our knowledge, the following analysts
follow Terveystalo Group regularly. The list is not neces-
sarily exhaustive. Terveystalo assumes no responsibility
for any opinions of the analysts following the company.
Financial reporting in 2024
In 2024, Terveystalo will publish financial
information as follows:
Interim Report January–March 2024: 26 April 2024
Half-yearly Report January–June 2024: 17 July 2024
Interim Report January–September 2024: 25 October 2024
The Financial reports will be published at approximately
9:00 a.m. EET. Financial reports are published in Finnish
and English.
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 con-
tact information are kindly asked to contact their own
account operator directly. Terveystalo does not make
such updates.
Carnegie
Iiris Theman
+358 (0)9 618 71 241
iiris.theman@carnegie.fi
Nordea
Joni Sandvall
+358 9 5300 5484
joni.sandvall@nordea.com
Danske Bank
Sami Sarkamies
+358 10 546 2169
sami.sarkamies@danskebank.com
Inderes
Roni Peuranheimo
+358 50 561 0455
roni.peuranheimo@inderes.fi
OP
Carlo Gylling
+358 10 252 4392
carlo.gylling@op.fi
SEB
Anssi Raussi
+358 9 616 28 687
anssi.raussi@seb.fi
KeplerCheuvreux
Jon Berggren
+46 8 723 51 76
jberggren@keplercheuvreux.com
Jefferies
James Vane-Tempest
+44 207 029 8275
jvane-tempest@jefferies.com
Q1
Interim Report
1.1.–31.3.2024
26.4.2024
H1
Half-yearly Report
1.1.–30.6.2024
17.7.2024
Q3
Interim Report
1.1.–30.9.2024
25.10.2024
22
Contact information
Investor relations
Please email flagging notifications to:
investors@terveystalo.com
Vice president, Investor Relations,
Sustainability & Communications
Kati Kaksonen
+358 10 345 2034
kati.kaksonen@terveystalo.com
Terveystalo Group services and management
Terveystalo Piazza
Jaakonkatu 3 A, 6th floor
00100 Helsinki, Finland
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Sustainability
Terveystalo and sustainability
25 Double materiality as the basis for sustainability efforts
26 Terveystalo's sustainability themes
27 Targets and achievements
30
Sustainability governance and management
37 Stakeholder engagement
Terveystalo's sustainability themes
Responsible work
39 Good health and well-being
51
63 Ethical business
76 Sustainable consumption and climate action
Reporting principles
84 Sustainability reporting principles
86 GRI Index
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Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo and
sustainability
Sustainability is a core value for Terveystalo. We promote
the health and well-being of our customers and build
humanely efficient work communities. We have a positive
impact on society and promote ethical business practices
in our value chain. We also minimise our environmental
impacts in all of our operations. Our sustainability efforts
are guided by Terveystalo’s Code of Conduct, our common
values and strategic goals, as well as the material themes
of sustainability we have identified. We regularly monitor
the results of our sustainability efforts.
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Corporate Governance
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Double materiality as the
basis for sustainability efforts
Terveystalo has defined its material
sustainability topics in collaboration
with its key stakeholders. In addition
to continuous stakeholder dialogue, the
double materiality assessment conducted
in 2023 serves as the foundation for
Terveystalo’s sustainability efforts and
the specification of the topics and
information included in sustainability
reporting.
Double materiality
assessment in 2023
In spring 2023, Terveystalo carried out its first double
materiality assessment in accordance with the principles
of the reporting standards set out in the EU Corporate
Sustainability Reporting Directive1). The aim was to identify
the material impacts, risks and opportunities related to
Terveystalo’s sustainability and to begin preparations for
complying with the reporting requirements that will take
effect in 2024. The content of Terveystalo’s sustainability
reporting on the year 2023 was also determined on the
basis of the results of the double materiality assessment.
25
The double materiality assessment comprised two
dimensions: the materiality of impacts and financial
materiality. To identify material impacts related to sustain-
ability topics, Terveystalo’s actual and potential negative
and positive impacts on people or the environment over
different time horizons were assessed, and the views of
different stakeholders were taken into account to identify
the impacts and assess their materiality. Each sustainability
topic with a material impact was also assessed with regard
to whether it has, or could have, material financial impacts
on Terveystalo. Based on the materiality assessment, the
most material sustainability topics were selected. The
selected themes are related to Terveystalo’s customers
(Good health and well-being), personnel (Responsible
work), and ethical business (Ethical business). Based on the
results of the double materiality analysis, climate change is
not one of Terveystalo’s material sustainability topics. This
is because Terveystalo’s carbon footprint is not significant
due to the nature of its operations. The service sector is
generally considered to be low in emissions due to its low
energy intensity. The impacts of climate change and adap-
tation to climate change also do not present significant
risks or opportunities to Terveystalo’s business or strategy.
However, for the sake of transparency and the continuity
of reporting, Terveystalo will continue to report key infor-
mation on its environmental impacts in the Sustainable
consumption and climate action section.
The other sustainability topics that were no longer
among the most material themes (compared to the mate-
riality assessment carried out in 2019) were: responsible
marketing, responsible use of artificial intelligence, fair
competition, employee diversity, responsible tax policy,
job creation at the national level, material efficiency, and
the recycling of waste. Terveystalo will continue to system-
atically manage and develop these areas and report on
the most important aspects of these themes.
1) Corporate Sustainability Reporting Directive (CSRD), European
Sustainability Reporting Standards, General Requirements
Good health and well-being
Responsible work
Ethical business
• Access to care, quality and impact of care
• Patient safety
• Customer experience
• Development of operations and services
• Strong work communities
• Occupational health and safety
• Work-life balance
• Professional growth
• Effective working methods
• Meaningful remuneration
• Company culture
• Anti-corruption and anti-bribery
• Responsible supply chain
• Patient data protection and information security
• Respecting human rights
• Creation and distribution of economic value added
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo’s sustainability themes
Good health and well-being
Responsible work
Ethical business
• We produce data-driven integrated
healthcare and ensure the most
effective prevention and care.
•
Integrated care enables us to combine
various aspects of healthcare into an
effective whole.
• 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 operations by listening
to our customers and utilising new
technology.
• We continuously measure the benefit
to the customer and the effectiveness
of care.
• At Terveystalo, our mission is to fight
for a healthier life.
• We are building a humanely efficient
workplace where professionals can
focus on what matters the most -
meeting the customer.
• We want to ensure that professionals
want to work for us, are committed
to us and can focus on what matters.
• 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
and internal guidelines as well as
applicable laws.
• They support a company culture that
takes ethical perspectives into account
and combines high work ethic,
professionalism, solution-oriented
cooperation and the pursuit of
measurable impact in everything
we do.
• Responsible business is also financially
profitable and sustainable.
Terveystalo’s material sustainability
themes are related to Terveystalo’s
customers, personnel and
ethical business. They are part of
Terveystalo’s strategy, which aims
to produce data-driven integrated
healthcare and ensure the most
effective prevention and care as
well as the best customer and
professional experience.
Terveystalo also promotes sustainable consumption
and climate action and for the sake of transparency
and the continuity of reporting, continues to report
key information on its environmental impacts in the
Sustainable consumption and climate action -section.
Terveystalo is committed to the principles of the UN
Global Compact initiative and has selected the most
important UN Sustainable Development Goals that
are linked to Terveystalo’s sustainability themes.
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Targets and achievements
Terveystalo has set targets in accordance with
its key sustainability themes and monitors their
achievement on a regular basis.
Good health and well-being
Target
Indicator (KPI)
Scope of application
Target level
Target year
Increase the share of occupa-
tional healthcare patients
diagnosed with anxiety or
depression and who are
referred to brief psycho-
therapy to 25% by 20261)
The share of occupational healthcare
patients diagnosed with anxiety or
depression and who are referred to
brief psychotherapy
Occupational healthcare
customers in Finland
25%
2026
Base year
2022
2023
12.6%
2022
8.5%
2021
6.2%
Maintain a customer satisfaction
score (NPS) of at least 832)
NPS (Net Promoter Score)
for appointments
Terveystalo’s customers, who have
visited appointments in Finland
At least 83
Continuous
2022
84.8
82.7
83.0
Maintain an appointment-
specific PEI index3) of at least 2.9
PEI index
(Patient Enablement Instrument)
Terveystalo’s customers
who have visited doctor's
appointments in Finland
At least 2.9
Continuous
2022
2.9
2.9
-
1) Occupational healthcare patients with a diagnosis of depression or anxiety and who are referred to brief psychotherapy / Occupational healthcare patients with a diagnosis of depression or anxiety.
2) NPS measures the individual patient's experience of the service received shortly after the service experience. The patient is asked to assess how likely (on a scale of 0–10) they are to recommend
Terveystalo’s services. The Net Promoter Score is calculated by subtracting the share of those who gave a score of 0–6 (detractors) from the share of those gave a score of 9–10 (promoters).
3) The PEI index (Patient Enablement Instrument) is used to measure whether the customer feels that they are able to cope with their symptom or illness much better, better, same as before,
or worse after the appointment. The scale is 1–4.
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TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
2023
2022
Being the industry’s best and
most attractive employer
Employee Net Promoter Score
(eNPS)
Terveystalo’s employees
and private practitioners
At least 25
2025
2022
19
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The employee Net Promoter Score (eNPS) indicates the proportion of the personnel and private practitioners who would recommend Terveystalo as a workplace to others.
Ethical business
Target
Indicator (KPI)
Scope of application
Target level
Target year
Terveystalo’s Finnish operations
100%
Continuous
2023
72%1)
2022
69%1)
All employees have completed
training on the Code of
Conduct and correct action
Percentage of employees in permanent,
full-time employment relationship who
have completed the training relative to
all employees in permanent, full-time
employment relationship1)
Key suppliers accounting for
over 80% of total procurement
have approved the Supplier
Code of Conduct
Percentage of suppliers who
have approved the Supplier
Code of Conduct2)
Terveystalo’s Finnish operations
100%
Continuous
81%
80%
1) The figures are not comparable due to the training completion periods not being of equal length and due to change in the group of personnel whose course completions are reported. The new compliance
course was introduced and moved to a new online platform in spring 2023. The figures for 2023 only include completions after the course was revised and only completions of employees in permanent,
full-time employment relationship in Finnish operations. The figures for 2022 also include course completions that took place in the second half of 2021 and, in addition to course completions of employees
in permanent, full-time employment relationship, also course completions of other employees in Finnish operations.
2) Terveystalo measures the share of suppliers who have approved the Supplier Code of Conduct from Terveystalo’s key suppliers representing approximately 80 percent of the total procurement
expenditure of Terveystalo’s operations in Finland. The procurement expenditure does not include expenses related to fees paid to private practitioners, purchases for operations in Sweden,
one-off purchases or purchases of low significance.
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TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Sustainable consumption
and climate action
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
level
Base year
Finnish and Swedish operations
-100%
2030
6,316.8
2018
2023
-56%
2022
-76%
2021
-89%
Zero emissions from
own operations 20301)
Reduce direct and indirect CO2
emissions (Scope 1 and Scope 2)
by 80% by 2025 (using 2018 as
the baseline)
Reduction of direct (Scope 1) and
indirect (Scope 2) greenhouse gas
emissions compared to 2018
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
Purchase 100% green
electricity by 20252)
Share of green electricity of
all purchased electricity, %
Minimise waste in all opera-
tions and forward all waste
to be recovered
The recovery rate of waste generated
at Terveystalo units, %3)
The recycling rate of waste generated
at Terveystalo units, %3)
Finnish and Swedish operations
-80%
2025
6,316.8
2018
2,755.4
1,544.1
664.0
Finnish and Swedish operations
100%
2025
62%
2020
70%
72%
89%
Finnish operations
100%
2025
99%
2020
100%
100%
100%
Finnish operations
100%
2025
61%
2020
68%
67%
64%
1) Scope 2 emissions are market-based. The market-based Scope 2 emission calculation takes into account the green electricity guarantees of origin purchased by Terveystalo, which in 2023 covered approximately
70 (72) percent of the electricity consumption. The emissions of the remaining purchased electricity have been calculated using the residual mix emission factors for Finland and Sweden (AIB, European Residual Mixes).
Finland's residual emission factor increased by 83 percent from 2022 due to a higher share of fossil fuels in the residual mix (Finland's residual emission factor in 2022 was 0.285 kgCO2e/kWh and in 2023 0.5208 kg-
CO2e/kWh). The market-based Scope 2 emissions for 2022 have been recalculated for Finland, because Terveystalo purchased the green electricity guarantee of origin for the period 1 September - 31 December 2022
at the beginning of 2023. From 2022 onwards, the figures for energy use and carbon footprint also include the Swedish operations. The figures for 2021 include only the Finnish operations.
2) In units where Terveystalo purchases electricity itself.
3) Excludes waste fractions that cannot be recycled or recovered under any circumstances.
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TerveystaloAnnual Report 2023
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Corporate Governance
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Sustainability governance and management
Terveystalo’s sustainability efforts
are guided by the company’s Code
of Conduct, values and strategic
objectives, as well as the sustainability
themes identified as material in the
materiality assessment.
The results of sustainability efforts are monitored on a
regular basis. The most significant risks related to the
material non-financial themes are assessed and sought to
be mitigated as part of the company’s risk management
process. Terveystalo is committed to promoting the
principles of the UN Global Compact initiative and the
UN Sustainable Development Goals. The company
respects all internationally recognised human rights.
By systematically managing sustainability, Terveystalo
aims to ensure that its sustainability targets are achieved.
The continuous improvement model ensures that
Terveystalo’s services will continue to create value for cus-
tomers also in the future. At Terveystalo, the management
approach is assessed on the basis of audit observations,
feedback, identified development areas and the achieve-
ment of Terveystalo’s targets. The management approach
is adjusted as necessary.
Sustainability management
at Terveystalo
The Board of Directors
and its Committees
Terveystalo’s Board of Directors is the highest decision-
making body that oversees sustainability-related issues
within the organisation. The Board of Directors takes care
of tasks pertaining to its area of responsibility in accord-
ance with the applicable legislation, Terveystalo’s Articles
of Association, the charter of the Board of Directors, the
Corporate Governance Code published by the Securities
Market Association, as amended from time to time, and
other rules and regulations applicable to Finnish listed
companies. The Board of Directors is responsible for the
company’s governance and the appropriate organisation of
its operations, among other things. The Board of Directors
reviews and steers the sustainability strategy and key
action plans, and monitors and oversees the achievement
of targets annually. Following the Corporate Sustainability
Reporting Directive (CSRD), the duties of the Board of
Directors going forward also include monitoring and
supervising the sustainability reporting process, in addition
to the financial reporting process. The Board of Directors
also ensures that the company has defined the operating
principles of internal control, internal auditing, and risk
management, and monitors compliance with these
principles. The responsibilities of the Board of Directors are
documented in its written charter, which supplements the
provisions of the Articles of Association and the applicable
laws and regulations. The duties of the Board of Directors
and the contents of its charter are described in more detail
in Terveystalo’s Corporate Governance Statement.
Terveystalo’s Vice President of Communications, IR &
CR presents material sustainability matters to the Board
of Directors at least once a year in connection with a
broader sustainability agenda and a review of targets and
performance. Sustainability matters are also discussed
in meetings of the Board of Directors as necessary when
there are material matters to communicate or decide on.
In 2023, the following sustainability-related topics were
discussed in meetings of the Board of Directors, among
other things: the achievement of sustainability targets set
for 2022, progress towards the sustainability targets set for
2023, the reporting obligations stipulated by the CSRD, the
CSRD-compliant double materiality assessment process
and results, and Terveystalo’s sustainability-linked notes.
The Board of Directors has established two com-
mittees to improve the efficacy of the Board: The Audit
Committee and the Remuneration Committee. Written
charters have been drawn up for the committees to
define their duties. The Audit Committee’s duties include,
among other things, assisting the Board of Directors in
fulfilling and monitoring its supervisory duties pertaining
to the financial reporting process and auditing, as well as
the supervision of matters related to financial reporting,
internal control, internal auditing, and risk management.
Following the CSRD, the Committee's duties going forward
also include assisting the Board of Directors in fulfilling
and monitoring its duties pertaining to the sustainability
reporting process and assurance. The Audit Committee
discusses sustainability matters whenever there are mate-
rial matters to communicate or decide on. In 2023, the
Audit Committee focused particularly on CSRD reporting
requirements and the CSRD-compliant double materi-
ality assessment process and results. The Remuneration
Committee of the Board of Directors, in turn, assists the
Board in, among other things, preparing matters related to
remuneration. The committees report on their work to the
Board of Directors on a regular basis. The duties and com-
position of the committees are described in more detail in
Terveystalo’s Corporate Governance Statement.
Chief Executive Officer
The CEO is responsible for the day-to-day management of
the company and for implementing the company’s strat-
egy in accordance with the instructions and orders issued
by the Board of Directors. The CEO undertakes the execu-
tion of measures approved by the Board of Directors and
oversees preparations for strategically important measures.
This means that Terveystalo’s CEO, together with the other
members of the Executive Team, is also responsible for the
successful implementation of the company’s sustainability
agenda. The CEO ensures that the management of the
company is adequately arranged and that the company’s
accounting complies with the applicable legislation. The
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TerveystaloAnnual Report 2023 Year 2023
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Corporate Governance
Financials
CEO also ensures the appropriate arrangement of the
company’s administration and asset management. The
CEO serves as the Chair of Terveystalo’s Executive Team.
The Executive Team assists the CEO with tasks such as
the preparation and execution of the company’s strategy,
business plans, matters of principle, and any other impor-
tant matters. The CEO reports to the Board of Directors
and ensures that the Board of Directors is provided with
adequate information to carry out the duties of the Board
of Directors. The other members of the Executive Team
report to the CEO. The CEO’s responsibilities and duties
are described in more detail in Terveystalo’s Corporate
Governance Statement.
The Vice President of Communications, IR & CR, who
reports to the CEO, discusses sustainability-related matters
with the CEO on a regular basis and as necessary when
there are material issues to communicate or decide on. The
CEO is also responsible for the organisation of Terveystalo
Group’s risk management, and the CEO manages sustain-
ability risks also as part of the company’s overall risk man-
agement. Ville Iho has served as the CEO of Terveystalo
since December 2019. A more detailed presentation of the
CEO is provided in Terveystalo’s Corporate Governance
Statement.
Other responsibilities related
to the management of
sustainability themes
Terveystalo’s Quality Steering Group is responsible for
ensuring and developing quality and patient safety, and
monitors the implementation and progress of measures
related to quality and sustainability. The Quality Steering
Group is chaired by the Chief Medical Officer, who is also
a member of the Group’s Executive Team and responsible
for clinical quality and patient safety. In addition to the
Quality Steering Group, the assurance and development
of quality and patient safety are managed by the data
protection team, safety team, patient safety team and
regional quality network. Internal control is integrated into
Terveystalo's management and reporting system.
Compliance with the environmental program is on the
responsibility of the Director of Quality and Development,
who reports to the Chief Medical Officer, and the opera-
tive group appointed for the environmental system. The
implementation of the environmental program is moni-
tored by the Environmental System Steering Group.
The Vice President of Communications, IR & CR,
who reports to the CEO, is responsible for managing the
process of setting new sustainability targets and the coor-
dination of sustainability initiatives in the Group. Human
resources management and its development at Terveystalo
is on the responsibility of the Senior Vice President, People
and Careers, who is a member of the Group Executive
Team.
As required by law, Terveystalo Group has a Data
Protection Officer who performs duties in accordance
with the General Data Protection Regulation and reports
directly to Group management in accordance with the
law. The responsibility for day-to-day information security
management lies with the Director responsible for infor-
mation security, who reports to the Group Executive Team
members responsible for information security and digital
services. Terveystalo also has data protection and infor-
mation security teams that discuss and monitor matters
related to data protection and information security and
develop related functions and activities. The teams include
representatives of stakeholders within the Terveystalo
organisation that are relevant to the teams’ areas of
responsibility.
Terveystalo’s executives and management are respon-
sible for the communication and implementation of the
Code of Conduct approved by the Board of Directors,
and monitoring compliance with the Code of Conduct.
Terveystalo’s Legal & Compliance department supports
the organisation with issues related to the Code of
Conduct and provides training to the personnel on
the Code of Conduct.
Composition of the
Board of Directors
According to Terveystalo’s Articles of Association, the
Board of Directors shall have a minimum of five and a
maximum of eight ordinary members. From the beginning
of 2023 until the Annual General Meeting of 2023, the
Board of Directors had five members. Terveystalo’s Annual
General Meeting, held on 23 March 2023, elected seven
members to Terveystalo’s Board of Directors. The members
of the Board of Directors represent expertise, among other
things, in the healthcare sector and the company’s target
markets (Finland and Sweden), strategic management,
financial management and risk management, business
ethics and compliance, human resources management,
and sustainability (ESG) related matters. There is no
employee representative among the members of the
Board of Directors. The term of the members of the
Board of Directors expires at the closing of the Annual
General Meeting following their election. Presentations
of the members of the Board of Directors are provided in
Terveystalo’s Corporate Governance Statement.
The company has drawn up principles concerning
the diversity of the Board of Directors. According to
the principles, diversity is considered from number of
aspects, including age, gender as well as educational and
professional background. In 2023, the company’s Board
of Directors met the diversity criteria. The age span of
the members of the Board of Directors that served until
23 March 2023, was 46–64 years as at 23 March 2023.
Three (60 percent) of the Board members were between
the ages of 30 and 49, and two (40 percent) were aged
50 or older. The age span of the members of the Board
of Directors that was elected by the Annual General
Meeting held on 23 March 2023, was 40–65 years as at 31
December 2023. Three (43 percent) of the Board members
were between the ages of 30 and 49, and four (57 percent)
were aged 50 or older.
Two of the members of the Board of Directors that
served until 23 March 2023, were women (40 percent of
the members of the Board), and three were men (60 per-
cent of the members of the Board). Three of the members
of the Board of Directors that has served from 23 March
2023 onwards are women (43 percent of the members of
the Board), and four are men (57 percent of the members
of the Board). On average, during the year, 42 percent
of the Board members were women and 58 percent
were men. Persons outside Finland accounted for one
(20 percent) of the members of the Board of Directors
that served until 23 March 2023, and two (29 percent)
of the members of the Board of Directors that served
from 23 March 2023 onwards.
The Board conducts an annual assessment of its
operations and working methods in accordance with the
Corporate Governance Code published by the Securities
Market Association. In preparing its proposal on the
composition of the Board of Directors, the Shareholders’
Nomination Board must take into account the require-
ments concerning independence as set out in the
Corporate Governance Code, the results of the assessment
of the Board’s operations carried out in accordance with
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TerveystaloAnnual Report 2023 Year 2023
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the Corporate Governance Code, the principles concerning
the diversity of the Board of Directors, and other applica-
ble rules and regulations. According to the assessment of
the Board of Directors, all of its members (100 percent) are
independent of the company. Five of the seven members
(71 percent) are also independent of the company’s signifi-
cant shareholders.
Sustainability-related
remuneration of the Board
of Directors and the CEO
Remuneration of
the Board of Directors
The Shareholders’ Nomination Board reviews and prepares
the remuneration principles for the members of the Board
of Directors set out in the Terveystalo Remuneration Policy
for Governing Bodies. The Shareholders’ Nomination
Board also prepares a proposal for the remuneration of the
members of the Board of Directors annually. The proposal
shall be based on the principles set out in the Terveystalo
Remuneration Policy for Governing Bodies. The final
decision on the remuneration of the members of the Board
of Directors is made by the General Meeting. The remu-
neration of the Board of Directors and the decision-making
process related to remuneration are described in more
detail in Terveystalo’s Remuneration Policy. In 2023, the
remuneration of the Board of Directors was not based on
sustainability-related performance.
Remuneration of the CEO
The Remuneration Committee of the Board of Directors
prepares proposals to the Board of Directors concerning
the remuneration of the CEO. The Board of Directors
reviews and approves the remuneration principles for
the CEO defined in the Terveystalo Remuneration Policy
for Governing Bodies based on the preparatory work
carried out by the Remuneration Committee of the Board
of Directors as well as decides on the salary, incentive
schemes and associated targets of the CEO based on
the preparatory work carried out by the Remuneration
Committee of the Board of Directors. The remuneration
of the CEO and the related decision-making process are
described in more detail in Terveystalo’s Remuneration
Policy.
In addition to a fixed annual salary, the total remu-
neration of the CEO in 2023 included short-term and
long-term incentives. Terveystalo’s Board of Directors sets
the performance criteria for the CEO’s short-term incentive
plan annually. The short-term incentives are aimed at driv-
ing short-term performance against specific Group targets
and individual objectives based on the key strategic
priorities for the year. In 2023, the employee Net Promoter
Score, or eNPS, was one of the indicators related to the
CEO’s performance targets. It indicates the proportion
of Terveystalo's employees and private practitioners who
would recommend Terveystalo as workplace to others.
In 2023, eNPS had a weight of 20 percent in the CEO’s
short-term incentive. According to the Remuneration
Policy in force in 2023, the maximum amount payable to
the CEO under the short-term incentive scheme at the
maximum level performance was 120 percent of the CEO’s
annual base salary. In 2023, eNPS was the only indicator of
sustainability-related performance included in the CEO’s
performance targets.
good public image for the company, and corporate social
responsibility.
The Board of Directors decides annually on the
participants, performance indicators, targets and earning
opportunities of the long-term incentive scheme for the
management. The aim of the long-term incentives is to
drive long-term performance against specific Group tar-
gets, to commit the CEO to the company and to align the
interests of the CEO with the interests of the shareholders.
In 2023, the long-term share-based incentive schemes for
the management did not include sustainability-related
performance indicators.
Management of
sustainability-related risks
The most significant risks related to the material aspects of
sustainability are assessed and sought to be mitigated as
part of the company’s overall risk management process.
The company has an internal control and risk management
policy, approved by the Board of Directors, for the man-
agement of various risk processes. The policy also sets out
responsibilities pertaining to risk management. The Board
of Directors’ duties related to risk management are also
specified in the charter of the Board of Directors, and the
Audit Committee’s duties are specified in the charter of
the Audit Committee. The purpose of risk management
is to ensure the fulfilment of the customer promise,
patient safety and occupational safety, high-quality of the
operations, financial performance, business continuity, a
Risk management procedures have been integrated
at all levels of the organisation. Terveystalo’s Board of
Directors is responsible for risk management and its
adequacy. The Board of Directors also approves the
company’s internal control and risk management policy.
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 also monitors and assesses the effectiveness
of the company’s internal control, internal auditing and
risk management systems, and assesses the performance
of internal auditing. The CEO is responsible for organising
the Group’s risk management, and the other members of
the Executive Team support the CEO in implementing risk
management, monitoring risks, assessing risks and imple-
menting measures related to risks.
Terveystalo’s risk management is assessed in Finland
annually in internal and external audits of the ISO
9001:2015 quality management system, the ISO 14001:2015
environmental management system and the ISO 13485
quality management system for application development.
In Sweden, Terveystalo’s subsidiary Feelgood has ISO
9001:2015 quality management system, ISO 14001:2015
environmental management system and ISO 45001 occu-
pational health and safety system certificates, the audits
for which include risk management assessments. Risk man-
agement processes and control duties are also subject to
verification by the company’s internal audit. Terveystalo’s
risk management procedures are described in more detail
in Terveystalo’s Corporate Governance Statement.
32
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Key commitments and
sustainability indices
Terveystalo has published its sustainability com-
mitments and is committed to the UN Guiding
Principles on Business and Human Rights, the con-
ventions of the International Labour Organisation
(ILO) and the Ten Principles of the UN Global
Compact, according to which Terveystalo promotes
health and well-being, human rights, labour rights,
environmental action and anti-corruption efforts.
Rating with drivers and all companies comparison - color - facebook - twitter - 1200x628
N E T I M P A C T R A T I N G
AA+
Terveystalo has received a net
impact rating of AA+
(Excellent+) in 2021, driven by
its contribution to health and
society.
Only 6.7% of all companies receive this or a
higher net impact rating.
TERVEYSTALO (2021)
Source: Upright Project, 2021
In 2021, Terveystalo received a rating of AA+
(Excellent+) in the Upright Project’s assessment of
the company’s net impact on society. Net impact
refers to the difference between positive and neg-
ative impacts that is the comprehensive net value
creation of companies.
In 2023, Terveystalo completed the CDP (formerly
the Carbon Disclosure Project) comprehensive cli-
mate assessment for the third time and was awarded
a rating of C.
33
Terveystalo has the ISS ESG Prime sustainability
rating. This means that Terveystalo meets the high
sustainability standards of ISS ESG in its industry and
is in the top 10 percent globally in the ISS ESG Prime
rating framework. Terveystalo’s scores were better
than average particularly in the areas of quality,
patient safety, employee relations, and the working
environment.
Terveystalo is a member of the Finnish corporate
responsibility network FIBS and an official partner of
Helsinki Pride.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Management of the
sustainability themes
The management of Terveystalo’s sustainability
themes is summarised in the table below.
Good health and well-being
Description and purpose of
the management approach
Policies and
commitments
The health and well-being of
Terveystalo’s customers are the
starting point for the planning
of all operations. The purpose
of the management approach
is to ensure patient safety and
high-quality care.
• Terveystalo’s operating policy, quality policy, internal
control and risk management policy, self-monitoring,
Code of Conduct, data protection and information
security policy and compliance rules
• ISO 9001:2015 quality management system
• Operations are guided by the Current Care
Guidelines
• Terveystalo’s integrated management system docu-
ments the harmonised processes and procedures
that ensure patient safety and high-quality care.
• Policies and procedures pertaining to the data pro-
tection of patient data are documented in the Data
Protection Handbook for patient care.
• The company’s continuity plan sets out the organisa-
tion’s operating models that ensure that Terveystalo’s
critical services can be produced in exceptional
circumstances and during disruptions.
• Government Decree on the Principles of Good
Occupational Health Care Practice 708/2013
• General Data Protection Regulation (EU) 2016/679
• Other laws and regulations governing business ope-
rations, the industry and the operations of private
service providers as well as customer agreements
Objectives
• Terveystalo’s services are of
high clinical quality and are
the most conveniently
available to customers.
• Stand out by providing an
excellent customer experience.
• Maintain customer
satisfaction (NPS, Net Pro-
moter Score) at least at 83.
• Maintain an appointment
-specific PEI index of at
least 2.9.
• Promote preventive
treatment of mental health
in occupational healthcare.
• Increase the share of occu-
pational healthcare patients
diagnosed with anxiety or
depression and who are
referred to brief psycho-
therapy treatment to
25% by 2026.
34
Resources and
responsibilities
• The Chief Medical Officer is responsible
for clinical quality and patient safety.
• The assurance and development of
quality and patient safety are managed
by the Group’s Quality Steering Group,
data protection team, safety team,
patient safety team and the regional
quality network.
Feedback mechanisms
Key achievements in 2023
• Incident reports
• Customer feedback
• Each Terveystalo emp-
loyee and practitioner is
required to report actual
or suspected misconduct
to their supervisor, the
supervisor’s supervisor,
Terveystalo’s Legal &
Compliance department
or via Terveystalo’s
reporting channel.
• Medicine-based care guidance was further developed through
harmonised care paths. There are now about 70 such care
paths.
• All of Terveystalo’s occupational health customers were given
access to the Symptom Assessment Tool, which is a CE-marked
medical device that streamlines the use of occupational health
services by directing the customer to the right specialist and
the right channel by assessing their symptoms with the help
of artificial intelligence.
• Nightingale’s blood analysis technology was integrated into
occupational health check-ups. The technology detects suspec-
tibility to lifestyle diseases among the working-age population,
thereby enabling more effective prevention of diseases.
• Terveystalo’s aim is to increase the use of occupational brief
psychotherapy in the treatment of people diagnosed with dep-
ression or anxiety disorders. In 2023, this goal was also included
in Terveystalo’s sustainability-linked financial framework as one
of its two targets.
• The wellbeing services county of South Ostrobothnia selected
Terveystalo as its digital platform provider. Terveystalo develops
cost-efficient digital solutions and works with wellbeing services
counties to promote more effective social welfare and healthca-
re services in an impactful and cost-efficient manner.
• New quality indicators were adopted as part of the continuous
development of the reporting of quality and effectiveness.
The quality indicators are updated regularly and published
on Terveystalo’s website.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Description and purpose of
the management approach
Policies and
commitments
• Code of Conduct
• Work community development plan
• Remuneration Policy
• Applicable laws and regulations
The objective of human
resources management is to
strengthen Terveystalo’s work
communities and the experi-
ence of professionals, and
to ensure that professionals
want to work at Terveystalo,
are committed and can focus
on what matters.
Ethical business
Objectives
• Being the industry’s best and
most attractive employer
• An employee Net Promoter
Score (eNPS) of at least
25 in 2025
Resources and
responsibilities
• The Senior Vice President, People and Careers
is responsible for human resources management
and its development at Terveystalo.
Feedback mechanisms
Key achievements in 2023
• Personnel and private
practitioner surveys
• Performance reviews
• Discussions with private
practitioners
• Personnel forum
• Shop stewards, employee
representatives and the
health and safety
representative
• Hazardous incident re-
ports by the personnel
• Changing the operating model and streamlining organisational
structures as part of the profit improvement program.
• Recruitment of new professionals
• Further development of supervisory work and local
work communities. In the personnel survey conducted
in the autumn, these areas improved relative to the
comparison period.
• Continuous development of occupational safety
• Training the personnel on the use of digital tools
and their utilisation in customer work
• Deployment of the new online training platform
Terveystalo Academy.
Description and purpose of
the management approach
Policies and
commitments
Objectives
Resources and
responsibilities
Feedback mechanisms
Key achievements in 2023
Responsibility of Terveystalo’s
operations is guided by the
company’s Code of Conduct
and values. The purpose of the
management approach is to
ensure a company culture that
takes ethical perspectives into
account and combines high
work ethic, professionalism,
solution-oriented cooperation
and the pursuit of measurable
impact in everything the com-
pany does. Responsible business
is also financially profitable and
sustainable.
• Terveystalo’s Code of Conduct
• Terveystalo’s Supplier Code of Conduct
• Internal control and risk management policy
• Data protection and information security policies
• Competition law guidelines
• Processing instructions for the reporting channel
• Terveystalo always observes the laws and
regulations governing its activities.
• In addition to compliance with legislation and
Terveystalo’s Code of Conduct, Terveystalo aims
to observe widely accepted ethical standards, such
as the UN Global Compact principles. Terveystalo
also expects its partners and subcontractors to
share and observe the same ethical principles.
• All Terveystalo employees
• Terveystalo’s Board of Directors approves the Code
• Actual or suspected
have completed training on
the Code of Conduct and
correct action.
• All of Terveystalo’s key supp-
liers have accepted the Supp-
lier Code of Conduct.
violations of the Code
of Conduct are primarily
reported to the supervisor,
the supervisor’s supervisor
or Terveystalo’s Legal &
Compliance department.
They can also be reported
anonymously via the
Terveystalo reporting
channel.
of Conduct.
• Terveystalo’s executives and management are respon-
sible for the communication and implementation of
and monitoring compliance with the Code of Conduct.
• Terveystalo’s Legal & Compliance department sup-
ports the organisation with issues related to the Code
of Conduct and provides training to the personnel on
the Code of Conduct.
• The Board of Directors is responsible for the adequacy
of risk management, while the CEO is in charge of
the organisation of risk management and guides and
monitors risk management at the executive level.
• Internal control is integrated into Terveystalo’s
management and reporting system.
• The Data Protection Officer performs the duties stipu-
lated by the General Data Protection Regulation, and the
Director responsible for information security is in charge
of day-to-day information security management.
35
• The processing instructions and processes of Terveystalo’s
reporting channel were revised in early 2023 following the
introduction of new legislation on whistleblower protection.
• Training courses on compliance and data protection were
revised in 2023.
• The Supplier Code of Conduct was updated in late 2023.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Sustainable consumption
and climate action
Description and purpose of
the management approach
Policies and
Commitments
Objectives
Resources and
Responsibilities
Feedback mechanisms
Key achievements in 2023
Terveystalo operates in line with
the principles of sustainable
development in order to reduce
and eliminate environmental
risks. Terveystalo takes environ-
mental impacts into account in
all of its operations. The objec-
tive of Terveystalo’s environmen-
tal program is that everyone at
Terveystalo takes the potential
environmental impacts of their
actions into account in their day-
to-day work and operates in
environmentally friendly ways.
• Terveystalo’s environmental program covers
all clinics in Finland and its appropriateness is
assessed in audits of the quality management
and environmental management systems.
• Terveystalo’s environmental management
system is certified in accordance with the
ISO 14001 standard. The standard provides
a framework for the continuous development
of processes and practices that minimise
negative environmental impacts.
• Some of the Feelgood operating locations
in Sweden are also ISO 14001:2015 certified.
• Applicable laws and regulations
• Zero emissions from own
• The ISO 14001:2015 certificate and compliance
• Terveystalo reporting
with the environmental program is the
responsibility of the Director of Quality and
Development and the operative group
appointed for the environmental system.
• The implementation of the environmental
program is monitored by the Environmental
System Steering Group.
channel
• Incident reports
• Internal feedback
and development
suggestions
• Customer feedback
operations in 2030
• Reduce direct and indirect
CO2 emissions (Scope 1 and
Scope 2) by 80% by 2025
(using 2018 as the baseline)
• Purchase 100% green
electricity by 2025
• Minimise waste in all
operations and forward all
waste to be recovered:
• The recovery rate and
recycling rate of waste
generated at Terveystalo
units in Finland will be
100% by 2025
• The decision was made to expand ISO 14001:2015 environmen-
tal certification to cover all of the units in Terveystalo’s medical
clinic network in Finland. The aim of expanding the certification
is to highlight the company’s environmental efforts and to de-
monstrate Terveystalo’s commitment to environmental respon-
sibility. The certificate will be updated at the beginning of 2024.
• The nationwide project introduced in 2022 to reduce plastic
bag waste was continued in cooperation with Terveystalo’s
cleaning services partners.
• Terveystalo responded to the changes to the separate collec-
tion obligations under the Waste Act in Finland by updating
waste guidelines and training personnel, among other things.
36
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Stakeholder engagement
Stakeholder expectations
Terveystalo’s response to the expectations
Channels of engagement
Terveystalo’s role in society means that
the company has several stakeholders
with whom it engages in active dialogue.
Stakeholder
group
Customers
Competitive and responsibly
produced high-quality services.
In addition to customers, personnel, private practitioners
and shareholders, the key stakeholders include the
authorities and societal decision-makers that influence
the legislation governing the industry and the drafting
of that legislation. Other key stakeholders include the
supervisory authorities and the media. Terveystalo also
engages in close interaction with lobbyists within the
sector. Open dialogue and effective cooperation enable
a more predictable operating environment for all parties.
The adjacent table describes Terveystalo’s engagement
with various stakeholders.
Personnel
and private
practitioners
Responsible management, clear
management structures, smooth
interaction, equality, a good working
atmosphere and working condi-
tions, development of competence,
competitive pay.
Key memberships in associations
and advocacy organisations
Shareholders
Terveystalo continued to develop its services in a number of different areas and sought to
respond to the growing demand by, for example, recruiting new professionals and further
increasing its digital service offering by developing a new symptom assessment tool for
occupational health customers, among other things. Customer satisfaction was measured
regularly and in a diverse manner, and the collection of specialist-specific customer feed-
back was expanded.
Terveystalo renewed its operating model and, effective from the beginning of 2023,
transitioned to a three-business area model, with the operations being divided into Health-
care Services, Portfolio Businesses and Sweden. In the autumn of 2023, the operations
and management of Healthcare Services were further clarified by bringing the commercial
organisation and the medical clinic network under one Business Director and by stream-
lining regional management structures. The changes were aimed at achieving even clearer
roles and responsibilities, a management structure that supports smooth operations, and
more consistent operating models. The development of tools and processes to make work
smoother continued. New professionals were recruited to meet the growing demand. The
training of professionals and the training offering were developed and diversified further.
Current issues were actively communicated to the personnel, including the progress of the
profit improvement program and related measures.
Physical and digital encounters with customers, online
services, feedback surveys and channels, marketing
communication, social media.
Personnel forum, shop stewards, employee representatives
and the health and safety representative, personnel satis-
faction surveys, development discussions, discussions with
private practitioners, personal interaction, intranet, newslet-
ters, training, webinars, seminars and other events.
Terveystalo has representatives in several organisations.
The most significant of these are:
• The Confederation of Finnish Industries
• The Central Chamber of Commerce
• The Helsinki Region Chamber of Commerce
• The Finnish Association of Private Care Providers HALI
• The Association of Finnish Private Healthcare Providers
• The Finnish Association of Purchasing and Logistics LOGY
• FIBS ry
37
Creating financial added value,
open communication about the
implementation of the strategy and
financial performance, and responsi-
ble business.
Terveystalo engaged in active communication with shareholders and investors on key
issues related to the strategy, business development and measures to improve profitability.
Terveystalo organised a Capital Markets Day event in May 2023. At the event, Terveystalo’s
strategy and future plans were discussed. Terveystalo participated in several ESG surveys
that serve responsible investing. Terveystalo announced a sustainability-linked financing
framework.
Open and active dialogue; regular and continuous report-
ing with stock exchange releases and reports, personal
communication channels, such as meetings with investors
and analysts, Annual General Meetings, Capital Markets
Days and other events. Investor Relations function coor-
dinates interaction with investors, aiming to ensure equal
opportunities to receive information and meet with the
company management.
Open dialogue, meetings and communication in various
working groups and events, for example.
The authorities
and decision-
makers
Good cooperation and open disclo-
sure of information and interaction
to facilitate the preparation of
decisions. The development and
renewal of healthcare is a shared
goal for Terveystalo, the authorities
and decision-makers.
Terveystalo engaged in open dialogue on topics related to the industry.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo’s
sustainability
themes
38
38
Terveystalo
Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Good health
and well-being
We produce data-driven integrated healthcare and
ensure the most effective prevention and care. Integrated
care enables us to combine various aspects of healthcare
into an effective whole. 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
operations by listening to our customers and utilising
new technology. We continuously measure the benefit
to the customer and the effectiveness of care.
39
39
Terveystalo
Annual Report 2023
Good health and well-being
Our key targets
• Our services are of high clinical quality
and are the most conveniently available
to customers.
• We stand out by providing an excellent
customer experience.
• We promote the preventive treatment
of mental health in occupational
healthcare.
Our achievements
2.9
PEI index2)
NPS, appointments1)
85
12.6 %
Referral rate for brief
psychotherapy for
mental health3)
1) Customer satisfaction, Net Promoter Score
2) PEI index (Patient Enablement Instrument) is used
to measure whether the customer feels that they
are able to cope with their symptom or illness
much better, better, same as before, or worse
after the appointment. The scale is from 1 to 4.
3) Share of relevant occupational healthcare patients
referred to brief psychotherapy
TerveystaloAnnual Report 2023
Good health and well-being
”
Terveystalo wants
to be extensively
involved in the
renewal of health-
care, the prevention
of diseases and pro-
moting well-being.
Year 2023
Sustainability
Corporate Governance
Financials
The quality and effectiveness
of care are at the core of
Terveystalo’s operations
Terveystalo wants to be extensively involved in the renewal
of healthcare, the prevention of diseases and promoting
well-being. As the largest private healthcare service
provider in Finland and one of the leading occupational
health providers in the Nordic region, Terveystalo has an
extensive impact on the healthcare sector in Finland and
Sweden. In 2023, Terveystalo had a total of 1.2 million
customers, 7.6 million customer visits in Finland, and 1.8
million occupational healthcare customers in the Nordic
region.
The core of Terveystalo’s operations and the company’s
key positive impact is the provision of appropriate, high-
quality, effective and safe care for all customers.
Terveystalo is a pioneer in data-driven integrated care,
which means that Terveystalo uses data to support care
and the targeting of prevention, engages in effective pre-
vention, provides quick access to care, connects the differ-
ent stages of care into smooth multidisciplinary and multi-
channel care paths, actively guides customers and patients,
supports the continuity of care, and continuously measures
the benefit to the customer and the effectiveness of care.
In addition to healthcare professionals, Terveystalo’s digital
solutions play a key role in integrated care paths and their
development.
Benefits of integrated care
For patients: Effective care and
seamless customer experience
For insurance companies: Effective medical
outcomes and better cost management
For professionals: Smooth patient work –
possibility to focus on what matters most
For Terveystalo: Lower costs, maximum
value capture and better outcomes
For employers: Less sick leave, data-driven
prevention and healthy work communities
For society: Reduced healthcare
spending and better overall health
Terveystalo’s sustainability is built around the effec-
tiveness of its operations at the level of society as a whole,
including healthcare services, maintaining work ability, the
prevention of diseases, and the development of the entire
healthcare sector. High-quality occupational healthcare
based on the integrated care approach helps to prevent
diseases and provide early intervention, which reduces
the number of sickness absences and saves costs for client
companies. The brief psychotherapy care path in occupa-
tional health developed by Terveystalo improves the men-
tal health of customers while reducing sickness absences
related to mental health. These services have significantly
reduced sickness absences associated with mental health
problems. Terveystalo’s smooth integrated care paths and
digital services enable faster access to care. Cooperation
and partnerships with the public sector provide solutions
for improving access to care.
Patient safety is the foundation of the quality of care.
It refers to the principles and functions of healthcare
personnel and the organisation that ensure the safety of
care and protect the patient from injury. From the patient’s
perspective, patient safety means that they receive the
right treatment at the right time and in the right manner,
and that the adverse effects of treatment are minimised.
Patient safety risks arise from unexpected occurrences that
may cause an adverse event for a customer and, in the case
of serious adverse events, make the company liable for
damages. Data protection with regard to patient data is an
important aspect of patient safety. As digital services in
healthcare increase in importance and reshape the
industry, the requirements concerning data protection
and information security increase accordingly. Read
more on data protection on page 68.
40
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Good health and well-being
Quality is managed at all
levels of the organisation
Customer health and well-being are the starting point
for the planning of all of Terveystalo’s operations. Quality
efforts guided by Terveystalo’s quality management
system aim to ensure access to services, safeguard and
improve patient safety, provide an excellent and contin-
uously improving customer experience, the realisation
of data protection and information security, compliance
with recommendations, and developing the effectiveness
of treatment. Terveystalo’s operations are guided by the
company’s operating policy, quality policy, internal control
and risk management policy, self-monitoring, Code of
Conduct, and data protection and information security
policy. The harmonised processes and procedures that
ensure patient safety and high-quality care are docu-
mented in Terveystalo’s integrated management system.
Policies and procedures pertaining to the data protection
of patient data are documented in the Data Protection
Handbook for patient care. Terveystalo’s operations are
also guided by the ISO 9001:2015 quality management
system, the Current Care Guidelines and the laws and
regulations governing the industry and the operations of
private service providers, and customer agreements. The
key policies that guide operations are described below.
Terveystalo’s Code of Conduct, internal control and risk
management policy and data protection and information
security policy are described in the section Ethical business.
Operating and quality policy
In all of its activities, Terveystalo is committed to the high
quality and continuous development of its operations.
Terveystalo’s quality efforts are guided by Terveystalo’s
mission, values and strategy. Terveystalo’s strategic prior-
ities, harmonised processes and measurability help steer
operations toward consistent high quality. The continuous
improvement of operations is an essential aspect of
Terveystalo’s quality efforts.
In accordance with Terveystalo’s quality policy, the
company wants to be a leader in the renewal of healthcare.
Terveystalo’s quality targets are to maintain the
customer experience at a high level and improve consist-
ency across all channels, ensure that Terveystalo is the
most attractive workplace for healthcare professionals,
ensure that operations are safe and effective, and ensure
Terveystalo’s compliance with national and international
good clinical practices.
The cornerstones of Terveystalo’s quality management
system are patient safety and the national legislation gov-
erning the industry. In accordance with the quality man-
agement system, quality is managed on all levels of the
organisation. Terveystalo actively measures, monitors and
manages quality. Patient safety is managed by monitoring
the number of procedure and clinic-specific post-surgery
infections, hazardous events, official requests for clarifica-
tions, and the decisions of the Patient Insurance Centre,
among other measures. Through service development
and improving the efficiency of operations, Terveystalo
ensures the best possible working conditions for its pro-
fessionals and a good and effective service experience for
its customers. Quality comprises clinical, operational and
experienced quality.
Self-assessment plan
Terveystalo applies a self-assessment plan prepared
in accordance with the guidelines of the National
Supervisory Authority for Welfare and Health (Valvira).
The self-assessment plan is supplemented by operating
handbooks and process maps with related procedures and
work instructions. The self-assessment plan defines how
Terveystalo looks after clinical quality and patient safety in
its operations. The implementation of self-assessment is a
concrete activity, and each clinic is required to have defined
practices for carrying out the measures presented in the
self-assessment plan.
Terveystalo’s self-assessment plan has been prepared
by the persons in charge of each function, reviewed by the
Chief Quality Officer and approved by the Medical Forum
and the Chief Medical Officer. The implementation of the
self-assessment plan is monitored in internal and external
audits, for example. A summary of the self-assessment
plan is available on the company’s website.
Continuity plan
Continuity planning is part of an organisation’s overall
security. As a leading private healthcare provider,
Terveystalo plays a significant role in access to care at the
national level, also in exceptional circumstances. The conti-
nuity plan defines and describes the organisation’s operat-
ing models for ensuring that Terveystalo’s critical services
can be produced in exceptional circumstances and during
disruptions. This, in turn, ensures access to medical services
and the continuity of business. The goals of the continuity
plan are to ensure the availability of critical services in
medical care and customer safety, patient safety and
occupational safety in exceptional circumstances, ensure
that the organisation’s core functions operate with minimal
disruptions, maintain the capacity to operate in exceptional
circumstances and recover quickly from disturbances,
prepare for threats and disruptions whose management
requires close and extensive cooperation between various
parties, and establish a clear picture of the key roles,
responsibilities and tasks in continuity management, as
well as the operating guidelines and instructions that
ensure continuity. Continuity management is based on
risk assessment. It is part of Terveystalo’s management
and reporting system, and it is managed as part of every-
day management structures. The management teams at
Terveystalo’s various organisational levels are responsible
for continuity management under the Group’s guidance.
41
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo's quality work is based on clinical, experienced and operational quality
Clinical quality
Healthcare must be based on evidence and
good care and operating practices, and it must
be of high quality, safe and appropriately imple-
mented. Clinical quality is actively monitored,
measured and managed at Terveystalo.
The customer’s experienced quality
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. Terveystalo’s objective is to be the
preferred provider of healthcare services for all
customer groups.
Clinical
quality
The professional’s
experienced quality
The customer’s
experienced quality
Operational
quality
Good health and well-being
The professional’s experienced quality
Satisfied employees provide a better customer
experience in customer encounters and thereby
enhance customer satisfaction. The realisation of
Terveystalo’s strategy requires that the company
is able to attract qualified and motivated health-
care professionals to Terveystalo and retain
them. This enables the achievement of clinical
quality, an excellent service experience and
operational efficiency.
Operational quality
Streamlined processes ensure the smart
allocation of resources and the reliability of
operations. All services provided by Terveystalo
are based on the company’s comprehensive and
certified ISO 9001:2015 quality management
system. Customers can always trust the quality
of care, the smooth use of services, and the
efficiency and safety of Terveystalo’s services.
In addition, Terveystalo promotes pleasant and
efficient everyday life by developing expertise
and management. Terveystalo’s comprehensive
network, digital tools and extensive service
range constitute a platform for providing effi-
cient, personal and local services for customers.
Targets for quality
and effectiveness of care
Terveystalo has defined three key targets to promote the
achievement of Terveystalo’s quality objectives. Two of
the targets are also included in the sustainability-linked
financing framework published in 2023.
Effective care to
mental health issues
Mental health issues are among the three most common
diagnosis categories in Terveystalo and are a significant
cause of human suffering, related sickness absences, and
early retirement in Finland. Providing appropriate and
effective treatment for mental health issues is one of the
priorities of Terveystalo's medical quality development.
Patients who receive brief psychotherapy recover faster
than those given only sick leave and/or medication.
Patients who go through brief psychotherapy also have
fewer sickness absences. Terveystalo aims to increase the
use of brief psychotherapy in occupational healthcare in
the treatment of people diagnosed with depression or
anxiety disorders. When more patients receive care at
an early stage, resources for long-term rehabilitative psy-
chotherapy are freed up for those who need it due to the
severity of their condition. Terveystalo has systematically
developed mental health care paths and increased the
proportion of patients referred to brief psychotherapy.
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Good health and well-being
Target
Indicator (KPI)
Scope of application
Target level
Target year
Increase the share of occupa-
tional healthcare patients
diagnosed with anxiety or
depression and who are
referred to brief psycho-
therapy to 25% by 20261)
The share of occupational healthcare
patients diagnosed with anxiety or
depression and who are referred to
brief psychotherapy
Occupational healthcare
customers in Finland
25%
2026
Good health and well-being
Base year
2022
2023
12.6%
2022
8.5%
2021
6.2%
Maintain a customer satisfaction
score (NPS) of at least 832)
NPS (Net Promoter Score)
for appointments
Terveystalo’s customers, who have
visited appointments in Finland
At least 83
Continuous
2022
84.8
82.7
83.0
Maintain an appointment-
specific PEI index3) of at least 2.9
PEI index
(Patient Enablement Instrument)
Terveystalo’s customers
who have visited doctor's
appointments in Finland
At least 2.9
Continuous
2022
2.9
2.9
-
1) Occupational healthcare patients with a diagnosis of depression or anxiety and who are referred to brief psychotherapy / Occupational healthcare patients with a diagnosis of depression or anxiety.
2) NPS measures the individual patient's experience of the service received shortly after the service experience. The patient is asked to assess how likely (on a scale of 0–10) they are to recommend
Terveystalo’s services. The Net Promoter Score is calculated by subtracting the share of those who gave a score of 0–6 (detractors) from the share of those gave a score of 9–10 (promoters).
3) The PEI index (Patient Enablement Instrument) is used to measure whether the customer feels that they are able to cope with their symptom or illness much better, better, same as before,
or worse after the appointment. The scale is 1–4.
Terveystalo’s target is to increase the share of occu-
pational healthcare patients diagnosed with anxiety or
depression and who are referred to brief psychotherapy
to 25 percent by 2026. Going up from the current level to
25 percent is an ambitious goal, as the number of people
suffering from depression or anxiety increases every year.
Achieving the target will require the further development
of processes, as well as the training and recruitment of
professionals.
In 2023, Terveystalo developed a reporting tool that
the physicians in charge of each unit can use to review
their unit’s progress towards the goal, as well as compare
their performance with that of a similar unit, enabling
peer development. Terveystalo’s Fokus Mieli special unit
also monitors progress towards the goal and supports its
achievement by providing training and communicating
the im-portance of the topic, for example. In 2023, the
share of occupational health patients referred to brief
psychotherapy was 12.6 (8.5) percent of all occupational
health patients diagnosed with anxiety or depression. Total
number of diagnoses of depression and anxiety in occu-
pational health was 87,335 (80,702). The results achieved in
2023 were in line with the target.
Excellent customer experience
NPS (Net Promoter Score) is Terveystalo’s most important
indicator of the quality of the customer experience.
Terveystalo aims to stand out by providing an excellent
experience in all customer encounters. The company
develops its services by listening to customers and utilising
43
TerveystaloAnnual Report 2023
Year 2023
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Corporate Governance
Financials
Good health and well-being
new technology. NPS expresses the share of Terveystalo’s
patients who would recommend Terveystalo’s services to
others. NPS is a sensitive indicator – it reacts quickly to
patient satisfaction or dissatisfaction. The customer expe-
rience can be affected by the availability of appointments,
staying on schedule, the perceived quality of care, or the
duration of the granted sick leave, for example. For this
reason, the NPS figure can increase and decrease sharply,
and it must be earned every day in every encounter.
Terveystalo’s NPS is exceptionally high compared to the
industry average (38), and maintaining this performance
requires a continuous effort.
Terveystalo’s target is to maintain a customer
satisfaction score (NPS) of at least 83. In 2023, the NPS for
appointments was 84.8 (82.7).
Effective care at every visit
Terveystalo uses PEI indicator (Patient Enablement
Instrument) to measure the appointment specific effective-
ness of care. PEI measures the customer’s perception of
coping with their illness or condition after an appointment,
that is whether the customer feels that they can cope
with their symptom or illness much better, better, same
as before, or worse after the appointment (on a scale of
1–4). The aim of collecting individual customer feedback
is to improve both the customer experience and the
professional experience. The PEI indicator is commonly
used in primary healthcare, and it has been selected by the
Finnish Institute for Health and Welfare (THL) as one of the
key indicators for measuring the effectiveness of Finnish
healthcare in the future.
Terveystalo’s target is to maintain an appointment-
specific PEI index of at least 2.9. In 2023, the PEI index
was 2.9 (2.9). Approximately 60 percent of Terveystalo's
customers feel they cope better or much better with their
illness after an appointment.
Other indicators of
the quality of care
In addition to the aforementioned targets, Terveystalo
continuously measures its clinical, experienced and process
results based on international best practices. Terveystalo’s
quality index incorporates four dimensions: high clinical
quality, access to care, preventive care and experienced
quality from the perspective of both professionals and cus-
tomers. The quality index comprises seven key indicators:
the 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, the duration of sickness absence issued on
the day of operation for repair of the rotator cuff and the
anterior cruciate ligament, the percentage of preventive
work of occupational health appointments, the availability
of care as measured by T3 (the third available appoint-
ment), the Net Promoter Score (NPS) for appointments
and the employee Net Promoter Score (eNPS). Terveystalo
publishes its continuously updated quality indicators on
its website. The achievement of the quality targets is
monitored by Terveystalo’s Quality Steering Group
quarterly through the quality indicators.
44
TerveystaloAnnual Report 2023
Year 2023
Sustainability
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Financials
Good health and well-being
Quality index
% of target
7
6
45
1
120
100
80
60
Quality index
89.9
(92.1)
2
3
5
4
2023
2022
1. Use of the WHO Surgical Safety
Checklist in surgical operations
Terveystalo performs surgical operations at 18 hospital units.
The WHO Surgical Safety Checklist is used systematically
before the start of each procedure. The standard list of
questions is used to check safety issues relevant to the sur-
gical procedure. In 2023, the WHO Surgical Safety Checklist
was used in 99.2 (98.9) percent of the surgical operations
performed.
2. Prescriptions for drugs affecting the central
nervous system relative to the number of
physician’s appointments
When used appropriately, drugs affecting the central nerv-
ous 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 nerv-
ous system according to clinical guidelines in patient care. To
harmonise prescription practices, Terveystalo has prepared
detailed guidelines for prescribing drugs affecting the cen-
tral nervous system based on legislation, the 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 2023, Terveystalo clinics wrote prescriptions for drugs
affecting the central nervous system for 4.1 (4.0) percent of
physician’s appointments.
3. Duration of sickness absence issued on the
day of operation for repair of the rotator
cuff and the anterior cruciate ligament
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. The treatment
chain for surgery patients is developed systematically.
Terveystalo’s 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
30 (30) days in 2023.
the third available non-urgent appointment at Terveystalo’s
clinics. The T3 indicator for appointments with a physician
was 1.8 (1.9) in 2023. Access to care is improved by the
availability of 24/7 digital appointments with a general
practitioner, which are offered in addition to in-person
appointments. The waiting time for a digital appointments
is measured in seconds on average. Digital mental well-being
services also lower the threshold for seeking treatment.
4. Percentage of preventive work of
occupational health appointments
Work not carried out is expensive for companies. There-
fore, it pays to invest in work ability management through
preventive measures. Effective work ability management
requires that organisations know what kinds of risks to
work ability they are managing. Terveystalo uses targeted
health examinations to survey the client organisation’s
health and work ability risks and obtain information to
support the management efforts. In addition, an electronic
and scientifically validated self-assessment health survey
is always completed by employees in connection with
occupational health examinations. Based on the survey,
Terveystalo can identify potential risks related to health
and work ability. The survey also enables the targeting
of measures at individuals with significant risks. In 2023,
preventive work accounted for 72.1 (69.6) percent of all of
Terveystalo’s occupational health appointments.
5. Availability of care as measured by T3
(the third available appointment), clinics
Terveystalo aims to continuously develop access to care by
managing the balance between supply and demand, as
well as by developing digital services and the work of
healthcare professionals. The availability of care is mea-
sured by the T3 indicator, which is the number of days until
6. Net Promoter Score (NPS) for appointments
The NPS for appointments was 84.8 (82.7) in 2023. The NPS
for hospital services remained at a high level at 94.5 (95.1).
7. Employee Net Promoter Score (eNPS)
Terveystalo’s aim is 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 survey,
the employee Net Promoter Score (eNPS) is used as a key
indicator. The eNPS figure indicates the proportion of the
employees and private practitioners who would recommend
Terveystalo as a work-place to others. In the 2023 profes-
sional survey, the eNPS recommendation index in Finland
was 18 (29). In 2023, Terveystalo implemented changes to
its operating model and streamlined organisational struc-
tures in connection with a profit improvement program.
The decrease in the eNPS indicator is partly due to those
changes. In spite of the decrease in the eNPS indicator,
Terveystalo received increasingly favorable scores for its
long-term strengths, including the activities of work com-
munities, cooperation in teams and the work of immediate
supervisors. The score indicating the personnel’s willingness
to continue to work at Terveystalo also remained at a good
level. The target is for the eNPS indicator to be at least 25
in 2025.
TerveystaloAnnual Report 2023 Year 2023
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Indicators of patient safety
Good health and well-being
Good health and well-being
Target
> 99%
2023
99.2%
2022
98.9%
2021
99.8%
Area
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
Quality index:
High clinical and
experienced quality,
access to care and
preventive care
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%
4.1%
4.0%
4.3%
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
30
30
32
Percentage of preventive work of occupational health
appointments over 60%
Percentage of preventive work of occupational
health appointments
> 60%
72.1%
69.6%
70.2%
Days until next available appointment, clinics (T3) below1)
T3, i.e. the third available appointment
Appointment NPS of at least 83
eNPS at least 25
Quality index total
Appointment NPS
eNPS
Quality index, %
Access to care,
public services
Days until next available appointment (T3)
public services < 7 for a physician, < 1 for a nurse
T3, i.e. the third available appointment with a physician
T3, i.e. the third available appointment with a nurse
< 1
> 83
> 25
100%
< 7
< 1
1.8
84.8
18
1.9
82.7
29
1.6
83.0
32
89.9%
92.2%
94.6%
10.0
1.5
12.0
2.0
6.5
1.0
Patient safety
Continuity of care
COCI value of at least 0.5
Reimbursed patient claims / appointments with a physician
0.0016%
0.0016%
0.0019%
Near misses / hazardous incidents
54.3%
56.9%
50.0%
COCI (Continuity of Care Index), which describes the
dispersion of patient visits between different professionals
over a measured period on a scale of 0 to 1.
0.5
0.77
-
-
The figures include Terveystalo's operations in Finland.
1) Ministry of Social Affairs and Health publication 2022 “System for continuity of care, Final report of the Personal Doctor 2.0 survey"
Patient safety is the foundation of the quality of care.
It refers to the principles and functions of healthcare
personnel and the organization that ensure the safety of
care and protect the patient from injury. From the patient’s
perspective, patient safety means that they receive the
right treatment at the right time and in the right manner,
and that the adverse effects of treatment are minimised.
Patient safety risks arise from unexpected occurrences that
may cause an adverse event for a customer and, in the case
of serious adverse events, make the company liable for
damages. In 2023, the ratio of reimbursed patient claims
to the total number of appointments with a physician was
0.0016 (0.0016) percent, and the indicator of near misses/
hazardous incidents was 54.3 (56.9) percent.
Measuring continuity of care
Continuity of care has been shown to improve both
customer and professional satisfaction and is a key factor in
the quality and effectiveness of care. It is also increasingly
a topic in the societal debate on healthcare development.
For example, the Finnish Ministry of Social Affairs and
Health identified continuity of care as the most important
issue for improving primary healthcare in its report1) on the
development of primary healthcare. Terveystalo has been
measuring continuity of care since the beginning of 2023
and has published the results on its website. Continuity of
care is measured using COCI (Continuity of Care Index),
which describes the dispersion of patient visits between
different professionals over a measured period on a scale
46
TerveystaloAnnual Report 2023 Year 2023
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Good health and well-being
of 0 to 1. A value of 0 means that the patient sees a new
professional at each visit and a value of 1 means that the
same professional is present at each visit. In Finnish health
centres, the average COCI value is 0.3. In Terveystalo, the
average COCI value in 2023 was 0.77. The target is an
index value of 0.5.
New Symptom Assessment
tool facilitates access to care
and supports the work of
healthcare professionals
In the autumn of 2023, all of Terveystalo’s occupational
health customers were given access to the Symptom
Assessment tool, a CE-marked medical device that makes
the use of occupational healthcare services significantly
smoother in the event of illness. The Symptom Assessment
tool refers the customer to the right specialist and the right
channel in a timely manner. The tool also supports the
work of healthcare professionals by taking care of certain
routine tasks on the professional’s behalf, allowing them to
allocate more time to customer encounters.
When a customer has the need to contact their occu-
pational healthcare provider and they use Terveystalo’s
digital channels, the customer is first requested to describe
their symptoms. Based on the symptoms, the Symptom
Assessment tool analyses the answers provided by the
customer and refers them to the right specialist and the
right channel in a timely manner according to the urgency
of the case. The answers provided by the customer are
forwarded to the receiving specialist, which speeds up
and improves the care the customer receives from the
healthcare professional. Terveystalo’s new solution was
developed with the aim of making daily life easier for both
healthcare professionals and customers.
Thanks to the referral model, the customer does not
need to determine who is the right professional to treat
their condition and what channel to use. The customer
is referred to the appropriate professional and channel
based on the answers they provide when using the
Symptom Assessment tool. For example, a customer may
find the best treatment for musculoskeletal disorders by
having a direct appointment with a physiotherapist instead
of a physician. Similarly, some conditions can be dealt
with remotely, while others clearly call for an in-person
appointment.
The new referral model helps alleviate the shortage
of physicians and improves access to care and the quality
of care. Access to care is improved when customers are
referred either to an in-person appointment or remote
channels, and to the appropriate occupational healthcare
professional, based on their symptoms. In the first round
of customer feedback, the Symptom Assessment tool was
rated 4 out of 5 for its ease of use. Having technology take
over part of the routine tasks allows healthcare profession-
als to allocate more time to treating customers.
Integrating blood analysis
technology into occupational
health check-ups improves
the prevention of illnesses
In the autumn of 2023, Terveystalo renewed its preventive
healthcare by integrating blood analysis technology
developed by Nightingale Health into occupational health
check-ups. By using modern technology, Terveystalo’s
Occupational Health will be able to detect the working
age population’s disease risks for several common chronic
diseases, prevent illnesses and thus significantly reduce the
burden on healthcare in the future.
As the largest provider of occupational health services
in Finland, Terveystalo looks after the health of more than
700,000 Finns of working age. By integrating the blood
analysis developed by Nightingale into occupational
health check-ups, Terveystalo offers more and more peo-
ple of working age a view of their personal susceptibility to
common chronic diseases and support for lifestyle changes
to reduce this susceptibility.
Terveystalo’s medical specialists have chosen the eight
most important chronic diseases to be surveyed: heart
attack, stroke, type 2 diabetes, liver fibrosis and cirrhosis,
chronic kidney failure, COPD, lung cancer and alcoholic
liver disease. Nightingale Health’s blood analysis technol-
ogy brings even more clarity to the work of occupational
health professionals. At the same time, it offers an even
better opportunity to focus on the customer during
appointments, when, to support the clinical work, the
professional already has an individual assessment based
on metabolic markers of the person’s risk of falling ill with
the chronic diseases in question before the appointment.
Nightingale Health’s wide-ranging identification of
disease risks significantly increases the effectiveness and
benefits of preventive healthcare for both healthcare
professionals and customers, as modern health technology
helps motivate people to change their lifestyle by concre-
tising their susceptibility to disease.
Common chronic diseases have a direct impact on
a person’s work ability and functional capacity, and they
require regular monitoring, which places a burden on the
healthcare system. A very large proportion of common
chronic diseases in people of working age are preventable,
but it requires innovative solutions for effective preventive
care. Further improving the prevention of common
chronic diseases also reduces their negative impact on the
economy.
Nightingale’s blood analysis technology is among
the world’s most widely used next-generation tools for
medical research and preventive health. The technology
has been used to analyse approximately two million blood
samples to date. Its performance and benefits have been
demonstrated in more than 450 peer-reviewed scientific
publications and it has passed European healthcare regula-
tory requirements.
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TerveystaloAnnual Report 2023 Year 2023
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Good health and well-being
Terveystalo’s care paths as part
of integrated care support the
customer’s self-care and make
work smoother for professionals
Science-based care guidance has been, and is still being,
developed at Terveystalo with the help of common care
paths. Care paths are defined by Terveystalo as ways of
treating the disease or condition for which the customer
has sought treatment based on the Current Care Guide-
lines and other generally accepted treatment guidelines.
The aims of care paths are to:
• support and speed up the work of professionals
• ensure consistent quality of care, based on
recommendations
• ensure that diagnostic examinations and follow-up
related to treatment are carried out
• promote health and produce effective treatment
The care path is displayed to the physician as an alert
in the patient information system with brief instructions
on recommended treatment and follow-up measures
based on the working diagnosis. The care paths include
diagnostics options applicable to the working diagnosis,
such as laboratory examinations and imaging procedures,
and instructions on situations where a specialist’s consul-
tation or therapy is recommended. The instructions in the
alerts and the recommended examinations and further
measures have been prepared and selected in physicians’
workshops. A specialist in each field has also participated
48
in the preparation of the instructions. The customer, in
turn, receives instructions on how to prepare for the exam-
inations, as well as self-care instructions, via the Terveystalo
app and the online service. Furthermore, for diagnoses for
which therapy is recommended in addition to or alongside
pharmaceutical interventions, the customer is provided
more information on brief psychotherapy and physical
therapy that can also be commenced without a referral.
For the patient, all this means a clearer, smoother and
more predictable course of treatment. For the professional,
care paths provide better tools and clearer and smoother
work.
The first care paths defined by Terveystalo were
introduced in 2021. At the end of 2023, there were already
about 70 care paths in use. Examples include care paths for
the treatment of non-specific lower back pain, depression
and anxiety, insomnia, brief phychotheraphy and children’s
lower respiratory tract infections.
Long-term development
of patient safety culture to
minimise patient safety risks
At Terveystalo, patient safety and its continuous devel-
opment are the foundation of the quality of care. The
foundation of patient safety is a good patient safety
culture, which means having an open atmosphere in which
employees are able to highlight any shortcomings or
hazards (near misses or hazardous incidents) they observe
in their work treating patients, without fear of sanctions
or blame. Shortcomings and hazardous incidents must be
addressed openly and carefully to ensure that the incident
or problem does not reoccur.
A patient safety survey carried out once every two
years is one of the tools for developing patient safety. The
last two surveys were carried out in 2023 and 2021. Since
the 2021 survey, Terveystalo has introduced a new online
course on patient and customer safety, which is mandatory
for all employees in care work and personnel whose roles
include responsibility for patient safety. The online course
had to be completed by the end of 2022. Going forward,
it will be retaken once every three years. New employees
complete the online course as part of their orientation
training.
The goal of the 2023 patient safety survey was to
evaluate how patient safety is reflected in Terveystalo’s
day-to-day operations and what the personnel’s percep-
tions are regarding the realisation of patient safety. The
survey was aimed at assessing the impacts of the previ-
ously taken measures on patient safety and the
development of patient safety culture.
The 2023 survey was responded to by 1,293 pro-
fessionals working with patients, 12 percent of whom
were physicians. The results of the survey showed that,
on a general level, Terveystalo’s patient safety culture is
perceived to be good and the related activities are held in
high regard. The survey indicated that improvements had
been achieved with respect to observing and reporting
incidents and being familiar with the reporting system. The
respondents indicated that patient safety expertise had
improved and patient safety culture was better reflected in
the day-to-day operations of clinics. The survey highlighted
a wish to better engage all of the personnel in the pro-
cessing of incidents. The safe use of medical devices was
also highlighted as an area for development. The results
of the survey have been carefully reviewed in the Patient
Safety Working Group and other forums, and the results
have been used to identify development areas to focus on
going forward.
Digital services support the
transformation of wellbeing
services counties
Terveystalo supports Finland’s newly established wellbeing
services counties in the digital transformation by providing
modern and easy-to-use digital solutions and highly
competent service production for the wellbeing services
counties.
In the spring of 2023, the wellbeing services county
of South Ostrobothnia chose Terveystalo as its partner to
develop a digital platform that serves its residents as well
as social welfare and healthcare professionals. The OmaEP
digital service provides the residents of the wellbeing
services county of South Ostrobothnia with quick access to
a nurse via a chat function, for example. In the future, they
will also be able to book appointments for the wellbeing
services county’s services. Going forward, a growing range
of services can be delivered digitally, including messages
between customers and professionals concerning treat-
ment instructions and the provision of various preliminary
information before an appointment. The OmaEP platform
will be the starting point for most of the use of social
welfare and healthcare services by the residents of the
TerveystaloAnnual Report 2023 Year 2023
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Good health and well-being
gency visits in physician-in-charge services for the elderly.
The last two of these indicators describe Terveystalo’s
sustainability efforts particularly well.
Each year, Terveystalo’s staffing services provide orien-
tation training to hundreds of physicians at new client loca-
tions. For this reason, orientation training is very significant
for patient safety and the quality of care. An orientation
training model has been created for this purpose, and
its implementation is monitored. The goals have been
achieved, with 90 percent of physicians having completed
orientation training in accordance with the model, and
high-quality orientation training having become part of
the operating culture.
The number of emergency visits in physician-in-charge
services for the elderly is a new indicator. It measures
the number of emergency visits by elderly people living
in care units for whose care the physicians-in-charge in
Terveystalo’s staffing services are responsible. One of the
goals of the physician-in-charge model has been to reduce
unnecessary transfers to emergency services, as visits to
emergency services are not only expensive for society but
also tough on the elderly from a human perspective. The
results have been excellent: in some units, emergency
visits have been reduced by as much as half after the
introduction of Terveystalo’s physician-in-charge model.
Quality indicators help react to any deviations and provide
evidence of the effectiveness of the services.
wellbeing services county of South Ostrobothnia. The
aim is to deploy the digital service in 2024 and gradually
expands its use thereafter. The OmaEP digital platform will
serve as an example to wellbeing services counties on how
digital services can further improve quality and efficiency
in the provision of social welfare and healthcare services.
Terveystalo can take advantage of the lessons it has
learned about the digital transformation in its own busi-
ness and work together with wellbeing services counties
to innovate more effective social welfare and healthcare
services in an impactful and cost-efficient manner.
Quality efforts are part
of the operating culture
in staffing services
Staffing services, which are under Terveystalo’s Portfolio
Businesses segment, act as a responsible partner to
wellbeing services counties in the planning of professional
resources. For example, staffing services provide general
practitioner, specialist, nurse and psychologist resources
where they are needed.
Terveystalo’s staffing services continuously develop
the services they offer to wellbeing services counties,
driven by data and feedback. In 2023, staffing services had
a special focus on quality development and the sharpen-
ing of quality efforts.
Five quality indicators are used in staffing services: the
eNPS of professionals, the retention of physicians, ensuring
physician resources for emergency services, the implemen-
tation of orientation training and the number of emer-
49
TerveystaloAnnual Report 2023 Year 2023
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Financials
Terveystalo’s Medoma
app facilitates the planning
and management of work
Terveystalo is continuously developing its range of digital
services and their features to improve access to care and
the quality of care. Launched in 2023, the new Medoma
app was developed to make it easier to manage the work
of healthcare professionals working in public services. The
application is designed for all physicians and dentists who
work in, or are interested in working in, public healthcare
at Terveystalo’s public sector cooperation locations. All
”
Terveystalo aims to
stand out by pro-
viding an excellent
experience in all
customer encoun-
ters, irrespective of
the channel.
physicians, dentists and soon also nurses interested in
work shifts for the wellbeing services counties cooperating
with Terveystalo can use the mobile app to find and book
their shifts, sign off on shifts and, for example, indicate
when they are available. The app brings together all of
Terveystalo’s public health services, both longer periods of
work and individual shifts. This is aimed at increasing the
number of hours worked by professionals and meeting
the growing demand for services. The Medoma app won
an award in the Grand One 2023 competition for digital
services, with the jury describing the app as a high-quality
service that solves a real societal problem and which, as
it expands, can help to alleviate the healthcare crisis to an
increasing extent.
Customer feedback is
an effective tool for the
development of operations
Terveystalo aims to stand out by providing an excellent
experience in all customer encounters, irrespective of the
channel.
Collecting customer feedback is extremely important,
as it serves as an effective tool for the development of
operations. At Terveystalo, customer feedback is collected
systematically and extensively across various channels,
including the collection of direct customer feedback at
appointments and clinics, real-time text message feedback
for measuring the NPS (Net Promoter Score), and customer
experience surveys carried out by occupational health
services among corporate customers. In addition,
Terveystalo collects specialist-specific feedback, which
is measured by the PEI indicator (Patient Enablement
Instrument). It measures the customer’s ability to cope
with their illness after an appointment. Customers are
offered a range of feedback channels, including the
Terveystalo app, online forms, feedback forms at clinics,
and oral and written feedback. In accordance with the
Act on the Status and Rights of Patients, objections can
be submitted through Terveystalo’s website in a secure
manner or mailed to a Terveystalo clinic.
Terveystalo has harmonised processing and moni-
toring practices for customer feedback. Each clinic has a
designated quality officer who is in charge of processing
feedback, and all feedback is carefully processed.
Customers always receive an answer when they request
a response. Reports on customer feedback are collected
and monitored on a regular basis and used in internal
and external quality audits to assess the measures taken
and their impacts. This ensures that customer feedback is
an effective tool for improving operations and increasing
customer satisfaction.
As regards patient safety, everyone at Terveystalo is
under the obligation to submit an incident report if they
observe, or are made aware of, an issue that jeopardises
patient safety, customer safety or data protection.
Incidents are classified as either near misses or
hazardous incidents depending on the nature of the
incident. An incident is classified as a near miss when an
incident that jeopardises patient safety, customer safety
or data protection nearly occurred or nearly affected a
50
Good health and well-being
patient, but the adverse incident was avoided either by
chance or because the observed hazard was addressed.
For example, if a patient was about to be given the
wrong dose of medication but this was prevented by
double-checking, the incident would be classified as a near
miss. A hazardous incident occurs when an incident that
jeopardises a patient’s safety or data protection actually
takes place, such as when a patient is given the wrong
dose of medication or a patient's sensitive information is
disclosed to a third party. Incident reports are submitted
through a service portal intended for that purpose.
In the incident processing procedure, an e-mail alert
is sent for each incident report to the clinic’s patient
and customer safety officer and the physician in charge
of the clinic. The patient and customer safety officer is
responsible for initiating the processing of the incident and
coordinating the processing by engaging the necessary
persons in the processing, for example. The patient and
customer safety officer ensures that a root cause analysis is
carried out and corrective measures are taken.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Our key targets
• Being the industry’s best and
most attractive employer
• An employee Net Promoter
Score (eNPS) of at least 25
in 2025
Our achievements
Responsible
work
At Terveystalo, our mission is to fight for a
healthier life. We are building a humanely
efficient workplace where professionals can
focus on what matters the most - meeting
the customer. We want to ensure that profes-
sionals want to work for us, are committed
to us and can focus on what matters.
51
51
Terveystalo
Annual Report 2023
Net Promoter Score
19 eNPS, Employee
#1 The most popular employer
4.2/5²) Leadership
in private healthcare
among professionals¹)
index score
1) Universum survey of professionals 2023
2) Terveystalo's professional survey,
leadership index
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Terveystalo is a significant
provider of jobs and the
most popular employer
in its industry in Finland
Terveystalo is one of the largest employers in Finland.
At the end of 2023, Terveystalo had 8,950 (10,100)
employees and 5,987 (5,822) independent private
practitioners in its operations in Finland. Terveystalo
also operates in Sweden, where Terveystalo’s subsidiary
Feelgood had 874 (833) employees and 105 (106) private
practitioners. The number of employees in Finland was
affected by a reduction in the number of employees
working in COVID-19 related services, the measures of
the profit improvement program and the termination of
outsourcing contracts.
The shortage of professionals is the greatest
challenge in the healthcare sector. It is estimated that
approximately 3,000 new physicians1) and 14,000
nurses2) will be needed in the Finnish healthcare sector
by 2025 to meet the growing need for care. With this in
mind, it is a key strategic goal for Terveystalo to ensure
that the company has enough health and well-being
professionals to meet the growing demand and achieve
its strategic targets. To ensure this, Terveystalo aims to
be the best and most attractive employer in its industry.
Terveystalo’s attractiveness as an employer and the
occupational well-being and job satisfaction of the peo-
ple who work at Terveystalo constitute the foundation
for all operations. Terveystalo strives to strengthen its
attractiveness as a workplace by providing professionals
52
with interesting and meaningful work, competitive pay,
diverse career and development opportunities, and
ensuring that professionals can work smoothly and focus
on what matters. Terveystalo has worked systematically
towards these goals for several years and, in 2023,
Terveystalo was rated by industry professionals as the
healthcare sector’s most popular employer in Finland for
the fourth consecutive time3).
Terveystalo’s operating
principles concerning human
resources management
Terveystalo has drawn up operating principles for manag-
ing material impacts on its personnel. The key operating
principles pertaining to areas such as human rights, equal-
ity and non-discrimination, remuneration, work community
development and occupational health and safety are
described briefly below.
Code of Conduct
Terveystalo’s Code of Conduct includes key principles
concerning equality, fairness and non-discrimination. At
Terveystalo, no-one is discriminated against on the basis
of gender, age, ethnic or national origin, nationality,
language, religion, beliefs, opinions, health status,
disability, sexual orientation or other personal reasons or
circumstances. In recruitment, the focus is on the person’s
professional competence, the ability to take responsibility
and the willingness to improve Terveystalo’s operations
and pursue personal development.
Terveystalo does not tolerate any form of discrim-
ination, harassment, bullying, racism or inappropriate
treatment, nor does Terveystalo condone the use of child
labour, any form of forced labour or other human rights
violations in its own operations or its value chain or 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 Labour Organisation
(ILO) and related international conventions. The company
is committed to the UN Global Compact initiative and its
principles pertaining to human rights and labour rights.
Terveystalo respects the right of its employees to be mem-
bers of trade unions or similar advocacy organisations and
participate in their activities.
Work community development plan
Terveystalo has, in cooperation with personnel represent-
atives, prepared a work community development plan for
the long-term and systematic development of the work
community. The plan documents the current state of the
personnel and projected developments that may have
an impact on the competence needs or occupational
well-being of the personnel. The plan also features targets
and actions for developing and maintaining personnel
competence and promoting occupational well-being.
The development plan also includes Terveystalo’s
equality and non-discrimination plan. At Terveystalo, the
aim is to promote not only gender equality but also the
equality and non-discrimination of different age groups
and nationalities in the context of hiring and employment
relationships, including recruitment, pay and terms of
employment, training and career advancement, and the
reconciliation of work and private life. The requirements
concerning equality, non-discrimination, tolerance and
appropriate conduct apply to everyone working at
Terveystalo Group, both employees and private practi-
tioners. The implementation of equality and non-discrimi-
nation is monitored with the help of statistics reflecting
the personnel structure, among other things.
Terveystalo’s working group on equality became
operational at the beginning of 2023. Its aim is to pro-
mote equality in Terveystalo’s work communities and
customer encounters. The working group consists of
nine members representing various parts of Terveystalo’s
Finnish organisation.
The work community development plan is updated
regularly, and it serves as one of the tools for dialogue
with the personnel. The development plan covers the
entire Terveystalo Group’s employees and private practi-
tioners. The work community development plan was most
recently created in early 2023 and its implementation is
the responsibility of Terveystalo’s Senior Vice President,
People and Careers.
1) Source: Ministry of Social Affairs and Health publication
“Medical and dental specialist situation and need for
training until 2035”
2) Source: Municipal labour forecast 2030 by Keva
“Public sector deficit"
3) Universum employer survey 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Remuneration
One of the areas of Terveystalo’s people strategy is the
development of meaningful and competitive incentive and
remuneration models that strengthen the performance
and commitment of professionals and Terveystalo’s
attractiveness as an employer. Terveystalo’s remuneration
principles are set out in the remuneration policy. The remu-
neration principles are based on performance, fairness and
competitiveness. The aim is to ensure that Terveystalo is
an attractive employer for motivated and skilled profes-
sionals. Remuneration must support the achievement of
Terveystalo’s strategic targets, incentivise behaviour that is
consistent with Terveystalo’s values, and reward excellent
performance.
80 percent of Terveystalo’s employees in Finland are
covered by collective agreements. In Sweden, the corre-
sponding figure is 100 percent. 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 respon-
sibility supplements, the employee’s years of experience,
and individual performance and competence. For senior
salaried employees and directors, pay is determined on
the basis of the position and the demands of the job, as
well as other factors, including competence, experience,
performance and results.
Pay equality is assessed and promoted as part of the
work community development plan. Gender, for exam-
ple, cannot be a factor that influences pay. Terveystalo
monitors the market levels of wages in both the private
and public sectors, aiming to maintain its competitiveness
also with respect to pay. In 2023, the wage solutions
of some collective agreements that Terveystalo follows
included local tranches in addition to general increases.
At Terveystalo, it was decided that the local items would
be implemented as personal increases. The local item for
the collective agreement that applies to the largest group
of employees, the collective agreement for the private
healthcare sector (TPTES), was allocated to committed and
high-performing individuals whose wages were lower
than their peer group. Terveystalo distributed 30% more
increases than what was required for the local item under
the TPTES agreement. For employees within the scope of
the collective agreement for staffing services sector (HPL
TES), the local item was allocated to individuals with excel-
lent performance.
Occupational safety
The occupational safety of Terveystalo’s personnel in
Finland is developed and managed at the Group level, tak-
ing company-specific and business-specific differences into
account. Group-level policies and instructions concerning
occupational safety are put into action in accordance
with the respective processes of the businesses. Where
necessary, the businesses prepare their own targeted
instructions, taking the Group policies and guidelines
into consideration. The different levels of the organisation
know and recognize their responsibilities concerning occu-
pational safety in compliance with Finnish legislation. The
Group supports all of its businesses in the development of
occupational safety as necessary. Terveystalo’s goal is to be
a safer working environment every day.
The development of occupational safety at Terveystalo
is focused on the identification, prevention and mitigation
of health hazards and adverse health impacts arising from
working conditions, as well as protecting and promoting
the safety, work ability and health of employees.
occupational health and safety work. The action plan is
updated annually in collaboration with the occupational
health and safety personnel, and its implementation is
monitored in the Group’s quarterly occupational health
and safety meetings.
An annual action plan is drawn up for the develop-
ment of occupational safety. In 2023, the goal was to
develop the systematic management of occupational
safety at the individual, unit, business and Group levels
by, for example, clarifying responsibilities related to
occupational safety, ensuring careful orientation training
and increasing occupational safety management through
supervisory work. A new operating model for the risk
assessment of work tasks was also introduced in 2023.
All occupational accidents and commuting accidents
at Terveystalo are reported and investigated. In addition,
safety observations are actively made, and they are
monitored and used to develop the safety of operations.
Terveystalo has not had any occupational accidents or
commuting accidents resulting in death or severe injury
for years. The accident frequency in Finland was 20 (18) in
2023.
The legally required occupational safety and health
activities are ensured through Group-level cooperation
with active occupational safety and health personnel.
Occupational safety and health personnel have jointly
agreed-upon meeting practices and the training oppor-
tunities necessary for their duties. Health and safety
representatives are actively involved in workplace surveys
and hazard assessments for specific jobs, for example. The
Group-level occupational health and safety action plan
describes the planned measures for the development of
In addition to the responsible persons at each clinic,
the safety of facilities is the responsibility of designated
safety officers who implement practices created for the
development and assurance of the safety of facilities.
This ensures that Terveystalo’s facilities are safe for both
customers and the personnel. We work closely with lessors
and the rescue authorities to ensure the safety of our
facilities.
In Sweden (Feelgood), occupational health and safety
is organised in accordance with Swedish legislation.
Operations are guided by a certified ISO 45001 occupa-
tional health and safety system. The number of accidents
in Sweden was 16 (13) in 2023.
Occupational healthcare
Occupational healthcare plays a key role in the identifica-
tion of health risk factors and the prevention of illnesses.
In Finland, Terveystalo’s occupational healthcare and
occupational safety are organised on a company-specific
and regional basis in accordance with Finnish legislation,
according to which the employer shall arrange occupa-
tional healthcare 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,
working capacity, and health of employees.
53
TerveystaloAnnual Report 2023
Year 2023
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Corporate Governance
Financials
Responsible work
In addition to the statutory requirements, Terveystalo
provides its employees in Finland with a comprehensive
range of primary healthcare, specialised care and well-be-
ing services, such as occupational physiotherapy and
Mielen Chat and Mielen Sparri, digital services that sup-
port mental well-being. Mielen Chat and Mielen Sparri are
low-threshold services that are provided remotely via 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 psy-
chotherapy is also part of Terveystalo’s occupational health
services. Terveystalo aims to recognise challenges related
to work ability and occupational health at an early stage
and seek solutions to these challenges through effective
cooperation with occupational health services.
Terveystalo itself provides occupational healthcare
services to its personnel throughout Finland. Terveystalo’s
occupational health services are certified under ISO
9001:2015 quality certificate.
In the Group, advice and guidance related to
employee health and well-being at work, the assessment
of work-related health risks, and the prevention and
treatment of illnesses are part of our normal cooperation
with occupational health services and insurance company
partners. In the treatment of serious illnesses, Terveystalo
cooperates with primary healthcare and specialised
healthcare.
In the occupational health services, significant focus
is placed on maintaining the personnel’s work ability and
the treatment of illnesses. Sickness absences among the
personnel decreased from the previous year, and the
sickness absence rate in Finland was 4.0 (5.2) percent of
hours worked.
The statutory occupational health action plan includes
the general objectives of occupational healthcare as well
as the requirements based on workplace conditions and
related measures. The action plan is reviewed annually
based on workplace visits and Terveystalo’s work ability
management needs, for example.
Terveystalo’s occupational health operations are
based on the Healthy Workplace model, which is aimed
at ensuring that work is as efficient as possible, the work
community functions well, the management approach is
active, and individuals have a high level of well-being at
work. In occupational health, the company, the personnel
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 healthcare. Instead, as self-employed
persons, they arrange their own occupational healthcare.
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 service offering.
In Sweden (Feelgood), occupational healthcare
is organised in accordance with Swedish legislation.
Operations are certified by ISO 45001 occupational
health and safety system. In Sweden, the sickness
absence rate was 4.8 (5.5) in 2023.
54
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
2023
2022
Being the industry’s best and
most attractive employer
Employee Net Promoter Score
(eNPS)
Terveystalo’s employees
and private practitioners
At least 25
2025
2022
19
28
The employee Net Promoter Score (eNPS) indicates the proportion of the personnel and private practitioners who would recommend Terveystalo as a workplace to others.
Responsible work
Well-being and strong
work communities
Ethical business
Work community development
Work-life balance
100%
Target
Target year
Indicator (KPI)
Scope of application
Terveystalo’s Finnish operations
All employees have completed
training on the Code of
Conduct and correct action
Terveystalo uses the Healthy Workplace model as a tool
and guideline in the development of work communities.
The core of Terveystalo’s people strategy is to build strong
Target level
The model aims to ensure that work is as efficient as
work communities with a humanely efficient working
possible, the work community functions well, the man-
culture where people have high job satisfaction and their
Percentage of employees in permanent,
agement approach is active, and individuals have a high
work is smooth and productive. To achieve this, Terveystalo
full-time employment relationship who
have completed the training relative to
level of well-being at work. The Healthy Workplace model
looks after the health and safety of the personnel by
all employees in permanent, full-time
is based on the realisation of Terveystalo’s values and
providing occupational health services that exceed the
employment relationship1)
professional competencies. In accordance Terveystalo’s
legal requirements and by continuously developing safety
management principles, the role of supervisors is to build
culture in work communities. Nurturing a healthy work-life
Percentage of suppliers who
a human-oriented and psychologically safe atmosphere
balance is part of a humanely efficient working culture,
have approved the Supplier
Code of Conduct2)
and to be responsible for effective operations with clear
and Terveystalo invests in it in many ways. Terveystalo’s
responsibilities. In a Healthy Workplace, work is smooth
work communities are equal, non-discriminatory and
and the work processes support efficient work. At
diverse. Good and effective supervisory work is a key fac-
Terveystalo, work ability management is part of systematic
tor in performance and job satisfaction, and it is strength-
1) The figures are not comparable due to the training completion periods not being of equal length and due to change in the group of personnel whose course completions are reported. The new compliance
and goal-driven performance management. At the
ened by supporting and training supervisors.
course was introduced and moved to a new online platform in spring 2023. The figures for 2023 only include completions after the course was revised and only completions of employees in permanent,
full-time employment relationship in Finnish operations. The figures for 2022 also include course completions that took place in the second half of 2021 and, in addition to course completions of employees
individual level, performance management is based on
in permanent, full-time employment relationship, also course completions of other employees in Finnish operations.
every member of Terveystalo’s personnel having a clearly
defined job description, targets and expectations for work,
as well as the prerequisites and support for strong perfor-
mance at work.
and, where possible, offers different forms of employ-
ment to its personnel depending on the task, the need
for labour and the employee’s wishes. Employment
relationships are valid indefinitely unless there is an
acceptable and clear reason for fixed-term employment,
such as substitution arrangements. Full-time and part-time
employment relationships, hourly work contracts and
framework agreements are in use at Terveystalo. Part-time
work can be agreed upon based on the employer’s needs
or the employee’s wishes or needs. If necessary, hourly
work contracts and framework agreements are used in
A healthy work-life balance supports the well-being, pro-
ductivity and job satisfaction of the personnel. A healthy
balance and the ability to cope with the demands of work
also lead to a better customer experience. In the health-
care sector, where work is often demanding and there can
be a lot of time pressure, finding a healthy balance can be
a challenge. As an employer, Terveystalo strives to support
its personnel in reconciling work and private life.
2) Terveystalo measures the share of suppliers who have approved the Supplier Code of Conduct from Terveystalo’s key suppliers representing approximately 80 percent of the total procurement
expenditure of Terveystalo’s operations in Finland. The procurement expenditure does not include expenses related to fees paid to private practitioners, purchases for operations in Sweden,
one-off purchases or purchases of low significance.
Key suppliers accounting for
over 80% of total procurement
have approved the Supplier
Code of Conduct
Terveystalo is flexible in its contractual relationships
Terveystalo’s Finnish operations
2022
69%1)
2023
72%1)
Continuous
Continuous
100%
80%
81%
Terveystalo’s goal is to be
the best and most attractive
employer in its industry
Terveystalo’s goal is to be the best and most attractive
employer in its industry for all 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 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 the employees and
private practitioners who would recommend Terveystalo
as a workplace to others. In the 2023 professional survey,
the eNPS recommendation index was 19 (28). In 2023,
Terveystalo implemented changes to its operating model
and streamlined organisational structures in connection
with a profit improvement program. These changes had
a negative impact on the eNPS. Terveystalo’s long-term
strengths include well-functioning work communities,
effective cooperation and good team leadership. These
were perceived increasingly positively. The willingness to
continue working at Terveystalo also remained at a good
level. In the development of the professional experience,
the aim is to nurture these identified strengths and analyse
the reasons behind the decrease in the eNPS in more
detail. The target is for the eNPS indicator to be at least 25
in 2025.
55
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
situations where the need for labour is low and occasional.
Temporary agency workers are used as needed and typi-
cally in the event of sudden substitution needs.
Employees in different life stages have different needs
for reconciling work and private life. These needs can be
met through various forms of statutory leave, including
family leave, study leave, care leave and job alternation
leave. All Terveystalo employees are entitled to take
statutory leave. In 2023, the share of employees taking
statutory leave was 7.4 percent of all employees, of whom
8.1 percent were women and 4.2 percent men.
Work at Terveystalo is flexible and location inde-
pendent. Work goals and effectiveness determine the
way work is performed. Terveystalo’s Group services have
transitioned to hybrid work, where the teams agree on
the most effective way of working for them. The way of
working is influenced, for example, by the efficiency of
work, goals, flexibility and the well-being of the personnel.
Teams are also encouraged to meet regularly at the office.
Terveystalo has also developed flexible working opportu-
nities for 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 centres, for example.
Professional growth and
focusing on meaninful matters
The aim of professional growth is to strengthen the
employees’ development paths from traineeship to
retirement. Terveystalo offers its employees and private
practitioners high-quality training in various areas. At
Terveystalo, professional growth means not only training
but also all learning at work and in the work community,
as well as the renewal of operating practices. Skills devel-
opment aims at strong and up-to-date professional skills
and excellent leadership. To enable smooth and efficient
way of working for professionals, the structures, tools, and
processes are continuously developed.
Effective working methods
allow professionals to focus
on meaningful matters
Terveystalo’s goal is to provide professionals with smooth
and efficient work by developing the structures, tools and
processes related to their work. Digitalisation has changed
the work of health and well-being professionals and
brought new skills requirements. Digitalisation makes it
possible to increase both the smoothness and productivity
of work, allowing professionals to focus on what matters,
namely customer encounters and problem-solving.
Change also requires new approaches to management
and remuneration.
work by developing care guidance and care pathways.
Care guidance based on care paths aims to provide more
consistent and effective care to customers and facilitate the
work of professionals.
The role of customer feedback is key in the develop-
ment of work. Terveystalo’s specialists have expressed a
wish for direct, personal customer feedback in addition to
unit-specific feedback. The collection of specialist-specific
customer feedback was tested in selected units in the fall
of 2022. The pilot was carried out in close cooperation with
professionals. The feedback received on the pilot was pos-
itive, and feedback questionnaires have since been gradu-
ally introduced in Finland in all of Terveystalo’s physician’s
appointments and remote appointments. The opportunity
to receive personal feedback is also an important tool for
professional development.
Terveystalo provides its professionals with versatile,
constantly developing digital tools. The occupational
health work ability management model, the Healthy
Workplace Suunta service, the disability risk recognition
of Etydi, the professionals’ own work management mobile
application Terveystalo Pro, and medical reporting support
professionals in their work and provide tools for research
work. Terveystalo has also introduced new tools to sup-
port the work of professionals, such as the Terveystalo +
Nightingale health index. Professionals can also utilise the
customer-directed digital health and well-being content,
guidelines and weekly programs found in the Terveystalo
app in guiding and advising the customer.
When it comes to changes in the way professionals
In 2023, all of Terveystalo’s occupational health
work and supporting that change, Terveystalo focuses
particularly on improving the content and guidance of
customers were given access to the Symptom Assessment
tool, a CE-marked medical device that makes the use of
56
Responsible work
”
Terveystalo’s goal
is to provide profes-
sionals with smooth
and efficient work
by developing the
structures, tools and
processes related
to their work.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
occupational healthcare services smoother in the event of
illness. The Symptom Assessment tool refers the customer
to the right specialist and the right channel in a timely
manner. The tool also supports the work of healthcare
professionals by taking care of certain routine tasks on the
professional’s behalf, allowing them to allocate more time
to customer encounters.
Terveystalo has sought to streamline the work of
nurses, as well as the related processes and practices, so
that nurses can better focus on patient care. The effort to
streamline work has included the development of role and
task descriptions, increased orientation training and the
centralisation of calls to book appointments. The results of
professional surveys indicate that the reorganisation has
made work smoother and the effort to increase orientation
training has been successful.
Competence building
Systematic and business-driven personnel development,
smooth work and responsible, good supervisory work
ensure the well-being of Terveystalo’s personnel, which, in
turn benefits customers through better care and a positive
customer experience. It is a requirement for everyone at
Terveystalo to possess Terveystalo’s defined set of pro-
fessional skills, which are based on the values that guide
the company’s operations. In Terveystalo, competence
develops by doing, learning from each other and through
training. During development discussions, the need for
competence development is identified and it is agreed
how the development will be implemented. Terveystalo
offers a wide range of vocational training and opportuni-
ties for learning at work. Leadership and supervisory work
are also actively developed, and self-study alongside work
is supported by continuously expanding the opportunities
for online learning, for example.
Digital health has seen strong growth in recent years.
Terveystalo has invested in training its personnel in the use
of digital tools and channels, as well as their utilisation in
customer work. Physicians and nurses are offered training
in the use of different types of remote services. The train-
ing activities include basic system training, training by type
of appointment (video appointment, chat appointment),
as well as in-depth further training on, for example, the
assessment of care needs remotely, customer experience
and guidance, and consulting services.
The utilisation of online training opportunities, and
the contents and implementation methods of the training,
were developed further in 2023. Online training supports
and implements both independent competence devel-
opment alongside work and supplementary vocational
training. A new online learning platform called Terveystalo
Academy was introduced at the beginning of 2023. It has
made the implementation of online courses smoother and
enhanced the targeting of various learning and orientation
training paths.
Training courses aimed at different professional groups
and supporting professional development were organised
during the year. For example, nurses were trained as
sleep coaches and offered opportunities for professional
development during the nurse and occupational health
nurse day events. In addition, specialist presentations
were offered to the entire personnel on topics related
to mental well-being, for example. The personnel also
received training on data protection and information secu-
rity, as well as the Code of Conduct. In 2023, Terveystalo
organised training in Finland on average 11.7 hours per
employee. The training hours of employees also include
part-time employees and hourly employees, for example.
For full-time employees, the number of training hours is
significantly higher than the average.
In addition to internal training, Terveystalo cooperates
in research and education with several universities and
promotes youth employment through trainee programs.
In 2023, Terveystalo offered trainee positions to well over
200 young nursing students. The occupational health
psychologist trainee program piloted in 2022 was also
continued. During the program, participants have the
opportunity to grow and learn in the role of an occupa-
tional psychologist responsible for a customer, with the
support of senior specialists.
Specialisation and training
of physicians at Terveystalo
Terveystalo wants to guarantee its specialists the opportu-
nity for diverse career development, and actively develop
specialisation opportunities for physicians. The occupa-
tional health specialisation program is the most extensive
of the specialisation paths, and it is possible to specialise
at almost all of Terveystalo’s occupational health clinics in
Finland. The specialisation training is carried out in close
cooperation with the medical faculties of universities.
Dozens of students with a Bachelor’s degree in medi-
cine work at Terveystalo every summer. In the summer of
2023, the development of students’ skills was supported
by a tailored educational path at Terveystalo’s summer
school. The content and implementation of the eight-week
summer school has received praise from the students.
57
Responsible work
To support new general practitioners just starting
out at Terveystalo, a tutor physician model has been
successfully piloted. The model involves having a tutor
physician help a new general practitioner become familiar
with the unit and the work of a physician. Terveystalo
has also invested in the competence development of
occupational health physicians and general practitioners
through a model whereby general practitioners increase
their expertise in occupational health and become part
of a multidisciplinary occupational health team. At the
same time, the occupational health teams benefit from the
support and competence of the general practitioners.
All physicians working at Terveystalo have access to a
diverse range of events and training activities. For special-
ists in the largest fields of medicine, Terveystalo organises
training courses and events designed for a particular
area of specialisation. “From knowledge to skill” training
activities have been implemented for several years now. In
2023, they were also offered as open events to all physi-
cians regardless of the location of their work. Physicians are
also offered professional training at Terveystalo’s annual
medical convention and through a wide range of online
courses and webinars. Terveystalo's diverse career oppor-
tunities offer possibilities for development at work as well
as the opportunity to focus on appropriate work for each
physician. The medical supervisor plays an important role
in the work community, and Terveystalo also offers training
for various supervisory tasks. Physicians at Terveystalo can
also work in administrative development roles or research.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Terveystalo’s professional skills are as follows:
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.
Responsible
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.
Competent
My professional competence is extensive,
and I share my competence. I have the cour-
age and the will to develop and update my
competence, and I seek solutions, challenge
myself, and network with other professionals.
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 treatment or service
path. I create a smooth and warm customer
experience for the customer.
58
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Continuous dialogue for the
development of operations
and the work community
Terveystalo maintains a regular dialogue with its personnel
to develop the operations of the workplace and the work
community. The aim is to promote the sufficient and
timely exchange of information between the employer
and the personnel, and to give the personnel the
opportunity to influence matters related to their work,
working conditions and position. Regional shop stewards
support the chief shop stewards. In addition to having
shop stewards, the personnel have had the opportunity
to have elected representatives by agreeing on it with
the employer. Matters concerning the entire personnel
are discussed in the personnel forum, which meets four
times a year, and whose members broadly represent
the employees of Terveystalo (both professionally and
geographically).
In addition to the legally required dialogue, super-
visors engage in dialogue with employees in regular
development discussions and with private practitioners
in private practitioner discussions.
Terveystalo’s professional survey is also an important
tool for improving internal practices and supervisory work.
The survey is aimed at everyone working for Terveystalo,
including private practitioners. Conducted twice a year,
the professional survey evaluates perceptions of well-
being at work, management and the effectiveness of
the work community, for example.
In addition, Terveystalo actively shares information on
current topics, such as the implementation of the strategy,
59
by organizing regular personnel webinars and supervisor
information events. The company’s intranet is a key
information sharing channel for all common information
and guidelines.
The shop steward as a repre-
sentative of the employees
Shop stewards represent trade unions and their members
at the workplace. In cooperation negotiations and work-
place-specific local negotiations, the shop steward rep-
resents the employees covered by the relevant collective
agreement. The shop steward’s most important task
is to monitor compliance with the collective agreement
and labour laws, as well as other agreements between
the employer and the employees, at the workplace and,
if necessary, take action to address problems. The shop
steward negotiates with the employer on personnel-
related matters and is involved in developing the work
community with the represented employees and the
employer. The shop steward ensures that employees are
treated fairly and equally. Where necessary, the shop
steward provides advice and support to trade union
members in working life and related change situations.
The shop steward’s position is based on the collective
agreement, the Cooperation Act and the shop steward
agreements concluded between the health and social
services sector’s negotiation organisation Sote ry and
Terveystalo, as well as between the health services sector
union Terveyspalvelualan Unioni ry and Terveystalo. The
shop steward agreement defines the number of shop
stewards at Terveystalo and how they allocate their time,
among other things.
Women and men, %
of all employees, 2023
71% Women
29% Men
Women and men,
% of executive team, 2023
% of employees and private
practitioners, 2023
13% Women
87% Men
62% Employees
38% Private practitioners
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
An elected representative as
an employee representative
Employees who do not have a shop steward as referred
to in a binding collective agreement pursuant to the
Collective Agreements Act may have an elected repre-
sentative. The duties and mandate of an elected represent-
ative are determined by the provisions of the Employment
Contracts Act and other applicable labour legislation. At
Terveystalo, psychologists and dieticians have an elected
representative.
A health and safety representative
as an employee representative
The safety and working conditions of the workplace
are monitored and supervised by a health and safety
representative who is familiar with occupational safety and
health and related laws and matters. The health and safety
representative represents the entire personnel regardless
of union membership. The health and safety representa-
tive participates in the drafting of the occupational safety
and health action plan, risk assessment, occupational
safety and health inspections and occupational safety and
health studies. The health and safety representative works
together with the shop steward to promote the occupa-
tional well-being of employees. The health and safety
representative is elected by the employees from among
their number. The term of office is two years.
Broad representation of employees
in the Personnel Forum
The aim of the Personnel Forum is to promote dialogue
between the employer and the employees. The Personnel
Forum is an official forum for influence and discussion on
matters concerning the entire Terveystalo Group, and it
is an activity that is in accordance with the Cooperation
Act. The Personnel Forum discusses issues concerning the
employer’s business, finances and the position of per-
sonnel, as provided for in Section 29 of the Cooperation
Act and the Act on Cooperation within Finnish and
Community-wide Groups of Undertakings. An annual
plan is drawn up for the activities of the Personnel Forum.
The Personnel Forum engages in regular dialogue
on the issues mentioned in Section 8 of the Cooperation
Act, such as the company's development outlook and
financial situation, workplace rules and practices, the ways
of using the workforce and the structure of the personnel,
competence needs and competence building, as well
as maintaining and promoting well-being at work. The
term of office of the Personnel Forum is three years. The
employee representatives are elected. Candidacy is open
to members of the personnel who are in an employment
relationship with the company. The Personnel Forum
includes representatives of all of Terveystalo’s businesses. It
also includes the chief shop stewards representing Sote ry
and Terveyspalvelualan Unioni, the national shop steward
for partnership solutions, and one of the health and safety
representatives. The meetings are always attended by the
CEO and the Senior Vice President, People and Careers,
as well as other executives depending on the topic being
discussed. During the period 2022–2023, the Personnel
Forum had 12 members and two deputy members, and
it met four times per year.
Development discussions and
private practitioner discussions
support management
At Terveystalo, annual personal development discussions
are held with all full-time employees to support goal-
driven and motivated work. The development discussion
includes a review of the previous period's successes and
learning together with the supervisor, and setting targets
for the new period. 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
revisited 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 professional skills as well as performance manage-
ment and the monitoring of the achievement of goals.
Terveystalo also engages in active dialogue with the
private practitioners working at Terveystalo. The private
practitioner discussion is a regular, informal discussion that
is intended to serve as a feedback channel and ensure
smooth work for private practitioners in their respective
units and in Terveystalo as a whole.
Everyone has the opportunity
to report suspected violations
of Terveystalo’s company culture
through the reporting channel
Terveystalo’s company culture combines a high work ethic,
professionalism, solution-oriented cooperation and the
pursuit of measurable impact in everything the company
does. In addition to the company’s values, Terveystalo’s
operations are guided by Terveystalo’s Code of Conduct.
One important aspect of Terveystalo’s culture of doing
the right thing is that everyone who acts on behalf of or
with Terveystalo feels that they can freely report any sus-
picions of misconduct and trust that Terveystalo will take
appropriate measures to investigate any actions that are,
or are suspected of being, infringements of the Code of
Conduct. Actual or suspected infringements are primarily
reported to the supervisor, the supervisor’s supervisor or
Terveystalo’s Legal & Compliance department. Terveystalo
also has a misconduct reporting channel (WhistleB)
that is open to everyone. Terveystalo encourages all of
its employees and private practitioners to report any
potential misconduct without delay. Terveystalo has online
training on the Code of Conduct aimed at everyone in
the organisation. The training includes instructions on
highlighting and reporting misconduct. Any suspected
misconduct and violations are investigated appropriately
and confidentially.
60
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Number of Terveystalo’s personnel and private practitioners
Amount and share of women and men
2021
9,131
668
9,799
5,644
110
5,754
2023
Sweden
Men
166
8
117
44
19%
1%
13%
5%
Personnel (salaried) / Employed staff
Finland
Sweden
Total
Private practitioners
Finland
Sweden
Total
Personnel by type of employment relationship
2023
8,950
874
9,824
5,987
105
6,092
2022
10,100
833
10,933
5,822
106
5,928
Total
Women
Finland
Men
7,259
1,722
4,477
2,534
81% 5,879
81% 1,380
19% 1,380
19%
1,428
64% 3,932
36% 2,006
83%
88%
79%
294
545
528
17%
12%
21%
294
545
528
Total
82%
18%
51%
49%
Women
692
5
415
295
79%
1%
48%
34%
Permanent
Fixed-term
Full-time
Part-time
Salaried employees
61
Responsible work
Women
2023
Men
Women
2022
Men
50%
5%
21%
18%
50%
60%
28%
17%
28%
Finland
Physicians
Nurses
Other healthcare professionals
Others
Senior management
The Board of Directors
Total Finland
Sweden
Total
2,960
50% 3,009
50%
2,902
95%
77%
82%
13%
43%
170
543
400
7
4
5%
23%
18%
87%
57%
3,634
2,028
2,057
4
2
50%
95%
79%
82%
50%
40%
2,954
195
541
449
4
3
70% 4,147
30% 10,624
72% 4,144
80%
156
20%
609
83%
121
71% 4,303
29% 11,233
72% 4,265
3,191
1,854
1,874
1
3
9,889
625
10514
Finland: Salaries employees and private practitioners, excluding the private practitioners of Rela Hierojat and Suomen Hierojakoulut,
and the subcontractors of Terveystalo Julkiset Palvelut. Sweden: salaried employees.
Age structure of the personnel
Under 30 years
30–49 years
Over 50 years
Finland
12%
51%
37%
2023
Sweden
8%
45%
47%
Finland
12%
49%
39%
2022
Sweden
6%
44%
50%
Finland: Salaries employees and private practitioners, excluding the private practitioners of Rela Hierojat and Suomen Hierojakoulut, and the sub-
contractors of Terveystalo Julkiset Palvelut. Sweden: salaried employees.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Total number and rate of employee turnover
Sickness absences, %
Finland
Physicians
Nurses
Other healthcare professionals
Others
Total Finland
Sweden
Total
2023
Number
Turnover-%
2022
Turnover-%
802
413
188
236
1,639
228
1,867
20.9
16.5
9.3
11.5
15.7
13.5
15.6
18.6
15.2
11.1
11.5
15.0
23.0
N/A
Finland
Physicians
Nurses
Other healthcare professionals
Others
Total Finland
Sweden
Salaried employees
Salaried employees and private practitioners excluding Staffing services, the private practitioners of Rela Hierojat and Suomen Hierojakoulut,
and the subcontractors of Terveystalo Julkiset Palvelut.
The average number of training hours per employee
Accidents, accident frequency and fatal accidents
Number of accidents
Accident frequency (per one million working hours)
Number of fatal accidents
2023
Sweden
16
12
0
Finland
286
20
0
2022
Sweden
13
N/A
0
Finland
269
18
0
2021
Sweden
8
N/A
0
Finland
273
20
0
Salaried employees. Includes all recordable accidents at work and during commuting to work, also those which did not cause lost days/absences.
Finland
Women
12.4
Men
6.7
Salaried employees in permanent, full-time employment relationship at the year-end
Employee Net Promoter Score (eNPS)
Finland
Sweden
Total
Salaried employees and private practitioners
2023
18
24
19
62
Responsible work
2023
2022
1.8
4.9
3.9
3.5
4.0
4.8
1.3
7.2
5.9
5.1
5.2
5.5
2023
Total
11.7
2022
29
15
28
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
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 pro-
vide a framework that helps ensure compliance with
Terveystalo’s values and internal guidelines as well
as applicable legislation. They support a company
culture that takes ethical perspectives into account and
combines strong work ethic, professionalism, solution-
oriented cooperation and the pursuit of measurable
impact in all of Terveystalo’s operations. Responsible
business is also financially profitable and sustainable.
63
63
Terveystalo
Annual Report 2023
Ethical business
Our key targets
• All Terveystalo employees have
completed training on the Code
of Conduct and correct action.
• All of Terveystalo’s key suppliers
have approved the Supplier
Code of Conduct.
Our achievements
• The processing instructions and
processes of Terveystalo’s report-
ing channel were revised in early
2023 following the introduction of
new legislation on whistleblower
protection.
• Training courses on compliance
and data protection were revised
in 2023.
• The Supplier Code of Conduct was
updated in late 2023.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo’s company culture
Terveystalo’s mission is to fight for a healthier life by
focusing on the meaningful matters. Terveystalo’s
strategy is to deliver integrated, data-driven outpatient
and preventive care with best-in-class care outcomes
and people experience. The key targets are to reach
industry-leading profitability and to have a net positive
impact on society. Terveystalo’s values constitute the
foundation for all of Terveystalo’s operations.
”
In addition to the
company's values,
Terveystalo's
operations
are guided by
Terveystalo's Code
of Conduct and
Supplier Code of
Conduct.
Terveystalo is a company with strong values in a
value-based industry. Terveystalo’s company culture
combines strong work ethic, professionalism, solu-
tion-oriented cooperation and the pursuit of measura-
ble impact in all of Terveystalo’s operations. Terveystalo
invests in personnel competence and well-being as
well as culture. Terveystalo’s goal is to be the best and
most attractive employer in its industry. At Terveystalo,
the management approach is assessed on the basis of
audit observations, feedback, identified development
areas and the achievement of Terveystalo’s targets. The
management approach is adjusted as necessary.
The principle of doing what is right is part of all
operations at Terveystalo, both as a company and as
individuals. Terveystalo’s employees and practitioners
must do what is right regardless of where we are,
who we are with, or what the circumstances are. A
workplace culture that insists on doing what is right
creates a foundation for long-term success. Responsible
business is also financially profitable and sustainable.
By making sustainable choices and doing what is right,
the customers’ trust in Terveystalo is strengthened,
long-lasting partnerships are built and value is created
for Terveystalo’s shareholders. At the same time, it
ensures that Terveystalo maintains its position as an
attractive workplace for people who share its values.
Terveystalo’s Code of Conduct includes a commitment
to always complying with the laws and regulations
governing Terveystalo’s operations.
In addition to the company’s values, Terveystalo’s
operations are guided by Terveystalo’s Code of
Conduct and Supplier Code of Conduct. Terveystalo’s
executives and management are responsible for the
communication and implementation of and monitoring
compliance with the Code of Conduct. Terveystalo
has online training on the Code of Conduct aimed
for everyone in Terveystalo. Its aim is to create better
understanding of key themes related to compliance
and to promote the continued development of a
compliance-driven culture. One important aspect of the
culture of doing the right thing is that everyone who
acts on behalf of or with Terveystalo, and every cus-
tomer, partner and supplier, feels that they can freely
report any suspicions of misconduct and trust that
Terveystalo will take appropriate measures to investi-
gate any actions that are or are suspected of being in
violation of the Code of Conduct.
Terveystalo has signed the UN Global Compact
initiative. Terveystalo is committed to the UN Guiding
Principles on Business and Human Rights, the conven-
tions of the International Labour Organisation (ILO)
and the Ten Principles of the UN Global Compact.
Terveystalo is committed to continuing to integrate the
Global Compact principles concerning the environ-
ment, human rights, labour and anti-corruption into
Terveystalo’s operations, culture and value chain.
64
Ethical business
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 customers, 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 research. All of our deci-
sions are steered by care efficacy and
the well-being of our customers.
Reforming healthcare
We foster a culture of creativity and
continuous progress. We challenge
ourselves to build more functional
healthcare for everyone and reform
the industry with open-minded use
of technology.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Ethical business
Policies and guidelines for
ethical business conduct
The Code of Conduct serves as
a shared compass for everyone
at Terveystalo
The Code of Conduct translates Terveystalo’s values into
concrete principles that constitute the foundation for
Terveystalo’s day-to-day operations and decision-making.
Ethical, responsible and compliant conduct of business
is essential in Terveystalo’s operations, also due to the
industry the company operates in. Terveystalo’s business
is guided by the legislation governing the industry and
private healthcare services, as well as the regulations and
requirements established by the authorities. The work
of healthcare professionals is also guided by the ethical
standards of their specific professional groups.
The Code of Conduct supports the company culture
and provides a framework that helps ensure compliance
with Terveystalo’s values and internal guidelines as well
as applicable legislation. The Code of Conduct also
reflects Terveystalo’s commitments to its key stakeholders.
Terveystalo is committed to promoting ethical business
practices and requires that all of the company’s operations
are conducted in compliance with the applicable laws and
regulations. In addition to compliance with legislation
and Terveystalo’s Code of Conduct, Terveystalo aims to
observe generally recognised ethical standards, such as the
UN Global Compact principles. Terveystalo also contin-
uously develops its compliance program and the related
65
processes and controls to ensure that they correspond to
the changes in the operating environment.
The Code of Conduct serves as a shared compass for
everyone at Terveystalo. The Code of Conduct comprises
Terveystalo’s key principles regarding anti-bribery and
anti-corruption, compliance with fair competition and
environmental requirements, ensuring privacy and patient
safety, employee equality, non-discrimination and the
freedom of association, as well as the reporting of miscon-
duct, among other things. The Code of Conduct is linked
to all of the material sustainability topics related to ethical
business practices as defined by Terveystalo: responsible
supply chain, anti-corruption and anti-bribery, the creation
and distribution of economic value added, respecting
human rights, company culture, as well as patient data
protection and information security.
Terveystalo does not tolerate any form of discrim-
ination, harassment, bullying, racism or inappropriate
treatment, nor does Terveystalo condone the use of child
labour, any form of forced labour or other human rights
violations in its own operations or its value chain or 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 Labour Organisation
(ILO) and related international conventions. The company
is committed to the UN Global Compact initiative and its
principles pertaining to human rights and labour rights.
Terveystalo’s service providers, suppliers and other part-
ners are also expected to observe the same principles and
respect internationally recognised human rights. Principles
related to human rights are included in Terveystalo’s Code
of Conduct and Supplier Code of Conduct.
Everyone at Terveystalo is required to observe the
Code of Conduct, regardless of their business unit or role
in the company. Terveystalo also expects its partners and
subcontractors to observe the same ethical principles.
Terveystalo’s Board of Directors approves the Code of
Conduct. Terveystalo’s executives and management are
responsible for the communication and implementation
of and monitoring compliance with the Code of Conduct.
Terveystalo’s Legal & Compliance department supports
the organisation with issues related to the Code of
Conduct and provides related training to the personnel.
Terveystalo’s Code of Conduct is published and available
to everyone on the company’s website.
The Supplier Code of Conduct
ensures the responsibility
of the value chain
Terveystalo Group also expects its suppliers to observe
high standards of sustainable business with regard to
ethical, social and environmental perspectives, as well
as occupational health and safety. Each year, Terveystalo
purchases services, materials and supplies for its clinics
from approximately 5,000 suppliers. Of these, the 190
largest suppliers account for about 80 percent of total
purchasing expenditure. The largest procurement catego-
ries are subcontracted services, such as cleaning, consulting
and laboratory services, as well as the renting of business
premises, pharmaceutical products, ICT procurement, and
healthcare supplies and equipment.
partners need to satisfy in order to engage in business
with Terveystalo and its subsidiaries. All of Terveystalo’s
contract suppliers and suppliers participating in tendering
processes are required to accept Terveystalo’s Supplier
Code of Conduct. The topics covered by the Supplier
Code of Conduct include, for example, health and safety,
environmental protection, human rights, labour rights,
ethics and integrity in business, and systems for managing
the responsibility of operations. Sustainable operating
practices are developed in cooperation with Terveystalo’s
contractual partners.
The Supplier Code of Conduct includes a commitment
to compliance with, among other things, internationally
recognized human rights, as defined in the UN’s Universal
Declaration of Human Rights, international fundamental
rights at work as defined in the conventions of the
International Labour Organisation (ILO), the UN Guiding
Principles on Business and Human Rights, international
standards pertaining to environmental protection, and all
laws and regulations issued by the authorities in all of the
operating countries of contract suppliers and suppliers
participating in tendering processes. Terveystalo’s Supplier
Code of Conduct was last updated in late 2023. The
Supplier Code of Conduct is published and available to
everyone on the Terveystalo website. Other policies and
documents that support Terveystalo’s responsible pro-
curement and supplier cooperation include Terveystalo’s
procurement policy, the related procurement guidelines,
the supplier management handbook, and audit plans.
To ensure compliance with the Supplier Code of
Terveystalo Group’s Supplier Code of Conduct sets
out the minimum requirements that all suppliers and
Conduct and other contractual terms, Terveystalo conducts
supplier self-assessments and regular audits. The audits
TerveystaloAnnual Report 2023 Year 2023
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Corporate Governance
Financials
Ethical business
are carried out on a targeted basis, approximately 2–3
times per year on average. The suppliers to be audited are
selected on the basis of sources of risk associated with the
supplier, or due to the supplier having a significant impact
on profit performance. Supplier audits are carried out by
the company’s own procurement personnel and include a
preliminary information form completed by the supplier,
an interview with the supplier, a site visit and feedback
sessions. The objective of supplier audits is to develop sup-
plier cooperation and ensure that the audited supplier’s
operations satisfy the contractual requirements pertaining
to the content of the service, responsibility, quality and
information security. The outcomes of audits can include
identified strengths, observations on development areas,
slight or significant deviations, or potential breaches of
agreement. Terveystalo provides the audited supplier
with a written summary of the audit results and potential
deviations. For any identified deviations, an action plan is
required to rectify the deviations and ensure compliance
with the contractual requirements. Three supplier audits
were carried out in 2023. The subjects included two clean-
ing service providers and a workwear partner, including
workwear laundry services and workwear manufacturing.
The audits did not reveal any significant deviations.
Reporting channel gives
everyone the opportunity to
report suspected misconduct
One important aspect of Terveystalo’s culture of doing the
right thing 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. Terveystalo has
online training on the Code of Conduct aimed at everyone
in Terveystalo. The training includes instructions on high-
lighting and reporting misconduct. Terveystalo’s Code of
Conduct emphasises that actual or suspected violations
of the Code of Conduct must be reported to the super-
visor, the supervisor’s supervisor or Terveystalo’s Legal &
Compliance department. Suspected misconduct can also
be reported via Terveystalo’s reporting channel (WhistleB),
which is open to everyone. The reporting channel can
be used, for example, if the suspicion concerns serious
misconduct or if, due to the sensitivity of the matter, it is
necessary to report it anonymously. The reporting channel
enables anonymous reporting of observed or suspected
misconduct at http://www.report.whistleb.com/en/
terveystalo. The reporting channel has been in use since
2017, and it has established itself as one of the possible
channels for reporting suspected misconduct or violations.
The principles and practices according to which all
parties operating within Terveystalo’s organisation or as
Terveystalo’s partners can report suspected crimes,
violations, misconduct or other deviations confidentially
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are set out in the processing instructions for Terveystalo’s
reporting channel. The processing instructions for the
reporting channel include the principles and practices
related to, among other things, the submission of reports,
the processing and investigation of reports, sensitive data
and data storage, processing time limits, disqualification of
the processor, protection of the person who submitted the
report, and the functions and persons that process reports.
The processing instructions do not supersede the rules or
obligations arising from national legislation or EU law.
”
An impotant aspect
of Terveystalo's
culture of doing the
right thing is that
everyone feels that
they can freely
report any
suspicions of
misconduct.
Terveystalo encourages all of its employees and
private practitioners to report any potential misconduct
without delay. The reporting channel can be used to
submit reports concerning actual or suspected misconduct
related to, for example, the following topics: consumer
protection, the prevention of money laundering and
terrorist financing, violations of financial market rules and
regulations, violations of procurement legislation or unfair
competition, environmental protection, violations of data
protection legislation and regulations governing the secu-
rity of network and information systems, taxation, product
safety and compliance, violations of the Code of Conduct,
as well as actual or suspected violations of the applicable
industry-specific regulations, including the Radiation Act
and the Medicines Act. The processing instructions for the
reporting channel are therefore linked to all of the material
sustainability topics related to ethical business practices as
defined by Terveystalo: responsible supply chain, anti-cor-
ruption and anti-bribery, the creation and distribution of
economic value added, respecting human rights, company
culture as well as patient data protection and information
security.
In 2023, Terveystalo received a total of 13 (19) reports
through the reporting channel. Of the reports received in
2023 whose investigation has been completed, a violation
of the Code of Conduct was observed in two instances,
which led to a disciplinary process. For certain reports
received late in the year, the investigations are yet to be
completed. The findings arising from the reports and com-
pleted investigations have been taken into consideration in
the development of Terveystalo’s processes.
Investigation of suspected misconduct
All reports and suspicions of misconduct are investigated
without delay, independently and impartially regardless
of the channel used to report the observed or suspected
misconduct, or whether the suspicion of misconduct
arises in connection with normal operating activities. In
accordance with the law, Terveystalo maintains confi-
dentiality with regard to the identity of the reporter and
the subject of the report, as well as other aspects of the
report. Terveystalo protects persons who submit reports
in accordance with the Act on the Protection of Persons
Reporting Infringements of European Union and National
Law (1171/2022, as amended). Even though a reported
suspected violation proves to be unwarranted, there are
no negative consequences to the reporter provided that
the reporter has acted in good faith. Terveystalo does not
allow any kind of retaliation, such as threats, punishments
or discrimination against persons who submit reports or
persons participating in investigations of reports. Actions
to prevent reporting, or to influence the content of a
report, are also prohibited.
Reports are only processed by persons designated to
process reports in the HR or Legal & Compliance function
and, where necessary, specialists and Terveystalo’s external
advisors appointed on an investigation-specific basis.
The designated persons are updated as necessary. The
persons who process reports are clearly indicated on the
website of the reporting channel. If any of the persons
who process reports are potentially disqualified from
processing a report, the reporter is encouraged to point
this out when submitting their report so that the persons
who process reports can take the necessary measures to
ensure the impartial processing of the report. Disqualified
persons will not participate in the processing of the report.
Terveystalo’s Senior Vice President, People and Careers
processes reports concerning HR matters, the Chief
Medical Officer processes reports concerning medical
matters, and the Data Protection Officer processes reports
concerning data protection. Reports concerning other
matters are processed by Terveystalo’s Legal & Compliance
function. During the course of an investigation, other
specialists can also be appointed to the investigation team
if necessary. Where necessary, in investigations of reports
concerning an employment relationship, the supervisor of
the reporter’s supervisor is also engaged in the investiga-
tion at an early stage, unless the supervisor’s supervisor
is the subject of the report or if engaging them in the
investigation is otherwise not appropriate. The subject of
the report is heard during the investigation if possible.
Where necessary, assistance can be sought from external
advisors who are specialists in the subject matter of the
report. Any significant cases of misconduct are reported
to Terveystalo’s management and the Audit Committee of
the Board of Directors.
The steps involved in the processing of reports are
described in more detail in the processing instructions
for Terveystalo’s reporting channel, which are available
to everyone on the company’s website in Finnish. The
processing instructions for the reporting channel apply
to Terveystalo Group’s employees, private practitioners,
shareholders, management, trainees and other persons
who have observed violations in the course of their work,
and who have submitted a report through Terveystalo’s
reporting channel or to a Terveystalo representative
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(supervisor, management), unless otherwise stated in the
processing instructions. However, in Sweden, Feelgood
Svenska AB and its subsidiaries have their own internal
reporting channel. Terveystalo’s executives and manage-
ment are responsible for the communication and imple-
mentation of and monitoring compliance with the Code of
Conduct. Violations of the processing instructions for the
reporting channel must be reported to Terveystalo’s Legal
& Compliance function. The processing instructions and
the related processes were revised in early 2023 following
the entry into force of the Act on the Protection of Persons
Reporting Infringements of European Union and National
Law (1171/2022, as amended). The processing instructions
are updated as necessary.
Ensuring patient data protection
and information security
Privacy protection is a core value for Terveystalo, and the
realisation of data protection is on the responsibility of
everyone who works at Terveystalo, or for Terveystalo.
Terveystalo respects the privacy of all groups of people.
Special attention is paid to the appropriate and legally
compliant processing of personal data at Terveystalo.
Terveystalo provides its personnel with training and
instructions on the processing of personal data and
emphasises the particular confidentiality and protection
of patient data. A revised online data protection course
aimed for everyone at Terveystalo was introduced in the
fall of 2023. In connection with this, the course content
was revised and moved to a new online platform to
improve the user experience.
The digitalisation of healthcare presents significant
opportunities for improving access to care, the effective-
ness of care and the early identification of risks. Terveystalo
has made significant investments in the development of
digital services and tools. As digital services increase in
importance and reshape the industry, the requirements
concerning data protection and information security
increase accordingly. At Terveystalo, patient data is stored
in information security certified patient information
systems. Terveystalo’s patient information systems 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 are
regularly audited in accordance with the ISO 9001:2015
certification, both internally and by an external party.
Terveystalo applies the appropriate physical, technical
and administrative protection measures to protect data
from misuse. These measures include, among other things,
control and filtering of network traffic, use of encryption
techniques and secure data centres, appropriate access
control, controlled granting of access rights and supervis-
ing their use, issuing instructions to personnel participating
in personal data processing, and risk management related
to the planning, implementation and maintenance of ser-
vices. 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.
In 2023, the data protection authority requested
clarifications from Terveystalo on nine complaints related
to privacy protection.
Data protection and information security
policies provide guidance for data
protection practices and the realisation
of data protection on high level
The data protection policy sets out the principles, obli-
gations, responsibilities, organisation, operating practices
and monitoring practices that Terveystalo observes in the
implementation and development of data protection.
The data protection policy serves as the basis for data
protection procedures and guidelines, and its purpose
is to ensure the realisation of the rights and freedoms of
Terveystalo’s customers, personnel and individual stake-
holders with regard to personal data. The data protection
policy sets out the principles and methods for ensuring
the appropriate processing of personal data throughout
its lifecycle. It also ensures compliance with legislation
governing privacy, data protection and other applicable
special laws. The data protection policy describes the
processing principles of personal data that govern all
activities at Terveystalo. The principles are lawfulness and
transparency, purpose limitation, data minimisation, accu-
racy, storage limitation, integrity and confidentiality.
personal data in connection with the collection of personal
data. Data subjects can read the privacy statement on
the controllers’ websites and operating locations. Other
additional information on the processing of personal data
is available on the company’s website or in the service in
question.
Everyone working at Terveystalo, or for Terveystalo,
is responsible for the realisation of data protection in
Terveystalo Group. Terveystalo’s personnel must comply
with the data protection policy, and everyone has a duty
to process personal data appropriately and to highlight
any observed deficiencies in data protection. The parties
responsible for the implementation and management of
data protection are Group management, the directors
responsible for specific functions, and unit directors in
their respective areas of responsibility. As required by
law, Terveystalo Group has a Data Protection Officer who
performs duties in accordance with the General Data
Protection Regulation and reports directly to Group man-
agement in accordance with the law. Terveystalo has data
protection working groups that discuss and monitor issues
related to data protection and develop related functions
and activities.
Terveystalo fosters the realisation of the legal rights
The data protection policy is confirmed by Terveystalo
of data subjects by informing the data subjects about the
processing of personal data and by specifying operating
models and instructions for the situations in which the data
subjects wish to exercise their aforementioned rights. In
accordance with the legislation, a privacy statement and
other documentation required by legislation or the author-
ities are prepared on the processing of personal data. As
a rule, data subjects are informed of the processing of
Group’s CEO. Terveystalo’s Legal Affairs is responsible
for maintaining the policy. The data protection policy is
updated as necessary.
Data protection is closely linked to information secu-
rity, and the realisation of data protection is contingent
on information security measures. Information security
includes, among other things, contractual, organisational
and technical measures that ensure the confidentiality
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and integrity of information, access to systems and the
realisation of the rights of data subjects. The purpose of
information security is to protect data and information
systems. The objectives, responsibilities, and implementa-
tion methods of information security at Terveystalo are set
out in the information security policy. The key objectives
of the information security policy are the protection of
personal data that is in Terveystalo’s possession (e.g.
customer and patient data), as well as material subject to
intellectual property rights and copyright, and ensuring
their appropriate processing; compliance with obligations
stipulated by laws, decrees, norms, official regulations and
contracts; the identification of threats to Terveystalo’s oper-
ations and the appropriate management of information
risks, and ensuring the reliability and cost-effectiveness of
information processing.
Information security is an integral part of security and
development of all of Terveystalo’s operations. Everyone
working at Terveystalo, or for Terveystalo, is responsible
for ensuring information security at work. In addition to
complying with any received instructions, everyone is also
responsible for helping others to follow working practices
that ensure information security. The unit director is
responsible for ensuring that each employee and private
practitioner working at the unit has actual capabilities for
taking information security into account at work and for
ensuring that any observed deficiencies are rectified. The
Chief Financial Officer is in charge of the management
and development of information security. The Director
responsible for information security appointed by the
Chief Financial Officer is in charge of day-to-day infor-
mation security management. The duties of the Director
responsible for information security include the promotion
of projects related to development of information security,
the development of guidelines, advice and training, the
specification of technical information security require-
ments, monitoring and reporting on the information
security situation, and processing information security
deviations in cooperation with the Data Protection Officer,
the Group’s general administration and the business areas.
The Director responsible for information security reports
to the Group Executive Team members responsible for
information security and digital services.
The Director responsible for information security is
authorised and obligated to conduct assessments and
audits related to information security. The Director respon-
sible for information security is responsible for taking
action to eliminate any identified information security
threats and deviations and reporting them to the author-
ities if necessary. Everyone working at Terveystalo has an
obligation to report any observed information security
deficiencies and problems to the information security
organisation. The information security policy is developed
according to the observations made. The Director respon-
sible for information security is in charge of the develop-
ment efforts.
Internal control and
risk management
Terveystalo’s internal control and risk management policy
sets out the purpose, objectives and responsibilities of
internal control and risk management, as well as describes
the risk classification and risk management structures and
the risk assessment process. The internal control and risk
management policy is approved by the Board of Directors.
The internal control and risk management policy is linked
to all of the material sustainability topics related to ethical
business practices as defined by Terveystalo: responsible
supply chain, anti-corruption and anti-bribery, the creation
and distribution of economic value added, respecting
human rights, company culture as well as patient data
protection and information security.
The purpose of internal control is to ensure that
Terveystalo’s operations are efficient and effective, the
information used by the management in decision-making
is reliable, the operating principles are observed, and the
company operates in compliance with laws and regula-
tions. Internal control supports the supervisory work of
the Board of Directors and comprises any measures and
procedures aiming to ensure the achievement of said
goals. Internal control covers the organisation’s internal
operating environment, goal setting, risk management,
control measures, information flow, communications, and
monitoring. Internal control is integrated into Terveystalo’s
management and reporting system. Internal control is
carried out by Terveystalo’s Board of Directors, the Audit
Committee, Group management, operational manage-
ment and employees, as well as the Group’s internal
audit and quality assurance function. The Group has an
outsourced internal audit function.
The purpose of risk management is to support
the achievement of business goals by supporting
decision-making. It helps to ensure the fulfilment of the
customer promise, patient safety and occupational safety,
high-quality services, financial performance, business
continuity, a good company image, and corporate social
responsibility. Risk management also involves conscious
risk-taking to seize opportunities. The objectives of risk
management include, among other things, ensuring
Terveystalo’s clinical quality and patient safety, the
fulfilment of customer promises, business continuity and
the achievement of strategic and operational targets, as
well as ensuring personnel competence and occupational
safety, as well as information security and data protection.
Terveystalo’s Board of Directors is responsible for the
adequacy of risk management. The CEO is in charge of
the organisation of risk management and guides and
monitors risk management at the executive level. The
other members of the Executive Team support the CEO in
implementing risk management, monitoring operational
risks, assessing risks, and implementing measures related
to risks.
Terveystalo’s internal control, risk management
and internal auditing are described in more detail in
Terveystalo’s Corporate Governance Statement.
Competing fairly, with integrity
and in compliance with the
applicable legislation
Terveystalo’s Code of Conduct includes a commitment
to fair competition. Terveystalo competes fairly, with
integrity and in compliance with the applicable legislation.
All Terveystalo employees are required to comply with
laws, regulations and internal guidelines pertaining to
competition, including Terveystalo Group’s competition
law guidelines. The Group's competition law guidelines
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include, among other things, instructions on compliance
with competition rules in relation to competitors, suppliers,
private practitioners and customers, as well as instructions
pertaining to memberships in industry associations. The
competition law guidelines are linked to the following
material sustainability topics related to ethical business
practices as defined by Terveystalo: responsible supply
chain, anti-corruption and anti-bribery, the creation and
distribution of economic value added and company
culture.
The Group Executive Team member in charge of legal
affairs is responsible for the competition law guidelines.
Each member of the Executive Team is responsible for
compliance with the guidelines in their respective areas of
responsibility. Terveystalo’s Legal Affairs unit is responsible
for maintaining the competition law guidelines. The guide-
lines are updated as necessary.
” Benefits that
could affect
business
decisions are
not given or
accepted in
Terveystalo.
70
Anti-corruption
and anti-bribery
In the area of anti-corruption and anti-bribery, Terveystalo
complies with the law and other applicable regulations
and guidelines. Terveystalo is also committed to the UN
Global Compact initiative and its anti-corruption principles.
Terveystalo’s operations are also guided by the Code of
Conduct, which includes anti-corruption and anti-bribery
guidelines regarding, for example, giving and accepting
gifts and hospitality as well as the avoidance of conflicts of
interest.
The prevention of corruption and bribery is included
in Terveystalo’s Code of Conduct, which addresses the
giving and accepting of gifts and hospitality, sponsorships,
accepting and making donations as well as understanding
and avoiding conflicts of interest. All of Terveystalo’s
contract suppliers and suppliers participating in tendering
processes are required to accept Terveystalo’s Supplier
Code of Conduct, which includes anti-corruption and
anti-bribery guidelines and requirements, among other
things. Terveystalo’s Code of Conduct and Supplier Code
of Conduct are published and available to everyone on the
company’s website.
Terveystalo’s Code of Conduct emphasises that gifts or
other benefits that could affect business decisions or have
considerable personal or financial value are not given or
accepted in Terveystalo. Terveystalo has mandatory online
training on the Code of Conduct for all employees. The aim
of the training is to provide an improved understanding of
key compliance-related themes, such as the avoidance of
conflicts of interest and the prevention of bribery.
Political influence is included in Terveystalo’s Code of
Conduct, according to which Terveystalo does not support
political activities. Terveystalo does not make financial
contributions to political parties or organisations, directly
or indirectly, nor does Terveystalo fund the election cam-
paigns of individual candidates.
In addition to customers, personnel, private practi-
tioners and shareholders, Terveystalo’s key stakeholders
include the authorities and societal decision-makers that
influence the legislation governing Terveystalo’s industry
and the drafting of such legislation. Terveystalo’s other
key stakeholders include the supervisory authorities and
the media, in addition to which Terveystalo also engages
in close interaction with lobbyists within the sector. Open
dialogue and effective cooperation with key stakeholders
enable a more predictable operating environment for all
parties.
The development and renewal of healthcare is a
shared goal for Terveystalo, the authorities and deci-
sion-makers. Terveystalo engages in open dialogue on
issues related to the healthcare sector with the authorities
and societal decision-makers. The channels of interaction
include open dialogue, meetings and staying in touch
through, among other things, participation in various
working groups and events. Terveystalo also has repre-
sentatives in several organisations. The most significant
of these are the Confederation of Finnish Industries, the
Central Chamber of Commerce, the Helsinki Region
Chamber of Commerce, the Finnish Association of
Private Care Providers HALI, the Association of Finnish
Private Healthcare Providers, the Finnish Association of
Purchasing and Logistics LOGY, and FIBS ry. Terveystalo
conducts open dialogue with industry organisations on
topics related to the industry and engages in diverse
cooperation with organisations such as, among others, the
Finnish Association of Private Care Providers HALI and the
Association of Finnish Private Healthcare Providers. The
cooperation channels include working groups and various
events.
Observed or suspected misconduct related to the
Code of Conduct, can be reported anonymously at
http://www.report.whistleb.com/en/terveystalo. All
suspected misconduct and violations are investigated
appropriately and confidentially regardless of the channel
used to report the suspected misconduct, or whether the
suspected misconduct is observed in connection with
normal operating activities. Potential incidents related
to corruption or bribery are reported to Terveystalo’s
management and the Audit Committee of the Board of
Directors. The processing of reports received through the
reporting channel is described in more detail above in the
section on the processing instructions for the reporting
channel and in the processing instructions for Terveystalo’s
reporting channel, which are published on the company’s
website in Finnish. To ensure compliance with the Supplier
Code of Conduct and other contractual terms, Terveystalo
conducts supplier self-assessments and regular audits.
No cases of corruption or bribery were reported in
2023. Terveystalo continues to develop its anti-corruption
and anti-bribery compliance program and related pro-
cesses to reflect the changes in its operating environment.
Terveystalo also focuses on ensuring compliance with
legislation pertaining to economic sanctions.
TerveystaloAnnual Report 2023 Responsible work
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
2023
2022
Being the industry’s best and
most attractive employer
Employee Net Promoter Score
(eNPS)
Terveystalo’s employees
and private practitioners
At least 25
2025
2022
19
28
Year 2023
Sustainability
Corporate Governance
Financials
The employee Net Promoter Score (eNPS) indicates the proportion of the personnel and private practitioners who would recommend Terveystalo as a workplace to others.
Targets related to ethical business
Target
Indicator (KPI)
Scope of application
Target level
Target year
Ethical business
Terveystalo’s Finnish operations
100%
Continuous
Ethical business
2023
72%1)
2022
69%1)
Terveystalo has selected two key targets for managing its
impacts related to ethical business conduct. The selected
targets promote the realisation of ethical and responsible
business at Terveystalo and in its value and supply chain.
Training the personnel on
compliance with the Code of
Conduct and ethical requirements
Terveystalo is committed to promoting ethical business
practices and provides training to its personnel on
compliance with the Code of Conduct and ethical
requirements. Terveystalo has online training aimed at
everyone in Terveystalo on compliance with the Code of
Conduct. Separate customised online training that takes
differences in operating environments into consideration
is in place for administrative personnel and those engaged
in clinical work. Completing the course is mandatory for
all employees. The purpose of the courses is to build an
understanding of why compliance and ethically respon-
sible business 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 compliance,
including the prevention and detection of corruption and
bribery, fair competition, the avoidance of conflicts of
interest, data protection and reporting misconduct, and to
further develop Terveystalo’s culture of compliance.
71
All employees have completed
training on the Code of
Conduct and correct action
Percentage of employees in permanent,
full-time employment relationship who
have completed the training relative to
all employees in permanent, full-time
employment relationship1)
Key suppliers accounting for
over 80% of total procurement
have approved the Supplier
Code of Conduct
Percentage of suppliers who
have approved the Supplier
Code of Conduct2)
Terveystalo’s Finnish operations
100%
Continuous
81%
80%
1) The figures are not comparable due to the training completion periods not being of equal length and due to change in the group of personnel whose course completions are reported. The new compliance
course was introduced and moved to a new online platform in spring 2023. The figures for 2023 only include completions after the course was revised and only completions of employees in permanent,
full-time employment relationship in Finnish operations. The figures for 2022 also include course completions that took place in the second half of 2021 and, in addition to course completions of employees
in permanent, full-time employment relationship, also course completions of other employees in Finnish operations.
2) Terveystalo measures the share of suppliers who have approved the Supplier Code of Conduct from Terveystalo’s key suppliers representing approximately 80 percent of the total procurement
expenditure of Terveystalo’s operations in Finland. The procurement expenditure does not include expenses related to fees paid to private practitioners, purchases for operations in Sweden,
one-off purchases or purchases of low significance.
A new compliance course was introduced in spring
2023. In connection with this, the course was revised, the
content of the training was customised on a targeted basis
to account for the differences between the operating envi-
ronments of administrative personnel and those engaged
in clinical work, and the training was made more interac-
tive. The course was moved to a new online platform to
improve the user experience.
Everyone at Terveystalo is required to observe the
Code of Conduct, regardless of their business unit or
role in the company, which is why the target is for all
Terveystalo employees to have completed the training
on the Code of Conduct and correct action. 72 percent of
Terveystalo’s employees in permanent, full-time employ-
ment relationship completed the training in 2023. The
figures include Terveystalo’s Finnish operations.
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.
Suppliers that have approved
the Supplier Code of Conduct
Terveystalo strives to ensure ethical and responsible
business conduct also in its value and supply chain.
Contractual suppliers and suppliers participating in tender-
ing processes have to approve Terveystalo’s Supplier Code
The target is for 100 percent of Terveystalo’s key
suppliers to have approved the Supplier Code of Conduct.
At the end of 2023, 81 (80) percent of key suppliers
representing 80 percent of Terveystalo’s total procurement
for operations in Finland had approved the Supplier Code
of Conduct. The figures include Terveystalo’s Finnish
operations.
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Ethical business
Responsible use of data
and artificial intelligence
Terveystalo creates value
for its stakeholders
Responsible business is also financially profitable and
sustainable. Terveystalo creates value for its customers,
society, and our shareholders by continuously developing
the clinical, operational, and experienced quality of its
services, enabling faster access to care, reducing sickness
absences, and employing directly and indirectly more
than 15,500 professionals. The most significant cash flows
from Terveystalo’s operations consist of revenue from
service sales, purchases from suppliers of goods and
services, salaries paid to our personnel, fees paid to private
practitioners, taxes, investments, and dividends paid to the
shareholders.
The identification, prediction and prevention of illnesses
and health risks benefits both the patient and society.
Analysing and using patients’ health data is an essential
part of health risk identification. It ensures that Terveystalo
can provide timely treatment for customers and give
recommendations, the acceptance of which is, however,
always up to the customers. Terveystalo develops and
uses AI in a reliable and ethical manner. Terveystalo also
actively monitors that the AI solutions used are respon-
sible, beneficial to people, relevant to both Terveystalo
and the customers, and that the specified objectives are
achieved. Terveystalo respects and monitors the realisation
of fundamental rights also in the context of using AI tech-
nology, and customers’ data and privacy are protected in
all circumstances.
The company engages in internal dialogue regarding
the justification and ethics of AI, as well as topics related to
data protection (including the Act on the Secondary Use
of Health and Social Data). Terveystalo actively monitors
AI solutions, the related discussion and recommendations
(including the EU regulations on AI that are currently in
the process of being adopted). In the development and
use of AI, Terveystalo is committed to legal compliance
and adherence to the general ethical recommendations
pertaining to the use of AI.
72
Creation and distribution of direct economic value added
MEUR
Customers
2023
2022
2021
Revenue and other operating income
1,290.6
1,261.8
1,158.0
Suppliers
Purchased products, materials and services
Value added
Distribution of value added
Distributed to stakeholders:
Personnel
Salaries
Public sector
Taxes and social expenses
Creditors
Net financing costs
Shareholders
Dividends
Buyback of own shares
Business development
536.2
754.4
525.7
736.1
488.9
669.1
375.7
86.3
24.2
35.4
40.2
381.5
106.4
2.9
35.4
-
58.5
315.9
82.6
9.0
33.1
11.2
42.6
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo pays its taxes to
the countries it operates in
Tax footprint 2023
MEUR
Total
212.1
MEUR
79.7 Performance-based
statutory payments
related to personnel
91.5 Taxes withheld
from salaries
31.2 Non-deducted VAT
0.5 Real estate tax
6.6
Income tax
(cash-based)
0.0 Asset transfer tax
2.1
Taxes on dividend
payments
0.4 VAT remitted
Further, a total amount of EUR 380.1 million in fees was paid to
self-employed persons working as subcontractors. This amount of
paid fees is not included in the Terveystalo’s tax footprint. Hence,
the fees paid to subcontractors comes on top of the Terveystalo’s
tax footprint.
From the Terveystalo’s total tax footprint, EUR 188,8 million were
collected in Finland and EUR 23,3 million in international business.
In accordance with Terveystalo’s tax strategy, the company
pays, collects, remits and reports its indirect and direct
taxes in full at the right time and place that is, where the
economic activity, value added and work generating the
profit actually take place. This means that Terveystalo,
as a Group, pays almost all of its taxes to Finland, which
is where most of its operations take place. In addition,
in 2023, taxes were paid to Sweden for the Feelgood
business and to Estonia for the operations of Terveystalo
Estonia Oü. Terveystalo’s operations in Estonia were minor
in the financial year 2023. The Group’s operations in the
Netherlands and the massage business in Estonia were
discontinued during the financial period 2023, with related
operative companies in Estonia and the Netherlands being
dissolved. Terveystalo’s responsible tax policy ensures that
the company’s financial profit is divided fairly between
its key stakeholders, namely customers, shareholders,
municipalities and the state. Tax revenue, in turn, is used to
finance public services and investments that support the
state’s capabilities, responsibility and responsiveness.
Terveystalo publishes its tax footprint annually. The
tax footprint describes the total sum and distribution of
taxes and tax-like charges paid to society. Terveystalo’s
direct taxes include, among others, corporate income tax,
transfer tax and real estate tax, and the company’s indirect
taxes include value added tax, for example. Terveystalo’s
corporate income taxes are reported on a cash basis, which
leads to the variation in the amount of corporate income
73
Terveystalo’s tax footprint
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)
Occured taxes
Non-deducted VAT2)
VAT remitted3)
Real estate tax
Income tax (cash-based)
Asset transfer tax
Taxes on dividend payments
Total tax footprint
Ethical business
2023
79.7
55.1
6.3
0.8
16.3
1.1
91.5
40.9
31.2
0.4
0.5
6.6
0.0
2.1
2022
80.4
56.9
6.4
0.8
15.6
0.6
92.1
63.3
32.1
1.7
0.6
26.0
0.6
2.2
212.1
235.7
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
191.0
1) In addition, a total of EUR 380.1 (340.6) million in fees was paid to private practitioners who are responsible for paying taxes at their own initiative.
This amount is not included in the Terveystalo's tax footprint, and the amount should be added on top of the calculations.
2) Value-added tax is a significant factor for companies in the healthcare sector, as private healthcare companies are not, as a basic rule, eligible
to deduct value-added tax.
3) Starting from the financial year 2022, the tax footprint has been supplemented by the share of net remitted VAT.
Terveystalo’s tax footprint by country
MEUR
Finland
Sweden and Estonia
Total
2023
188.8
23.3
212.1
2022
212.5
23.2
235.7
2021
182.8
8.2
191.0
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Ethical business
The parent company of the Terveystalo Group and the
financing and procurement companies operate in Finland
and pay their taxes to Finland. Terveystalo has companies
providing healthcare services and other services in Finland,
Sweden and Estonia. All of the Group companies engage
in economic activities in the countries they are domiciled
in and pay taxes for their operations in accordance with
the local regulations. Terveystalo’s tax footprint reporting
covers all of the Group’s Finnish companies. For Sweden
and Feelgood, the tax footprint includes all of the compa-
nies under the Swedish subgroup. As the share of revenue
represented by the subsidiary operating in Estonia is still
low compared to the Group as a whole, its share of the tax
footprint is presented in combination with the figures for
Sweden.
In 2023, Terveystalo’s tax footprint totalled EUR 212.1
(235.7) million. The tax footprint is an indicator of the total
tax revenue and tax-like charges generated for society by
Terveystalo’s business activities. In addition, Terveystalo
paid a total of EUR 380.1 (340.6) million in fees to private
practitioners, who pay their individual taxes separately.
The taxes paid by private practitioners are not included in
Terveystalo’s tax footprint.
taxes between financial years. The amount of corporate
income taxes depends annually on the taxable income
of the subsidiaries. Hence, the taxable profit is affected
by the business operations of the group companies
and the performed changes during the financial year. In
accordance with the Tax Accounting Act, a share of the
corporate income tax Terveystalo pays is distributed 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 basic rule, private healthcare 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 Terveystalo’s tax footprint. The healthcare
services sold by a private service provider are tax-free for
customers. As in previous years, Terveystalo’s tax footprint
reporting describes the share of VAT that is recognised as
an expense for Terveystalo Group. However, some services
– such as cosmetic surgery – may not be exempted from
VAT for the customer, which means Terveystalo collects
and remits VAT. Starting from the financial year 2022,
Terveystalo has added its net remitted VAT to its tax
footprint. This consists of the VAT remitted to the Finnish
Tax Administration for Terveystalo’s services subject to
VAT. The remitted VAT is dependable on the extent of a
business subjected to the VAT, which varies annually. Thus,
the fluctuations in the business operations subjected to
the VAT is reflected as the differences in the amount of
remitted VAT paid per financial years.
74
Terveystalo
Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Ethical business
Taxes in Terveystalo's healthcare business
Procurement
Terveystalo does not deduct VAT from its
procurement; it mainly bears the burden of the
VAT because as a general rule, private health-care
companies are not eligible to deduct VAT.
Independent practitioners
Terveystalo pays fees to independent practitioners,
who in turn pay and file their own taxes. The taxes
paid by private practitioners are not included in
Terveystalo’s tax footprint.
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 exempt. In such cases,
Terveystalo collects and pays VAT.
Procurement
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.
75
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Sustainable
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 zero emissions from
our own operations in 2030. We will achieve this
by promoting the use of zero-emission energy
and transport. We promote the conservation and
sustainable use of natural resources in our supply
chains by minimising the generation of waste in
all of our operations and forwarding all waste to
be recovered. Our digital services enable us to
simultaneously improve access to care and reduce
the emissions generated by unnecessary travel.
76
76
Terveystalo
Annual Report 2023
Sustainable consumption
and climate action
Our key targets
• We will reduce direct and indirect CO2
emissions (Scope 1 and Scope 2) by 80%
by 2025 (using 2018 as the baseline).
• We will purchase 100% green
electricity by 2025.
• Zero emissions from our own
operations in 2030.
• We will minimise the generation of
waste in all of our operations and
forward all waste to be recovered.
Our achievements
-56%
Reduction in greenhouse gas emissions
compared to 2018 (Scope 1 and Scope 2)
Share of green electricity
of all purchased electricity
Recycling rate of waste gene-
rated at Terveystalo units
70%
68%
100%
Of the units in our medical clinic network
are covered by environmental certification
TerveystaloAnnual Report 2023 Sustainable consumption
and climate action
”
Terveystalo operates
in line with the prin-
ciples of sustainable
development in
order to reduce and
eliminate environ-
mental risks.
Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo’s environmental policy
Terveystalo Group’s environmental policy describes the
environmental principles that all employees, managers,
officials, board members, consultants and other personnel
working under the management of Terveystalo Group are
expected to follow.
Terveystalo operates in line with the principles of
sustainable development in order to reduce and eliminate
environmental risks. In addition to being committed to the
Group’s environmental policy, Terveystalo is committed to
GHG-emissions development
10,000
8,000
6,000
357.7
4,000
2,000
287.2
0
4,898.1
2019
1,878.2
2020
155.7
174.4
1,369.7
2022
2,599.7
2023
245.5
418.5
2021
Direct (Scope 1) GHG emissions, CO2e
Indirect (Scope 2)* GHG emissions, CO2e
*Market based Scope 2
From 2022 also Sweden included.
77
full compliance with the applicable legislation, the regula-
tions issued by the authorities, industry operating practices
that ensure occupational safety and patient safety, and
the continuous improvement of environmentally friendly
operating practices.
Terveystalo’s environmental goals are as follows:
• Development of environmental management
and awareness at all organisational 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
operations and increasing our recycling rate
• optimizing the life cycle of healthcare
equipment, with due consideration for
technological development
• taking environmental perspectives into
account in the travel and car policy
• developing digital services
• planning and implementing pharmaceutical
services in an up-to-date manner
• taking environmental perspectives into
account in centralised procurement and
ensuring efficient inventory management
• taking sustainable development and environmental
perspectives into account in network and business
premises projects
Terveystalo’s environmental program covers all clinics in
Finland and its appropriateness is evaluated in quality
management and environmental management system
audits. Terveystalo’s environmental management system
is certified in accordance with the ISO 14001 standard.
The standard provides a framework for the continuous
development of processes and practices that minimise
negative environmental impacts. In 2023, the decision was
made to expand ISO 14001:2015 environmental certifica-
tion to cover all of the units in Terveystalo’s medical clinic
network in Finland. The aim of expanding the certification
is to highlight the company’s environmental efforts and
to demonstrate Terveystalo’s commitment to environ-
mental responsibility. The certificate will be updated at
the beginning of 2024 and the audits will be conducted
as combined ISO 9001 and ISO 14001 audits. Some of
the Feelgood operating locations in Sweden are also ISO
14001:2015 certified.
Zero emissions from
own operations in 2030
Terveystalo’s goal is to reduce its carbon footprint so
that its own operations will generate zero emissions in
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 goal is for green electricity to account
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Sustainable consumption
and climate action
Sustainable consumption
and climate action
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
level
Base year
Finnish and Swedish operations
-100%
2030
6,316.8
2018
2023
-56%
2022
-76%
2021
-89%
Zero emissions from
own operations 20301)
Reduce direct and indirect CO2
emissions (Scope 1 and Scope 2)
by 80% by 2025 (using 2018 as
the baseline)
Reduction of direct (Scope 1) and
indirect (Scope 2) greenhouse gas
emissions compared to 2018
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
Purchase 100% green
electricity by 20252)
Share of green electricity of
all purchased electricity, %
Minimise waste in all opera-
tions and forward all waste
to be recovered
The recovery rate of waste generated
at Terveystalo units, %3)
The recycling rate of waste generated
at Terveystalo units, %3)
Finnish and Swedish operations
-80%
2025
6,316.8
2018
2,755.4
1,544.1
664.0
Finnish and Swedish operations
100%
2025
62%
2020
70%
72%
89%
Finnish operations
100%
2025
99%
2020
100%
100%
100%
Finnish operations
100%
2025
61%
2020
68%
67%
64%
1) Scope 2 emissions are market-based. The market-based Scope 2 emission calculation takes into account the green electricity guarantees of origin purchased by Terveystalo, which in 2023 covered approximately
70 (72) percent of the electricity consumption. The emissions of the remaining purchased electricity have been calculated using the residual mix emission factors for Finland and Sweden (AIB, European Residual Mixes).
Finland's residual emission factor increased by 83 percent from 2022 due to a higher share of fossil fuels in the residual mix (Finland's residual emission factor in 2022 was 0.285 kgCO2e/kWh and in 2023 0.5208 kg-
CO2e/kWh). The market-based Scope 2 emissions for 2022 have been recalculated for Finland, because Terveystalo purchased the green electricity guarantee of origin for the period 1 September - 31 December 2022
at the beginning of 2023. From 2022 onwards, the figures for energy use and carbon footprint also include the Swedish operations. The figures for 2021 include only the Finnish operations.
2) In units where Terveystalo purchases electricity itself.
3) Excludes waste fractions that cannot be recycled or recovered under any circumstances.
for 100 percent of purchased electricity. The recycling and
recovery of waste is another key theme in environmental
responsibility, with the goal being to minimise waste in all
operations. The indicators used for this are the recovery
rate and recycling rate of waste generated at Terveystalo’s
units.
Terveystalo’s carbon footprint
In 2023, Terveystalo’s carbon footprint in Finland from
Scope 1 and 2 emissions (market-based) was 2,716.0
(1,401.9) tCO2e. In Sweden, Feelgood’s Scope 1 and 2
emissions totalled 39.4 (142.2) tCO2e. Terveystalo’s carbon
footprint consists mainly of the production of the elec-
tricity consumed by properties, emissions generated by
transport and travel as well as the waste generated in hos-
pitals and clinics. The emissions generated by Terveystalo’s
operations are reduced, for example, by increasingly
transitioning to green electricity and prioritising low-emis-
sion vehicles. Terveystalo develops the measurement of its
impacts throughout the value chain and works with its key
suppliers to reduce the emissions generated by the value
chain.
Terveystalo reports the direct (Scope 1) and indirect
(Scope 2) greenhouse gas emissions arising from its
operations – and part of its indirect Scope 3 emissions
– in accordance with the GHG Protocol. Emissions from
Swedish operations have been reported starting from
2022.
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TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Sustainable consumption
and climate action
Scope 1
As Terveystalo does not, for the most part, own or control
the properties at which it operates, the greenhouse gas
emissions mostly consist of the emissions from the fleet
of cars controlled by Terveystalo and the trucks used
for imaging operations. The emissions arising from the
company’s own driving and driving under its direct control
are calculated based on fuel consumption. In 2023, Scope
1 CO2 emissions in Finland totalled 137.5 (134.5) tCO2e. In
Sweden, Scope 1 emissions were 18.2 (39.9) 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 2023, a total of 16,171 (15,841)
MWh of electricity was purchased for the properties
controlled by Terveystalo in Finland. The company’s
electricity portfolio (electricity purchased for properties)
has been zero-CO2 green electricity since the beginning
of 2020. Zero CO2 electricity purchased in Finland for
the consumption year 2023 totalled 11,220 (11,395) MWh,
which corresponds to approximately 69 (72) percent of the
electricity consumption of the company’s operations in
Finland. The amount of electricity purchased to properties
not included in the electricity portfolio totalled 4,951
(4,447) MWh, which corresponds to 2,578.5 (1,267.4) tCO2e
(market-based). The growth in the market-based Scope 2
emissions is mainly due to an 83 percent increase in the
Finland's residual emission factor used in the emissions
calculation from the comparison period. The amount of
purchased electricity outside the electricity portfolio in
Finland increased by approximately 11 percent, which
also affected the Scope 2 emissions growth from the
comparison period. In Swedish operations, 2,081 (1,328)
MWh of electricity was purchased for properties controlled
by Feelgood, of which approximately 74 (67) percent was
zero CO2 green electricity. The Scope 2 emissions from
purchased electricity in Sweden totalled 21.2 (102.3) tCO2e.
Terveystalo’s target is for green electricity to account for
100 percent of purchased electricity by 2025.
Scope 3
For indirect Scope 3 emissions, Terveystalo reports emis-
sions arising from work-related travel by employees and
emissions from the waste generated by the company’s
operations.
Terveystalo aims to avoid unnecessary work-related
travel by encouraging to favour remote meetings when-
ever possible. Terveystalo’s personnel in Finland flew a
total of 0.8 (0.7) million kilometres in work-related travel,
corresponding to 85.5 (84.1) tCO2e. Reimbursable work-
related travel by Terveystalo’s personnel in Finland totalled
2.7 (2.6) million kilometres, corresponding to 448.2 (440.8)
tCO2e. Terveystalo encourages its personnel to choose
low-emissions vehicles as company cars. The average emis-
sions of the company cars used by Terveystalo in Finland
amount to 64 (72) gCO2e/km. In Sweden, the work-related
travel by air generated 60.8 (45.1) tCO2e in emissions. The
total emissions from work-related travel by the personnel
in Sweden amounted to 260.4 (262.6) tCO2e.
The indirect emissions arising from waste in Finland
amounted to 42.6 (41.7) tCO2e. In Sweden, the amount of
waste generated and emissions from waste are very low
since waste is mainly generated in offices. The emissions
arising from waste in Sweden totalled 3.4 (2.1) tCO2e.
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo has a low
CO2 emission intensity
Terveystalo’s CO2 emission intensity is low due to the
nature of the Group’s operations. In 2023, Terveystalo’s
emission intensity (Scope 1 and 2, market-based) relative to
revenue was 2.1 (1.2) gCO2e/EUR. Relative to the number of
employees, the emission intensity was 0.4 (0.2) tCO2e. The
figures also include Terveystalo’s operations in Sweden.
”
The recycling and
recovery of waste is
another key theme
in Terveystalo’s
environmental
responsibility, with
the goal being to
minimise mixed
waste.
Digital services improve
access to care and reduce
environmental impacts
Terveystalo continuously works towards integrated, data-
driven healthcare. Digital healthcare solutions play a major
role in improving access to care, effectiveness and resource
efficiency, and reducing the environmental footprint.
Terveystalo provides and develops solutions that guide the
patient to the appropriate specialist and the appropriate
channel in a timely manner. For example, Terveystalo’s
symptom assessment tool takes advantage of artificial
intelligence to enhance access to care while making health-
care professionals’ work smoother. Terveystalo encourages
and guides customers and professionals to choose digital
channels for matters that can be resolved remotely. This
also reduces the emissions arising from unnecessary travel.
Terveystalo invests continuously in the research and devel-
opment of innovative, energy-efficient digital healthcare
technologies.
In 2023, the number of remote appointments was
approximately 1.3 (1.6) million in Finland. The year-on-
year decrease in remote appointments was due to the
end of the COVID-19 pandemic and the related remote
appointments.
Minimisation and
utilisation of waste
The recycling and recovery of waste is another key theme
in Terveystalo’s environmental responsibility, with the
goal being to minimise mixed waste in all of Terveystalo’s
operations and forward as large a share of waste as possi-
ble to be recovered. The indicators used for this in Finnish
operations are the recovery rate and recycling rate of waste
generated at Terveystalo’s units in Finland. Terveystalo is
committed to reducing the plastic waste generated by its
operations in accordance with the EU’s plastic strategy by
improving recycling and reviewing the packaging options
offered by suppliers when possible. In 2023, Terveystalo
responded to the changes to the separate collection obli-
gations under the Waste Act in Finland by updating waste
guidelines and training personnel, among other things.
The separate collection of waste plays a key role with
regard to Terveystalo’s environmental goals. Terveystalo
also keeps a close eye on medical waste and seeks to
minimise it through efficient inventory management. The
amount of waste from Terveystalo’s Swedish operations is
small and largely consists of office waste, as Feelgood has
no hospitals, medical clinics or laboratories.
Sustainable consumption
and climate action
Sustainable procurement
Terveystalo considers the sustainability of the materials
it uses and actively seeks new, more sustainable alterna-
tives. Terveystalo works with large suppliers of materials
to identify and adopt new raw materials that are more
competitive and sustainable. Terveystalo also explores new
potential suppliers of materials. All suppliers are required
to commit to Terveystalo Group’s Supplier Code of
Conduct, which sets out social and environmental require-
ments for their operations. Terveystalo minimises the waste
of perishable products and materials through active inven-
tory management. Terveystalo continuously evaluates and
improves procurement processes to promote sustainable
development objectives. Environmental perspectives are
also taken into account in all business premises projects.
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Sustainable consumption
and climate action
Greenhouse gas emissions (Scope 1 and 2)
Reducing plastic bag waste
Terveystalo continued the nationwide
project introduced in 2022 to reduce plastic
bag waste in cooperation with Terveystalo’s
cleaning services partners. The aims of the
operating model include the reduction of
plastic waste, network-wide improvements
in the efficiency of cleaning, and savings in
material costs. So far, the operating model
has reduced the use of waste bags by over
50 percent, among other improvements.
The project mitigates adverse environmental
impacts by reducing the amount of plastic
bags used in cleaning through the
following measures:
• Reducing the number of waste bins
in reception rooms
• Labeling waste bins and providing
instructions
• Emptying waste bins into large waste
bags and changing the small waste
bags when they are broken or unclea
• The corresponding changes have been
made to the service descriptions for
Terveystalo’s cleaning service providers
across Finland.
Metric tons of CO2e
Direct (Scope 1)
Finland
Sweden
Total
Indirect (Scope 2, market-based)
Finland
Sweden
Total
Indirect (Scope 2, location-based)
Finland
Sweden
Total
Scope 1 and Scope 2 (market-based)
Change from 2018
Change from previous year
Scope 1 and 2 (location-based) total
2023
2022
137.5
18.2
155.7
2,578.5
21.2
2,599.7
1,284.0
23.7
1,307.7
2,755.4
-56%
78%
1,463.4
134.5
39.9
174.4
1,267.4
102.3
1,369.7
1,156.4
13.3
1,169.7
1,544.1
-76%
133%
1,344.1
2021
245.5
N/A
245.5
418.5
N/A
418.5
1,320.1
N/A
1,320.1
664.0
-89%
-69%
1,565.6
Scope 2 emissions are market-based. The market-based Scope 2 emission calculation takes into account the green electricity guarantees of
origin purchased by Terveystalo, which in 2023 covered approximately 70 (72) percent of the electricity consumption. The emissions of the
remaining purchased electricity have been calculated using the residual mix emission factors for Finland and Sweden (AIB, European Residual
Mixes). Finland's residual emission factor increased by 83% from 2022 due to a higher share of fossil fuels in the residual mix (Finland's residual
emission factor in 2022 was 0.285 kgCO2e/kWh and in 2023 0.5208 kgCO2e/kWh). The market-based Scope 2 emissions for 2022 have been
recalculated for Finland, because Terveystalo purchased the green electricity guarantee of origin for the period 1 September - 31 December
2022 at the beginning of 2023. In the calculation of location-based Scope 2 emissions, the emission factors (IEA Emission Factors) of the aver-
age electricity production in Finland and Sweden have been used for Terveystalo's total electricity consumption, i.e. the guarantees of origin
of green electricity purchased by Terveystalo have not been taken into account. From 2022 onwards, the figures for energy use and carbon
footprint also include the Swedish operations. The figures for 2021 include only the Finnish operations.
81
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Greenhouse gas emissions (Scope 3)
Metric tons of CO2e
Business travel
Finland
Sweden
Total
Waste
Finland
Sweden
Total
Indirect (Scope 3) total
Emission intensity
Emission intensity: Scope 1+2/revenue, gCO2e/EUR
Finland
Sweden
Total
Emission intensity: Scope 1+2 /full-time equivalent, tCO2e
Finland
Sweden
Total
Scope 2 market-based
82
2023
548.9
260.4
809.3
42.6
3.4
46.0
855.3
2022
549.7
262.6
812.3
41.7
2.1
43.8
856.1
2021
374.5
N/A
374.5
36.6
N/A
36.6
411.1
2023
2022
2021
2.2
0.4
2.1
0.5
0.0
0.4
1.2
1.5
1.2
0.2
0.2
0.2
0.6
N/A
0.6
0.1
N/A
0.12
Purchased electricity
MWh
Finland
Purchased electricity
of which green electricity (CO2-free)
share of electricity consumption, %
Sweden
Purchased electricity
of which green electricity (CO2-free)
Purchased electricity total
Purchased electricity
of which green electricity (CO2-free)
Sustainable consumption
and climate action
2023
16,171
11,220
69%
2,081
1,536
18,252
12,756
70%
2022
15,842
11,395
72%
1,328
889
17,170
12,284
72%
2021
14,195
12,696
89%
N/A
N/A
14,195
12,696
89%
The amount of green electricity from the electricity purchased for the Swedish operations in 2022 has been calculated according to the aver-
age share of green electricity in the Swedish market, as supplier-specific information was not available.
Waste
Metric tons
Finland
Documents subject to data protection
Mixed waste
Hazardous waste and other recycled waste
Waste paper and cardboard
Total
Sweden
Hazardous waste and other recycled waste
Cardboard and recycling paper
Total
Total waste
2023
2022
107.9
65.2
36.0
48.7
257.8
2.7
13.9
16.6
274.4
113.5
67.7
32.0
42.0
255.2
1.7
5.0
6.7
261.9
2021
120.0
72.0
27.0
35.0
254.0
N/A
N/A
N/A
254.0
The increase in waste volumes in Sweden is due to an increase in the scope of waste reporting.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Reporting
principles
83
83
Terveystalo
Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Sustainability reporting principles
Terveystalo reports on its sustainability as part of the annual report. The sustainability section
describes Terveystalo’s sustainability efforts and their results. The sustainability report for
2023 has been prepared with reference to the reporting guidelines of the GRI Standards.
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.
Terveystalo’s reporting meets the requirements of the EU Directive regarding the disclosure
of non-financial and diversity information as well as Finnish accounting legislation. The required
non-financial information is disclosed in the Corporate Governance Statement and the Report
of the Board of Directors.
Terveystalo has defined its material sustainability themes
in cooperation with its key stakeholders. The double mate-
riality analysis conducted in 2023 serves as the foundation
for Terveystalo’s sustainability efforts and the specification
of the information included in sustainability reporting.
Terveystalo’s material sustainability themes are related to
the company’s personnel, customers and ethical business.
In addition, Terveystalo continues to report on its key envi-
ronmental impacts in the Sustainable consumption and
climate work section, in spite of the fact that environmental
issues were not selected among Terveystalo’s material sus-
tainability themes on the basis of the materiality analysis.
UN Global Compact
Terveystalo is committed to complying with the ten princi-
ples of the UN Global Compact initiative regarding human
rights, labour rights, the environment and anti-corruption.
Terveystalo has submitted its CoP (Communication on
Progress) report for 2023 through the Global Compact
CoP questionnaire. The report is available on the Global
Compact website.
Sustainability reporting covers the reporting period
from 1 January to 31 December 2023. The annual report
is available in Finnish and English. The report for 2022
was published in February 2023.
Scope of reporting
and assurance
In addition to Terveystalo’s operations, the Code of
Conduct and operating principles also apply to the
independent private practitioners working at Terveystalo.
In addition, Terveystalo requires its suppliers to approve
the Supplier Code of Conduct. Except where stated, the
scope of this report does not otherwise cover Terveystalo’s
outsourcing business, non-integrated acquired entities
or suppliers. Unless otherwise stated, the sections on the
personnel and the environment cover all of Terveystalo’s
personnel and operations, with the exception of non-
integrated acquired entities. The information describing
clinical quality applies to Terveystalo’s operations in
Finland. The financial information presented in
the sustainability report is based on audited IFRS
(International Financial Reporting Standards) figures
and applies to the entire Group. In the calculation
of emissions, Terveystalo complies with the GHG
(Greenhouse Gas Protocol) requirements.
This report has not been subject to third-party
assurance.
84
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Contact us
We hope that our readers find this report interesting and informative,
and we welcome feedback and questions.
For more information, please contact:
Kati Kaksonen
Vice President, Investor Relations, Sustainability & Communications
Tel. +358 10 345 2034
kati.kaksonen@terveystalo.com
85
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
GRI Index
GRI Standards disclosure
GRI 2: General disclosures (2021)
Organizational profile
2-1
2-2
2-3
2-4
2-5
Organizational details
Entities included in the organization's
sustainability reporting
Terveystalo in brief, p. 3
https://www.terveystalo.com/en/company/contacts
Reporting principles p. 84
Reporting period, frequency and contact point
Reporting principles p. 84–85
Restatements of information
Sustainable consumption and climate action p. 78
External assurance
Reporting principles p. 84
Activities and workers
Activities, value chain and other business relationships
Terveystalo in brief, p. 3, Terveystalo’s addressable markets p. 9, 11
Employees
Responsible work p. 52, 59, 61–62
Workers who are not employees
Responsible work p. 54–55, 59, 61
2-6
2-7
2-8
Governance
2-9
Governance structure and composition
Nomination and selection of the
highest governance body
Terveystalo and sustainability p. 30–31
Corporate Governance Statement p. 91, 93–94
Corporate Governance Statement p. 92, 95
Chair of the highest governance body
Corporate Governance Statement p. 92
Role of the highest governance body
in overseeing the management of impacts
Terveystalo and sustainability p. 30–31,
Corporate Governance Statement p. 95
2-10
2-11
2-12
86
Location
GRI Standards disclosure
Location
2-13
2-14
Delegation of responsibility for managing impacts
Terveystalo and sustainability p. 30–31
Role of the highest governance
body in sustainability reporting
Terveystalo and sustainability p. 30
2-15
Conflicts of interest
Policies and guidelines for ethical business conduct p. 70,
Terveystalo Remuneration Policy of Governing Bodies p. 104
2-16
Communication of critical concerns
Responsible work p. 60,
Ethical business p. 66–68
2-17
2-18
Collective knowledge of the highest governance body
Terveystalo and sustainability p. 31
Evaluation of the performance
of the highest governance body
Terveystalo and sustainability p. 31,
Corporate Governance Statement p. 96
2-19
Remuneration policies
2-20
Process to determine remuneration
Terveystalo and sustainability p. 32
Corporate Governance Statement p. 96
Remuneration Policy of Governing Bodies p. 104–108
Remuneration Report p. 110–110
Terveystalo and sustainability p. 32
Remuneration Policy of Governing Bodies p. 92–96,
Corporate Governance Statement p. 92, 96
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
GRI Standards disclosure
Strategy, policies and practices
Location
GRI Standards disclosure
GRI 3: Material Topics (2021)
Location
Statement on sustainable development strategy
CEO's Review p. 5–6
2-22
2-23
Policy commitments
2-24
Embedding policy commitments
2-25
Processes to remediate negative impacts
2-26
Mechanisms for seeking advice and raising concerns
2-28
Membership associations
Stakeholder engagement
2-29
Approach to stakeholder engagement
Terveystalo and sustainability p. 30, 32–36
Good health and well-being p. 41
Ethical business p. 63, 65, 68–69
Sustainable consumption and climate action p. 77
Corporate Governance Statement p. 101
Remuneration Policy of Governing Bodies p. 104
Terveystalo and sustainability p. 30, 32–36
Good health and well-being p. 41
Ethical business p. 63–65, 66, 68–71
Sustainable consumption and climate action p. 77
Corporate Governance Statement p. 101
Remuneration Policy of Governing Bodies p. 104
Good health and well-being p. 48, 50
Responsible work p. 60
Ethical business p. 66–67
Sustainable consumption and climate action p. 78–81
Good health and well-being p. 48, 50
Responsible work p. 60
Ethical business p. 66–67
Terveystalo and sustainability p. 33
Stakeholder engagement p. 37
Ethical business p. 70
Terveystalo and sustainability p. 25
Stakeholder engagement p. 37
2-30
Collective bargaining agreements
Remuneration Report p. 110
87
3-1
3-2
3-3
Process to determine material topics
Terveystalo and sustainability p. 25
List of material topics
Terveystalo and sustainability p. 26
Management of material topics
Terveystalo and sustainability p. 27–31, 34–36
Economic standards
GRI 201: Economic performance (2016)
201-1
Direct economic value generated and distributed
GRI 205: Anti-corruption (2016)
205-2
Communication and training about
anti-corruption policies and procedures
Value creation model p. 18–19
Ethical business p. 73–74
Ethical business p. 65, 69–70
205-3
Confirmed incidents of corruption and actions taken
Ethical business p. 70
GRI 207: Tax (2019)
207-1
207-2
207-3
Approach to tax
Ethical business p. 73–75
Tax governance, control, and risk management
Ethical business p. 67
Stakeholder engagement and
management of concerns related to tax
Ethical business p. 67, 73
207-4
Country-by-country reporting
Ethical business p. 73
Environmental standards
GRI 305: Emissions (2016)
305-1
305-2
305-3
305-4
Direct (Scope 1) GHG emissions
Sustainable consumption and climate action p. 77–82
Energy indirect (Scope 2) GHG emissions
Sustainable consumption and climate action p. 77–83
Other indirect (Scope 3) GHG emissions
Sustainable consumption and climate action p. 77–84
GHG emissions intensity
Sustainable consumption and climate action p. 82
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Location
GRI Standards disclosure
GRI Standards disclosure
GRI 306: Waste (2020)
306-1
Waste generation and significant waste-related impacts
Sustainable consumption and climate action p. 79–81
306-2
Management of significant waste- related impacts
Sustainable consumption and climate action p. 79–81
306-3
Waste generated
Sustainable consumption and climate action p. 78, 82
GRI 308: Supplier environmental assessment (2016)
308-1
New suppliers that were screened
using environmental criteria
Ethical business p. 65–66
Sustainable consumption and climate action p. 80
Social standards
GRI 401: Employment (2016)
401-1
New employee hires and employee turnover
Responsible work p. 62
GRI 403: Occupational health and safety (2018)
403-1
Occupational health and safety management system
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
Management of the
sustainability themes p. 35
Responsible work p. 53–56
Responsible work p. 53–56
Responsible work p. 53–54
Responsible work p. 53–54
403-5
Worker training on occupational health and safety
Responsible work p. 56–57
403-6
Promotion of worker health
Responsible work p. 53–56
88
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
403-9
Work-related injuries
403-10
Work-related ill health
GRI 404: Training and education (2016)
Location
Ethical business p. 65–66
Responsible work p. 54
Responsible work p. 53, 62
Responsible work p. 53, 62
404-1
Average hours of training per year per employee
Responsible work p. 56–57, 62
404-2
404-3
Programs for upgrading employee
skills and transition assistance programs
Percentage of employees receiving regular
performance and career development reviews
GRI 405: Diversity and equal opportunity (2016)
405-1
Diversity of governance bodies and employees
Responsible work p. 56–57, 62
Responsible work p. 59–60
Terveystalo and sustainability p. 31
Responsible work p. 59, 61
GRI 414: Supplier social assessment (2016)
414-1
New suppliers that were screened using social criteria
Ethical business p. 65–66
Sustainable consumption and climate action p. 80
GRI 418: Customer privacy (2016)
418-1
Substantiated complaints concerning breaches
of customer privacy and losses of customer data
Ethical business p. 68
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Corporate
Governance
91 Corporate Governance Statement
104 Terveystalo Remuneration Policy of Governing Bodies
110 Remuneration Report
89
89
Terveystalo
Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Corporate
Governance
Statement
90
90
Terveystalo
Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Corporate Governance
Statement
1. 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, and the Company’s Articles of Association.
In addition, the Company follows the Finnish Corporate
Governance Code 2020 (hereinafter referred to as the
“Corporate Governance Code”), issued by the Securities
Market Association and available on its website at https://
www.cgfinland.fi/en/. Terveystalo complies 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's website at https://www.terveystalo.com/en/
company/investors/corporate-governance/.
2. 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 admi-
nistration and operations of Terveystalo Group lies with
the governing bodies of the parent company, Terveystalo
Plc. These governing bodies include the General Meeting,
the Board of Directors, and the CEO. The General Meeting
elects the members of the Board of Directors on the basis
of the proposal of the Shareholders’ Nomination Board
consisting of the Company’s largest shareholders. The
work of the Board of Directors is aided by two committees.
The Board elects the committee members from among 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 prin-
ciples, adopted by the Board of Directors. These principles
include the Charters of the Board and its committees, the
division 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 this page.
91
Terveystalo’s governance structure
General Meeting
Shareholders'
Nomination Board
Audit
Board of Directors
Audit Committee
Internal Control and
Risk Management
Remuneration Committee
Chief Executive Officer
Executive Team
TerveystaloAnnual Report 2023 Board of Directors
According to Terveystalo’s Articles of Association, the
Board of Directors has a minimum of five (5) and a
maximum of eight (8) ordinary members. The General
Meeting of Shareholders elects the members of the Board
of Directors. The Board of Directors elects the Chair from
among its members. In 2023, the General Meeting elected
seven members to the Board of Directors. Biographical
details of the members are provided on the following
pages.
Year 2023
Sustainability
Corporate Governance
Financials
General Meeting
Shareholders’ Nomination Board
The General Meeting is Terveystalo’s highest decision-
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 mat-
ters. An Extraordinary General Meeting is convened
when necessary. More detailed information about the
General Meeting is provided in Terveystalo’s Articles of
Association, which can be found on the Company's web-
site at https://www.terveystalo.com/en/company/investors/
corporate-governance/. The Annual General Meeting for
2023 was held on 23 March 2023. The decisions of each
General Meeting can be found on Terveystalo's website
at https://www.terveystalo.com/en/company/investors/
corporate-governance/annual-general-meeting/.
In accordance with shareholdings on 1 September
2023, Terveystalo’s Nomination Board consists of the
representatives of the Company’s four largest shareholders
and the Chair of the Board of Directors. In accordance
with the above, the following persons are members of
Terveystalo’s Nomination Board as of 12 September 2023:
Risto Murto (Varma Mutual Pension Insurance Company),
Tomas von Rettig (Rettig Group AB), Timo Ritakallio
(Pohjola Insurance Ltd), Peter Therman (Hartwall Capital),
and Kari Kauniskangas (Chair of the Board of Directors of
Terveystalo Plc). There were no changes in the composition
of the Nomination Board during 2023.
In its organising meeting held on 12 September
2023, the Nomination Board re-elected Risto Murto as its
Chair. The Shareholders’ Nomination Board forwarded its
proposals for the Annual General Meeting to Terveystalo’s
Board of Directors on 28 November 2023. In 2023, the
Nomination Board convened five times. The attendance
rate of the members was 100 percent.
In accordance with the decision of the General Meeting,
the Shareholders’ Nomination Board (hereinafter referred
to as the “Nomination Board”) annually prepares pro-
posals to the next Annual General Meeting concerning the
number of members on the Board and their election 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, repre-
sentatives of the Company’s four largest shareholders. If
the ownership of the Company’s fifth largest shareholder
exceeds ten (10) percent of all the shares and votes in the
Company, the five largest shareholders shall be repre-
sented in the Nomination Board. The composition of the
Nomination Board is determined based on the sharehol-
dings on the first bank day in September of 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 among 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 inclu-
des 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's web-
site at https://www.terveystalo.com/en/company/investors/
corporate-governance/shareholders-nomination-board/.
92
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Kari Kauniskangas
Matts Rosenberg
Sofia Hasselberg
Ari Lehtoranta
b. 1962, M.Sc. (Econ.), Finnish citizen. Chairman of the Board
of Directors since 2019. Independent of the Company and its
largest shareholders.
Committee memberships: Chairman of the Remuneration
Committee, member of the Shareholders’ Nomination Board
b. 1977, Ph.D. (Econ.), Finnish citizen. Vice Chairman of the Board
of Directors since 2022. Independent of the Company, but not
of its significant shareholders due to his position as
the CEO of Rettig Group.
Committee memberships: Member of the Audit Committee
Main occupation: Board Professional
Main occupation: Rettig Group, CEO
Relevant work 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: 2022– Ahlström Capital Oyj, Vice
Chairman of the Board of Directors, 2019– Veho Oy AB, Chairman
of the Board of Directors, 2013– Veho Oy AB, Member of the
Board of Directors
Main past positions of trust: 2020–2022 Ahlström Capital
Oyj, Chairman of the Board of Directors, 2018–2019 Raisio Plc,
Vice Chairman of the Board of Directors, 2008–2010 Wärtsilä
Corporation, Member of the Board of Directors
Shareholding in Terveystalo on 31 December 2023: 21,802
Relevant work experience: 2019– Rettig Group, CEO,
2018–2019 Rettig Group, Deputy CEO and Head of Core
Investments, 2016–2018 Rettig Group, COO, 2014–2016
Fortaco Group, Deputy CEO and CFO, 2005–2013 IK Partners,
Investment Professional
Main positions of trust: 2021– Purmo Group, Vice Chairman
of the Board of Directors, 2021– Purmo Group, Chairman of
the M&A Committee, 2018– Purmo Group, Member of the
Audit Committee
Main past positions of trust: 2020–2021 Alandia Försäkring
Abp, Chairman of the Board of Directors, 2020–2021 Alandia
Försäkring Abp, Chairman of the Solvency and Investment
Committee, 2017–2020 Alandia Försäkring Abp, Deputy mem-
ber of the Board of Directors, 2018–2021 Nordkalk Corporation,
Chairman of the Board of Directors, 2016–2018 Nordkalk
Corporation, Member of the Board of Directors, 2018–2021
Nordkalk Corporation, Member of the Audit Committee,
2016–2021 Purmo Group, Member of the Board of Directors
Shareholding in Terveystalo on 31 December 2023: 14,498
b. 1983, M.D. Licenced Physician, Swedish citizen. Member
of the Board of Directors since 2023. Independent of the
Company and its largest shareholders.
Committee memberships: Member of the Audit Committee
Main occupation: Bonnier Capital, Investment Director
Relevant work experience: 2022– Bonnier Capital, Investment
Director, 2020–2022 Clinic Friends AB, Co-founder and
CEO, 2018–2020 MSD Sweden, Head of Marketing and
Digital Operations, 2011–2017 McKinsey & Co., Management
Consultant
Main positions of trust: 2023– Acast AB, Chairwoman of
the Nomination Committee, 2022– Elypta AB, Member of
the Board of Directors, 2022– Medoma AB, Member of the
Board of Directors, 2021– Preglife AB, Member of the Board of
Directors
Main past positions of trust: 2020–2023 Clinic Friends AB,
Member of the Board of Directors, 2021–2022 ATOS Medical
AB, Member of the Board of Directors and Member of
Remuneration Committee, 2017–2022 Getinge AB, Member of
the Board of Directors and Member of Audit Committee
Shareholding in Terveystalo on 31 December 2023: 2,499
b. 1963, M.Sc. (Eng.), Helsinki University of Technology,
Finnish citizen. Member of the Board of Directors since 2023.
Independent of the Company and its largest shareholders.
Committee memberships: Member of the Remuneration
Committee
Main occupation: Board professional
Relevant work experience: 2021–2022 Parmaco Oy, Interim
CEO, 2017–2021 Caverion Corporation, CEO and President,
2014–2017 Nokian Tyres Plc, CEO and President, 2008–2014
Kone Corporation, multiple executive positions, most recently
Executive Vice President, Central and Northern Europe,
1985–2008 Nokia Telecommunications/Networks, multiple VP/
EVP level positions
Main positions of trust: 2021– Koiviston Auto Oy, Chairman of
the Board of Directors, 2021– Parmaco Oy, Member of the Board
of Directors, 2016– Orion Corporation, Member of the Board of
Directors (2020– Chairman of the Audit Committee)
Main past positions of trust: 2013–2017 Caverion Corporation,
Member of the Board of Directors (2015–2016 Chairman of
the Board of Directors), 2009–2014 Elisa Corporation, Member
of the Board of Directors, 2012–2014 Elisa Corporation, Vice
Chairman of the Board of Directors, 2002–2003 Redback
(Nasdaq), Member of the Board of Directors
Shareholding in Terveystalo on 31 December 2023: 6,504
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Carola Lemne
Kristian Pullola
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: Finnair Oyj, CFO
Relevant work experience: 2022– Finnair Oyj, CFO, 2017–
2020 Nokia Corporation, Executive Vice President and CFO,
1999–2016 multiple executive and managerial positions in
finance and treasury at Nokia Corporation, most recently
Senior Vice President, Corporate Controller
Main positions of trust: 2022– FinanceKey Oy, Chairman of
the Board of Directors, 2021– Eduhouse Oy, Chairman of the
Board of Directors, 2021– Kemira Oyj, Member of the Board
of Directors
Main past positions of trust: 2020–2023 Antilooppi real
estate investment company, Chairman of the Board of
Directors, 2010–2020 Ilmarinen Mutual Pension Insurance
Company, Member of the Board of Directors and Chairman
of the Audit Committee
Shareholding in Terveystalo on 31 December 2023: 8,207
b. 1976, Executive MBA, M.A., Finnish citizen. Member of the
Board of Directors since 2018. Independent of the Company,
but not of its significant shareholders due to her position as the
SVP, People, Communications and Development and member
of the Group Executive Team at Varma Mutual Pension
Insurance Company until spring 2023.
Committee memberships: Member of the Audit Committee
Main occupation: Association for Finnish Work, CEO
Relevant work experience: 2016–2023 Varma Mutual
Pension Insurance Company, Senior Vice President, People,
Communications and Development, 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
Main positions of trust: 2023– Museum of Architecture and
Design ADM, Member of the Board of Directors, 2023–
Baltic Sea Action Group, Member of the Board of Directors,
2023– Digital Commerce Finland, Vice Chairman of the
Board, 2018– Junior Achievement (JA) Finland, Member
of the Board of Directors
Main past positions of trust: The Finnish Broadcasting
Company Yle, Vice Chairman of the Board
Shareholding in Terveystalo on 31 December 2023: 11,453
b. 1958, Licensed physician, M.D. and associate professor,
Karolinska Institutet, Swedish citizen. Member of the Board
of Directors since 2022. Independent of the Company and
its largest shareholders.
Committee memberships: Member of the Remuneration
Committee
Main occupation: Board Professional
Relevant work experience: 1998– Karolinska Institutet, Associate
professor, 2014–2018 Confederation of Swedish Enterprise, Director
General, 2008–2014 Praktikertjänst AB, CEO and President, 2000–
2007 Danderyds University Hospital, CEO, 1993–2000 Pharmacia
Corporation, Multiple managerial positions, most recently Vice
President, Clinical Development and Regulatory Affairs Strategy
Main positions of trust: 2022– Swedish Heart Lung Foundation,
Member of the Board of Directors, 2019– IRLAB AB, Chairman
of the Board of Directors, 2019– Junior Achievement Sweden,
Chairman of the Board of Directors, 2017– Arjo AB, Non-Executive
Director
Main past positions of trust: 2019–2022 ArtClinic AB, Chairman of
the Board of Directors, 2019–2022 International English School AB,
Chairman of the Board of Directors, 2018–2019, Alecta AB, Vice
Chairman of the Board of Directors, 2015–2018 AFA Försäkringar,
Member of the Board of Directors, 2013–2017 Uppsala University,
Chancellor, 2010–2014 Investor, Independent Director, 2009–2011
Meda, Member of the Board of Directors, 2008–2018 Confederation
of Swedish Enterprise, Member of the Board of Directors, 2004–2009
Apoteket, Member of the Board of Directors, 2004–2009 Strategic
Research Foundation, Member of the Board of Directors, 2003–2017
Getinge AB, Member of the Board of Directors
Shareholding in Terveystalo on 31 December 2023: 5,126
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Corporate Governance
Financials
Independence of the Board of Directors
According to the Board of Directors' assessment, all
Board members are independent of the Company. Kari
Kauniskangas, Sofia Hasselberg, Ari Lehtoranta, Carola
Lemne, and Kristian Pullola are in addition independent of
the major shareholders of the Company. According to the
Board of Directors’ assessment, the following members of
the Board are not independent of the major shareholders
of the Company due to their current or former main occu-
pation: Katri Viippola (Varma Mutual Pension Insurance
Company, SVP, HR and Communications until spring
2023) and Matts Rosenberg (Chief Executive Officer, Rettig
Group).
Changes to the Board of Directors
During 2023, Kari Kauniskangas (Chair), Matts Rosenberg,
Carola Lemne, Kristian Pullola, and Katri Viippola were
members of the Board of Directors until 23 March 2023.
They all were re-elected as members of the Board of
Directors in the Annual General Meeting for 2023 which
was held on 23 March 2023.
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 principles concerning the
diversity on 10 February 2021. The Company regards the
diversity of the Board of Directors as an essential factor,
which supports the Company’s business operations and its
development as well as the attainment of the Company’s
strategic targets. The work of the Board of Directors
requires understanding of the differences in cultures,
values, and ways of conducting business. Diversity is
assessed from number of aspects, 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
2023, the Company’s Board of Directors met the diversity
criteria. The age span of the Board members was 40–65
years as at 31 December 2023. Three of the Board mem-
bers are women and four 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 last updated it on 13
February 2024. The Charter supplements the provisions of
the Company's Articles of Association and the applicable
laws and regulations. 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 exe-
cutive management’s reporting to the Board of Directors.
In principle, the CEO attends Board meetings. The Chief
Financial Officer (CFO), other members of the Company’s
Executive Team, and the General Counsel, 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 appropriate 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-ranging implications
for the Company. It decides on major corporate plans
and transactions concerning the Company. 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. Following the Corporate
Sustainability Reporting Directive (CSRD), the duties of the
Board of Directors going forward also include monitoring
and assessing the sustainability reporting system, monito-
ring the assurance of the sustainability statements as well
as preparation of the election of the assurance provider.
The Board of Directors also ensures that the Company has
defined the operating principles of internal control, inter-
nal auditing, and risk management, and monitors comp-
liance 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 remu-
neration and other benefits upon the recommendation
of the Remuneration Committee, within the framework
of the Remuneration Policy presented to the 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 their service contracts
and remuneration based on the recommendation of the
Remuneration Committee. In addition, the CEO shall con-
sult the Chair of the Board of Directors on the 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 description 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 committees
and approves their charters. In 2023, the Board of Directors
convened 14 times. The average attendance rate at Board
meetings was approximately 98 percent. The attendance
rate of each member is shown in a separate table under
Attendance of board members at Board and Committee
meetings in 2023.
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Sustainability
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 last updated on 13 February 2024.
The Audit Committee assists the Board of Directors in
performing 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 and the quality and integrity of the financial
statements and other financial reports. In addition, the
Audit Committee monitors the statutory audit of the
financial statements and consolidated financial statements.
The Audit Committee also monitors and assesses the
effectiveness of the Company’s internal control, internal
auditing, and risk management systems and assesses the
performance of internal auditing. Furthermore, the Audit
Committee evaluates the qualifications and independence
of the external auditor and, in particular, the provision
of non-audit services to the Company, prepares the
proposal for the election 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. Following the
CSRD, the Committee's duties going forward also include
assisting the Board of Directors in fulfilling and monitoring
its duties pertaining to the sustainability reporting process
and assurance. 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 operations. 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-governance/board-of-directors/.
The Audit Committee consists of at least three
members 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, among other things,
that the majority of the Audit Committee members shall
be independent of the Company, and at least one mem-
ber shall be independent of the major shareholders of the
Company.
Kristian Pullola served as Chair of the Audit
Committee, and Katri Viippola and Matts Rosenberg
served as Committee members until 23 March 2023. As of
23 March 2023, Kristian Pullola continued as the Chair, and
Katri Viippola and Matts Rosenberg as Committee mem-
bers, while Sofia Hasselberg started as a new member. The
Audit Committee convened five times during the financial
year 2023. The average attendance rate of the Committee
members was 100 percent. The attendance rate of each
member is shown in a separate table under Attendance
of board members at Board and Committee meetings in
2023.
Remuneration Committee
The Remuneration Committee carries out its respon-
sibilities under its Charter adopted by the Board of
Directors. The Charter of the Remuneration Committee
was adopted on 23 January 2018 and last updated on 9
February 2023. The Board’s Remuneration Committee
prepares Terveystalo’s Remuneration Policy for Governing
Bodies and the Remuneration Report. The Remuneration
Committee prepares the appointment of the CEO and
the rest of the senior management team who report
directly to the CEO. It also assists the Board of Directors
with any major management reorganisations based on the
preparation and proposals by the CEO. The Remuneration
Committee assists the Board of Directors with the perfor-
mance evaluation of the CEO and the rest of the senior
management team reporting directly to the CEO, prepares
and assesses the remuneration of the CEO and the rest of
the senior management team who report directly to the
CEO, prepares the short-term and long-term incentive
plans, as well as reviews appropriate succession planning
procedures for the CEO and the rest of the senior manage-
ment team who report directly to the CEO. A description
of the main contents 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 members. 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, as well as personnel and
executive remuneration.
The Remuneration Committee establishes its own
meeting schedule and meets as frequently as necessary to
carry out its responsibilities under its Charter, and in any
event at least twice a year. During 2023, the composition of
the Remuneration Committee was until 23 March 2023 as
follows: Kari Kauniskangas as the Chair, and Carola Lemne
and Katri Viippola as members. As of 23 March 2023, Kari
Kauniskangas continued as the Chair of the Committee,
and Carola Lemne as member, while Ari Lehtoranta started
as a new member.
The Remuneration Committee convened five times
during the financial year. The average attendance rate of
the Committee members was 100 percent. The attendance
rate of each member is shown in a separate table under
Attendance of board members at Board and Committee
meetings in 2023.
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Corporate Governance
Financials
Attendance of board members at Board and Committee meetings in 2023
Chief Executive Officer
Name
Kari Kauniskangas
Matts Rosenberg
Sofia Hasselberg
Ari Lehtoranta
Carola Lemne
Kristian Pullola
Katri Viippola
Attendance at
Board meetings*
14/14
Attendance at Audit
Committee meetings*
Attendance at Remuneration
Committee meetings*
5/5
14/14
11/11
10/11
14/14
13/14
14/14
5/5
4/4
5/5
5/5
3/3
5/5
2/2
* Attendance rates cover meetings held during each member’s term of office.
.
97
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 Executive Team and management system.
Group Executive Team
and management system
The Company’s CEO serves as the Chair of the Executive
Team. In 2023, until 31 October 2023, the Executive Team
included, in addition to the CEO, the Chief Commercial
Officer and the Chief Operating Officer, Senior Vice
President responsible for Portfolio Businesses, the
Chief Medical Officer, and the Officers and Senior Vice
Presidents responsible for finances, HR, and digitalisation.
On 31 October 2023, Terveystalo announced that it
renews its management structure. In order to complete
the changes in Terveystalo’s operating model and organi-
sational structure announced in October 2022, Terveystalo
combined the commercial and operational management
of the Healthcare Services business area under a single
leader. The planned changes are implemented in stages.
As of 1 November 2023, the Executive Team has, in addi-
tion to the CEO, included the Chief Medical Officer, Chief
Financial Officer, Executive Vice President of Healthcare
Services Business Area, Executive Vice President of
Portfolio Businesses, Executive Vice President of the
Swedish Business Area, Senior Vice President of Digital
Services as well as Senior Vice President of People and
Careers. Sari Heinonen, born 1976, Ph.D., Marketing, has
been appointed Executive Vice President of the Healthcare
Services Business Area and a member of Terveystalo’s
Executive Team as of 5 February 2024. Henri Mäenalanen
served as the Chief Operating Officer until 31 October
2023 and as interim EVP of the Healthcare Services
Business Area until Sari Heinonen took up her position.
Mäenalanen took over the position of Executive Vice
President of Portfolio Businesses as of 6 February 2024.
Executive Vice President of Portfolio Businesses Mikko
Tainio continued as a member of Terveystalo’s Executive
Team until 6 February 2024.
The members of the Executive Team as well as their
and their controlled entities' shareholdings in Terveystalo
on 31 December 2023 are presented below.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Ville Iho
President and CEO
Petri Bono
Chief Medical Officer
Juuso Pajunen
Chief Financial Officer
b. 1969, M.Sc. (Eng.), Finnish citizen. President and
Chief Executive Officer since 6 December 2019.
Relevant work experience: Nurminen Logistics Plc, CEO.
Prior to this, multiple managerial positions at Finnair Plc,
most recently as COO, Deputy CEO, and acting CEO
Main positions of trust: The Finnish Association of Private
Care Providers, Vice Chairman of the Board of Directors
Shareholding in Terveystalo on 31 December 2023: 13,306
b. 1981, M.Sc. (Econ.), Finnish citizen. Chief Financial Officer
and Member of the Executive Team since 28 November 2022.
Relevant work experience: AFRY AB, CFO, Pöyry Group,
CFO. Prior to this, multiple senior financial positions at Pöyry
Group.
Main positions of trust: 3Step IT Group Oy, Member of the
Board of Directors
Shareholding in Terveystalo on 31 December 2023: 19,000
b. 1970, M.D., adjunct professor, specialist in oncology, Finnish
citizen. Chief Medical Officer and member of the Terveystalo
Executive Team since 2019.
Relevant work experience: Hospital District of Helsinki and
Uusimaa (HUS), Deputy Chief Medical Officer, Helsinki
University Hospital (HUCH), Chief Medical Officer, HUS
Comprehensive Cancer Center, Director
Main positions of trust: Association of Finnish Private Health-
care Providers, Vice Chairman of the Board of Directors,
Instru Science Foundation, Chairman of the Board of Directors,
Finnish Medical Association, Chairman of the Quality Council,
TILT therapeutics and Oncorena, Member of the Scientific
Advisory Board
Main past positions of trust: HUS Kiinteistöt Oy and HYKS
Instituutti Oy, Member of the Board of Directors and, Faron
Pharmaceuticals, Member of the Scientific Advisory Board
Shareholding in Terveystalo on 31 December 2023: 2,087
Henri Mäenalanen
Interim Executive Vice President,
Healthcare Services*
b. 1983, M.Sc. (Eng.), Finnish citizen. Interim Executive Vice
President, Healthcare Services since 1 November 2023* and
Member of the Executive Team since 12 April 2023.
Relevant work experience: Terveystalo Plc, multiple managerial
positions, most recently Director of Operations (COO), Regional
Director and Business Unit Director. Prior to this, managerial
positions at Anttila Oy and Kesko Group.
Shareholding in Terveystalo on 31 December 2023: 2,230
* Sari Heinonen, b. 1976, Ph.D., Marketing, has been appointed
Executive Vice President of the Healthcare Services Business Area
and a member of Terveystalo's Executive Team as of 5 February
2024. Henri Mäenalanen served as the interim EVP of the Health-
care Services Business Area until Sari Heinonen took up her posi-
tion, and took over the position of the Executive Vice President
of Portfolio Businesses as of 6 February 2024.
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Mikko Tainio
Executive Vice President, Portfolio Businesses*
b. 1979, M.Sc. (Econ.), Finnish citizen. Senior Vice President /
Executive Vice President, Portfolio Businesses since
1 November 2022 and Member of the Executive Team
since 2020.*
Relevant work experience: Finnair Cargo Oy, Managing
Director. Prior to this multiple managerial positions at
Finnair Plc.
Main positions of trust: Finavia Oyj, Member of the Board
of Directors
Shareholding in Terveystalo on 31 December 2023: 5,596
Stefan Kullgren
Executive Vice President of the Swedish
Business Area and CEO of Feelgood AB
b. 1970, M.Sc. (Econ.), MBA, Swedish citizen. Member
of the Executive Team since 1 November 2023.
Relevant work experience: Oral Care AB, Deputy CEO and
Director responsible for clinics, Evidensia Djursjukvård, Chief
Operating Officer (COO), Ambea Group, Director responsible
for the business in Sweden and Norway, Danske Bank
Corporate Finance, Director M&A
Shareholding in Terveystalo on 31 December 2023: 0
Ilari Richardt
Senior Vice President, Digital Services
Minttu Sinisalo
Senior Vice President, Human Resources
b. 1992, M.Sc. (Tech.), Finnish citizen. Senior Vice President
Digital Services and member of the Executive Team since
29 March 2023.
Relevant work experience: Terveystalo Plc, multiple managerial
positions within digital development. Prior to this, multiple
software developer roles.
Shareholding in Terveystalo on 31 December 2023: 3,134
b. 1980, M.Sc. (Econ.), Finnish citizen. Senior Vice President
HR and member of the Executive Team since 2020.
Relevant work experience: Finnair Plc, multiple HR leadership
positions, most recently VP, People and Culture at Finnair
Operations business unit. Prior to this, August Associates,
HR manager and management consultant.
Main positions of trust: Hakonen Solutions Oy, Member
of the Board of Directors
Main past 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 on 31 December 2023: 1,400
* Executive Vice President of Portfolio Businesses, Mikko Tainio,
concluded his duties on 6 February 2024. Henri Mäenalanen
took over the position of the Executive Vice President of
Portfolio Businesses as of 6 February 2024.
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Sustainability
Corporate Governance
Financials
The current information on the Group Executive
Team can be found from the Company’s website at
https://www.terveystalo.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 matters relating to the
Company’s strategy, business 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.
Changes in the
Group Executive Team in 2023
During 2023, the Group Executive Team also comprised
Kati Sulin until March 2023 and Siina Saksi until April 2023,
who both left the Company. Marja-Leena Tuomola was
a member of the Group Executive Team until 31 October
2023 and currently serves as SVP, Consumer, Insurance,
and Specialties. As of 1 November 2023, Tuomola has
reported to the EVP of the Healthcare Services Business
Area.
Kati Sulin
Senior Vice President, Digital Business
b. 1974, M.Sc. (Econ.), Finnish citizen. SVP, Digital Business
and Member of the Executive Team since 1 September
2022 until March 2023.
Relevant work experience: Ifolor Oy, Managing
Director. Prior to this, Chief Digital Officer and VP Brand
Development, Marketing and Digital Services at DNA Plc.
Main past positions of trust: Member of the Board of
Directors of Apetit Plc, Witted Megacorp Plc, Viestimedia
and LocalTapiola Mutual Life Insurance
Siina Saksi
Chief Operating Officer, Healthcare Services
b. 1966, M.Sc. (Econ.), EMBA, Finnish citizen. Chief
Operating Officer, Healthcare Services since 1 November
2022, Member of the Executive Team since 2016 and until
April 2023.
Relevant work experience: Terveystalo Plc, multiple
managerial positions, most recently Chief Operating
Officer. Prior to this managerial positions, among
others, at Pohjola Insurance Ltd, Tryg A/S and If P&C
Insurance Company Ltd.
Marja-Leena Tuomola
Chief Commercial Officer, Healthcare Services
b. 1962, LL.M., eMBA, Finnish citizen. Chief Commercial
Officer, Healthcare Services since 1 November 2022,
Member of the Executive Team since 2021 and until 31
October 2023.
Relevant work experience: Schibsted Finland Oy,
President and COO. Prior to this, multiple managerial
positions at Sanoma Group, including SVP Business
and Digital Operations Development.
Main positions of trust: Suomi Broadcast Networks
Holdings Oy, Member of the Board of Directors
Subsidiaries – Operative business
Group organisation
Terveystalo Plc
The parent company of the Group
Terveystalo Healthcare Holding Oy
Financing
Terveystalo Healthcare Oy
Group's centralised procurement
Suomen Terveystalo Oy and
other operative companies
The operative business
The CEO, CFO, and General Counsel usually serve as
members of the subsidiaries’ Board of Directors with
the exception of, for example, subsidiaries of Feelgood
Svenska AB where the Executive Vice President of the
Swedish Business Area usually serves as the member of
the Board of Directors. From the perspective of business
operations, the Group subsidiaries operate in accordance
with the Group’s management system. 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 procurement company.
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Corporate Governance
Financials
3. Descriptions of internal control
procedures and the main features
of risk management systems
Risk management
Risk management is part of Terveystalo’s management
system. The Company applies a risk management and
internal control policy adopted by the Board of Directors.
The purpose of risk management is to ensure fulfilment
of the customer promise, 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
management and activities at all levels of the organisation.
Risk management must be consistent and commensurable.
It is important to understand the causes and consequences
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 minimising damage if a risk is realised
• Ensuring data security, data protection,
and environmental responsibility
• Improving risk awareness within the organisation
• 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 organising risk manage-
ment in the Group. The rest of the Executive Team support
the CEO in implementing risk management, monitoring
and assessing risks, as well as implementing measures
related to risks.
Risk management process
Risks are assessed on all levels of Terveystalo Group’s
organisation. Terveystalo identifies risks using, for example,
operating environment and stakeholder analyses, per-
formance indicators, market analyses, 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
external 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 management
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
Group’s financial reporting is reliable, that interim reports
and financial statements are prepared in accordance
with the accounting principles and policies applied by
Terveystalo and give essentially correct information of the
Company’s finances, and that the regulations and prin-
ciples of operation are complied with. Internal control is
based on Terveystalo’s risk management system, business
culture, and respective practices. The Group’s values, Code
of Conduct, and Group policies and principles, such as
the risk management and internal control policy, financial
policy, procurement policy, disclosure policy, and approval
authorisations, guide the internal control. The purpose of
internal control and compliance is to ensure compliance
with policies, procedures, and corporate governance
principles throughout the Group, secure sufficient internal
controls, and ensure the accuracy of financial reporting. It
aims to create a uniform control environment by applying
appropriate internal control principles in the various
business processes. Terveystalo uses WhistleB, a reporting
channel open for everyone. This channel enables anony-
mous reporting of observed or suspected misconduct at
https://www.report.whistleb.com/en/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 admi-
nistration. 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 implementation of an efficient control envi-
ronment and control measures related to the reliability
of financial reporting to the CEO. The CFO 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 realisations. Monitoring of monthly per-
formance in relation to the specified targets is an essential
factor. These control measures are carried out at different
organisational levels.
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4. 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 authori-
sed public accountants. On the basis of a report drafted by
the authorised 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 accordance
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
establishing 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 include
reviewing the annual plans and work results of the other
second line of defence players. In 2023, audit was con-
ducted on the process of Terveystalo’s profit improvement
program launched in October 2022. 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 organisation 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
among its related parties. According to the Company’s
definition, related parties include the Group companies
and associated 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, practices falling into the ordinary course of busi-
ness of the Company and market terms shall be followed.
If a transaction with the Company’s related parties would
not be part of the ordinary course of business of the
Company or if it deviates 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 connected 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 made
with arm’s length terms. Material transactions between the
Company and its related parties are presented annually in
Notes to the Consolidated Financial Statements.
Main procedures of
insider management
Terveystalo complies with the EU Market Abuse Regulation
(hereinafter referred to as “MAR”), the Finnish Securities
Markets Act, the guidelines 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 specifies the procedures of the Company’s insider
management.
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 maintains 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 General Counsel as managers, as well as the SVPs of
business lines with profit and loss responsibility. The mana-
gers must specify the persons and legal persons closely
associated with them and disclose them to Terveystalo as
their closely associated persons. Terveystalo’s managers
and their closely associated persons must report to the
Company and FIN-FSA their transactions with Terveystalo’s
financial instruments that reach the limit specified by
FIN-FSA for a calendar year (EUR 5,000). In order for
Terveystalo to monitor compliance with the abovementio-
ned notification obligation, Terveystalo has recommended
that managers and their closely associated persons unof-
ficially report all transactions with Terveystalo’s financial
instruments to the Company, regardless of whether the
abovementioned threshold is met or not. Terveystalo
publishes all transactions of the managers and their closely
associated persons officially reported to the Company by a
stock exchange release.
The managers and persons involved in the preparation
of the Company’s financial reviews, i.e. those who partici-
pate in the preparation or publication of interim reports
and annual financial statements / financial statement relea-
ses 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 preceding, and on the
date of, the publication of each of the Company’s interim
reports and annual financial statements releases.
Auditor
The Company’s auditor in 2023 was Authorised Public
Accountants KPMG Oy Ab. APA Henrik Holmbom,
who has served as the Company's auditor in charge star-
ting from the Annual General Meeting 2020, served as the
auditor in charge. In 2023, the auditor’s fees for statutory
audit totalled approximately EUR 492,000 and the fees
for other services totalled approximately EUR 4,300. The
auditor’s fees are presented without VAT.
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Terveystalo
Remuneration
Policy for
Governing
Bodies
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TerveystaloAnnual Report 2023 Year 2023
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Terveystalo Remuneration
Policy of 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, and will be presented to the Annual
General Meeting in the spring 2024.
Remuneration at Terveystalo is based on the prin-
ciples of performance, fairness and competitiveness.
These remuneration principles apply to all Terveystalo
employees 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
strategy. The objective is to reward concrete achievements
in implementing the company’s strategy and in achieving
its business targets. The Company’s compensation structu-
res 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
desired talent and to motivate the employees to deliver
the strategy and to maximise shareholder value creation.
The targets and rewards in the incentive systems are
balanced between long-term value creation and efficient
achievement 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
principles 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 regarding the decision-
making on remuneration in the Company follow principles
aimed at ensuring the prevention of and 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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3. Description of the remune-
ration 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’ remune-
ration is designed to align the Board’s interests with those
of all shareholders.
The Shareholders’ Nomination Board prepares and pre-
sents its proposal on the remuneration of the members 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
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.
Remuneration
element
Annual
remuneration
Purpose and link to strategy
Description
The annual remuneration should be sufficient
to attract, retain and motivate high-performing
individuals.
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.
Travel expenses
Intended to reimburse the members of the
Board of Directors for reasonable costs and
expenses related to their work.
105
The Shareholders’ Nomination Board prepares and presents its
proposal on the remuneration of the members of the Board
of Directors to the AGM based on what the AGM decides on
the Board’s remuneration 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 are paid in cash.
The members of the Board are entitled to reimbursement for
reasonable travel expenses related to their work.
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
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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
individual’s skills and experience
internal salary levels
•
•
• 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 included 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 a supplementary defined contri-
bution pension in line with local market practices. In such a case the maximum annual
pension contribution may not exceed
20 percent of the 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
performance and focus to business targets and strategy
execution. The remuneration structure and level should
be comparable 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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CEO variable remuneration
Up-to-date descriptions of ongoing incentive plans are published on the Terveystalo website, at www.terveystalo.com.
Remuneration element
Purpose and link to strategy
Description
Short-term incentives (STI)
The STI is aimed at driving short-term (annual)
performance against specific Group targets and
individual objectives based on key
strategic priorities for the year.
Long-term incentives (LTI)
The LTI is aimed at driving long-term perfor-
mance against specific Group targets, as well
as committing the CEO to the cCmpany 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 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.
Incentive opportunity:
•
Incentive opportunity at the maximum level of performance may not exceed 150 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 an 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 2023 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
in this Policy. If the deviation concerns Board remuneration,
the decision-making may involve an annual or extraor-
dinary 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 2023
Sustainability
Corporate Governance
Financials
Proportion of remuneration
elements
The remuneration of the CEO is defined to be competitive
with a significant part of the remuneration being perfor-
mance-based. The incentive opportunity at the maximum
level performance of the STI is 150 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.
Supplementary information
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.
Other key terms applicable
to the service contract
Share ownership requirement
To encourage building a meaningful shareholding
in Terveystalo, the CEO is expected to retain at least
50 percent 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 seve-
rance pay of the CEO, the agreement may be terminated
by both parties by giving six (6) months’ notice. Should the
Company terminate the agreement, the Company is re-
quired to pay an additional severance pay, equivalent to 12
months' base salary.
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 misstatement
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
corporate, 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 a 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
taxation 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.
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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.
In the Annual General Meeting 2023, the
Remuneration Report 2022 was given an
advisory approval, and no further aspects
were presented. Thus the Remuneration
Report 2023 is mainly similar, but the
targets of the incentive schemes are
introduced broader.
Terveystalo’s revenue has improved steadily over the last five
years, excluding the exceptional year 2020. During 2022,
revenue improvement continued, but profitability did not
reach its targets. The weakening of the profitability is visible
in short-term incentives paid in 2023. In 2023, profitability
improved again thanks to the profit improvement program
started in 2022, and thus the short-term incentives earned
from 2023 and paid in the beginning of 2024 will be on
higher level.
110
Remuneration development 2019–2023
Total remuneration, EUR1)
(rounded to the nearest thousand)
Chair of the Board
Vice Chair of the Board
Other members of the Board, on average
2019
91,000
62,000
53,000
2020
101,000
67,000
57,000
2021
102,000
69,000
56,000
2022
102,000
59,000
57,000
2023
109,000
65,000
56,000
CEO
938,000
367,000
640,000
834,000
637,000
Salary development of employees, on average2)
62,000
62,000
65,000
68,000
70,000
1) Total remuneration includes other financial benefits and meeting fees for Board members, and short- and long-term incentives
for the CEO in addition to fixed annual fee/salary.
2) The average salary development of employees has been calculated by dividing the personnel costs for each year
(excluding other social security costs) by the average number of personnel.
Revenue
Target of at least 5% growth annually
MEUR
1,500
1,250
1,000
750
500
250
0
1,259.1
1,286.4
1,154.6
1,030.7
986.4
2019
2020
2021
2022
2023
Adjusted EBITA and EBITA-%
Target 12% of revenue in 2025
The remuneration level of the Board of Directors was
reviewed and determined to correspond to the market
level by the decision of the AGM in 2020 and in 2022.
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
financial development is reflected in the remuneration of
the CEO in 2019. 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
remuneration included short-term incentives for the year
2020. As a part of the Company’s mitigation measures
due to the COVID-19 pandemic, the CEO’s short-term
incentive earning opportunity was restricted to 50% of the
normal level. In 2023, the overall compensation level is
significantly impacted by the low outcome of short-term
incentives from 2022.
The average salary development of employees has
shown a rising trend. The larger increase in 2021–2022
salary development originates mainly from the corporate
acquisitions made during those two years, and their effects
on the employee group demographics. Approximately
65% of the personnel is covered by collective agreements,
MEUR
150
125
100
75
50
25
0
141.0
115.1
101.9
105.2
125.6
2019
2020
2021
2022
2023
Adjusted EBITA, MEUR
Adjusted EBITA, % of revenue
%
30
25
20
15
10
5
0
TerveystaloAnnual Report 2023 Year 2023
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Corporate Governance
Financials
Annual fee,
total, EUR1)
87,500
Annual fee
in shares, EUR
34,995
Annual fee in
cash, EUR
52,505
Other financial
benefits, EUR2)
560
Name
Kari Kauniskangas
Kristian Pullola
Katri Viippola
Matts Rosenberg
Carola Lemne
52,000
41,500
52,000
41,500
As members of the Board from 23 March, 2023:
Ari Lehtoranta
Sofia Hasselberg
41,500
41,500
20,798
16,594
20,798
16,594
16,594
16,594
31,202
24,906
31,202
24,906
24,906
24,906
333
266
333
266
266
266
Meeting fees
of the board of
directors and board
committees, EUR
20,650
12,350
14,950
12,350
19,950
5,850
8,650
In total,
EUR
108,710
64,683
56,716
64,683
61,716
47,616
50,416
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.
Remuneration of the CEO for the financial year 2023
The following table presents the remuneration paid to the CEO during the financial year 2023:
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
410,000
103,680
123,006
636,685
In 2023, the CEO’s compensation consisted of the
fixed annual salary and the short-term incentive paid for
2022, corresponding to 25 percent of the fixed annual
salary, and the long-term incentive paid from 2021—2022,
corresponding 30 percent of the fixed annual salary.
The 2022 short-term incentive was based on 40
percent weight on adjusted EBITA, on 40 percent weight
on revenue and on 20 percent weight on eNPS score. The
outcomes of EBITA and eNPS were below minimum level,
but revenue’s outcome was between minimum and target
level, which resulted a total outcome of 33 percent from
the incentive.
The long-term incentive 2021—2022 was based on 60
percent weight on relative TSR and on 40 percent weight
on Digital Footprint, which consisted of two components:
Productivity and Digital Sales. The outcome of the relative
TSR measurement was below minimum, but the Digital
Footprint's outcome was between target and maximum
level. Thus the long-term incentive 2021—2022 resulted a
total outcome of 60 percent.
Based on the 2023 short-term incentive program, the
CEO will receive a payment of EUR 402,000 in the spring
of 2024, which corresponds to 98 percent of the fixed
annual salary. In the performance period 2023, the short-
term incentives were based on the following indicators:
40 percent weight on adjusted EBITA, 40 percent weight
on profit improvement program started in 2022 and 20
percent weight on eNPS score. The outcome of EBITA was
between the target and maximum level, profit improve-
ment program’s outcome resulted above the maximum
level and eNPS was below the minimum level. Thus the
2023 STI resulted a total outcome of 106 percent.
and the general increases determined in the collective
agreements mainly guide the salary development of this
personnel group.
Remuneration of the Board
of Directors for the financial
year 2023
Terveystalo’s Annual General Meeting, held on 23 March,
2023, resolved in accordance with the proposal of the
Shareholders’ Nomination Board that the Chair of the
Board of Directors be paid an annual remuneration of
EUR 87,500, the Vice Chair an annual remuneration of
EUR 52,000, the members an annual remuneration of EUR
41,500, and the Chair of the Audit Committee an annual
remuneration of EUR 52,000. In addition, an attendance
fee of EUR 650 will be paid for members of the Board of
Directors and Committee members residing in Finland,
EUR 1,350 for members residing elsewhere in Europe, and
EUR 2,700 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 650. Travel costs are reimbursed based on the compa-
ny’s travel policy.
The annual remuneration of the Board is paid as a
combination of company shares (40 percent) and cash
(60 percent).
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 2023:
111
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Remuneration based on long-term incentive schemes, EUR
(the President and CEO Ville Iho):
Long-term
incentive plan
Performance Share Plan (PSP) 2021–2023
Performance Share Plan (PSP) 2022–2024
Performance Share Plan (PSP) 2023–2025
Grant date
April 28, 2021
February 9, 2022
February 10, 2023
Earning opportunity
(maximum number
of shares granted)
88,000
Pay-out year (subject
to the achievement of
performance targets)
2024
75,086
88,000
2025
2026
In the performance period 2021—2023, the performance
criteria for the share-based long-term incentive scheme
was based on 60 percent weight on the Total Shareholder
Return (TSR) as well as on 40 percent weight on Digital
Footprint, which consists of productivity and digital sales
indicators.
In the performance periods 2022–2024 and
2023–2025, the performance criteria for the share-based
long-term incentive schemes were based on the absolute
and relative Total Shareholder Return (TSR). The weight of
both criteria is 50 percent.
More information on share-based payment schemes
can be found in financial statements as well as on the
company website.
112
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo Group’s
Report of the Board of
Directors and Consolidated
Financial Statements 2023
113
113
Terveystalo
Annual Report 2023
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Contents
115
144
Report of the Board of Directors
Calculation of financial ratios and
alternative performance measures
145
Reconciliation of alternative performance measures
148 Consolidated financial statements, IFRS
148
149
150
151
152
152
152
152
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 Application of new and amended IFRSs
and new IFRIC agenda decisions
153
2.3 Critical accounting estimates
and judgements
154
155
155
155
156
2.4 Principles of consolidation
2.5 Foreign currency transactions
2.6 Property, plant and equipment
2.7 Investment properties
2.8 Goodwill and other intangible assets
156
157
157
158
158
158
159
159
159
159
160
160
160
163
164
165
165
165
165
166
166
166
166
167
2.9 Impairment
2.10 Leases
2.11 Financial assets and liabilities
2.12 Inventories
2.13 Employee benefits
2.14 Provisions and contingent liabilities
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
3. Business Combinations
4. Segment information
5. Revenue
6. Other operating income
7. Materials and services
8. Employee benefit expenses
9. Depreciation, amortisation and impairment
10. Other operating expenses
11. Financial income and expenses
12. Taxes
12.1 Income taxes
12.2 Deferred tax assets and liabilities
168
169
169
170
170
171
172
174
174
175
176
178
178
178
178
178
179
179
180
181
13. Earnings per share
14. Tangible assets
14.1 Property, plant and equipment
14.2 Right of-use-assets
14.3 Lease liabilities
15. Intangible assets
16. Impairment testing of cash-
generating units including goodwill
17. Investment properties
18. Associated companies
19. Share-based payments
20. Financial assets and liabilities – carrying
amount, fair values and fair value hierarchy
21. Financial risks
21.1 Financial risk management
21.2 Interest rate risk and currency risk
21.3 Credit risk
21.4 Refinancing risk and Liquidity risk
21.5 Capital management
22. Trade and other receivables
and contract assets
23. Cash and cash equivalents
24. Share capital and invested
non-restricted equity reserve
114
114
Terveystalo
Annual Report 2023
182
182
183
183
184
184
186
188
189
189
189
25. Financial liabilities
26. Trade and other payables
27. Provisions
28. Defined benefit plans
29. Collateral and contingent liabilities
30. Related party transactions
31. Group companies
32. Subsequent events
Parent company's financial
statement, FAS
Parent company’s income statement
Parent company’s statement of financial position
191
190
Parent company's statement of cash flows
Accounting policies of parent
company’s financial statements
191 Measurement and recognition
principles and methods
Property, plant and equipment, and depreciation
191
191
Notes to the statement of income
196
Signatures to the financial statements
and Board of Director’s report
197
Auditor’s Report
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Report of the Board of Directors
Operating environment
Target markets
In 2023, demand for healthcare services in Finland continued to be strong. Seasonal variations in demand and booking
rates normalised compared to the exceptional comparison period. Demand for basic laboratory services largely nor-
malised to pre-pandemic levels. As the pandemic receded, customer visits were focused on brick-and-mortar as the
demand for COVID-19 testing, digital services, and remote appointments declined materially year-on-year.
Demand from corporate and insurance customers remained strong. In the public-pay market, staffing services saw
continued strong demand. In the second half of the year, demand for out-of-pocket dental care services and massage
services was dampened by weaker consumer confidence and purchasing power. The public-pay private-provision market
is yet to see a broader increase in demand and new, smaller tenders have been limited to digital services.
In Sweden, increased economic uncertainty during the second half of the year affected the demand for organisa-
tion and leadership consultation and harmful use rehabilitation services, which are more sensitive to macroeconomic
changes.
Terveystalo continued to invest in the recruitment of professionals throughout the year and was successful in
steadily increasing supply. To strengthen supply, development efforts were increasingly shifted towards solutions that
enhance the work and productivity of professionals.
A tight labour market and inflation created increasing pressure on operating costs, including wages, throughout
2023. The overall employment remains decent. However, significant changes could affect the demand for occupational
health services in Finland.
The long-term growth prospects for Terveystalo’s addressable markets in Finland and Sweden are solid; the under-
lying demand is strong, and megatrends, such as the ageing population, digitalisation of healthcare, and lengthening
queues in public healthcare, support growth in the future. As the most preferred employer, Terveystalo is well-posi-
tioned to drive growth going forward, supported by its strong market position.
115
The impacts of inflation
Despite the stabilised inflation, some procurement categories had continued cost pressure. Terveystalo has actively
negotiated with its suppliers to limit the impact of inflation on costs. Electricity prices levelled off from the comparison
period.
One of the key areas of the profit improvement program is to fight inflation and reduce costs in selected product
and service categories.
A tight labour market, and continued inflation put upward pressure on wages in healthcare services. In the private
healthcare sector, a two-year collective agreement is binding for the duration of 1 May 2022 - 30 April 2024, which
applies to Terveystalo's largest group of employees, nurses. In 2022, salary increases were 2.0 percent from 1 October
2022 onwards, and for 2023, the increases were in total 2.95 percent and came into effect on 1 November 2023. In
addition, the agreed, one-time instalment of 450 euros was paid in June 2023. In other professions, wage inflation is also
present.The large majority of the physicians who work at Terveystalo are private practitioners (approximately 96 percent)
who are not in employment with the company.
Terveystalo implements commercial initiatives to mitigate the effect of inflation as a part of the profit improvement
program. The successful pricing actions impact both 2023 and 2024 financials.
The treatment queues and regulatory environment in Finland
The contraction of non-urgent care during COVID-19 restrictions resulted in a significant treatment gap for other
illnesses. Treatment queues for specialised care have continued to grow. In August 2023, close to 178,000 patients
were waiting for access to public provision of non-urgent specialised medical care according to Finnish Institute for
Health and Welfare (THL). Of those patients, more than 30,500 (17.2 percent) had been waiting for more than half a year
to get treatment. In August 2023, the number of patients who had been waiting for more than half a year for treatment
had grown by 9,400 from April 2023.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
The responsibility for the organisation of social and healthcare services was transferred to the 21 wellbeing services
counties and the City of Helsinki at the beginning of 2023. The wellbeing services county councils decide on the 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 wellbeing services counties have
launched smaller tenders for example digital service solutions, but no decisions on larger tenders from the private
sector have so far been made.
The government program published in the summer of 2023 aims to increase cooperation between private and pub-
lic healthcare and to improve the effectiveness and cost-efficiency of the healthcare system. As a first concrete measure,
the government decided to raise Kela reimbursements. The new Kela reimbursements came into effect on 1 January
2024 (https://www.kela.fi/medical-expenses). In total, Kela compensations will be increased by 500 million between
2024 and 2027, of which the state's financial contribution is 335 million. The aim of increasing the reimbursements is to
shorten the treatment queues in primary care. The measures of the government program are estimated to support the
growth of demand for private service production and will bring new opportunities for the implementation of publicly
funded and privately provided services.
Impact of the global political situation and conflicts
The direct impacts of political tensions and conflicts, such as the war in Ukraine, have been minimal to Terveystalo. The
company does not have business operations in or with Ukraine, Israel, or countries that are subject to sanctions. The
indirect financial impact arises from high inflation and potential disruptions in the supply chain and financial markets.
The indirect economic impacts are visible in weakened consumer confidence and purchasing power. The impacts may
also have a delayed economic impact through declining employment, which could negatively impact the demand for
Terveystalo’s services.
Guidance for 2024
Terveystalo estimates its revenue for 2024 to grow (2023: EUR 1,286 million) and its adjusted EBITA margin to be
between 10.1 and 11.5 percent (9.8 percent in 2023).
The estimates are based on the end of 2023 projections for inflation, consumer demand and employment, normal
morbidity, and a predictable labour market in Finland. The estimates include the impact of the successful completion
of the profit improvement program and an annual decrease of approximately EUR 10 million in revenue in the Portfolio
Businesses segment's outsourcing business. The Sweden segment's revenue is expected to decline due to macro
weakness and the exchange rate is expected to remain stable. The estimates do not include significant acquisitions or
divestments.
Financial targets
Terveystalo’s financial targets are:
• annual revenue growth of at least 5 percent through organic growth and acquisitions
• an adjusted EBITA margin of at least 12 percent in 2025
• net debt/adjusted EBITDA ratio of 3.5x or less. However, indebtedness may temporarily
exceed the target level, such as in conjunction with acquisitions
• to distribute a minimum of 40 percent of net profit as dividends annually. However, the dividend
proposal must consider Terveystalo’s long-term development potential and financial position.
116
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Key figures
Terveystalo Group, MEUR
Revenue
Adjusted EBITDA, * 1)
Adjusted EBITDA, % * 1)
EBITDA 1)
EBITDA, % 1)
Adjusted EBITA * 1)
Adjusted EBITA, % * 1)
EBITA 1)
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 EBITDA 1)
Total assets
Average personnel FTE
Personnel (end of period)
Private practitioners (end of period)
117
2023
1,286.4
200.2
15.6
179.2
13.9
125.6
9.8
104.4
8.1
93.1
7.2
-14.7
-1.1
-7.6
36.5
-0.33
598.1
116.0
3.0
1,419.5
6,426
9,824
6,092
2022
1,259.1
178.0
14.1
168.8
13.4
105.2
8.4
95.9
7.6
73.4
5.8
33.9
2.7
4.1
40.2
0.19
566.6
95.7
3.2
1,479.4
6,552
10,933
5,928
2021
1,154.6
Terveystalo Group, MEUR
Adjusted EBITDA, excluding IFRS 16 * 1)
Net debt, excluding IFRS 16
Net debt/Adjusted EBITDA, excluding IFRS 16 * 1)
2023
142.8
379.0
2.7
2022
122.2
386.8
3.2
2021
156.9
340.6
2.2
* Adjustments are material items outside the ordinary course of business, and these relate to acquisition-related expenses, restructuring-
related expenses, gain / losses on sale of assets (net), impairment losses, 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 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 a substitute to the measures under IFRS.
Share-related key figures
Share-related key figures
Equity per share, EUR
Earnings per share, EUR
Dividend per share, EUR
Dividend payout ratio, %
2023
4.1
-0.33
0.30
190.9%*
2022
4.7
0.19
0.28
145.0%
2021
4.8
0.63
0.28
44.3%
*In 2023, the dividend payout ratio of adjusted earnings per share (0.47 EUR) was 63.8 percent.
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
5,643
9,805
5,754
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Financial development
Revenue
The Group’s revenue for 2023 increased by 2.2 percent year-on-year and amounted to EUR 1,286.4 (1,259.1) million. The
Healthcare Services segment revenue increased by 5.7 percent and was EUR 948.6 (897.8) million. The revenue increase
was mainly driven by improved sales mix and successful pricing actions.
Visits to laboratory services decreased substantially year-on-year as COVID testing decreased. A total of approxi-
mately 6,800 (335,000) COVID-19 tests were performed1). Revenue from other laboratory services increased year-on-
year. Revenue from surgical operations and imaging services grew year-on-year.
The Portfolio Businesses segment revenue decreased by 8.1 percent million due to expired outsourcing contracts
and was EUR 267.2 (290.7) million. The revenue from Sweden decreased by 0.4 percent and came to EUR 92.5 (92.8)
million. Without the currency effect, the revenue grew by 7.2 percent. Acquisitions increased revenue in Sweden by
approximately EUR 4.6 million.
Financial performance and cash flow
The Group’s adjusted earnings for 2023 before interest, taxes, amortisation, and impairment losses (EBITA) increased by
19.4 percent to EUR 125.6 (105.2) million, representing 9.8 (8.4) percent of revenue. Profitability improved in all business
areas. Profitability was strengthened by normalization of the sales mix, successful pricing actions, and the progress of the
profit improvement program.
Adjusted EBITA, MEUR
Healthcare Services
Portfolio Businesses
Sweden
Other
Total
2023
109.0
8.7
3.7
4.2
2022
99.2
3.5
2.6
-0.1
125.6
105.2
Change, %
9.9
149.4
42.5
>200.0
19.4
* Section Other reported figures mainly consist of parent company expenses, unallocated Group level adjustments, and provisions.
2023
948.6
267.2
92.5
-21.8
1,286.4
2022
897.8
290.7
92.8
-22.2
1,259.1
Change, %
5.7
-8.1
-0.4
-1.7
2.2
Revenue breakdown
% of total revenue 2023
Total
1,286.4
MEUR
(1,259.1)
74% Healthcare Services
21% Portfolio Businesses
7% Sweden
-2% Others
1) Excludes sample collection services
Revenue, MEUR
Healthcare Services
Portfolio Businesses
Sweden
Eliminations
Total
118
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Material expenses and service purchasing increased by 2.0 percent year-on-year and amounted to EUR 536.2 (525.7)
million. Employee benefit expenses decreased by 1.8 percent year-on-year and amounted to EUR 447.0 (455.0) million
due to the actions of the profit improvement program, lower sick leaves, and terminated outsourcing contracts. The
decrease was partially offset by recruitment and salary increases. Other operating expenses increased by 14.2 percent to
EUR 128.2 (112.3) million mainly due to advisory fees of the profit improvement program, as well as higher costs related
to rents and premises.
The Group’s adjusted EBITDA increased by 12.5percent year-on-year to EUR 200.2 (178.0) million. Adjusted EBIT
amounted to EUR 93.1 (73.4) million. Operating result (EBIT) came to EUR -14.7 (33.9) million. The operating result was
weakened by EUR 84.6 million write-offs related to goodwill and purchase price allocations relating to public outsourc-
ing customer relationships within the Portfolio Businesses. In the comparison period, impairment of other intangible
assets EUR 28.9 million decreased the operating profit.
Net financing costs increased to EUR 24.2 (2.9) million due to the increased interest rate, as well as the increase in
the fair value of interest rate hedges during the comparison period. The result before tax was EUR -38.9 (30.9) million.
Income taxes were EUR -3.3 (6.5) million. The result for the reporting period amounted to EUR -42.2 (24.4) million, and
earnings per share were EUR -0.33 (0.19).
Cash flow from operating activities increased to EUR 158.0 (140.9) million due to improved profitability and timing
differences in corporate tax payments. Growth was dampened by growth in working capital employed.
Financial position
Terveystalo’s liquidity position is good. Cash and cash equivalents at the end of the reporting period amounted to
EUR 37.7 (40.2) million. The total assets of the Group amounted to EUR 1,419.5 (1,479.4) million.
Equity attributable to owners of the parent company totalled EUR 515.4 (592.0) million.
Gearing (including lease liabilities) was 116.0 (97.7) percent and net debt amounted to EUR 598.1 (566.6) million.
The increase in net debt is mainly due to lease liabilities. Net debt, excluding IFRS 16 (lease liabilities) amounted to
EUR 379.0 (386.8) million. The average maturity of Terveystalo's financial loans was 3.0 (2.3) years at the end of the
fourth quarter of 2023, and the weighted average interest rate for the quarter was 4.8 (1.2) percent. During the
reporting period, the company fulfilled the covenant requirement included in its financing agreements reflecting
relative indebtedness.
During the reporting period, the company signed an agreement for a long-term loan of EUR 135 million linked
to sustainability targets and refinanced the current revolving credit facility. The loan is a bullet loan, and the maturity
of the loan is three years supplemented by an extension option of one year. EUR 125 million of the loan was withdrawn
and used to refinance bank loans maturing during 2023 and 2024. In connection with the refinancing, the company
agreed on the refinancing of a EUR 40 million revolving credit facility maturing in 2024. The maturity of the syndicated
credit revolving facility is three years supplemented by an extension option of one year.
Cash flow from investing activities decreased to EUR -44.2 (-93.9) million. The change from the comparison period
During the second quarter of 2023, Terveystalo issued senior unsecured sustainability-linked notes in the aggregate
mainly consisted of a decrease in M&A activities and investments in intangible assets.
Cash flow from financing activities amounted to EUR -116.2 (-44.6) million. The change from the comparison period
principal amount of EUR 100 million. The notes will mature on 1 June 2028 and carry initially a fixed annual interest of
5.375 percent. The notes were listed on the official list maintained by Nasdaq Helsinki Ltd on 5 June 2023.
was mainly due to refinancing and increased net financial expenses during the reporting period.
At the end of the reporting period, the unused part of credit based on financing agreements and bank accounts
with a credit facility amounted to EUR 98.0 (99.6) million.
Return on equity for financial year was -7.6 (4.1) percent. The equity ratio was 36.5 (40.2) percent. In accordance with
the 2023 Annual General Meeting’s decision, a dividend of EUR 0.28 per share has been paid based on the balance
sheet adopted for the fiscal year ending 31 December 2022. The dividend was paid in two instalments. The first dividend
instalment was paid to shareholders on 3 April 2023 and the second dividend instalment on 9 October 2023.
Profit improvement programs
During the fourth quarter of 2022, Terveystalo launched a profit improvement program, which aims for an inflation-ad-
justed, annualised (run-rate) EBITA improvement of at least EUR 50 million by the end of 2024. The program progressed
well, and the overall target was exceeded ahead of schedule. The measures implemented by the end of the reporting
period are estimated to have an annual run-rate impact of over EUR 60 million on profitability. The adjusted EBITA
impact of the program during the fourth quarter was approximately EUR 13 million and during 2023 EUR 37 million.
During the fourth quarter of 2022, a profit improvement program was launched in Sweden targeting a structural
change in the profitability in 2025.
The total costs related to the programs in 2022–2024 are estimated to be EUR 30-35 million. The costs are related
to restructuring and advisory fees. Advisory fees are tied to the results achieved by the programs. The costs of the pro-
grams are treated as items affecting comparability. The costs of the programs, treated as items affecting comparability,
were EUR 5.3 million during the fourth quarter and EUR 21.7 million during 2023.
119
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Seasonal variation and the impact of the number of business days
Development expenses
Capitalised development expenses in 2023 were EUR 23.2 (16.4) million and were included in other intangible assets.
Personnel
The number of Terveystalo’s employed staff on 31 December 2023 in Finland was 8,950 (10 100), in Sweden 874 (833)
and in total 9,824 (10,933). In FTEs, the average number of personnel in Finland was 5,596 (5,865), in Sweden 829 (687)
and in total 6,426 (6,552). The number of private practitioners in Finland was 5,987 (5,822), in Sweden 105 (106) and
in total 6,092 (5,928). The number of employees in Finland was affected by a reduction in the number of employees
working in COVID-19 related services, the measures of the profit improvement program and the termination of out-
sourcing contracts.
Reporting segments
Starting from 1 January 2023, Terveystalo has changed its financial reporting structure to better highlight the
performance of Terveystalo's businesses. The new reporting structure reflects Terveystalo's new operating model and
is aligned with the way the company’s management follows the operational performance of Terveystalo's businesses.
Terveystalo Group comprises of three reporting segments: Healthcare Services, Portfolio Businesses, and Sweden.
Terveystalo’s revenue from corporate and private customers has typically been lower during the vacation seasons,
particularly in the summer months. The number of business days influences the revenue and earnings development,
particularly when comparing quarterly performance. There was 251 (253) working days in 2023. In 2024, there are
252 working days. 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.
Number of working days by quarter
2022
2023
2024
Q1
Q2
Q3
Q4
Full year
63
61
66
63
253
64
60
65
62
251
63
61
66
62
252
Investments and acquisitions
Net investments* in 2023, including M&A, amounted to EUR 43.9 (94.1) million. The Group’s net capital expenditure,
excluding M&A, amounted to EUR 40.2 (60.0) million. The investments consisted mainly of investments in digital
application and service development, IT system projects, medical equipment, and network. The relative share of
intangible investments in gross investments decreased year-on-year.
During the second quarter, Terveystalo subsidiary, Feelgood Svenska AB, entered into agreements for two
acquisitions. Feelgood acquired Växjö Hälsoforum and Quality Care's operations, of which the former was finalised
during the third quarter and the latter during the fourth quarter.
*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
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Healthcare Services
Healthcare Services, revenue by customer groups, and services
Healthcare Services business segment offers customers in Finland integrated care paths from preventive occupational
health services to primary care services and to different fields of specialized care, diagnostic, and day surgery. In
Healthcare Services, Terveystalo aims for industry-leading profitability and the best care outcomes.
Key figures
Revenue, MEUR
EBITA, MEUR
EBITA, %
Adjusted EBITA, MEUR
Adjusted EBITA, % of revenue
2023
948.6
107.1
11.3%
109.0
11.5%
2022
897.8
93.8
10.4%
99.2
11.0%
Change, %
5.7
14.2
0.8%-p.
9.9
0.4%-p.
The revenue from Healthcare Services for 2023 increased by 5.7 percent and was EUR 948.6 (897.8) million.
The revenue from corporate customers increased by 7.9 percent to EUR 564.0 (522.9) million. Revenue from preventive
occupational health services1) increased year-on-year. Revenue from healthcare appointments also increased, even
though the sales from COVID-related services dropped year-on-year. The revenue from consumers increased by 6.4
percent to EUR 296.1 (278.4) million. Revenue increased especially due to higher sales from services produced for
insurance companies. The revenue from public sector customers decreased by 8.3 percent to EUR 88.5 (96.4) million
due to terminated contracts and ending of COVID-related services sales. Revenue from services provided for municipal
occupational health customers grew due to successful pricing actions.
The revenue from appointment services increased by 11.2 percent to EUR 618.3 (556.3) million mainly due to
improved customer mix and successful pricing actions. The number of physical appointments increased slightly year-
on-year. The number of remote appointments decreased by 19.0 percent due to the COVID-related digital visits during
the comparison period. Revenue from diagnostics services (laboratory and imaging) decreased by 8.2 percent and was
EUR 229.6 (250.0) million. The number of laboratory visits decreased clearly from the comparison period when there
was a high number of COVID tests done. Excluding COVID testing, the number of laboratory visits increased from the
comparison period. The revenue from other services increased by 10.0 percent and was EUR 100.7 (91.5) million driven
by surgical operations.
1) The statutory task of occupational healthcare is to prevent work-related adverse health effects. Preventive services include, for example, work-
place 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 counselling; participation 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.
121
Revenue, MEUR
By customer
Corporate
Consumer
Public sector
By service
Appointments
Diagnostics
Other
2023
564.0
296.1
88.5
618.3
229.6
100.7
2022
Change, %
522.9
278.4
96.4
556.3
250.0
91.5
7.9
6.4
-8.3
11.2
-8.2
10.0
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.
Consumer customers are Terveystalo’ s third-largest customer group. Consumer customers include private individuals
and families. Services for consumers are paid for either by the customers themselves or by their insurance companies.
The services offered to public sector customers include specialized care services, other healthcare services produced
in the clinic network, as well as occupational health services for the public sector. Outsourcing and staffing services are
included in Portfolio Businesses.
Healthcare Services, number of visits
Visits
Appointments
Physical appointments
Remote appointments
Diagnostics
Other
Total
2023
6,069,111
4,750,619
1,318,492
1,285,980
48,984
7,404,075
2022
6,351,339
4,723,915
1,627,424
1,460,908
41,278
7,853,525
Change, %
-4.4
0.6
-19.0
-12.0
18.7
-5.7
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Portfolio Businesses, revenue by services
Revenue, MEUR
Outsourcing services
Staffing services
Dental care
Other
Total
2023
91.1
84.7
54.5
36.9
267.2
2022
118.7
84.1
52.2
35.6
290.7
Change, %
-23.3
0.6
4.3
3.7
-8.1
In the Portfolio Businesses, revenue in 2023 decreased by 8.1 percent and amounted to EUR 267.2 (290.7) million.
Revenue from outsourcing services decreased by 23.3 percent due to terminated outsourcing contracts and amounted
to EUR 91.1 (118.7) million. Revenue from staffing services increased by 0.6 percent driven by growth in the demand
for specialised care and amounted to EUR 84.7 (84.1) million. Higher demand for specialist care services had a positive
impact on revenue. Revenue from nurse staffing decreased due to a decrease in COVID-related services year-on-year.
Revenue from dental care increased by 4.3 percent and amounted to EUR 54.5 (52.2) million. Revenue from other ser-
vices increased by 3.7 percent and amounted to EUR 36.9 (35.6) million.
In 2023, adjusted earnings before interest, taxes, amortisation, and impairment losses (EBITA) increased to EUR
8.7 (3.5) million, representing 3.3 (1.2) percent of revenue. Termination of low-margin outsourcing contracts, successful
pricing actions, cost cutting, as well as increased demand improved profitability year-on-year. Higher costs of specialised
care in outsourcing services, as well as inflation impacted negatively.
In 2023, adjusted earnings before interest, taxes, amortisation, and impairment losses (EBITA) increased by 9.9 percent
and amounted to EUR 109.0 (99.2) million, representing 11.5 (11.0) percent of revenue. The drop in COVID-19 testing
volumes had a negative impact on profitability, whereas successful pricing actions and improved sales mix in non-COV-
ID-related services strengthened the profitability. The profit improvement program targeting at least 50-million-euro
annualised (run-rate) EBITA improvement by the end of 2024, progressed well and the overall target was exceeded
ahead of schedule. The measures implemented by the end of the reporting period are estimated to have an annual run-
rate impact of over EUR 60 million on profitability. The adjusted EBITA impact of the program during 2023 was EUR 37
million.
Portfolio Businesses
The Portfolio Businesses segment consists of business areas that aim for independent value creation utilising
Terveystalo’s capabilities according to their needs. Portfolio Businesses include public sector outsourcing, staffing
services, and dental care, as well as other businesses such as public sector digital services, rehabilitation, child welfare,
and massage services, as well as interpretation services.
2023
267.2
8.3
3.1%
8.7
3.3%
2022
290.7
2.0
0.7%
3.5
1.2%
Change, %
-8.1
>200.0
2.4%-p.
149.4
2.1%-p.
Key figures
Revenue, MEUR
EBITA, MEUR
EBITA, %
Adjusted EBITA, MEUR
Adjusted EBITA, % of revenue
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Sweden
Statement of non-financial information
The Sweden segment consists of Feelgood subsidiaries’ operations in Sweden, which are focused on occupational health
and consultation for organisational management and harmful use. In Sweden, Terveystalo aims for profitable growth in
the medium and long term.
Key figures
Revenue, MEUR
EBITA, MEUR
EBITA, %
Adjusted EBITA, MEUR
Adjusted EBITA, % of revenue
2023
92.5
2.1
2.3%
3.7
4.0%
2022
92.8
1.9
2.0%
2.6
2.8%
Change, %
-0.4
10.1
0.2%-p.
42.5
1.2%-p.
In the Sweden segment, revenue in 2023 decreased by 0.4 percent and amounted to EUR 92.5 (92.8) million. The weak-
ening of the Swedish krona from the comparison period had a negative impact on revenue. Without the currency effect,
the revenue grew by 7.2 percent. Demand was at a good level during the first half of the year, particularly in organisa-
tional leadership consultation and harmful use rehabilitation services. During the third quarter, the demand for preven-
tive occupational health services started to pick up slower after the holiday period than the previous year. During the
second half of the year, the increased economic uncertainty affected the demand for services, which are sensitive to
macroeconomic changes. Acquisitions increased revenue in Sweden by approximately EUR 4.6 million.
In 2023, adjusted earnings before interest, taxes, amortisation, and impairment losses (EBITA) increased by 42.5
percent to EUR 3.7 (2.6) million, representing 4.0 (2.8) percent of revenue. Profitability was strengthened by increased
operational efficiency. During the fourth quarter, a profit improvement program was launched in the business area
targeting a structural change in the profitability in 2025.
Terveystalo is the largest private health care service provider in Finland in terms of revenue and network and a leading
occupational health provider in the Nordic region. Terveystalo employs in total over 15,500 health and well-being
professionals. The company is listed on the Helsinki Stock Exchange and has predominantly Finnish ownership. In 2023,
Terveystalo had 1.2 million individual customers in Finland and some 7.6 million customer visits were made.
Terveystalo’s mission is to fight for a healthier life by focusing on meaningful matters. Terveystalo’s strategy is to
deliver integrated, data-driven outpatient and preventive care with best-in-class care outcomes and people experience.
The key targets are to reach industry-leading profitability and to have a net positive impact on society. Terveystalo’s
values constitute the foundation for all Terveystalo’s operations.
Terveystalo reports on its sustainability work as part of the Annual Report. This section summarizes the key themes,
targets, and results. The double materiality assessment conducted in 2023 serves as the foundation for Terveystalo’s
sustainability efforts and the specifies the information included in sustainability reporting. Terveystalo’s material sustai-
nability themes are related to Terveystalo’s consumers and end users, own workforce and ethical business conduct.
In addition, Terveystalo promotes sustainable consumption and climate action.
Terveystalo’s sustainability efforts are guided by the company’s Code of Conduct, values, and strategic goals as
well as the material sustainability themes based on the double materiality assessment. Terveystalo is committed to the
UN Guiding Principles on Business and Human Rights, the conventions of the International Labour Organisation (ILO),
and the Ten Principles of the UN Global Compact.
Terveystalo’s systematic sustainability management aims to ensure that the company achieves its sustainability
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 sustainability themes are assessed and 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 and demand for healthcare
services continues to grow. The main sustainability risks are related to the availability of health care professionals and
thus access to care. The company mitigates these risks by, among other things, automating routine tasks, using technol-
ogy, and allocating resources according to the need for care. In addition, the company continues to strengthen its posi-
tion as the most attractive workplace in the industry by developing, among other things, multi-professional cooperation,
and leadership. Terveystalo believes it can leverage its position as the most attractive employer in the industry to grow
faster than the market.
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Good health and well-being
The core of Terveystalo’s operations and the company’s key positive impact is the provision of appropriate, high-quality,
effective, and safe care for all customers. Terveystalo is a pioneer in data-driven integrated care. The company uses data
to support care and target effective prevention and continuously measures the effectiveness of care and the benefits to
the customer. The company's integrated care model provides fast access to care, links the different stages of care into
seamless multi-professional and multi-channel care paths, and actively guides the patient, supporting continuity of care
throughout the care paths. Terveystalo’s digital solutions play a key role in integrated care paths and their development.
Quality is managed at all levels of the organisation
The cornerstones of Terveystalo’s quality management system are patient safety and the national legislation governing
the industry. Quality is managed on all levels of the organisation. The quality system ensures fast access to care and
patient safety, a high-quality and continuously evolving customer experience, data protection and security, compliance,
and continuous improvement of the effectiveness of care. Terveystalo’s operations are guided by the company’s oper-
ating policy, quality policy, internal control and risk management policy, self-auditing program, Code of Conduct, and
data protection and information security policy. The harmonised processes and procedures that ensure patient safety
and high-quality care are documented in Terveystalo’s integrated management system. Policies and procedures on the
data protection of patient data are documented in the Data Protection Handbook for patient care. Terveystalo’s opera-
tions are also guided by the ISO 9001:2015 quality management system, the Current Care Guidelines and the laws and
regulations governing the industry and the operations of private service providers, and customer agreements.
Targets for quality and effectiveness of care
Terveystalo has defined three key targets to promote the achievement of Terveystalo’s quality objectives. Two of the
targets are also included in the sustainability-linked financing framework published in 2023.
Effective care for mental health issues
Mental health issues are among the three most common diagnosis categories in Terveystalo and are a significant cause
of human suffering, related sickness absences, and early retirement in Finland. Providing appropriate and effective
treatment for mental health problems is one of the priorities of Terveystalo's medical quality development. Patients who
receive brief psychotherapy recover faster than those given only sick leave and/or medication. Patients who go through
brief psychotherapy also have fewer sickness absences. Terveystalo aims to increase the use of brief psychotherapy
in occupational healthcare in the treatment of people diagnosed with depression or anxiety disorders. When more
patients receive care at an early stage, resources for long-term rehabilitative psychotherapy are freed up for those who
need it due to the severity of their condition. Terveystalo has systematically developed mental health care paths and
increased the proportion of patients referred to brief psychotherapy.
Terveystalo’s target is to increase the share of occupational healthcare patients diagnosed with anxiety or depression
and who are referred to brief psychotherapy to 25 percent by 2026. In 2023, the share of occupational health patients
referred to brief psychotherapy was 12.6 (8.5) percent of all occupational health patients diagnosed with anxiety or
depression. Total number of diagnoses of depression and anxiety in occupational health was 87,335 (80,702). The results
achieved in 2023 were in line with the target.
Excellent customer experience
NPS (Net Promoter Score) is Terveystalo’s most important indicator of the quality of the customer experience.
Terveystalo aims to stand out by providing an excellent experience in all customer encounters. The company develops
its services by listening to customers and utilising new technology. NPS expresses the share of Terveystalo’s patients
who would recommend Terveystalo’s services to others. Terveystalo’s NPS is exceptionally high compared to the industry
average (38), and maintaining this performance requires a continuous effort.
Terveystalo’s target is to maintain a customer satisfaction score (NPS) of at least 83. In 2023, the NPS for appoint-
ments was 84.8 (82.7).
Effective care at every visit
Terveystalo uses PEI indicator (Patient Enablement Instrument) to measure the appointment-specific effectiveness of
care. PEI measures the customer’s perception of coping with their illness or condition after an appointment that is,
whether the customer feels that they can cope with their symptom or illness much better, better, same as before, or
worse after the appointment (on a scale of 1–4). The aim of collecting individual customer feedback is to improve both
the customer experience and the professional experience. The PEI indicator is commonly used in primary healthcare, and
it has been selected by the Finnish Institute for Health and Welfare (THL) as one of the key indicators for measuring the
effectiveness of Finnish healthcare in the future.
Terveystalo’s target is to maintain an appointment-specific PEI index of at least 2.9. In 2023, the PEI index was 2.9
(2.9). Approximately 60 percent of Terveystalo's customers feel they cope better or much better with their illness after
an appointment.
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Good health and well-being
Target
Indicator (KPI)
Scope of application
Target level
Target year
Increase the share of occupa-
tional healthcare patients
diagnosed with anxiety or
depression and who are
referred to brief psycho-
therapy to 25% by 20261)
The share of occupational healthcare
patients diagnosed with anxiety or
depression and who are referred to
brief psychotherapy
Occupational healthcare
customers in Finland
25%
2026
Base year
2022
2023
12.6%
2022
8.5%
2021
6.2%
Maintain a customer satisfaction
score (NPS) of at least 832)
NPS (Net Promoter Score)
for appointments
Terveystalo’s customers, who have
visited appointments in Finland
At least 83
Continuous
2022
84.8
82.7
83.0
Maintain an appointment-
specific PEI index3) of at least 2.9
PEI index
(Patient Enablement Instrument)
Terveystalo’s customers
who have visited doctor's
appointments in Finland
At least 2.9
Continuous
2022
2.9
2.9
-
1) Occupational healthcare patients with a diagnosis of depression or anxiety and who are referred to brief psychotherapy / Occupational healthcare patients with a diagnosis of depression or anxiety.
2) NPS measures the individual patient's experience of the service received shortly after the service experience. The patient is asked to assess how likely (on a scale of 0–10) they are to recommend
Terveystalo’s services. The Net Promoter Score is calculated by subtracting the share of those who gave a score of 0–6 (detractors) from the share of those gave a score of 9–10 (promoters).
3) The PEI index (Patient Enablement Instrument) is used to measure whether the customer feels that they are able to cope with their symptom or illness much better, better, same as before,
or worse after the appointment. The scale is 1–4.
In addition to the aforementioned targets, Terveystalo continuously measures its clinical, experienced and process
results based on international best practices and publishes its continuously updated quality indicators on its website.
The progress against the quality targets is monitored by Terveystalo’s Quality Steering Group on a quarterly basis.
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TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
One of the areas of Terveystalo’s people strategy is the development of meaningful and competitive incentive and
remuneration models that strengthen the performance and commitment of professionals and Terveystalo’s attractive-
ness as an employer. Terveystalo’s remuneration principles are set out in the remuneration policy and are based on
performance, fairness and competitiveness. The aim is to ensure that Terveystalo is an attractive employer for motivated
and skilled professionals. Remuneration must support the achievement of Terveystalo’s strategic targets, incentivise
behaviour that is consistent with Terveystalo’s values, and reward excellent performance.
Terveystalo’s goal is to be the best and
most attractive employer in its industry
Terveystalo’s goal is to be the best and most attractive employer in its industry for all 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 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 the
employees and private practitioners who would recommend Terveystalo as a workplace to others. In the 2023 profes-
sional survey, the eNPS recommendation index was 19 (28). In 2023, Terveystalo implemented changes to its operating
model and streamlined organisational structures in connection with a profit improvement program. These changes had
a negative impact on the eNPS. Terveystalo’s long-term strengths include well-functioning work communities, effective
cooperation and good team leadership. These were perceived increasingly positively. The willingness to continue work-
ing at Terveystalo also remained at a good level. The target is for the eNPS indicator to be at least 25 in 2025.
Responsible work
Competent and committed personnel form the foundation for Terveystalo’s operations. There are shortages of com-
petent professionals in many places, and the most significant risks in the line of operation related to personnel are
related to the availability and retention of competent professionals. A key strategic goal for Terveystalo is to ensure
that the company has enough health and well-being professionals to meet the growing demand and achieve its
strategic targets. Terveystalo aims to be the best and most attractive employer in its industry.
Terveystalo’s attractiveness as an employer and the occupational well-being and job satisfaction of the people who
work at Terveystalo constitute the foundation for all operations. Terveystalo strives to strengthen its attractiveness as a
workplace by providing professionals with interesting and meaningful work, competitive pay, diverse career, and deve-
lopment opportunities, and ensuring that professionals can work smoothly and focus on meaningful matters. Equality,
fairness and non-discrimination are core principles. In 2023, Terveystalo was rated by industry professionals as the most
popular employer in Finland for the fourth consecutive time1).
At the end of 2023, Terveystalo had 8,950 (10,100) employees and 5,987 (5,822) independent private practitioners
in its operations in Finland. In Sweden, Terveystalo’s subsidiary Feelgood had 874 (833) employees and 105 (106) private
practitioners. The number of employees in Finland was affected by a reduction in the number of employees working
in COVID-19 related services, the measures of the profit improvement program and the termination of outsourcing
contracts.
Terveystalo’s operating principles
concerning human resources management
Terveystalo has drawn up operating principles for managing material impacts on its personnel. Terveystalo’s Code of
Conduct includes key principles concerning equality, fairness and non-discrimination. In accordance with Finnish law,
Terveystalo respects the right of its employees to be members of trade unions or similar advocacy organisations and
participate in their activities. Terveystalo also respects the collective bargaining rights of employees. Eighty percent of
Terveystalo’s employees in Finland are covered by collective labour agreements. In Sweden, the corresponding figure is
100 percent.
Terveystalo’s work community development plan includes targets and actions for developing and maintaining
professional competence and promoting occupational well-being. The development plan also includes Terveystalo’s
equality and non-discrimination plan. Pay equality is assessed and promoted as part of the work community
development plan. Gender, for example, cannot be a factor that influences pay. Terveystalo’s working group on equality
became operational at the beginning of 2023. Its aim is to promote equality in Terveystalo’s work communities and
customer encounters.
1) Universum employer survey 2023
126
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Responsible work
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
2023
2022
Being the industry’s best and
most attractive employer
Employee Net Promoter Score
(eNPS)
Terveystalo’s employees
and private practitioners
At least 25
2025
2022
19
28
The employee Net Promoter Score (eNPS) indicates the proportion of the personnel and private practitioners who would recommend Terveystalo as a workplace to others.
Well-being and strong work communities
Ethical business
Target
The core of Terveystalo’s people strategy is to build strong work communities with a humanely efficient working culture
where people have high job satisfaction and their work is smooth and productive. To achieve this, Terveystalo looks after
the health and safety of the personnel by providing occupational health services that exceed the legal requirements
and by continuously developing the safety culture in work communities. Nurturing a healthy work-life balance is part of
a humanely efficient working culture. Terveystalo’s work communities are equal, non-discriminatory, and diverse. Good
and effective supervisory work is a key factor in performance and job satisfaction, and it is strengthened by supporting
and training supervisors.
Percentage of employees in permanent,
full-time employment relationship who
have completed the training relative to
all employees in permanent, full-time
employment relationship1)
All employees have completed
training on the Code of
Conduct and correct action
Terveystalo’s Finnish operations
Scope of application
Indicator (KPI)
Target level
100%
Target year
Continuous
Percentage of suppliers who
have approved the Supplier
Code of Conduct2)
Key suppliers accounting for
over 80% of total procurement
Occupational safety
have approved the Supplier
The occupational safety of Terveystalo’s personnel in Finland is developed and managed at the Group level, taking com-
Code of Conduct
pany-specific and business-specific differences into account. The different levels of the organisation know and recognize
their responsibilities concerning ensuring occupational safety in compliance with Finnish legislation. Terveystalo’s goal is
1) The figures are not comparable due to the training completion periods not being of equal length and due to change in the group of personnel whose course completions are reported. The new compliance
to be a safer working environment every day.
course was introduced and moved to a new online platform in spring 2023. The figures for 2023 only include completions after the course was revised and only completions of employees in permanent,
full-time employment relationship in Finnish operations. The figures for 2022 also include course completions that took place in the second half of 2021 and, in addition to course completions of employees
in permanent, full-time employment relationship, also course completions of other employees in Finnish operations.
Terveystalo’s Finnish operations
Continuous
100%
81%
2) Terveystalo measures the share of suppliers who have approved the Supplier Code of Conduct from Terveystalo’s key suppliers representing approximately 80 percent of the total procurement
expenditure of Terveystalo’s operations in Finland. The procurement expenditure does not include expenses related to fees paid to private practitioners, purchases for operations in Sweden,
one-off purchases or purchases of low significance.
127
The development of occupational safety at Terveystalo is focused on the identification, prevention, and mitigation
2023
72%1)
of health hazards and adverse health impacts arising from working conditions, as well as protecting and promoting the
safety, work ability, and health of employees. An annual action plan is drawn up for the development of occupational
safety. In 2023, the goal was to develop the systematic management of occupational safety at the individual, unit, busi-
ness, and Group levels by, for example, clarifying responsibilities related to occupational safety, ensuring careful orien-
tation training, and increasing occupational safety management through supervisory work. A new operating model for
the risk assessment of work tasks was introduced in 2023.
2022
69%1)
All occupational accidents and commuting accidents at Terveystalo are reported and investigated. The operational
safety is further developed with the help of safety observations. Terveystalo has not had any occupational accidents or
commuting accidents resulting in death or severe injury for years. The accident frequency in Finland in 2023 was 20 (18).
In Sweden (Feelgood), occupational health and safety are organised following the Swedish legislation. The certified
80%
ISO 45001 occupational health and safety system guides the operations. The number of accidents in Sweden in 2023
was 16 (13).
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Professional growth and focusing on meaningful matters
Terveystalo offers its employees and private practitioners high-quality training in various areas. Skills development
aims at strong and up-to-date professional skills and excellent leadership. In 2023, Terveystalo organised training in
Finland on average 11.7 hours per employee. In addition to internal training, Terveystalo cooperates in research and
education with several universities and promotes youth employment through trainee programs.
To enable smooth and efficient way of working for professionals, the structures, tools, and processes are con-
tinuously developed. In 2023, all of Terveystalo’s occupational health customers were given access to the Symptom
Assessment tool, a CE-marked medical device that makes the use of occupational healthcare services smoother in
the event of illness. The Symptom Assessment tool supports the work of healthcare professionals by taking care of
certain routine tasks on the professional’s behalf, allowing them to allocate more time to customer encounters.
Occupational healthcare
Occupational healthcare plays a key role in the identification of health risk factors and the prevention of illnesses.
In Finland, Terveystalo’s occupational healthcare and occupational safety are organised on a company-specific and
regional basis in accordance with Finnish legislation. According to the law, the employer shall arrange occupational
healthcare at its own expense to prevent and control health risks and problems related to work and working con-
ditions and to protect and promote the safety, working capacity, and health of employees.
In addition to the statutory requirements, Terveystalo provides its employees in Finland with a comprehensive
range of primary healthcare, specialised care, and well-being services, such as occupational physiotherapy and services
that support mental well-being. Short-term psychotherapy is also a part of Terveystalo’s occupational health services.
Terveystalo itself provides occupational healthcare services to its personnel throughout Finland. Terveystalo’s
occupational health services are certified under ISO 9001:2015 quality certificate.
In the occupational health services, significant focus is placed on maintaining the personnel’s work ability and the
treatment of illnesses. Sickness absences among the personnel decreased from the previous year, and the sickness
absence rate in Finland was 4.0 (5.2) percent of hours worked.
In Sweden (Feelgood), occupational healthcare is organised in accordance with Swedish legislation. Operations
are certified by ISO 45001 occupational health and safety system. In Sweden, the sickness absence rate was 4.8 (5.5)
in 2023.
Work-life balance
A healthy work-life balance supports the well-being, productivity, and job satisfaction of the personnel. As an employer,
Terveystalo strives to support its personnel in reconciling work and private life. All Terveystalo employees are entitled
to statutory leave. In 2023, the share of employees taking statutory leave was 7.4 percent of all employees, of whom 8.1
percent were women and 4.2 percent men. Work at Terveystalo is flexible and location-independent. Work goals and
effectiveness determine the where and how the work is performed.
128
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Ethical business conduct
Ethical, responsible and compliant conduct of business is essential in Terveystalo’s operations. Terveystalo’s operations
are guided by the legislation governing the sector and private healthcare services, as well as the regulations and require-
ments established by the authorities. In addition, the work of healthcare professionals is guided by their own ethical
codes of conduct.
in 2023 whose investigation has been completed, a violation of the Code of Conduct was observed in two instances,
which led to a disciplinary process. For certain reports received late in the year, the investigations are still ongoing. The
findings from the reports and completed investigations have been taken into consideration in the development of
Terveystalo’s processes.
The Code of Conduct provides a framework that helps ensure compliance with Terveystalo’s values and internal
guidelines as well as applicable legislation. The Code of Conduct also reflects Terveystalo’s commitments to its key
stakeholders. Terveystalo is committed to promoting ethical business practices and requires that all the company’s
operations are conducted in compliance with the applicable laws and regulations. In addition to compliance with
legislation and Terveystalo’s Code of Conduct, Terveystalo is committed to the UN Guiding Principles on Business and
Human Rights, the conventions of the International Labour Organisation (ILO) and the Ten Principles of the UN Global
Compact. Terveystalo continuously develops its compliance program and the related processes and controls to ensure
that they correspond to the changes in the operating environment.
Terveystalo’s Code of Conduct comprises Terveystalo’s key principles regarding anti-bribery and anti-corruption,
compliance with fair competition and environmental requirements, ensuring privacy and patient safety, employee
equality, non-discrimination, and the freedom of association, as well as the reporting of misconduct, among other things.
Terveystalo Group also expects its suppliers to observe high standards of sustainable business concerning ethical,
social and environmental perspectives, as well as occupational health and safety. Each year, Terveystalo purchases
services, materials, and supplies for its clinics from approximately 5,000 suppliers. Of these, the 190 largest suppliers
account for about 80 percent of total purchasing expenditure. The largest procurement categories are subcontracted
services, such as cleaning, consulting, and laboratory services, ICT procurement, renting of business premises, pharma-
ceutical products, and healthcare supplies and equipment.
Terveystalo Group’s Supplier Code of Conduct sets out the minimum requirements that all suppliers and partners
need to satisfy to engage in business with Terveystalo and its subsidiaries. All Terveystalo’s contract suppliers and sup-
pliers participating in tendering processes are required to accept Terveystalo’s Supplier Code of Conduct. Terveystalo’s
Supplier Code of Conduct was updated in 2023. The Supplier Code of Conduct is available on the Terveystalo website.
One important aspect of Terveystalo’s culture of doing the right thing 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 violating
the Code of Conduct. Terveystalo has online training on the Code of Conduct aimed at everyone in the organisation.
The training includes instructions on highlighting and reporting misconduct. Actual or suspected violations of the Code
of Conduct must be reported to the supervisor, the supervisor’s supervisor, or Terveystalo’s Legal & Compliance depart-
ment. Suspected misconduct can also be reported via Terveystalo’s reporting channel (WhistleB), which is open to
everyone. In 2023, Terveystalo received a total of 13 (19) reports through the reporting channel. Of the reports received
129
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 labour, any form of forced labour or other human rights violations in its own
operations or its value chain or 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 Labour Organisation (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 service providers, suppliers and other partners are expected to observe
the same principles and respect internationally recognised human rights. Human rights principles are included in
Terveystalo’s Code of Conduct and Supplier Code of Conduct.
Targets related to ethical business
Terveystalo measures the realisation of ethical and responsible business at Terveystalo and in its value and supply chain.
Everyone at Terveystalo is required to observe the Code of Conduct, regardless of their business unit or role in the
company. The target is for all Terveystalo employees to have completed Terveystalo’s training on the Code of Conduct
and correct action. In 2023, 72 (69) percent of Terveystalo’s employees in permanent, full-time employment relationship
completed the training. The figures include Terveystalo’s Finnish operations.
Contractual suppliers and suppliers participating in tendering processes must approve Terveystalo’s Supplier Code
of Conduct, which includes guidelines and requirements pertaining to anti-corruption and bribery, human rights, funda-
mental rights at work, occupational health and safety, taxation, and environmental responsibility. The target is for 100
percent of Terveystalo’s key suppliers to have approved the Supplier Code of Conduct. At the end of 2023, 81 (80)
percent of key suppliers representing 80 percent of Terveystalo’s total procurement for operations in Finland had
approved the Supplier Code of Conduct. The figures include Terveystalo’s Finnish operations.
TerveystaloAnnual Report 2023 Responsible work
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
2023
2022
Being the industry’s best and
most attractive employer
Employee Net Promoter Score
(eNPS)
Terveystalo’s employees
and private practitioners
At least 25
2025
2022
19
28
The employee Net Promoter Score (eNPS) indicates the proportion of the personnel and private practitioners who would recommend Terveystalo as a workplace to others.
Corporate Governance
Sustainability
Year 2023
Financials
Ethical business
Target
Indicator (KPI)
Scope of application
Target level
Target year
Terveystalo’s Finnish operations
100%
Continuous
2023
72%1)
2022
69%1)
All employees have completed
training on the Code of
Conduct and correct action
Percentage of employees in permanent,
full-time employment relationship who
have completed the training relative to
all employees in permanent, full-time
employment relationship1)
Key suppliers accounting for
over 80% of total procurement
have approved the Supplier
Code of Conduct
Percentage of suppliers who
have approved the Supplier
Code of Conduct2)
Terveystalo’s Finnish operations
100%
Continuous
81%
80%
1) The figures are not comparable due to the training completion periods not being of equal length and due to change in the group of personnel whose course completions are reported. The new compliance
course was introduced and moved to a new online platform in spring 2023. The figures for 2023 only include completions after the course was revised and only completions of employees in permanent,
full-time employment relationship in Finnish operations. The figures for 2022 also include course completions that took place in the second half of 2021 and, in addition to course completions of employees
in permanent, full-time employment relationship, also course completions of other employees in Finnish operations.
2) Terveystalo measures the share of suppliers who have approved the Supplier Code of Conduct from Terveystalo’s key suppliers representing approximately 80 percent of the total procurement
expenditure of Terveystalo’s operations in Finland. The procurement expenditure does not include expenses related to fees paid to private practitioners, purchases for operations in Sweden,
one-off purchases or purchases of low significance.
Anti-corruption and anti-bribery
In the area of anti-corruption and anti-bribery, Terveystalo complies with the law and other applicable regulations
and guidelines. Terveystalo is also committed to the UN Global Compact initiative and its anti-corruption principles.
Terveystalo’s operations are guided by the Code of Conduct, which includes anti-corruption and anti-bribery guidelines
regarding, for example, giving and accepting gifts and hospitality as well as the avoidance of conflicts of interest.
All of Terveystalo’s contract suppliers and suppliers participating in tendering processes are required to accept
Terveystalo’s Supplier Code of Conduct, which includes anti-corruption and anti-bribery guidelines and requirements,
among other things.
According to Terveystalo’s Code of Conduct gifts or other benefits that could affect business decisions or
have considerable personal or financial value are not given or accepted in Terveystalo. Terveystalo’s Code of Conduct
dictates that the company does not support political activities. Terveystalo does not make financial contributions to
political parties or organisations, directly or indirectly, nor does Terveystalo fund the election campaigns of individual
candidates.
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TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Observed or suspected misconduct related to the Code of Conduct, can be reported anonymously at
http://www.report.whistleb.com/en/terveystalo.
No cases of corruption or bribery were reported in 2023. Terveystalo continues to develop its anti-corruption
and anti-bribery compliance program and related processes to reflect the changes in its operating environment.
Ensuring patient data protection and information security
The protection of privacy and data protection is the responsibility of everyone working at Terveystalo and everyone
working on behalf of Terveystalo. The company pays special attention to the appropriate and legally compliant pro-
cessing of personal data. Terveystalo provides its personnel with training and instructions on the processing of personal
data and emphasises the confidentiality and protection of patient data. Terveystalo introduced a revised online data
protection course for all employees in the fall of 2023.
At Terveystalo, patient data is stored in information security-certified patient information systems. Terveystalo’s
patient information systems in Finland are category A systems and they have undergone information security certifica-
tion following the regulations related to providing Kanta services. In addition, Terveystalo’s data protection and informa-
tion security are regularly audited under the ISO 9001:2015 certification, both internally and by an external party.
Terveystalo applies the appropriate physical, technical and administrative protection measures to protect data
from misuse. These measures include, among other things, control and filtering of network traffic, use of encryption
techniques and secure data centres, appropriate access control, controlled granting of access rights and supervising their
use, issuing instructions to personnel participating in personal data processing, and risk management related to the
planning, implementation, and maintenance of 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.
Terveystalo creates value for its stakeholders
Responsible business is also financially profitable and sustainable. Terveystalo creates value for its customers, society, and
our shareholders by continuously developing the clinical, operational, and experienced quality of its services, enabling
faster access to care, reducing sickness absences, and employing directly and indirectly more than 15,500 professionals.
The most significant cash flows from Terveystalo’s operations consist of revenue from service sales, purchases from
suppliers of goods and services, salaries paid to our personnel, fees paid to private practitioners, taxes, investments, and
dividends paid to the shareholders.
In 2023, Terveystalo’s revenue and other operating income totalled EUR 1,290.6 (1,261.8) million. The goods, materi-
als, and services purchased from suppliers amounted to EUR 536.2 (525.7) million. Salaries and remuneration amounted
to EUR 375.7 (381.5) million. Net financial expenses to creditors amounted to EUR 24.2 (2.9) million. Dividends paid to
our shareholders in 2023 based on the results of the previous fiscal year amounted to EUR 35.4 (35.4) million. Terveystalo
invested a total of EUR 40.2 (58.5) million to business development.
In 2023, Terveystalo’s tax footprint totalled EUR 212.1 (235.7) million. The tax footprint is an indicator of the total tax
revenue and tax-like charges generated for society by Terveystalo’s business activities. In addition, Terveystalo paid a
total of EUR 380.1 (340.6) million in fees to private practitioners, who pay their individual taxes separately. The taxes paid
by private practitioners are not included in Terveystalo’s tax footprint.
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Terveystalo’s environmental program covers all clinics in Finland and its appropriateness is evaluated in quality
management and environmental management system audits. Terveystalo’s environmental management system is cer-
tified under the ISO 14001 standard. The standard provides a framework for the continuous development of processes
and practices that minimise negative environmental impacts. In 2023, ISO 14001:2015 environmental certification was
expanded to cover all of the units in Terveystalo’s medical clinic network in Finland. Some of the Feelgood operating
locations in Sweden are also ISO 14001:2015 certified.
Zero emissions from own operations 2023
Terveystalo’s goal is to reduce its carbon footprint so that its own operations will generate zero emissions in 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 goal is for green electricity to account for 100 percent of purchased
electricity. In addition, the company aims to minimise the generation of waste and ensure the recycling and recovery of
waste in all its operations.
Sustainable consumption and climate action
Terveystalo is committed to the targets agreed upon in international climate summits for the mitigation of climate
change. Terveystalo’s goal is zero emissions from its operations in 2030. The conservation and sustainable use of natural
resources in Terveystalo’s supply chains are promoted by minimising the generation of waste in all of Terveystalo’s oper-
ations and forwarding all waste to be recovered. Digital services enable simultaneously improving access to care and
reducing customers’ travel times and the emissions generated by travel.
Based on the results of the 2023 double materiality assessment, climate change is not one of Terveystalo’s material
sustainability topics. This is because Terveystalo’s carbon footprint is not significant due to the nature of its operations.
The service sector is considered to be low in emissions due to its low energy intensity. The impacts of climate change
and adaptation to climate change do not present significant risks or opportunities to Terveystalo’s business or strategy.
However, for the sake of transparency and the continuity of reporting, Terveystalo reports key information on its envi-
ronmental impacts.
Terveystalo’s environmental policy
Terveystalo Group’s environmental policy describes the environmental principles that all employees, managers, officials,
board members, consultants and other personnel working under the management of Terveystalo Group are expected
to follow.
Terveystalo operates in line with the principles of sustainable development to reduce and eliminate environmental
risks. In addition to being committed to the Group’s environmental policy, Terveystalo is committed to full compliance
with the applicable legislation, the regulations issued by the authorities, industry operating practices that ensure occupa-
tional safety and patient safety, and the continuous improvement of environmentally friendly operating practices.
Adverse environmental impacts are prevented by, for example, reducing energy consumption and transitioning to
carbon-neutral energy, reducing the volume of waste created in operations and increasing our recycling rate, optimising
the life cycle of healthcare equipment, taking environmental perspectives into account in the travel and car policy, as
well as developing digital services. In addition, adverse environmental impacts are prevented by planned pharmaceu-
tical services, taking environmental perspectives into account in centralised procurement with efficient inventory man-
agement and by taking sustainable development and environmental perspectives into account in network and business
premises projects.
132
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Sustainable consumption
and climate action
Target
Indicator (KPI)
Scope of application
Target level
Target year
Base year
level
Base year
Finnish and Swedish operations
-100%
2030
6,316.8
2018
2023
-56%
2022
-76%
2021
-89%
Zero emissions from
own operations 20301)
Reduce direct and indirect CO2
emissions (Scope 1 and Scope 2)
by 80% by 2025 (using 2018 as
the baseline)
Reduction of direct (Scope 1) and
indirect (Scope 2) greenhouse gas
emissions compared to 2018
Direct (Scope 1) and indirect (Scope 2)
greenhouse gas emissions, tCO2
Purchase 100% green
electricity by 20252)
Share of green electricity of
all purchased electricity, %
Minimise waste in all opera-
tions and forward all waste
to be recovered
The recovery rate of waste generated
at Terveystalo units, %3)
The recycling rate of waste generated
at Terveystalo units, %3)
Finnish and Swedish operations
-80%
2025
6,316.8
2018
2,755.4
1,544.1
664.0
Finnish and Swedish operations
100%
2025
62%
2020
70%
72%
89%
Finnish operations
100%
2025
99%
2020
100%
100%
100%
Finnish operations
100%
2025
61%
2020
68%
67%
64%
1) Scope 2 emissions are market-based. The market-based Scope 2 emission calculation takes into account the green electricity guarantees of origin purchased by Terveystalo, which in 2023 covered approximately
70 (72) percent of the electricity consumption. The emissions of the remaining purchased electricity have been calculated using the residual mix emission factors for Finland and Sweden (AIB, European Residual Mixes).
Finland's residual emission factor increased by 83 percent from 2022 due to a higher share of fossil fuels in the residual mix (Finland's residual emission factor in 2022 was 0.285 kgCO2e/kWh and in 2023 0.5208 kg-
CO2e/kWh). The market-based Scope 2 emissions for 2022 have been recalculated for Finland, because Terveystalo purchased the green electricity guarantee of origin for the period 1 September - 31 December 2022
at the beginning of 2023. From 2022 onwards, the figures for energy use and carbon footprint also include the Swedish operations. The figures for 2021 include only the Finnish operations.
2) In units where Terveystalo purchases electricity itself.
3) Excludes waste fractions that cannot be recycled or recovered under any circumstances.
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Year 2023
Sustainability
Corporate Governance
Financials
Terveystalos’s carbon footprint
In 2023, Terveystalo’s carbon footprint in Finland from Scope 1 and 2 emissions (market-based) was 2,716.0 (1,401.9)
tCO2e. In Sweden, Feelgood’s Scope 1 and 2 emissions totalled 39.4 (142.2) tCO2e. 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. Terveystalo develops
the measurement of its impacts throughout the value chain and works with its key suppliers to reduce the emissions
generated by the value chain.
1) Scope 2 emissions are market-based. The market-based Scope 2 emission calculation takes into account the green electricity guarantees of origin
purchased by Terveystalo, which in 2023 covered approximately 70 (72) percent of the electricity consumption. The emissions of the remaining
purchased electricity have been calculated using the residual mix emission factors for Finland and Sweden (AIB, European Residual Mixes).
Finland's residual emission factor increased by 83 percent from 2022 due to a higher share of fossil fuels in the residual mix (Finland's residual
emission factor in 2022 was 0.285 kgCO2e/kWh and in 2023 0.5208 kgCO2e/kWh). The market-based Scope 2 emissions for 2022 have been
recalculated for Finland, because Terveystalo purchased the green electricity guarantee of origin for the period 1 September - 31 December 2022
at the beginning of 2023.
Terveystalo reports the direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions arising from its operations
– and part of its indirect Scope 3 emissions – in accordance with the GHG Protocol. Emissions from Swedish operations
have been reported starting from 2022.
Scope 3
For indirect Scope 3 emissions, Terveystalo reports emissions arising from work-related travel by employees and
emissions from the waste generated by the company’s operations.
Terveystalo aims to avoid unnecessary work-related travel by encouraging to favour remote meetings whenever
possible. Terveystalo’s personnel in Finland flew a total of 0.8 (0.7) million kilometres in work-related travel, corre-
sponding to 85.5 (84.1) tCO2e. Reimbursable work-related travel by Terveystalo’s personnel in Finland totalled 2.7 (2.6)
million kilometres, corresponding to 448.2 (440.8) tCO2e. Terveystalo encourages its personnel to choose low-emissions
vehicles as company cars. The average emissions of the company cars used by Terveystalo in Finland amount to 64 (72)
gCO2e/km. In Sweden, work-related travel by air generated 60.8 (45.1) tCO2e in emissions. The total emissions from
work-related travel by the personnel in Sweden amounted to 260.4 (262.6) tCO2e.
Terveystalo’s goal is to minimise mixed waste in all of Terveystalo’s operations and forward as large a share of
waste as possible to be recovered. The indirect emissions arising from waste in Finland amounted to 42.6 (41.7) tCO2e.
In Sweden, the amount of waste generated and emissions from waste are very low since waste is mainly generated in
offices. The emissions arising from waste in Sweden totalled 3.4 (2.1) tCO2e.
Terveystalo’s CO2 emissions intensity is low due to the nature of the Group’s operations. In 2023, Terveystalo’s
emissions intensity (Scope 1 and 2, market-based) relative to revenue was 2.1 (1.2) gCO2e/EUR. Relative to the number
of employees, the emissions intensity was 0.4 (0.2) tCO2e. The figures also include Terveystalo’s operations in Sweden.
Scope 1
As 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 fleet of cars controlled by Terveystalo and the trucks used for imaging
operations. The emissions arising from the company’s own driving and driving under its direct control are calculated
based on fuel consumption. In 2023, Scope 1 CO2 emissions in Finland totalled 137.5 (134.5) tCO2e. In Sweden, Scope 1
emissions were 18.2 (39.9) 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 2023, a total of 16,171 (15,841) MWh
of electricity was purchased for the properties controlled by Terveystalo in Finland. The company’s electricity portfolio
(electricity purchased for properties) has been zero-CO2 green electricity since the beginning of 2020. Zero CO2 elec-
tricity purchased in Finland for the consumption year 2023 totalled 11,220 (11,395) MWh, which corresponds to approxi-
mately 69 (72) percent of the electricity consumption of the company’s operations in Finland. The amount of electricity
purchased to properties not included in the electricity portfolio totalled 4,951 (4,447) MWh, which corresponds to
2,578.5 (1,267.4) tCO2e (market-based). The growth in the market-based Scope 2 emissions is mainly due to an 83 percent
increase in the Finland's residual emission factor used in the emissions calculation from the comparison period1). The
amount of purchased electricity outside the electricity portfolio in Finland increased by approximately 11 percent, which
also affected the Scope 2 emissions growth from the comparison period. In Swedish operations, 2,081 (1,328) MWh of
electricity was purchased for properties controlled by Feelgood, of which approximately 74 (67) percent was zero CO2
green electricity. The Scope 2 emissions from purchased electricity in Sweden totalled 21.1 (102.3) tCO2e. Terveystalo’s
target is for green electricity to account for 100 percent of purchased electricity by 2025.
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TerveystaloAnnual Report 2023 Year 2023
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Corporate Governance
Financials
EU taxonomy reporting
The EU taxonomy is a classification system for sustainable finance that establishes criteria for determining environ-
mentally 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 environmentally
sustainable. The regulation sets out six environmental objectives: climate change mitigation, climate change adaptation,
sustainable use and protection of water and marine resources, transition to a circular economy, prevention and reduction
of pollution, and protection and restoration of biodiversity and ecosystems. Economic activities that contribute to one
of these objectives without harming others can be considered environmentally sustainable under certain criteria. Large
companies must report the share of sustainable business in their business in accordance with taxonomy criteria.
At present, EU taxonomy mainly concerns the economic activities that play the most important role in achieving
the environmental objectives. 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 activities
listed in the taxonomy. Only one of Terveystalo’s businesses is classified in taxonomy (12.1 Residential care activities).
After this, Terveystalo has evaluated the taxonomy alignment of the operation. The activity is classified as aligned
with the taxonomy if the taxonomy's criteria are met: 1. The activity essentially supports the achievement of at least one
environmental goal, 2. it does not have significant adverse effects from the perspective of other environmental goals,
and 3. the activity complies with the minimum social safeguards defined in the taxonomy (Minimum safeguards). Based
on this assessment, Terveystalo's activities listed in the taxonomy (12.1 Residential care activities) cannot be considered
taxonomy-aligned, because the activities, due to their nature, do not target or support the achievement of the taxo-
nomy's environmental objectives.
As a result of the assessment, the significance of Terveystalo’ s taxonomic functions is negligible in terms of indi-
cators. The key figures are the share of taxonomy-eligible and taxonomy-aligned operations (percent) in terms of
revenue, operating costs, and investments. According to the company's estimate, one percent of Terveystalo’s revenue,
operating costs and investments are eligible with the current taxonomy and 99 percent are non-eligible. The share of
revenue is calculated by dividing the revenue from child welfare services (taxonomy-eligible activity) by the Group's
total consolidated revenue. The share of investments (CapEX) is calculated by dividing the investments made in child
welfare services during the year (renovation of apartments, investments in machinery and equipment) by the net invest-
ments of the company, excluding acquisitions. The share of operating expenditure (OpEx) is calculated by dividing the
operating expenditure for child welfare services by the total operating expenditure of the group (excluding depreciation
and amortisation). Furthermore, zero percent of Terveystalo’s revenue, operating costs and investments are taxonomy-
aligned, and 100 percent are non-taxonomy-aligned. The evaluation according to the EU-taxonomy classification
system described above has been performed through an internal assessment by representatives of the Sustainability
and Finance organisation.
Form 1: Nuclear power and fossil gas related activities
Nuclear power-related activities
The undertaking carries out or finances research, development, demonstration and deployment of innovative
power generation facilities that produce energy through a nuclear reaction with minimum waste in the fuel cycle,
or has responsibilities related to such activities.
The undertaking carries out or finances the construction and safe operation of new nuclear installations for the
production of electricity or process heat, including for district heating or industrial processes such as hydrogen
production, and the improvement of their safety, using the best available technology, or has responsibilities
relating to such activities.
The undertaking carries out or finances the safe operation of existing nuclear installations for the production of
electricity or process heat, including for district heating or industrial processes such as the production of hydrogen
from nuclear energy, and the improvement of their safety, or has responsibilities relating to such operations.
Fossil gas related activities
The undertaking carries out or finances the construction or operation of electricity generation plants using fossil
gaseous fuels, or has liabilities related to such activities.
The undertaking carries out, finances or has responsibilities for the construction, rehabilitation and operation of
combined heat or cooling and power plants using fossil gaseous fuels.
The undertaking undertakes, finances or has responsibilities for the construction, rehabilitation and operation
of heating or cooling plants using fossil gaseous fuels.
1.
2.
3.
4.
5.
6.
NO
NO
NO
NO
NO
NO
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TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities 2023
1 January–31 December 2023
2023
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
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o
B
i
i
)
5
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
)
1
1
(
n
o
i
t
a
g
i
t
i
M
)
2
1
(
n
o
i
t
a
t
p
a
d
A
)
4
1
(
n
o
i
t
u
l
l
o
P
)
3
1
(
r
e
t
a
W
)
5
1
(
y
m
o
n
o
c
E
r
a
l
u
c
r
i
C
-
y
m
o
n
o
x
a
T
f
o
n
o
i
t
r
o
p
o
r
P
)
7
1
(
s
d
r
a
u
g
e
f
a
S
m
u
m
n
M
i
i
)
6
1
(
y
t
i
s
r
e
v
d
o
B
i
i
e
g
n
a
h
C
e
t
a
m
i
l
C
I
% Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
)
2
(
e
d
o
C
)
3
(
r
e
v
o
n
r
u
T
MEUR
Economic Activities (1)
A TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
e
l
b
g
i
i
l
e
-
r
o
)
.
1
.
A
(
d
e
n
g
i
l
a
)
8
1
(
1
-
N
r
a
e
y
,
r
e
v
o
n
r
u
t
)
.
2
.
A
(
%
g
n
i
l
b
a
n
e
y
r
o
g
e
t
a
C
)
9
1
(
y
t
i
v
i
t
c
a
E
l
a
n
o
i
t
i
s
n
a
r
t
y
r
o
g
e
t
a
C
)
0
2
(
y
t
i
v
i
t
c
a
T
Child welfare services
CCA 12.1
12
1%
Turnover of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
12
1%
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
A Turnover of Taxonomy-eligible activities (A1.+A.2)
B TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
TOTAL
136
1,274
99%
1,286
100%
1%
1%
99%
100%
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities 2023
1 January–31 December 2023
2023
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
)
4
(
N
r
a
e
y
,
x
E
p
a
C
f
o
n
o
i
t
r
o
p
o
r
P
e
g
n
a
h
C
e
t
a
m
i
l
C
e
g
n
a
h
C
e
t
a
m
i
l
C
)
6
(
n
o
i
t
a
t
p
a
d
A
)
8
(
n
o
i
t
u
l
l
o
P
)
7
(
r
e
t
a
W
)
9
(
y
m
o
n
o
c
E
r
a
l
u
c
r
i
C
)
0
1
(
y
t
i
s
r
e
v
d
o
B
i
i
)
5
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
)
1
1
(
n
o
i
t
a
g
i
t
i
M
)
2
1
(
n
o
i
t
a
t
p
a
d
A
)
4
1
(
n
o
i
t
u
l
l
o
P
)
3
1
(
r
e
t
a
W
)
5
1
(
y
m
o
n
o
c
E
r
a
l
u
c
r
i
C
)
6
1
(
y
t
i
s
r
e
v
d
o
B
i
i
-
y
m
o
n
o
x
a
T
f
o
n
o
i
t
r
o
p
o
r
P
)
7
1
(
s
d
r
a
u
g
e
f
a
S
m
u
m
n
M
i
i
e
g
n
a
h
C
e
t
a
m
i
l
C
I
% Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
)
2
(
e
d
o
C
)
3
(
x
E
p
a
C
MEUR
Economic Activities (1)
A TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
e
l
b
g
i
i
l
e
-
r
o
)
.
1
.
A
(
d
e
n
g
i
l
a
)
8
1
(
1
-
N
r
a
e
y
,
x
E
p
a
C
)
.
2
.
A
(
%
g
n
i
l
b
a
n
e
y
r
o
g
e
t
a
C
)
9
1
(
y
t
i
v
i
t
c
a
E
l
a
n
o
i
t
i
s
n
a
r
t
y
r
o
g
e
t
a
C
)
0
2
(
y
t
i
v
i
t
c
a
T
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
Child welfare services
CCA 12.1
CapEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
A. CapEx of Taxonomy-eligible activities (A1.+A.2)
B TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
TOTAL
137
0
0
0%
0%
40
40
100%
100%
1%
1%
99%
100%
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities 2023
1 January–31 December 2023
2023
Substantial contribution criteria
DNSH criteria (“Does Not Significantly Harm”)
)
6
(
n
o
i
t
a
t
p
a
d
A
)
8
(
n
o
i
t
u
l
l
o
P
)
7
(
r
e
t
a
W
)
9
(
y
m
o
n
o
c
E
r
a
l
u
c
r
i
C
)
0
1
(
y
t
i
s
r
e
v
d
o
B
i
i
)
2
1
(
n
o
i
t
a
t
p
a
d
A
)
4
1
(
n
o
i
t
u
l
l
o
P
)
3
1
(
r
e
t
a
W
)
5
1
(
y
m
o
n
o
c
E
r
a
l
u
c
r
i
C
)
6
1
(
y
t
i
s
r
e
v
d
o
B
i
i
-
y
m
o
n
o
x
a
T
f
o
n
o
i
t
r
o
p
o
r
P
)
7
1
(
s
d
r
a
u
g
e
f
a
S
m
u
m
n
M
i
i
e
g
n
a
h
C
e
t
a
m
i
l
C
)
1
1
(
n
o
i
t
a
g
i
t
i
M
e
g
n
a
h
C
e
t
a
m
i
l
C
e
g
n
a
h
C
e
t
a
m
i
l
C
)
4
(
N
r
a
e
y
,
x
E
p
O
f
o
n
o
i
t
r
o
p
o
r
P
e
g
n
a
h
C
e
t
a
m
i
l
C
)
5
(
n
o
i
t
a
g
i
t
i
M
% Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
)
2
(
e
d
o
C
)
3
(
x
E
p
O
MEUR
Economic Activities (1)
A TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
e
l
b
g
i
i
l
e
-
r
o
)
.
1
.
A
(
d
e
n
g
i
l
a
)
8
1
(
1
-
N
r
a
e
y
,
x
E
p
O
)
.
2
.
A
(
%
g
n
i
l
b
a
n
e
y
r
o
g
e
t
a
C
)
9
1
(
y
t
i
v
i
t
c
a
E
l
a
n
o
i
t
i
s
n
a
r
t
y
r
o
g
e
t
a
C
)
0
2
(
y
t
i
v
i
t
c
a
T
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
KEL; E/KEL
Child welfare services
CCA 12.1
OpEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
A OpEx of Taxonomy-eligible activities (A1.+A.2)
B TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
TOTAL
138
10
10
1%
1%
1,101
99%
100%
1%
1%
99%
100%
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Shares and shareholders
Terveystalo Plc has one share series (TTALO), which is listed on Nasdaq Helsinki Ltd. At the end of 2023, Terveystalo’s
market value was EUR 983 (794) million and the closing price was EUR 7.74 (6.25). During 2023, the highest price of
Terveystalo’s share was EUR 8.53 (11.94), the lowest price was EUR 6.43 (6.06), and the average price was EUR 7.50 (9.41).
A total of 20.6 (29.5) million shares were traded. At the end of the reporting period, the number of Terveystalo shares
registered in the Trade Register was 127,036,531 (127,036,531). The total number of shareholders was 34,025 (30,938) at
the end of 2023. Terveystalo and its subsidiaries hold 480,230 (488,536) own shares for reward purposes, corresponding
to 0.4% of all outstanding shares.
The largest registered shareholders on 31 December 2023
Distribution of ownership 31 December 2023
Name
Varma Mutual Pension Insurance Company
Rettig Group AB
Pohjola Insurance Ltd
Hartwall Capital
OP Life Assurance Company Ltd
Skandinaviska Enskilda Banken AB
Ilmarinen Mutual Pension Insurance Company
Local Tapiola Mutual Insurance Company
Elo Mutual Pension Insurance Company
Evli Finnish Small Cap Fund
Ten largest in total
Number
of shares
22,151,945
21,153,191
10,530,332
8,231,690
7,155,854
5,733,851
5,119,495
2,600,000
2,508,000
1,967,033
87,151,391
% of shares
17.44
16.65
8.29
6.48
5.63
4.51
4.03
2.05
1.97
1.55
68.60
Votes
22,151,945
21,153,191
10,530,332
8,231,690
7,155,854
5,733,851
5,119,495
2,600,000
2,508,000
1,967,033
87,151,391
The list is based on the register of shareholdings maintained by Euroclear, and it does not include nominee-
registered shares.
139
% of votes
17.44
Number of shares
1–100
Number of
shareholders
15,740
% of share-
holders
46.26
Number of
securities
701,279
% of
securities
0.55
16.65
8.29
6.48
5.63
4.51
4.03
2.05
1.97
1.55
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
68.60
of which nominee-registered
Non-transferred, total
In general account
In special accounts, total
Total issued
12,677
2,927
2,156
241
206
27
29
22
34,025
11
0
37.26
8.60
6.34
0.71
0.61
0.08
0.09
0.06
100.00
0.03
Number
of votes
701,279
3,188,040
2,246,249
4,431,586
1,763,531
4,627,671
2,109,499
6,428,528
3,188,040
2,246,249
4,431,586
1,763,531
4,627,671
2,109,499
6,428,528
2.51
1.77
3.49
1.39
3.64
1.66
5.06
101,540,148
79.93
101,540,148
127,036,531
100.00
127,036,531
9,214,087
7.25
9,214,087
0
0
0
0
0
0
0
0
0
127,036,531
100.00
127,036,531
100.00
% of votes
0.55
2.51
1.77
3.49
1.39
3.64
1.66
5.06
79.93
100.00
7.25
0
0
0
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Shareholder groups, 31 December 2023
Management shareholding, 31 December 2023
Number of shares
% of shares
Name
Position
Number of shares % of shares % of votes
13,337,151
31,236,163
30,372,798
17,898,422
3,747,089
21,230,821
117,822,444
9,214,087
11.32
26.51
25.78
15.19
3.18
18.02
100.00
7.25
Kari Kauniskangas
Chairman of the Board of Directors
Matts Rosenberg
Member of the Board of Directors
Carola Lemne
Member of the Board of Directors
Kristian Pullola
Member of the Board of Directors
Katri Viippola
Member of the Board of Directors
Ari Lehtoranta
Member of the Board of Directors
Sofia Hasselberg
Member of the Board of Directors
Ville Iho
President and CEO
Juuso Pajunen
Chief Financial Officer
Petri Bono
Chief Medical Officer
Henri Mäenalanen
Interim Executive Vice President, Healthcare Services
Stefan Kullgren
Executive Vice President of the Swedish Business Area
Ilari Richard
Mikko Tainio
Senior Vice President, Digital Services
Senior Vice President, Portfolio Businesses
Minttu Sinisalo
Senior Vice President, Human Resources
21,802
14,498
5,126
8,207
11,453
6,504
2,499
13,306
19,000
2,087
2,230
0
3,134
5,596
1,400
0.02%
0.01%
0.00%
0.01%
0.01%
0.01%
0.00%
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Management shareholding in total
Number of shares total
116,842
0.09%
0.00%
127,036,531
100.00%
100.00%
Notifications of major shareholdings
During 2023, Terveystalo Plc did not receive any notifications pursuant to Chapter 9, Section 5 of the Finnish Securities
Markets Act.
Shareholders by sector
Households
Public entities
Financial and insurance institutions
Companies
Non-profit institutions
Foreign owners
Total
Nominee-registered
140
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
The Board’s authorisations
The Board has been authorised to resolve the repurchase and/or on the acceptance as pledge of the company’s own
shares using the unrestricted equity of the Company. The authorisation covers a maximum of 12,703,653 own shares in
total, which corresponds to approximately 10 percent of all shares in the Company.
The Board has also been authorised to resolve the issuance of shares and special rights entitling to shares as referred
to in Chapter 10, Section 1 of the Finnish Companies Act. The authorisation covers a maximum of 12,703,653 own shares
in total, which corresponds to approximately 10 percent of all shares in the Company. Authorisations were not used
during the financial period.
Dividend policy and distribution of
profits for 2023 proposed by the Board
The objective of Terveystalo’s Dividend Policy is to distribute a minimum of 40 percent of earnings per share in
dividends. The current financial performance, development potential, financial position, and capital requirements
are taken into account. In 2023, earnings per share were EUR -0.33 (0.19).
The parent company’s distributable funds totalled EUR 535.9 (530.8) million, of which EUR 40,5 (23,7) million is
result for the financial year. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR
0,30 (0.28) per share totalling EUR 38.0 (35.4) million be paid based on the balance sheet adopted for the financial
year ended 31 December 2023. The dividend would be paid in two installments as follows:
The first dividend installment of EUR 0.15 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
installment on 28 March 2024. The Board of Directors proposes that the first dividend installment would be paid on
8 April 2024.
The second dividend installment of EUR 0.15 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
installment on 9 October 2024. The Board of Directors proposes that the second dividend installment would be paid on
16 October 2024. 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 installment should
the rules of Euroclear Finland Ltd or statutes 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.
141
Decisions of the Annual General
Meeting 2023 and the first Board meeting
The Annual General Meeting of Terveystalo Plc was held on 23 March 2023 in Helsinki, Finland. The Annual General
Meeting adopted the financial statements for the fiscal year 2022 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.
The Annual General Meeting decided, in accordance with the proposal of the Board of Directors, that a dividend of
EUR 0.28 per share (totalling approximately EUR 35.4 million with the current number of shares) be paid based on
the balance sheet adopted for the fiscal year ended 31 December 2022.
The dividend was paid in two instalments as follows:
• The first dividend instalment of EUR 0.14 per share was paid to shareholders who are registered in the share-
holders' register of the Company maintained by Euroclear Finland Oy on the record date of the first dividend instal-
ment 27 March 2023. The first dividend instalment was paid to shareholders on 3 April 2023.
• The second dividend instalment of EUR 0.14 per share was paid to shareholders who are registered in the sharehold-
ers' register of the Company maintained by Euroclear Finland Oy on the record date of the second dividend instal-
ment 2 October 2023. The second dividend instalment was paid on 9 October 2023. The Annual General Meeting
authorised 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 Oy or statutes applicable to the Finnish book-entry sys-
tem change or otherwise so require.
The number of members of the Board of Directors was confirmed to be seven. Kari Kauniskangas, Carola Lemne, Kristian
Pullola, Matts Rosenberg, and Katri Viippola were re-elected as members of the Board, and Sofia Hasselberg and Ari
Lehtoranta were elected as new members of the Board for a term that ends at the end of the Annual General Meeting
2024.
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 authorise 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 authorisation covers a maximum of 12,703,653 shares, which corresponds to approximately
10 percent of all shares in the Company. In addition, as proposed by the Board of Directors, the Annual General
Meeting resolved to authorise 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 authorisation covers a maximum
of 12,703,653 shares, which corresponds to approximately 10% of all shares in the Company. These authorisations
are effective until the end of the next Annual General Meeting, however no longer than until 30 June 2024.
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. In addition, the
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Annual General Meeting resolved to authorise the Board of Directors to decide on the donation recipients, purposes
of use, and other terms of the donations. The authorisation will remain effective until the end of the next Annual
General Meeting 2024, however no longer than for a period of 18 months from the date of the resolution of the
Annual General Meeting.
In its organising meeting, the new Board of Directors Terveystalo's Board of Directors elected Kari Kauniskangas
as Chairman of the Board and Matts Rosenberg as Vice Chairman of the Board. Kristian Pullola was elected Chairman
of the Audit Committee and Matts Rosenberg, Katri Viippola and Sofia Hasselberg were elected members. Kari
Kauniskangas was elected Chairman of the Remuneration Committee and Carola Lemne and Ari Lehtoranta were
elected members.
Changes in Terveystalo’s Executive Team
As of 1 January 2023, Terveystalo's organisation has consisted of three business areas: Healthcare Services,
Portfolio Businesses, and Sweden.
Ilari Richardt was appointed Senior Vice President of Digital Services and a member of the Executive Team
as of 29 March 2023 as Kati Sulin left the Company.
Henri Mäenalanen was appointed as the Chief Operating Officer of Terveystalo Healthcare Services as of
12 April 2023 as Siina Saksi left the Company.
Terveystalo announced changes to the Executive Team on 31 October 2023. Sari Heinonen, b.1976, PhD,
Marketing, was appointed Executive Vice President of the Healthcare Services Business Area and a member of
Terveystalo's Executive Team as of 5 February 2024. Chief Operating Officer Henri Mäenalanen served as interim
EVP of the Healthcare Services business area until Sari Heinonen took up her position, after which he will took
over the position of Executive Vice President of Portfolio Businesses. Stefan Kullgren, who started as Executive
Vice President of the Swedish Business Area and CEO of Feelgood AB on 1 October 2023, was appointed as a
member of Terveystalo's Executive Team as of 1 November 2023.
In addition to the above-mentioned executives, Terveystalo's Executive team includes Petri Bono, Chief
Medical Officer, Juuso Pajunen, Chief Financial Officer and Minttu Sinisalo, Senior Vice President of People
and Careers. All the above report to President, and CEO Ville Iho.
Corporate governance
Terveystalo Plc’s Corporate Governance Statement, Remuneration Policy, and Remuneration Report for 2023 will be
published as part of the Annual Report 22 February 2024.
142
Events after the end of the reporting period
Terveystalo's Board of Directors has approved a new performance
period covering the years 2024–2026 of the long-term share-based
incentive plan for key personnel
Terveystalo Plc's Board of Directors has approved a new performance period covering the years 2024–2026 of the long-
term share-based incentive plan for key personnel. The purpose of the program is to align the objectives of sharehold-
ers 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 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, perfor-
mance measures, and targets as well as earning opportunities on an annual basis. Terveystalo published the establish-
ment of the program and its main terms in a stock exchange release on 3 December 2020.
Performance period 2024–2026 of the Performance Share Plan (PSP)
During the performance period 2024–2026, the participants are awarded for successful shareholder value creation.
The performance indicators based on which share rewards may be paid to 90 percent of the participants are absolute
and relative (compared to the OMX HKI benchmark CAP GI index) Total Shareholder Return. For 10 percent of the
participants, the value creation is measured by EBITA (adjusted earnings before interest, taxes, and amortisation) of the
business area or independent business that they lead.
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 2024–2026 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 achieved. The maximum number of shares to be paid based on this plan is 640,000 shares. Taxes and tax-
like payments to the recipient are deducted from the reward, after which the remaining net amount is paid to the
participants in shares.
No more than approximately 75 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.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Performance period 2024–2026 of the Restricted Share Plan (RSP)
The purpose of the Restricted Share Plan is to function as a supplementary structure for separately selected key
personnel of Terveystalo in special situations.
The share rewards will be paid in Terveystalo Plc shares after the end of the performance period, provided that
the individual participants are still employed by Terveystalo. The maximum number of shares to be paid based on
this plan is 64,000 shares.
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, organisations, 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 outlook within the next 12 months. The list is not intended to
be exhaustive. The order in which the risks are presented does not describe the magnitude of the impact of the risks'
realisation or the probability of their occurrence.
• Achieving the targeted financial effects of the launched profit improvement program is necessary to combat
the impact of high inflation and to achieve the financial targets set by the company.
• The company’s business operations rely on its capacity to identify, recruit, and retain competent and professional
healthcare professionals, employees, and executives. The increased supply of services and increased competition
may affect the availability of healthcare professionals, particularly in major cities. Turnover in key employees involves
the risk of losing knowledge and expertise.
• Weak general economic performance and high inflation in Finland and their effects on the financial circumstances of
private individuals, employers, and public entities may adversely affect Terveystalo’s business and results of operations
by decreasing the demand for Terveystalo’s services, as well as may adversely affect the availability of financing.
• The development and implementation of information system projects and services, service products, and operating
models involve risks. The company develops new digital customer solutions, which increases the overall risk related
to information systems. A failure in the development of digital systems may expose Terveystalo to potential technical
faults and disturbances.
• The company may not be able to find suitable acquisition targets or expansion opportunities under favourable
terms, and the integration of acquisition targets is not necessarily realized as planned.
• Terveystalo’s expansion to new geographical locations involves several risks, and failure to identify expansion
opportunities, recruit new employees, and achieve estimated benefits may adversely affect Terveystalo’s
business and the results of operations.
143
• 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 a decline in customer satisfaction.
• Endangered information security or privacy can lead to losses, claims for damages, and endanger reputation.
• Pandemics or epidemics and related restrictive measures may adversely affect the business operations of Terveystalo
through, among other things, demand for certain healthcare services and challenges in the supply chain.
• 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.
• Terveystalo is exposed to changes in demand for occupational healthcare services due to demographic trends, ageing
and shrinking working-age population.
• The Social Welfare and Healthcare Reform in Finland and its legal interpretations may have impacts on Terveystalo’s
business and results of operations.
• Changes in compensation systems for healthcare services may adversely affect Terveystalo’s business, financial
position, and results of operations.
• Failures or deficiencies in the operational risk management, medical quality, and internal control processes may result
in failure of quality control, including medical quality, or otherwise adversely affect Terveystalo's profitability and
reputation.
• Terveystalo’s operations could be subject to labour disruptions or disputes.
• 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 on the
company’s website and in the company’s Annual Review.
Annual General Meeting in 2024
Terveystalo Plc's Annual General Meeting (AGM) is planned to be held on Tuesday 26 March 2024.
The meeting will be convened by the company's Board of Directors separately at a later date.
Terveystalo Plc
Board of Directors
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
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 the financial measures defined in
IFRS. Those are performance measures that the company monitors internally and they provide significant additional
information 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 a substitute to the
measures under IFRS.
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.
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
x 100%
x 100%
x 100%
144
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 perfor-
mance measures are widely used by analysts, investors and other parties and facilitates comparability between periods.
Adjusted EBITDA*
=
Earnings Before Interest, Taxes, Depreciation,
Amortisation, Impairment losses and adjustments
Adjusted EBITDA, %*
=
Earnings Before Interest, Taxes, Depreciation,
Amortisation, Impairment losses and adjustments
Revenue
x 100%
Adjusted EBITA*
=
Earnings Before Interest, Taxes, Amortisation,
Impairment losses and adjustments
Adjusted EBITA, %*
=
Earnings Before Interest, Taxes, Amortisation,
Impairment losses and adjustments
Revenue
x 100%
Adjusted operating profit (EBIT)* =
Earnings Before Interest, Taxes and Share of
profits in associated companies, and adjustments
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Reconciliation of alternative performance measures
Adjusted operating profit
(EBIT), %*
=
Earnings Before Interest, Taxes and Share of
profits in associated companies, and adjustments
Revenue
EBITDA
EBITDA, %
EBITA
=
=
=
Earnings Before Interest, Taxes, Depreciation
and Amortisation and Impairment losses
Earnings Before Interest, Taxes, Depreciation
and Amortisation and Impairment losses
Revenue
Earnings Before Interest, Taxes, Amortisation
and Impairment losses
x 100%
x 100%
(EBITA), %
=
Earnings Before Interest, Taxes, Amortisation
and Impairment losses
Revenue
x 100%
Operating profit (EBIT)
=
Earnings Before Interest, Taxes and Share
of profits in associated companies
Return on equity, %
Net income
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, %
Operating profit (EBIT), %
=
Earnings Before Interest, Taxes and Share
of profits in associated companies
Revenue
x 100%
Net debt /Adjusted EBITDA
Interest-bearing liabilities
Adjusted EBITDA,
excluding IFRS 16 *
=
Earnings Before Interest, Taxes, Depreciation,
Amortisation, Impairment losses and adjustments,
excluding IFRS 16 lease adjustments
Interest-bearing receivables and cash and cash equivalents
Adjusted EBITDA
Net debt / Adjusted EBITDA
* 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), impairment losses, strategic projects and other items affecting comparability.
145
2023
-42.2
553.7
-7.6
2023
515.4
1,419.5
6.4
36.5
2023
635.8
37.7
515.4
116.0
2023
635.8
37.7
200.2
3.0
2022
24.4
600.4
4.1
2022
592.0
1,479.4
7.1
40.2
2022
607.0
40.4
592.0
95.7
2022
607.0
40.4
178.0
3.2
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
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Adjusted EBITDA, EUR mill.
Net income
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.
Net income
Income tax expense
Share of profits in associated companies
Net finance expenses
Amortisation and impairment losses
Adjustments*
Adjusted EBITA
Adjusted EBITA, %
Adjusted EBITA
Revenue
Adjusted EBITA, %
146
2023
-42.2
3.3
0.0
24.2
193.8
21.1
200.2
2023
200.2
1,286.4
15.6
2023
-42.2
3.3
0.0
24.2
119.1
21.2
125.6
2023
125.6
1,286.4
9.8
2022
24.4
6.5
0.1
2.9
134.9
9.2
178.0
2022
178.0
1,259.1
14.1
2022
24.4
6.5
0.1
2.9
62.0
9.2
105.2
2022
105.2
1,259.1
8.4
2021
80.4
20.3
0.3
9.0
91.7
4.3
206.1
2021
206.1
1,154.6
17.8
2021
80.4
20.3
0.3
9.0
26.6
4.3
141.0
2021
141.0
1,154.6
12.2
Adjusted operating profit (EBIT), EUR mill.
Net income
Income tax expense
Share of profits in associated companies
Net finance expenses
Adjustments*
Adjusted EBIT
Adjusted operating profit (EBIT), %
Adjusted EBIT
Revenue
Adjusted EBIT, %
EBITDA, EUR mill.
Net income
Income tax expense
Share of profits in associated companies
Net finance expenses
Depreciation, amortisation and impairment losses
EBITDA
EBITDA, %
EBITDA
Revenue
EBITDA, %
2023
-42.2
3.3
0.0
24.2
107.8
93.1
2023
93.1
1,286.4
7.2
2023
-42.2
3.3
0.0
24.2
193.8
179.2
2023
179.2
1,286.4
13.9
2022
24.4
6.5
0.1
2.9
39.5
73.4
2022
73.4
1,259.1
5.8
2022
24.4
6.5
0.1
2.9
134.9
168.8
2022
168.8
1,259.1
13.4
2021
80.4
20.3
0.3
9.0
4.3
114.4
2021
114.4
1,154.6
9.9
2021
80.4
20.3
0.3
9.0
91.7
201.8
2021
201.8
1,154.6
17.5
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
EBITA, EUR mill.
Net income
Income tax expense
Share of profits in associated companies
Net finance expenses
Amortisation and impairment losses
EBITA
EBITA, %
EBITA
Revenue
EBITA, %
Operating profit (EBIT), EUR mill.
Net income
Income tax expense
Share of profits in associated companies
Net finance expenses
EBIT
Operating profit, (EBIT), %
EBIT
Revenue
EBIT, %
Adjustments based on subject area* , EUR mill.
Acquisition-related expenses1)
Restructuring-related expenses2)
Impairment losses
Strategic projects and other items affecting to comparability
Adjustments
147
2023
-42.2
3.3
0.0
24.2
119.1
104.4
2023
104.4
1,286.4
8.1
2023
-42.2
3.3
0.0
24.2
-14.7
2023
-14.7
1,286.4
-1.1
2023
-0.8
3.2
80.8
18.8
101.9
2022
24.4
6.5
0.1
2.9
62.0
95.9
2022
95.9
1,259.1
7.6
2022
24.4
6.5
0.1
2.9
33.9
2022
33.9
1,259.1
2.7
2022
2.8
1.5
30.3
5.0
39.5
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
2021
110.1
1,154.6
9.5
2021
3.1
0.3
-
0.8
4.3
Adjustments based on account group* , EUR mill.
Other operating income
Personnel expenses
Other operating expenses
Depreciation and impairment
Deferred tax
Adjustments
Adjusted EBITDA, excluding IFRS 16
Net income
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
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
2023
-0.8
3.1
18.7
86.7
-5.9
101.9
2023
-42.2
3.3
0.0
24.2
193.8
21.1
-57.4
142.8
2023
416.7
37.7
142.8
2.7
2022
-0.1
1.3
8.0
30.3
-
39.5
2022
24.4
6.5
0.1
2.9
134.9
9.2
-55.8
122.2
2022
427.2
40.4
122.2
3.2
2021
-0.4
0.3
4.4
-
-
4.3
2021
80.4
20.3
0.3
9.0
91.7
4.3
-49.2
156.9
2021
378.8
38.2
156.9
2.2
* Adjustments are material items outside the ordinary course of business, and these relate to acquisition-related expenses, restructuring-
related expenses, gain /losses on sale of assets (net), impairment losses, 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
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Consolidated financial statements, IFRS
Consolidated statement of comprehensive income
Note
4, 5
6
7
8
9
10
11
11
12
1.1.–31.12.2023
1.1.–31.12.2022
EUR mill.
Note
1.1.–31.12.2023
1.1.–31.12.2022
1,286.4
4.2
-536.2
-447.0
-193.8
-128.2
-14.7
1.2
-25.4
-24.2
0.0
-38.9
-3.3
-42.2
-42.2
-
1,259.1
2.7
-525.7
-455.0
-134.9
-112.3
33.9
7.5
-10.4
-2.9
-0.1
30.9
-6.5
24.4
24.4
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
The notes are an integral part of the Consolidated financial statements.
13
13
0.1
-0.1
0.0
-42.2
-42.2
-
-0.33
-0.33
-5.3
0.2
-5.1
19.3
19.3
0.0
0.19
0.19
EUR mill.
Revenue
Other operating income
Materials and services
Employee benefit expenses
Depreciation, amortisation and impairment losses
Other operating expenses
Operating result
Financial income
Financial expenses
Net finance expenses
Share of results in associated companies
Result before taxes
Income tax expense
Net income
Profit attributable to
Owners of the parent company
Non-controlling interests
148
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Consolidated statement of financial position
EUR mill.
ASSETS
Non-current assets
Property, plant and equipment
Right-of-use assets
Goodwill
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
Current tax receivables
Cash and cash equivalents
Total current assets
TOTAL ASSETS
149
Note
31 Dec 2023
31 Dec 2022
EUR mill.
EQUITY AND LIABILITIES
Note
31 Dec 2023
31 Dec 2022
14
14
15, 16
15
17
18
20
12
20
22
23
84.2
212.1
823.5
100.0
0.3
0.0
0.0
6.0
0.8
82.0
173.9
879.5
145.2
0.5
0.0
0.3
7.7
0.8
Equity attributable to equity holders of the Company
Share capital
Invested non-restricted equity reserve
Treasury shares
Translation differences
Retained earnings
Equity attributable to equity holders of the Company total
Non-controlling interest
TOTAL EQUITY
1,226.8
1,289.8
Non-current liabilities
Non-current financial liabilities
Non-current lease liabilities
Deferred tax liabilities
Provisions
Other liabilities
Total non-current liabilities
6.6
138.4
4.5
40.2
189.7
1,479.4
Current liabilities
7.1
143.1
4.8
37.7
192.6
1,419.5
Current financial liabilities
Current lease liabilities
Current tax liabilities
Provisions
Trade and other payables
Total current liabilities
TOTAL LIABILITIES
Total equity and liabilities
The notes are an integral part of the consolidated financial statements.
0.1
492.8
-15.7
-5.2
43.4
515.4
-
515.4
394.4
172.6
20.2
2.8
13.7
603.7
22.3
46.5
3.6
3.3
224.7
300.3
904.1
1,419.5
0.1
492.8
-15.8
-5.3
120.2
592.0
0.0
592.0
383.1
133.2
29.5
8.3
16.2
570.3
44.2
46.5
0.0
3.2
223.2
317.1
887.4
1,479.4
20, 21, 25
14, 21, 25
12
27
20, 21, 25
14, 21, 25
27
26
TerveystaloAnnual Report 2023
Year 2023
Sustainability
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
150
Note
1.1.–31.12.2023
1.1.–31.12.2022
EUR mill.
Cash flows from investing activities
-38.9
30.9
Acquisition of subsidiaries, net of cash acquired
9
27
11
193.8
-2.1
-6.7
-0.2
24.2
-8.7
-0.5
2.5
1.2
-6.6
158.0
134.9
0.5
-4.1
-0.3
2.9
1.6
-0.2
0.4
0.3
-26.0
140.9
Acquisition of property, plant and equipment
Acquisition of intangible assets
Proceeds from the disposal of associates
Sale of business operation, net of cash disposed of
Acquisition of business operations, net of cash acquired
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
Proceeds from non-current borrowings
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
The notes are an integral part of these Consolidated financial statements.
Note
1.1.–31.12.2023
1.1.–31.12.2022
3
3
3
25
25
25
25
25
25
-4.0
-24.6
-16.4
-
0.3
-0.3
0.8
0.0
-44.2
-0.1
224.6
-210.0
26.8
-47.1
-50.9
-4.3
-19.9
-35.4
-116.2
-2.4
40.2
-0.1
37.7
-34.9
-30.2
-29.0
0.1
-
-0.7
0.7
0.0
-93.9
-0.0
169.5
-40.0
41.0
-116.7
-49.3
-5.3
-8.4
-35.4
-44.6
2.3
38.1
-0.3
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Consolidated statement of changes in equity
Equity attributable to owners of the parent company
Equity attributable to owners of the parent company
Share
capital
0.1
Invested
non-restricted
equity reserve
Treasury
shares
Retained
earnings
Translation
differences
Total
Non-
controlling
interests
Total
equity
492.8
-15.8
120.2
-5.3
592.0
0.0
592.0
Share
capital
0.1
Invested
non-restricted
equity reserve
Treasury
shares
Retained
earnings
Translation
differences
Total
Non-
controlling
interests
Total
equity
492.8
-18.0
134.8
-0.8
608.9
0.0
608.9
EUR mill.
Equity 1 Jan 2023
Comprehensive
income
Net income
Other compre-
hensive income
Transactions
with owners
Share-based
payments
Dividends
Transactions with
non-controlling
interests
Transactions with
non-controlling
interest
Other
Other corrections*
-
-
-
-
-
-
-
-
-
-
-
-
0.1
-
-
-
-42.2
-0.1
1.3
-35.4
-
-0.4
43.5
-
0.1
-42.2
0.0
1.4
-35.4
-
-
-
-
-5.2
-
-
-
-
-42.2
0.0
1.4
-35.4
-
-0.0
-0.0
-0.4
515.4
-
-
-0.4
515.4
EUR mill.
Equity 1 Jan 2022
Comprehensive
income
Net income
Other compre-
hensive income
Transactions
with owners
Share-based
payments
Dividends
Transactions with
non-controlling
interests
Transactions with
non-controlling
interest
-
-
-
-
-
-
-
-
-
-
-
-
2.2
-
-
24.4
-0.5
-3.0
-35.4
-
-
-4.5
24.4
-5.1
-
-
-
-0.8
-35.4
-
0.0
-
-
-
0.0
0.0
24.4
-5.1
-0.8
-35.4
0.0
592.0
Equity 31 Dec 2022
0.1
492.8
-15.8
120.2
-5.3
592.0
Equity 31 Dec 2023
0.1
492.8
-15.7
* Correction to figures of previous financial years.
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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 24 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 and leading occupational health provider
in the Nordic region. The company offers general practice and specialist medical care, diagnostic services, outpatient
surgery, dental services and other adjacent services to corporate, private and public sector customers.
In its meeting on 13 February 2024, the Board of Directors of Terveystalo Plc approved the publishing of these
consolidated 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
prepared in compliance with the IAS and IFRS standards as well as the SIC and IFRIC interpretations in force on
31 December 2023. The consolidated financial statements also comply with the regulations of Finnish accounting
and company legislation complementing the IFRSs.
2.2 Application of new and amended IFRSs
and new IFRIC agenda decisions
New and amended standards applied in the financial year 2023
The Group has applied as from 1 January 2023 the following new and amended standards that have come into effect:
• Amendments to IAS 1 – Disclosure of Accounting Policies: The amendments clarify the application of materiality
to disclosure of accounting policies.
• Amendments to IAS 8 – Definition of Accounting Estimates: 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.
• Amendments to IAS 12 – Deferred Tax related to Assets and Liabilities arising from a Single Transaction:
The amendments narrow the initial recognition exemption (IRE) and clarify that the exemption does not
apply to transactions such as leases and decommissioning obligations which give rise to equal and offsetting
temporary differences.
• Amendments to IAS 12 – International Tax Reform — Pillar Two Model Rules: The amendments give relief from
accounting for deferred taxes arising from the OECD’s (Organisation for Economic Co-operation and Development)
international tax reform and require new disclosures to compensate for the potential loss of
information resulting from the relief.
The impacts of the above-mentioned amendments on Terveystalo’s consolidated financial statements have not
been significant.
New and amended standards applied in the financial year 2023 that have no impact on Terveystalo’s consolidated
financial statements:
• IFRS 17 Insurance Contracts, including Amendments Initial Application of IFRS 17 and IFRS 9 –
The consolidated financial statements are presented in millions of euros and have been prepared under the his-
Comparative Information
torical cost basis, unless otherwise stated in the accounting principles. All figures presented have been rounded, and
consequently the sum of individual figures may deviate from the presented aggregate figure.
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Adoption of new and amended standards and
interpretations applicable in future financial years
At the publication day of this Group consolidated financial statements, Terveystalo has not applied following new
and amended standards and interpretations that are effective in future periods:
• Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback (effective for financial years beginning on
or after 1 January 2024, early application is permitted)
• Amendments to IAS 1 – Classification of Liabilities as Current or Non-current Date; Classification of Liabilities
as Current or Non-current – Deferral of Effective Date; Non-current Liabilities with Covenants* (effective for
financial years beginning on or after 1 January 2024, early application is permitted)
• Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements* (effective for financial years beginning
on or after 1 January 2024, early application is permitted)
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 on the reporting date, prior experience and assump-
tions about future events related, among other things, to the expected development of the Group's economic environ-
ment in terms of sales and cost level. However, it is possible that the realised outcomes differ from the estimates and
assumptions used in the financial statements. In addition, the application of the accounting policies requires judgement,
especially 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.
• Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate
The most important issues requiring management’s judgement are presented below:
or Joint Venture* (available for optional adoption, effective date deferred indefinitely)
The impact on above-mentioned standards and amendments on Terveystalo’s consolidated financial statements
are not expected to be significant.
New and amended standards and interpretations applicable in future financial years that are not expected
to have impact on Terveystalo’s consolidated financial statements:
• Amendments to IAS 21 – Lack of Exchangeability* (effective for financial years beginning on or after
1 January 2025, early application is permitted)
* not yet endorsed for use by the European Union as of 31 December 2023.
Lease contracts
Terveystalo’s lease contracts include both termination and extension options. Group uses the options in managing lease
contracts to ensure the flexible use of premises in the Group’s businesses. Management uses judgement to determine
the use of termination and extension options and assesses the lease termination dates and lease terms. Based on man-
agement’s judgement, 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.
Provisions
The most significant provisions in the statement of financial position relate mainly to loss-making contracts.
Management makes estimates mainly concerning the total loss of the loss-making contracts.
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The critical accounting estimates 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 infor-
mation 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 is based on potential scenarios for future returns, amounts paid under different scenarios and the
probability of each scenario.
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 appropriate,
the estimated recoverable amounts may differ from the actual results.
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
company. 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
commences 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
interest 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
incurred. 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
either as a liability or equity. Contingent consideration classified as a liability is measured at fair value at the end of
reporting 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 the 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 recog-
nised 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.
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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
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
expenses. 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
whether 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
consolidated 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 Feelgood subgroup 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
155
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
10 years
10–40 years
2–7 years
3–10 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.
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
depreciation 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 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.
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.
Intangible assets
Intangible assets include software and licenses, as well as acquired companies’ customer relationships, trademarks and
other intangible assets. Intangible assets are recognised initially at cost if the cost of the asset can be measured 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 recognised 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.
Intangible assets are measured at cost and amortised on a straight line basis over the known or estimated
useful lives.
The Group has no intangible assets with indefinite useful life except for goodwill.
Amortisation periods used for intangible assets are as follows:
Immaterial rights
Software
Customer agreements and related customer relationships
Trademarks
Other intangible assets
3–7 years
3–5 years
2–12 years
20 years or shorter useful life
3–5 years
156
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
expenditure 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 cash-generating units, 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 estimated 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
impairment loss is recognised in the statement of income. If impairment loss is related to a cash generating unit, the
impairment 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.
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 a simplified
approach. Expected credit loss rates have been calculated using historical information of actual impairment losses,
and the current conditions and the Group’s view of the economic conditions over the expected lives of the receivables
have been taken into account.
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2.10 Leases
Group as a lessee
The Group assesses whether a contract is or contains a lease at the 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 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 a 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 remeasured 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
instruments 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 amortised
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.
Subsequently right-of-use assets are measured at cost less any accumulated depreciation and any accumulated
The Group has not had financial assets at fair value through other comprehensive income during the periods 2022
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. The estimated useful lives of right-of-use assets are 1–16 years.
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 commen-
cement date. The Group uses an 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 guarantee, and the exercise price under a purchase option that Terveystalo is reasonably certain to exercise.
or 2023.
The financial asset is derecognised when the contractual rights to the cash flows expire, or the financial asset is trans-
ferred to another party and the Group substantially transfers all the risks and rewards of ownership to another party.
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
considerations. Realised or unrealised gains and losses arising from changes in fair values are recognised the
statement of income in the period in which they are incurred.
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Financial liabilities at amortised cost include loans from financial institutions, bonds, 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
2022 or 2023.
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.
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
amendment 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 expensed
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-settled 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
accordance 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 profit-
ability, 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.
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 to 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 financial
position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of
the 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.
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 contingent liability. Contingent liabilities are disclosed in the notes.
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Sustainability
Corporate Governance
Financials
2.15 Revenue recognition
The Group’s revenue consists mainly of occupational healthcare services, general practice and clinic hospital operations,
dental services as well as diagnostic services. The Group also provides diverse primary healthcare, special healthcare,
child welfare and digital healthcare services for public sector as well as amongst other things, 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 consid-
eration such as a discount or penalty. Possible variable considerations are assessed at each reporting date and are allo-
cated to one or more performance obligations. The terms of payment and payment periods in customer contracts vary,
but payment time is nonetheless 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.
Terveystalo’s chief operating decision maker is the CEO who is monitoring the operating results of operating
segments for the purpose of assessing performance and making decisions about resource allocation. Key financial
performance measures of the segments comprise primarily revenue and segment adjusted earnings before interest,
taxes, amortisation and impairment (EBITA). The evaluation of segment performance and allocation of resources is
primarily based on segment adjusted EBITA, which the management estimates the most relevant measure for this
purpose.
Healthcare Services offers customers in Finland integrated care paths from preventive occupational health services
to primary care services and to different fields of specialised care, diagnostic, and day surgery. In Healthcare Services,
Terveystalo aims for industry-leading profitability and the best care outcomes.
The Portfolio Businesses segment consists of business areas that aim for independent value creation utilising
Terveystalo’s capabilities according to their needs. Portfolio Businesses include public sector outsourcing, staffing ser-
vices, and dental care, as well as other businesses such as public sector digital services, rehabilitation, child welfare, and
massage services, as well as sign language interpretation services.
The Sweden segment consists of Feelgood subsidiaries’ operations in Sweden, which are focused on occupational
health and consultation for organisational management and harmful use. In Sweden, Terveystalo aims for profitable
growth in the medium and long term.
In addition to operating segments, Terveystalo provides information for Other section. Other reported figures
mainly consist of parent company expenses as well as unallocated Group level adjustments and provisions.
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
conditions associated with the grants.
2.16 Segment information
2.18 Operating profit
Terveystalo has changed its operating model that came into effect at the beginning of the year 2023, and, as a result,
the financial reporting structure to better highlight the performance of Terveystalo's businesses. The new reporting
structure reflects Terveystalo's new operating model and is aligned with the way the company’s chief operating
decision maker follows the operational performance of Terveystalo's businesses. Terveystalo Group comprises of three
operating segments that are reportable segments: Healthcare Services, Portfolio Businesses, and Sweden. Monitoring
of profitability is primarily based on operating segments. In addition, Terveystalo provides disclosure on revenue for
Healthcare Services on customer and service level, and for Portfolio Businesses on service level.
159
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.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
2.19 Earnings per share
3. Business Combinations
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 to the earnings per share.
During the year 2023, the Group has made one corporate acquisition and one business acquisition.
• On 15 August 2023 Feelgood Företagshälsovård AB acquired 100 percent of the occupational health provider
Växjö Hälsoforum AB.
• On 2 October 2023 Feelgood Sjukvård AB acquired the occupational health care business of Quality Care AB.
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
liabilities for financial reporting purposes and the amounts in taxation. Deferred tax is not recognised in the initial rec-
ognition 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 loss making 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.
160
The following table summarises the acquisition date fair values of the consideration transferred as well as the recog-
nised 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 preliminary, and the information has been consolidated, because the acquisitions are not
material individually.
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
Trade and other receivables
Lease liabilities
Trade and other payables
Deferred tax liabilities
Total identifiable net assets acquired
Goodwill
0.6
0.5
1.0
0.2
0.1
0.0
0.3
0.1
-0.3
-0.3
0.0
0.0
1.0
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
As a result of these business combinations, a preliminary goodwill amounting to EUR 1.0 million was recognised.
The goodwill is attributable to skills of the workforce and synergies expected to be achieved. EUR 0.7 million
of the recognised goodwill is deductible in taxation. Cashflow impact of the acquisitions made during 2023 was
EUR -0.3 million.
In these business combinations, the Group has acquired customer relationships. The fair value of customer
contracts and related customer relationships included in intangible assets has been determined on the basis of the
estimated duration of customer relationships and the discounted net cash flows from existing customer contracts.
Business Combinations 2022
During the year 2022, the Group has made 12 corporate acquisitions and 3 business acquisitions.
• On 1 February 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the occupational
health provider Vantaan Työterveys Oy.
• On 1 February 2022 Feelgood Företagshälsovård AB acquired 100 percent of the Swedish occupational
health provider Länshälsan Uppsala Ab.
• On 31 March 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the physiotherapy
service provider Lapin Liikuntaklinikka Oy.
The fair value of the acquired trade and other receivables amounted to EUR 0.1 million, for which the risk of
• On 31 March 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the physiotherapy
impairment has been deemed as non-significant.
service provider OMT Klinikka Kokkola Oy.
The Group has incurred acquisition-related expenses of EUR 0.1 million related to consulting, valuation or
equivalent services. The expenses have been included in other operating expenses.
The contributed revenue recognised from the acquisitions during the year 2023 was EUR 0.4 million and loss
was EUR 0.0 million.
If the acquisition had occurred on 1 January 2023, management estimates that the Group’s consolidated
revenue in 2023 would have been EUR 1,286.9 million and the consolidated result for the period would have
been EUR -42.2 million.
• On 31 March 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the physiotherapy and
occupational therapy service provider Suomen Fysiogeriatria Oy and an indirect 100 percent ownership in
its subsidiaries Aktiivi-Fysioterapia Tampere Oy, Mimmin Terapia Oy and toi.minna Oy.
• On 1 May 2022 Feelgood Företagshälsovård AB acquired 100 percent of the shares of the Swedish
occupational health provider Jobbhälsan i Norr AB.
• On 1 May 2022 Feelgood Svenska AB acquired 100 percent of the shares of the Swedish addiction treatment
provider Nämndemansgården AB and its subsidiaries.
• On 31 May 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the physiotherapy service
provider Into Terveys Oy.
• On 30 June 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the physiotherapy service
provider Kunnon Syke Oy.
• On 31 August 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the therapy service
provider Ludus Oy Tutkimus- ja Kuntoutuspalvelut.
• On 31 August 2022 Suomen Terveystalo Oy acquired the dental clinic business of Hammasrasti.
• On 31 August 2022 Suomen Terveystalo Oy acquired the physiotherapy and therapy businesses of
FysioProfessionals.
• On 30 September 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the physiotherapy
service provider Saimaan Urheilufysioterapia Oy.
• On 30 September 2022 Suomen Terveystalo Oy acquired the dental clinic business of Hymyn Paikka.
• On 31 October 2022 Terveystalo Healthcare Oy acquired 100 percent of the shares of the chat and video
connection solution provider Somia Reality Oy.
161
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
As a result of these business combinations, a preliminary goodwill amounting to EUR 34.0 million was recognised
in 2022. In 2023, effect to goodwill arising from corporate acquisitions made in year 2022 was EUR 0.3 million.
The goodwill is attributable to skills of the workforce and synergies expected to be achieved. EUR 1.0 million of
the recognised goodwill is deductible in taxation. Cashflow impact of the acquisitions made during 2022 was
EUR -32.9 million. In 2023, cash flow effect from corporate acquisitions made in year 2022 was EUR -4.0 million
due to adjustments to purchase prices and additional purchase prices paid.
In these business combinations, the Group has acquired customer relationships and technology-related
intangible assets. The fair value of customer contracts and related customer relationships included in other
intangible assets has been determined on the basis of the estimated duration of customer relationships and the
discounted net cash flows from existing customer contracts. The fair value of technology has been determined
using the estimated replacement cost.
The fair value of the acquired trade and other receivables amounted to EUR 5.2 million, for which the risk of
impairment has been deemed as non-significant.
The Group has incurred acquisition related expenses of EUR 1.3 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 the year 2022 was EUR 18.3 million and loss
was EUR 1.0 million.
If the acquisition had occurred on 1 January 2022, management estimates that the Group’s consolidated re-
venue in 2022 would have been EUR 1 268.0 million and the consolidated result for the period would have been
EUR 23.3 million.
The following table summarises the acquisition date fair values of the consideration transferred as well as the recognised
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
information has been consolidated, because the acquisitions are not material individually.
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
Deferred tax assets
Inventories
Trade and other receivables
Financial liabilities
Lease liabilities
Trade and other payables
Deferred tax liabilities
Interest bearing liabilities
Total identifiable net assets acquired
Goodwill
162
37.8
5.1
42.9
4.4
6.0
1.1
4.4
0.2
0.2
5.2
-0.5
-4.4
-6.2
-1.1
-0.1
8.9
34.0
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Reconciliation of the total of the reportable segment's
adjusted EBITA to the Group's profit before taxes
EUR mill.
Profit before taxes
Share of profits in associated companies
Net finance expenses
Amortisation and impairment losses
Adjustments
Other
Adjusted EBITA
31 Dec 2023
-38.9
31 Dec 2022
30.9
0.0
24.2
119.1
21.2
-4.2
121.4
0.1
2.9
62.0
9.2
0.1
105.3
Non-current assets by geographical areas
Non-current assets include property, plant and equipment, right-of-use assets, goodwill, other intangible assets,
investment properties and investments in associates.
EUR mill.
Finland
Sweden
Total
31 Dec 2023
31 Dec 2022
1,144.7
75.3
1,220.0
1,206.3
74.8
1,281.1
4. Segment information
Terveystalo Group’s operating segments are Healthcare Services, Portfolio Businesses, and Sweden. These are also
reportable segments and operating segments are not aggregated.
Healthcare
services
Portfolio
Businesses
Segments
Sweden
total Other
Internal
eliminations
Total
933.5
15.1
948.6
109.0
5.9
260.7
92.3
1,286.4
6.5
0.2
21.8
267.2
8.7
1.0
92.5
3.7
6.9
1,308.2
121.4
13.8
-
-
-
4.2
60.9
-
1,286.4
-21.8
-
-21.8
1,286.4
-
-
125.6
74.6
Healthcare
services
Portfolio
Businesses
Segments
Sweden
total Other
Internal
eliminations
Total
882.5
15.3
897.8
99.2
5.6
284.0
92.6
1,259.1
6.7
0.2
22.2
290.7
3.5
0.9
92.8
2.6
6.6
1,281.3
105.3
13.1
-
-
-
-0.1
59.7
-
1,259.1
-22.2
-
-22.2
1,259.1
-
-
105.2
72.8
Segment information
1.1.–31.12.2023
EUR mill.
Revenue
Revenues from
external customers
Revenues from transactions
with other operating seg-
ments of the same entity
Total revenue
Adjusted EBITA
Depreciations
1.1.–31.12.2022
EUR mill.
Revenue
Revenues from
external customers
Revenues from transactions
with other operating seg-
ments of the same entity
Total revenue
Adjusted EBITA
Depreciations
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TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
5. Revenue
The Group's distribution of revenue is based on three segments: Healthcare Services, Portfolio Businesses, and
Sweden. For more information on segments, refer to Note 4, Segment information. The revenue of Healthcare
Services is divided by services and customer groups. The revenue of Portfolio Businesses is divided by services.
Terveystalo offers its primary and outpatient secondary health care services to three distinct customer groups:
corporate customers, private customers, and public customers. The Group does not have customers whose
revenue exceeds 10 percent of the Group's total revenue.
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.
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 persona-
lised 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.
Terveystalo’s public customer group is made up of Finnish public sector organisations, such as municipalities,
municipal federations, and hospital districts, as well as municipal occupational health care customers. 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.
Dissagregation of revenue
EUR mill.
Healthcare services
Portfolio Businesses
Sweden
Elimination
Total
164
1.1.–31.12.2023
948.6
1.1.–31.12.2022
897.8
267.2
92.5
-21.8
1,286.4
290.7
92.8
-22.2
1,259.1
Healthcare services, revenue, EUR mill.
By customer
1.1.–31.12.2023
1.1.–31.12.2022
Corporate
Consumer
Public sector
Total
By service
Appointments
Diagnostics
Other
Total
Portfolio Businesses, revenue, EUR mill.
Outsourcing services
Staffing services
Dental care
Other
Total
Timing of satisfying performance obligations
EUR mill.
At a point in time
Over time
Total
Balances in the statement of financial position
EUR mill.
Contract assets
Contract liabilities
564.0
296.1
88.5
948.6
618.3
229.6
100.7
948.6
522.9
278.4
96.4
897.8
556.3
250.0
91.5
897.8
1.1.–31.12.2023
91.1
1.1.–31.12.2022
118.7
84.7
54.5
36.9
267.2
84.1
52.2
35.6
290.7
1.1.–31.12.2023
1,192.9
1.1.–31.12.2022
1,134.4
93.5
1,286.4
124.6
1,259.1
31 Dec 2023
10.2
8.8
31 Dec 2022
12.8
10.3
The Group will satisfy performance obligations related to the contract liabilities within one year.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
6. Other operating income
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
165
9. Depreciation, amortisation and impairment
1.1.–31.12.2023
0.9
1.1.–31.12.2022
1.1
EUR mill.
Depreciation and amortisation by asset type
1.1.–31.12.2023
1.1.–31.12.2022
0.2
3.1
4.2
0.3
1.2
2.7
1.1.–31.12.2023
-40.8
1.1.–31.12.2022
-44.1
0.5
-495.9
-536.2
0.2
-481.8
-525.7
1.1.–31.12.2023
-374.3
1.1.–31.12.2022
-379.5
-1.4
-58.7
-12.6
-447.0
9,824
-2.0
-61.0
-12.5
-455.0
10,933
Intangible assets
Trademarks
Customer relationships
Other intangible assets
Total
Property, plant and equipment
Buildings
Machinery and equipment
Improvement to premises
Total
Right-of-use assets
Investment property
Depreciation and amortisation total
Impairment losses by asset groups
Goodwill
Customer relationships
Other intangible assets
Machinery and equipment
Improvement to premises
Investment property
Associated companies
Impairment total
Total depreciation, amortisation and impairment losses
-4.7
-9.4
-18.2
-32.2
-0.0
-14.9
-6.4
-21.3
-53.3
-0.0
-4.5
-4.8
-20.9
-30.1
-0.0
-14.6
-5.9
-20.5
-52.4
-0.0
-107.0
-103.0
-57.3
-29.3
-0.0
-0.0
-0.0
-0.2
-
-86.9
-193.8
-
-
-30.5
-0.8
-0.2
-
-0.4
-31.9
-134.9
TerveystaloAnnual Report 2023 Year 2023
Sustainability
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
Auditor's fees
11. Financial income and expenses
1.1.–31.12.2023
-22.7
1.1.–31.12.2022
-3.7
EUR mill.
Interest income on loans and other receivables
Dividend income
-25.1
-40.4
-7.4
-4.9
-6.9
-8.7
-0.1
-12.0
-128.2
-22.6
-39.7
-7.1
-5.1
-6.5
-8.5
-1.6
-17.4
-112.3
Change in fair value of interest rate derivatives, no hedge accounting
Total financial income
Interest expense on loans from financial institutions
Interest expense on bonds
Interest expenses on lease liabilities
Change in fair value of interest rate derivatives, no hedge accounting
Other financial expenses
Total financial expenses
Net financial expenses
In thousands of euro
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
Tax services, KPMG
Other services, KPMG
Total
Auditor's fees total
1.1.–31.12.2023
1.1.–31.12.2022
12. Taxes
-481.1
-11.0
-492.1
-4.3
-
-4.3
-496.4
-387.9
-13.4
-401.4
-2.8
-49.5
-52.3
-453.6
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
Auditor's fees have been presented excluding value-added tax. Non-audit services paid for the parent company’s
auditor, KPMG Oy Ab, were 4 (52) thousand euros in total.
166
1.1.–31.12.2023
1.2
1.1.–31.12.2022
0.3
0.0
-
1.2
-14.3
-3.2
-5.2
-1.9
-0.9
-25.4
-24.2
0.0
7.1
7.5
-5.9
-
-3.9
-
-0.5
-10.4
-2.9
1.1.–31.12.2023
-10.8
1.1.–31.12.2022
-8.3
-0.1
7.6
-3.3
0.0
1.8
-6.5
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Reconciliation of the Group's tax rate to the Finnish tax rate
12.2 Deferred tax assets and liabilities
1.1.–31.12.2023
-38.9
1.1.–31.12.2022
30.9
Deferred tax assets 2023
EUR mill.
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
Global minimum top-up tax (Pillar 2)
Terveystalo Group has assessed the impacts of Global minimum top-up tax (Pillar 2) regulation on the taxation of its
Group companies. Besides Finland, the Group has operations in Sweden and to a minor extent in Estonia. In Finland
and in Sweden effective tax rate is above global minimum top-up tax rate of 15%. Therefore the Group is not expecting
to pay top tax due to Pillar 2 minimum top-up tax regulation.
The Group has applied a temporary mandatory relief from deferred tax accounting that arises from international
tax reform enforcement legislation.
7.8
-0.0
0.6
-11.7
0.0
0.2
-0.2
-0.1
0.1
-3.3
-6.2
-0.0
0.2
-0.5
-0.0
0.2
-0.2
0.0
0.0
-6.5
EUR mill.
Provisions
Tax losses carried forward
Leases
Interest rate derivatives
Other temporary differences
Total
1 Jan 2023
1.6
Business
combinations
-
Recognised in the
statement of income
-0.4
Translation
differences
-
31 Dec 2023
1.2
1.8
1.4
0.7
2.1
7.7
-
0.0
-
-
0.0
-0.3
0.1
-0.7
-0.4
-1.7
-
0.0
-
-
0.0
1.5
1.5
0.0
1.8
6.0
Deferred tax liabilities 2023
EUR mill.
Reversal of goodwill amortisation
1 Jan 2023
3.0
Business
combinations
-
Recognised in the
statement of income
0.2
Translation
differences
-
31 Dec 2023
3.2
Business combinations
Depreciation difference
Loan withdrawal expense
Interest rate derivatives
Other temporary differences
Total
21.1
2.5
0.1
2.0
0.8
29.5
0.0
-
-
-
-
0.0
-9.3
0.8
0.1
-1.0
-0.0
-9.2
-0.0
-
-
-
-
11.9
3.3
0.2
0.9
0.8
-0.0
20.2
The Group has no material deductible temporary differences, unused tax losses or unused tax credits for which no
deferred tax asset has been recognised.
167
EUR mill.
Deferred tax asset
Deferred tax liability
Total
1 Jan 2023
36.2
-34.8
1.4
Deferred taxes from lease agreements
Business
combinations Additions Disposals
-3.5
22.8
0.1
Recognised in the
statement of income
-10.7
31 Dec 2023
44.8
-0.1
0.0
-22.8
0.0
3.5
-0.0
10.8
0.1
-43.3
1.5
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Deferred tax assets 2022
Deferred taxes from lease agreements
EUR mill.
Deferred tax asset
1 Jan 2022
35.9
combinations Additions Disposals
-1.1
0.9
11.1
Business
Recognised in
the statement
of income
-10.5
Translation
difference
-0.1
31 Dec 2022
36.2
Deferred
tax liability
Total
-34.5
1.4
-0.9
0.0
-11.1
0.0
1.1
0.0
10.5
0.0
0.1
-0.0
-34.8
1.4
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.–31.12.2023
-42.2
1.1.–31.12.2022
24.4
126,555
127,037
-0.33
-0.33
126,508
127,037
0.19
0.19
EUR mill.
Provisions
Tax losses carried forward
Leases
Interest rate derivatives
Other temporary differences
Total
Recognised in
the statement
of income
0.1
1 Jan 2022
1.5
Translation
difference
-
31 Dec 2022
1.6
0.0
1.4
0.2
2.3
5.4
1.8
0.0
0.4
-0.2
2.0
-
-0.0
-
-0.0
-0.0
1.8
1.4
0.7
2.1
7.7
Deferred tax liabilities 2022
EUR mill.
Reversal of goodwill amortisation
Business combinations
Depreciation difference
Loan withdrawal expense
Interest rate derivatives
Other temporary differences
Total
1 Jan 2022
2.9
Business
combinations
-
Recognised in
the statement
of income
0.1
Translation
difference
-
31 Dec 2022
3.0
23.5
1.3
0.1
0.1
0.6
28.5
1.2
-
-
-
-
1.2
-3.4
1.2
-0.0
1.9
0.2
-0.1
-0.1
-
-
-
-0.0
-0.1
21.1
2.5
0.1
2.0
0.8
29.5
The Group has no material deductible temporary differences, unused tax losses or unused tax credits for which no
deferred tax asset has been recognised.
168
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
14. Tangible assets
14.1 Property, plant and equipment
Land and water,
buildings and
constructions
Machinery
and equipment
Improvement
to premises
Other tangible
assets and
advances paid
2.3
-
-
-
0.0
-
2.3
-1.2
-0.0
-
-0.0
-1.2
1.2
1.2
165.1
0.0
13.8
-0.5
0.0
1.2
179.7
-117.1
-14.9
-0.0
-0.0
-132.1
47.9
47.5
64.4
-
1.7
-0.1
0.0
10.6
76.6
-35.8
-6.4
-0.0
-0.0
-42.2
28.7
34.5
4.2
-
8.8
-
0.0
-11.8
1.1
-
-
-
-
-
4.2
1.1
Total
236.0
0.0
24.3
-0.6
0.0
-
2022
EUR mill.
Acquisition cost 1 Jan 2022
Business combination
Additions
Disposals
Translation differences
Transfers between items
259.7
Acquisition cost 31 Dec 2022
-154.0
-21.3
-0.0
-0.0
-175.5
82.0
84.2
Accumulated depreciation and
impairment losses 1 Jan 2022
Depreciation and impairment
losses
Impairment losses
Translation differences
Accumulated depreciation and
impairment losses 31 Dec 2022
Carrying amount 1 Jan 2022
Carrying amount 31 Dec 2022
2023
EUR mill.
Acquisition cost 1 Jan 2023
Business combination
Additions
Disposals
Translation differences
Transfers between items
Acquisition cost 31 Dec 2023
Accumulated depreciation and
impairment losses 1 Jan 2023
Depreciation
Impairment losses
Translation differences
Accumulated depreciation and
impairment losses 31 Dec 2023
Carrying amount 1 Jan 2023
Carrying amount 31 Dec 2023
169
Land and water,
buildings and
constructions
Machinery
and equipment
Improvement
to premises
Other tangible
assets and
advances paid
2.1
0.2
-
-
-0.0
-
2.3
-1.1
-0.0
-
0.0
-1.2
1.0
1.2
144.4
0.4
20.0
-0.4
-0.2
1.0
165.1
-101.7
-14.6
-0.8
0.1
-117.1
42.6
47.9
55.0
0.5
4.9
-
-0.0
4.0
64.4
-29.6
-5.9
-0.2
0.0
-35.8
25.4
28.7
Total
204.4
1.1
31.0
-0.4
-0.2
0.1
236.0
-132.4
-20.6
-1.0
0.1
-154.0
3.0
0.0
6.1
-0.0
-0.0
-4.9
4.2
-
-
-
-
-
2.9
4.2
72.0
82.0
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
14.2 Right of-use-assets
2023
EUR mill.
Acquisition cost 1 Jan 2023
Business combination
Additions
Disposals
Translation differences
Acquisition cost 31 Dec 2023
Accumulated depreciation and impairment losses 1 Jan 2023
Depreciation for the reporting period
Translation differences
Accumulated depreciation and impairment losses 31 Dec 2023
Carrying amount 1 Jan 2023
Carrying amount 31 Dec 2023
Premises
331.7
Other right-of-use assets
41.5
0.3
108.2
-16.5
0.2
424.0
-167.5
-50.2
-0.2
-217.9
164.2
206.1
-
0.6
-1.2
0.0
40.9
-31.8
-3.1
-0.0
-34.9
9.7
6.0
Total
373.1
0.3
108.9
-17.7
0.3
464.9
-199.3
-53.3
-0.2
-252.8
173.9
212.1
170
2022
EUR mill.
Acquisition cost 1 Jan 2022
Business combination
Additions
Disposals
Translation differences
Acquisition cost 31 Dec 2022
Accumulated depreciation and impairment losses 1 Jan 2022
Depreciation for the reporting period
Translation differences
Accumulated depreciation and impairment losses 31 Dec 2022
Carrying amount 1 Jan 2022
Carrying amount 31 Dec 2022
14.3 Lease liabilities
2023, EUR mill.
Non-current lease liabilities
Current lease liabilities
Total lease liabilities
Premises
278.7
Other right-of-use assets
41.1
4.4
54.5
-4.7
-1.3
331.7
-119.0
-48.8
0.3
-167.5
159.7
164.2
-
0.8
-0.3
-
41.5
-28.3
-3.5
0.0
-31.8
12.7
9.7
Premises
166.8
44.0
210.8
Other lease liabilities
5.8
2.5
8.3
The group has lease agreements that involve repair or renovation responsibilities related to the leased premises,
which may result in changes to the future rental level.
2022, EUR mill.
Non-current lease liabilities
Current lease liabilities
Total lease liabilities
Premises
124.2
43.7
167.9
Other lease liabilities
9.0
2.8
11.8
Total
319.8
4.4
55.3
-5.0
-1.3
373.1
-147.3
-52.3
0.3
-199.3
172.5
173.9
Total
172.6
46.5
219.1
Total
133.2
46.5
179.8
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
15. Intangible assets
2023
EUR mill.
Acquisition cost 1 Jan 2023
Business combination
Additions
Disposals
Translation differences
Acquisition cost 31 Dec 2023
Accumulated amortisations and
impairment losses 1 Jan 2023
Amortisation
Impairment losses*
Translation differences
Accumulated amortisations and
impairment losses 31 Dec 2023
Carrying amount 1 Jan 2023
Carrying amount 31 Dec 2023
Goodwill
947.5
Customer
relationships
167.8
Trademarks
88.7
Other intangible
assets and
advances paid
140.2
Goodwill
916.6
Customer
relationships
166.5
Trademarks
88.8
Other intangible
assets and
advances paid
111.0
1.3
-
-0.2
0.1
948.8
-68.0
-
-57.3
-
-125.3
879.5
823.5
0.1
-
-
0.0
167.8
-117.5
-9.4
-29.3
-0.0
-156.2
50.3
11.6
-
-
-
0.0
88.7
-38.5
-4.7
-
-0.0
-43.2
50.2
45.6
Total
1,344.2
1.4
16.3
-0.2
0.2
2022
EUR mill.
Acquisition cost 1 Jan 2022
Business combination
Additions
Reclassifications
Translation differences
-
16.3
-0.0
0.1
156.6
1,361.9
Acquisition cost 31 Dec 2022
-95.6
-18.2
-0.0
-319.6
-32.2
-86.6
Accumulated amortisations
and impairment losses 1 Jan 2022
Amortisation
Impairment losses*
-0.1
-0.1
Translation differences
-113.9
-438.6
44.6
42.8
1,024.7
923.4
Accumulated amortisations
and impairment losses 31 Dec 2022
Carrying amount 1 Jan 2022
Carrying amount 31 Dec 2022
34.4
-
-
-3.5
947.5
-68.0
-
-
-
-68.0
848.6
879.5
2.0
-
-
-0.7
167.8
-107.4
-10.2
-
0.1
-117.5
59.1
50.3
-
-
-
-0.1
88.7
-33.7
-4.8
-
0.0
-38.5
55.1
50.2
Total
1,282.9
40.4
26.1
-0.1
-5.2
4.1
26.1
-0.1
-0.9
140.2
1,344.2
-50.0
-259.1
-15.1
-30.5
0.1
-95.6
61.0
44.6
-30.1
-30.5
0.2
-319.6
1,023.8
1,024.7
* As a result of the impairment test, EUR 55.3 million write-offs related to goodwill and EUR 29.3 million write-offs to purchase price allocations
relating to public outsourcing customer relationships within the Portfolio Businesses segment public payor CGU were made. The impaired
goodwill was recognised mainly in the acquisition of Attendo Healthcare Services in 2018. Customer relationship write-offs relate solely to
the legacy Outsourcing business, acquired in the Attendo transaction that is gradually being phased out. In addition, during the year a
EUR 2.0 million impairment of goodwill made related to reorganisation of Portfolio businesses in connection to sale of business operations.
* Includes approx. EUR 29 million impairment related to discontinued sub-projects of the basic IT system development.
171
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Development expenditure
Other intangible assets include development expenditure as follows:
16. Impairment testing of cash-
generating units including goodwill
2023
EUR mill.
Acquisition cost 1 Jan 2023
Additions
Transfers from advance payments
Translation differences
Acquisition cost 31 Dec 2023
Accumulated amortisations and impairment losses 1 Jan 2023
Amortisation and impairment losses
Accumulated amortisations and impairment losses 31 Dec 2023
Carrying amount 1 Jan 2023
Carrying amount 31 Dec 2023
2022
EUR mill.
Acquisition cost 1 Jan 2022
Business combination
Additions
Transfers from advance payments
Translation differences
Acquisition cost 31 Dec 2022
Accumulated amortisations and impairment losses 1 Jan 2022
Amortisation and impairment losses
Accumulated amortisations and impairment losses 31 Dec 2022
Carrying amount 1 Jan 2022
Carrying amount 31 Dec 2022
172
Goodwill is not amortised but it is tested for impairment at least annually.
Terveystalo has changed its operating model that came into effect in 2023, and, as a result, the financial reporting
structure has changed. Previously cash-generating units were divided based on regions. The basis for impairment
testing in 2023 is, for the first time, the new management and reporting structure introduced at the beginning of
the year, where Terveystalo Group consists of three operating segments: Healthcare Services, Portfolio Businesses,
and Sweden. Healthcare Services and Sweden are also cash-generating units. The Portfolio Businesses segment
includes Public and Private payor cash-generating units. Comparison figures are not presented due to changed
reporting structure.
Healthcare Services and Sweden consist of units with their own budgets and performance measurement, and
are centrally managed. Portfolio Businesses are managed as a whole, they partly share resources and are centrally
managed, but cash flows generated, marketing functions and identifiable assets are different for Public and Private
payors.
As a result of the impairment test, the Group made EUR 55.3 million impairment related to goodwill in Portfolio
Businesses Public payor cash-generating unit. The impaired goodwill was recognised mainly in the acquisition of
Attendo Healthcare Services in 2018. After the impairment, the remaining goodwill related to Portfolio Businesses
Public payor cash-generating unit amounts to EUR 146.4 million in total.
Based on impairment testing calculations performed, there is no impairment needs to goodwill for other cash-
generating units. For those cash-generating units, recoverable amounts exceeded their carrying amounts.
Goodwill arising from business combinations has been allocated to cash-generating units as shown in the
table below.
EUR mill.
Healthcare Services
Portfolio Businesses, Public payor
Portfolio Businesses, Private payor
Sweden
Total
31 Dec 2023
%
73.3%
17.8%
3.5%
5.4%
100.0%
Goodwill
603.6
146.4
29.1
44.4
823.5
31 Dec 2023
Impairment
-
55.3
-
-
55.3
34.5
12.4
10.8
0.1
57.8
-13.0
-12.2
-25.2
21.6
32.6
18.2
0.1
6.8
9.6
-0.2
34.5
-5.2
-7.8
-13.0
12.8
21.6
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
In financial year 2023 there were four cash generating units in total. 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 2024–2027, including the long-term growth,
which have been approved by the management.
Sensitivity analysis
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.
The assumptions used in
impairment calculations in 2023
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)
Healthcare
Services
4 years
Portfolio Businesses,
Public payor
4 years
Portfolio Businesses,
Private payor
4 years
Sweden
4 years
2.0%
13.2%
9.6%
8.1%
2.0%
5.3%
10.9%
9.1%
2.0%
6.2%
9.6%
8.1%
2.0%
5.2%
8.0%
6.8%
Variable
Terminal period revenue growth rate
Healthcare Services
Portfolio Businesses, Public payor
Portfolio Businesses, Private payor
Sweden
Profitability (EBIT %) during the terminal period
Revenue growth during the terminal period is based on a 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.
Healthcare Services
Portfolio Businesses, Public payor
Portfolio Businesses, Private payor
Sweden
Discount rate (Pre-tax WACC)
Healthcare Services
Portfolio Businesses, Public payor
Portfolio Businesses, Private payor
Sweden
2023
Decrease over 17.1 percentage points
Not applicable
Decrease over 10.2 percentage points
Decrease over 1.0 percentage points
Decrease over 10.6 percentage points
Not applicable
Decrease over 4.2 percentage points
Decrease over 0.9 percentage points
Increase over 14.3 percentage points
Not applicable
Increase over 8.9 percentage points
Increase over 1.0 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 units would
fall below their carrying amount in Healthcare Services or Portfolio Businesses, Private payor cash-generating units.
In Portfolio Businesses, Public payor cash-generating unit the value in use is equivalent to book value of assets at
the time of impairment testing and in consequence sensitivity analysis does not apply to this cash-generating unit.
According to the impairment testing, for Sweden cash-generating unit, changes in critical assumptions presented
in table above would lead to carrying amount of assets to be equivalent to recoverable amount. Sweden cash-
generating unit’s carrying amount of assets at the time of impairment testing was EUR 65.3 million.
173
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
18. Associated companies
Terveystalo has the following associated companies which are all consolidated using the equity method.
The Group has no individually material associates.
Associated companies 31 Dec 2023
Terveyden Tuottajat Oy
Domicile
Finland
Ownership
0.0%
Voting rights
48.2%
Summarised financial information on associated companies
EUR mill.
Carrying amount
Group's share of total comprehensive income
2023
0.0
0.0
2022
0.0
-0.1
17. Investment properties
Carrying amount of investment properties
EUR mill.
Carrying amount at the beginning of the period
Impairment
Depreciation
Carrying amount at the end of the period
Income and expenses related to investment properties
EUR mill.
Rental income from investment properties
Operating expenses for investment properties
Total
1.1.–31.12.2023
0.5
1.1.–31.12.2022
0.5
-0.2
-0.0
0.3
-
-0.0
0.5
1.1.–31.12.2023
0.1
1.1.–31.12.2022
0.1
-0.0
0.0
-0.0
0.1
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
m2
1,348
Value per m2
(In thousands of euro)
Total value
(In thousands of euro)
0.2
269
The value of Kiinteistö Oy Jyväskylän Väinönkatu has been determined based on the Group’s share of ownership (16.81%).
174
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
19. Share-based payments
Performance Share Plan 2021
Performance Share Plan is targeted to Terveystalo’s key employees. The long-term share-based payment plan is based
on a rolling three 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 opportu-
nities on an annual basis. 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 as a gross number of Terveystalo shares,
including a cash portion for taxes and tax-related expenses arising from the reward to the employee. The reward is
settled as net shares. The plan is fully accounted for as an equity settled share-based payment. Under the plan, three
(3) performance periods 2021–2023, 2022–2024 and 2023-2025 have been launched. The impact of the Performance
Period 2021–2023 to the result for the period has been EUR 0.4 million and the expected total cost of the plan is EUR
2.5 million. 37 persons are included in the Performance Period 2021–2023 arrangement. The impact of the Performance
Period 2022–2024 to the result for the period has been EUR 0.5 million and the expected total cost of the plan is EUR
1.9 million. 51 persons are included in the Performance Period 2022–2024 arrangement. The impact of the Performance
Period 2023–2025 to the result for the period has been EUR 0.4 million and the expected total cost of the plan is EUR
1.6 million. 55 persons are included in the Performance Period 2023–2025 arrangement.
Bridge Plan
Bridge Plan is targeted for the President and CEO. Rewards are conditional on the fulfilment of a two-year service
condition and performance conditions tied to financial targets that are set separately. The reward is granted as a gross
number of Terveystalo shares including a cash portion for taxes and tax-related expenses arising from the reward to the
employee. The reward is settled as net shares. The plan is fully accounted for as an equity settled share-based payment.
The plan ended during the year 2023 and in consequence, the shares earned were granted according to realisation of
the plan’s conditional performance measures. The plan’s impact to the result for the period has been EUR 0.0 million.
Performance Share Plan 2021
Grant date
Maximum number of share awards
Outstanding at 1 Jan 2023
Granted share awards during the period
Forfeited share awards during the period
Exercised share awards during the period
Outstanding at 31 Dec 2023
Fair value of the share award at grant date
End of the performance period
End of the vesting period, expected
Vesting conditions
Exercised
175
2023–2025
3 Apr 2023
640,000
-
582,000
49,000
533,000
6.6
28 Feb 2026
31 Mar 2026
2022–2024
1 Apr 2022
683,085
577,864
-
121,890
-
455,974
9.2
28 Feb 2025
31 Mar 2025
2021–2023
1 Apr 2021
642,000
486,556
Bridge Plan
Grant date
Maximum number of share awards
Outstanding at 1 Jan 2023
-
Granted share awards during the period
94,000
Forfeited share awards during the period
-
Exercised share awards during the period
392,556
12.6
29 Feb 2024
31 Mar 2024
Outstanding at 31 Dec 2023
Fair value of the share award at grant date
End of the performance period
End of the vesting period
Service condition, total
Shareholder Return (TSR)
Service condition, total
Shareholder Return (TSR)
Service condition, total
Shareholder Return (TSR),
productivity and digital sales
Vesting conditions
In shares and cash
In shares and cash
In shares and cash
Exercised
2021–2022
24 May 2021
58,600
58,600
-
50,294
8,306
-
14.1
28 Feb 2023
10 Mar 2023
Service condition, total
Shareholder Return (TSR),
productivity and digital sales
In shares and cash
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Restricted Share Plan
Restricted Share Plan offers individually selected employees an opportunity to earn a fixed number of shares after a
vesting period. Rewards are conditional on the fulfilment of a service condition during the vesting period. The reward
is granted as a gross number of Terveystalo shares, including a cash portion for taxes and tax-related expenses arising
from the reward to the employee. The reward is settled as net shares. The plan is fully accounted for as an equity settled
share-based payment. Three (3) vesting periods have been launched in the plan. At the end of the reporting period,
twelve (12) persons were included in the arrangement. The impact to the result of the vesting periods 2021–2023,
2022–2024 and 2023-2025 has been EUR 0.1 million and the expected total cost of the plan is EUR 0.4 million.
Restricted Share Plan
Grant date
Maximum number of share awards
Outstanding at 1 Jan 2023
Granted share awards during the period
Forfeited share awards during the period
Exercised share awards during the period
Outstanding at 31 Dec 2023
Fair value of the share award at grant date
End of the performance period
End of the vesting period, expected
Vesting conditions
Exercised
2023–2025
3 Apr 2023
2022–2024
22 Jun 2022
2021–2023
15 Apr 2021
64,000
-
29,000
-
-
29,000
6.6
68,309
3,000
6,000
-
-
9,000
9.5
64,200
7,000
-
-
-
7,000
11.2
28 Feb 2026
31 Mar 2026
28 Feb 2025
31 Mar 2025
29 Feb 2024
31 Mar 2024
Service condition
Service condition
Service condition
In shares and cash
In shares and cash
In shares and cash
20. Financial assets and liabilities – carrying amount,
fair values and fair value hierarchy
EUR mill.
31 Dec 2023
Financial assets
Non-current
Loan receivables
Unquoted equity investments
Current
Trade receivables
Cash and cash equivalents
Interest rate derivatives
Total
Financial liabilities
Non-current
Loans from financial institutions
Bonds
Hire purchase liabilities
Contingent considerations
Current
Loans from financial institutions
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
0.0
0.8
-
-
4.8
5.6
-
-
-
3.3
-
-
-
2.6
0.1
6.0
-
-
127.6
37.7
-
165.3
294.0
99.1
1.3
-
19.8
2.5
49.5
-
-
0.0
0.8
0.0
0.8
Level 2
Level 3
127.6
127.6
37.7
4.8
37.7
4.8
170.8
170.8
294.0
99.1
1.3
3.3
19.8
2.5
49.5
2.6
0.1
294.0
102.7
1.3
3.3
19.8
2.5
49.5
2.6
0.1
Level 2
Level 2
Level 1
Level 2
Level 3
Level 2
Level 2
Level 3
Level 2
466.2
472.2
475.7
176
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
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 1,6 million (2022: EUR -2,4 million).
Terveystalo issued a senior unsecured sustainability-linked bonds in the aggregate principal amount of EUR 100
million. Bonds will mature on 1 June 2028 and carry initially a fixed annual interest of 5.375 percent. Nasdaq Helsinki
admitted the Bonds to trading on the official list of Nasdaq Helsinki on 5 June 2023.
EUR mill.
31 Dec 2022
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 institutions
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
0.3
0.8
-
-
-
9.9
11.0
-
-
5.6
-
-
-
5.0
3.4
14.0
-
-
106.9
12.8
40.2
-
159.9
379.2
3.9
-
40.0
4.2
49.0
-
-
0.3
0.8
0.3
0.8
Level 2
Level 3
106.9
106.9
12.8
40.2
9.9
12.8
40.2
9.9
170.9
170.9
379.2
379.2
3.9
5.6
40.0
4.2
49.0
5.0
3.4
3.9
5.6
40.0
4.2
49.0
5.0
3.4
Level 2
Level 2
Level 3
Level 3
Level 2
476.2
490.2
490.2
177
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
21. Financial risks
21.1 Financial risk management
The Group is exposed to various financial risks in its normal business activities. The objective of the Group’s risk man-
agement 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 a floating rate. In 2023, the Group’s
average interest rate for loans from financial institutions has been 4.0 percent (2022: 1.2 percent). If the interests would
have been one percentage point higher it would have caused an increase of EUR 4.1 million in interest expenses during
the year 2023 (2022: EUR 3.9 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 2.94, 0.48 and 2.92 percent interest rate
and receives variable interest on EUR 30.0, 50.0 and 50.0 million loan capital.
21.3 Credit risk
The majority of the Group’s incoming cash flows are payments from established institutions, public sector and compa-
nies 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’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.
21.4 Refinancing risk and Liquidity risk
The group aims to ensure sufficient liquidity through efficient cash management and adequate credit limits. Refinancing
risk is managed through a balanced portfolio that includes loans with sufficiently long maturities. 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.
• Interest rate swap agreements based on which the Group pays variable interest rate and receives fixed interest
The Group’s cash and cash equivalents comprise cash in bank accounts, cash in hand and cash payments not yet
on EUR 15.0 and 25.0 million loan capital.
Besides Finland, the Group has operations in Sweden and to a minor extent in Estonia 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 2023, the Group incurred
foreign exchange change of EUR 0.0 million (2022: EUR -0.1 million). However, the group is exposed to exchange rate
translation differences, which are booked in other comprehensive income that may be reclassified as profit or loss.
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 98.0 million remained unused at
the reporting date (2022: EUR 99.6 million).
The Group has EUR 412.1 million of bank loans. Uncertainty in financial markets may cause the cost of financing
needed for the group’s business operations to rise or become more difficult to obtain. The Group may not necessarily
obtain financing on competitive terms or at all, and it may not be able to fulfill its obligations according to the financing
arrangements.
The table below presents a contractual maturity analysis of financial liabilities. The cash flow figures are undis-
counted 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.
178
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Maturity analysis of liquidity risk
31 Dec 2023
EUR mill.
Loans from financial institutions
Bonds
Lease liabilities
Hire purchase liabilities
Trade payables
Interest rate derivatives
Total
31 Dec 2022
EUR mill.
Loans from financial institutions
Lease liabilities
Hire purchase liabilities
Trade payables
Interest rate derivatives
Total
Carrying
amount
Contractual
cash flows
1 year
1–2 years
2–5 years Over 5 years
The development of the Group’s capital structure is monitored, amongst other things, with the following: change in
In addition to operative cash flows, the capital structure is managed by potential share issues, acquisition of treasury
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
liabilities.
313.8
99.1
219.1
3.8
49.5
0.1
331.6
124.5
226.5
3.8
49.5
0.4
15.8
5.4
51.5
2.6
49.5
0.3
137.0
5.4
47.4
1.2
-
0.4
688.6
728.6
122.5
188.8
167.6
113.6
83.8
0.1
-
-0.4
362.1
11.2
-
43.9
-
-
-
55.1
net debt, ratio of net debt to operating margin, and the cash flow forecast.
The Group’s net debt to equity ratio (gearing) was 116.0 percent at the reporting date (2022: 95.7 percent). The ratio
is calculated by dividing interest bearing net debt with equity. The net debt includes interest bearing liabilities less inter-
est bearing receivables and cash and cash equivalents. The Group’s interest bearing liabilities were EUR 635.8 million at
the reporting date (2022: EUR 607.0 million). A significant part of the interest bearing liabilities consists of loans from
financial institutions.
The Group’s loan agreements include a 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. The
Group has met all covenant terms and conditions during the reporting period and at the reporting date.
Carrying
amount
Contractual
cash flows
1 year
1–2 years
2–5 years Over 5 years
Carrying amounts of trade and other receivables and contract assets
22. Trade and other receivables and contract assets
419.2
179.8
8.0
49.0
3.4
659.4
446.9
191.9
8.2
49.0
2.9
52.3
49.9
4.3
49.0
0.1
220.3
43.2
2.6
-
1.9
151.5
74.8
1.3
-
0.9
22.5
24.0
-
-
-
698.5
155.6
267.9
228.5
46.4
EUR mill.
Non-current
Loan receivables
Total non-current receivables
Current
Trade receivables
Other receivables
Prepaid expenses
Derivative assets
Contract assets
Total
2023
2022
0.0
0.0
117.4
2.3
8.4
4.8
10.2
143.1
0.3
0.3
106.9
2.1
6.5
9.9
12.8
138.4
21.5 Capital management
The objective of the Group’s capital management is to support business operations and to ensure competitive operating
conditions with optimal capital structure, as well as to enable the implementation of the strategy.
179
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Specification of prepaid expenses
Ageing of trade receivables and recognised credit losses
EUR mill.
Personnel related prepaid expenses
Other prepaid expenses
Total
2023
0.0
8.4
8.4
2022
0.0
6.5
6.5
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 2.1 million (2022: EUR 1.9 million). Impairment loss
provision is based on a simplified approach. Estimated impairment loss rates have been calculated using historical
information of actual impairment losses, and the 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
contractual 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.
2022
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 total
12.8
95.0
7.3
2.3
1.0
3.2
121.6
Expected
credit loss
0.0%
-0.1%
Recognised
expected credit loss
-0.0
Carrying
amount
12.8
-0.1
95.0
-0.4%
-1.2%
-5.9%
-55.5%
-0.0
-0.0
-0.1
-1.8
-1.9
7.3
2.3
1.0
1.4
119.7
Information about credit risk related to trade receivables is stated in note 21 Financial risks.
Ageing of trade receivables and recognised credit losses
23. Cash and cash equivalents
2023
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
10.2
Expected
credit loss
0.0%
Recognised
expected credit loss
-0.0
Carrying
amount
10.2
101.9
-0.1%
-0.1
101.8
The Group’s cash and cash equivalents on 31 December 2023, amounting to EUR 37.7 million (2022: EUR 40.2 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.
10.4
2.4
1.8
3.0
129.7
-0.4%
-1.3%
-8.4%
-61.3%
-0.0
-0.0
-0.2
-1.8
-2.1
10.3
2.4
1.6
1.1
127.6
Information about credit risk related to trade receivables is stated in note 21 Financial risks.
.
180
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
24. Share capital and invested non-restricted equity reserve
Invested non-restricted equity reserve
EUR mill.
1 Jan 2022
Acquisition of
treasury shares
Cancellation of
treasury shares
31 Dec 2022
1 Jan 2023
Acquisition of
treasury shares
Cancellation of
treasury shares
31 Dec 2023
Number of out-
standing 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
126,307
241
-
126,548
126,548
8
-
1,730
-241
-1,000
489
489
-8
-
128,037
0.1
492.8
-18.0
-
-1,000
127,037
127,037
-
-
-
-
0.1
0.1
-
-
-
-
492.8
492.8
-
-
2.2
2.2
-
-
-15.8
-15.8
0.1
-
477.1
477.1
0.1
-
126,556
480
127,036
0.1
492.8
-15.7
477.2
Shares and share capital
On 31 December 2023, the amount of shares is 127,036,531 of which amount of outstanding shares is 126,556,301 and
amount of treasury shares is 480,230.
The Company has a 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 dividends and other distribution of assets.
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 accord-
ing to Issuance Resolution fully or partly recognised in invested non-restricted equity reserve.
Total
474.9
Distributable funds
On 31 December 2023, the distributable funds of the parent company totalled EUR 535.9 million including the profit of
the financial period 2023 of EUR 40.5 million. The Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.30 (0.28) per share totaling EUR 38.0 (35.4) million be paid based on the statement of financial posi-
tion adopted for the financial year ended 31 December 2023. The dividend would be paid in two instalments as follows:
•
The The first dividend instalment of EUR 0.15 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 28 March 2024. The Board of Directors proposes that the first dividend instalment would be
paid on 8 April 2024.
• The second dividend instalment of EUR 0.15 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 9 October 2024. The Board of Directors proposes that the second dividend instalment
would be paid on 16 October 2024. 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 statutes applicable to the Finnish
book-entry system change or otherwise so require.
Terveystalo Plc’s share is listed on Nasdaq Helsinki Oy. The trading code is TTALO. Terveystalo Plc’s shares belong to
The dividend proposed by the Board of Directors to the Annual General Meeting is not deducted from distri-
the book-entry system maintained by Euroclear Finland Oy.
butable 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.
181
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
25. Financial liabilities
26. Trade and other payables
Non-cash changes
Carrying amounts of trade and other payables
EUR mill.
Loans from financial institutions
1 Jan 2023
419.2
Cash flows
-105.2
Business
combinations
-
Other
changes
-0.2
Translation
differences
-
31 Dec 2023
313.8
Bonds
Hire purchase liabilities
Lease liabilities
Total
-
8.0
179.8
607.0
99.6
-4.3
-50.9
-60.8
-
-
0.3
0.3
-0.5
-
90.4
89.7
-
-
-0.5
-0.5
99.1
3.8
219.1
635.7
EUR mill.
Trade payables
Other payables
Contract liabilities
Derivative liabilities
Accrued expenses
Total
Non-cash changes
Specification of other payables
EUR mill.
Loans from financial institutions
1 Jan 2022
365.4
Cash flows
53.8
Business
combinations
0.5
Other
changes
-0.2
Translation
differences
-0.4
31 Dec 2022
419.2
Hire purchase liabilities
Lease liabilities
Total
13.3
178.5
557.2
-5.3
-49.3
-0.8
-
4.4
4.9
-
46.2
46.0
-
-0.0
-0.4
8.0
179.8
607.0
EUR mill.
Doctor's fee liabilities
VAT liabilities
Other
Total
The Group’s loan agreements include a 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.
The Group has met all covenant terms and conditions during the reporting period and at the reporting date.
EUR mill.
Personnel-related accrued expenses
Specification of accrued expenses
Interest liabilities
Other
Total
2023
49.5
80.1
8.8
0.1
86.2
224.7
2023
48.5
23.3
8.3
80.1
2023
74.0
6.3
5.9
86.2
2022
49.0
81.9
10.3
3.4
78.7
223.2
2022
48.2
24.0
9.7
81.9
2022
71.4
1.5
5.8
78.7
182
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
27. Provisions
Carrying amounts of provisions
EUR mill.
Non-current provisions
Current provisions
Total
EUR mill.
Onerous contracts
Other provisions
Total
2023
2.8
3.3
6.1
2023
4.1
2.0
6.1
Changes in provisions during the financial year 2023
EUR mill.
1 Jan 2023
Increase in provisions
Used provisions
31 Dec 2023
Onerous
contracts
7.1
Other
provisions
4.4
1.1
-4.1
4.1
0.9
-3.4
2.0
Changes in provisions during the financial year 2022
EUR mill.
1 Jan 2022
Increase in provisions
Used provisions
31 Dec 2022
183
Onerous
contracts
6.6
Other
provisions
4.4
2.2
-1.7
7.1
0.6
-0.6
4.4
2022
8.3
3.2
11.5
2022
7.1
4.4
11.5
Total
11.5
2.1
-7.5
6.1
Total
11.0
2.8
-2.3
11.5
28. Defined benefit plans
The Group has defined benefit plans in Sweden in the Feelgood subgroup. 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 seven years at the reporting date.
Summary of the impact of the defined benefit plans in the financial statements
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
Interest expense (+) / income (-)
Benefits paid
Remeasurement of the obligation
Actuarial gain (-) / loss (+) from change in financial assumptions
Translation differences
31 Dec
2023
1.3
0.0
0.1
2023
1.3
0.1
-0.1
0.1
0.0
1.3
2022
1.3
0.0
-0.2
2022
1.7
0.0
-0.1
-0.2
-0.1
1.3
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Applied actuarial assumptions
29. Collateral and contingent liabilities
%
Discount rate
Inflation
2023
3.70
1.70
2022
3.80
1.90
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.
EUR mill.
Business mortgages
Total
Securities for own debts
Deposits
Guarantees
Total
31 Dec 2023
7.5
31 Dec 2022
11.4
7.5
0.2
0.2
0.4
11.4
0.5
0.4
0.9
Sensitivity analysis of the relevant actuarial
assumptions’ impact on defined benefit obligation
EUR mill.
0.5%-point increase in the principal assumption
Discount rate
Inflation
0.5%-point decrease in the principal assumption
Inflation
2023
2022
-0.0
0.0
-0.0
-0.0
0.0
-0.0
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.
As part of the normal development and maintenance of its branch and hospital network, the Group has entered into
a 20-year lease agreement with an estimated annual rent of EUR 3.5 million. The transfer of control of the lease property
is planned to take place in 2027.
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.
The relationships of the parent company and the subsidiaries are disclosed in note 31 Group companies.
Related party transactions
2023
Associated companies
Other related parties
Total
Sales
0.6
0.0
0.6
Purchases
9.7
Receivables
0.2
-
9.7
-
0.2
Payables
0.8
-
0.8
184
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Year 2023
Sustainability
Corporate Governance
Financials
2022
Associated companies
Total
Sales
0.6
0.6
Purchases
10.6
10.6
Receivables
0.3
0.3
Payables
1.0
1.0
Compensation for the key management
Remuneration to the CEO, in thousands of euro
Fixed pay
Other benefits
Short-term incentives
Share-based payments
Pensions (statutory)
Total
Renumeration to the CEO is presented on an accrual basis.
Remuneration to the members of the Executive team
(excluding CEO), in thousands of euro
Fixed pay
Other benefits
Short-term incentives
Share-based payments
Termination benefits
Pensions (statutory)
Total
Renumeration to the members of the Executive team is presented on an accrual basis.
185
2023
397.7
12.3
402.2
348.1
133.4
1,293.7
2023
1,348.3
28.7
606.7
412.1
226.3
330.7
2,952.8
2022
393.6
6.4
105.0
546.9
82.9
1,134.8
2022
1,638.5
28.1
146.1
730.9
305.9
301.6
3,151.1
Remuneration to the
Board of Directors,
in thousands of euro
Kari Kauniskangas
(Chairman of the board)
Kristian Pullola
Katri Viippola
Matts Rosenberg
Carola Lemne
Lehtoranta Ari**
Hasselberg Sofia**
Niko Mokkila
Åse Aulie Michet
Tomas Von Rettig
Total
2023
2022
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*
52.5
31.2
24.9
31.2
24.9
24.9
24.9
35.0
20.8
16.6
20.8
16.6
16.6
16.6
-
-
-
-
-
-
18.7
11.7
13.7
12.4
18.0
8.5
15.4
-
-
-
0.6
0.3
0.3
0.3
0.3
0.3
0.3
-
-
-
52.5
31.2
24.9
31.2
24.9
-
-
35.0
20.8
16.6
20.8
16.6
-
-
19.0
14.2
15.5
10.4
14.7
-
-
41.5
0.0
13.8
0.0
0.0
0.0
0.0
0.0
0.0
3.8
4.4
5.1
214.5
143.0
98.1
2.3
206.2
109.8
100.7
0.6
0.3
0.3
0.3
0.3
-
-
0.0
0.0
0.0
0.0
1.8
Members of the Board of Directors until 10 October 2022
Dag Andersson
Members of the Board until 7 April 2022
* Other financial benefits include transfer tax fees for the annual fees paid in shares.
** Member of the Board of Directors from 2023.
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Bonus Scheme
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 individual 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 on share-based incentive plans directed to the Group’s
key employees. More information on the share-based incentive plans is presented in note 19 Share-based payments.
Management holdings
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
President and CEO
Chief Financial Officer
Chief Medical Officer
Interim Executive Vice President, Healthcare Services
Executive Vice President of the Swedish Business Area
Senior Vice President, Digital Services
Senior Vice President, Portfolio Businesses
Senior Vice President, Human Resources
31 Dec 2023
21,802
14,498
5,126
8,207
11,453
6,504
2,499
13,306
19,000
2,087
2,230
-
3,134
5,596
1,400
Name
Kari Kauniskangas
Matts Rosenberg
Carola Lemne
Kristian Pullola
Katri Viippola
Ari Lehtoranta
Sofia Hasselberg
Ville Iho
Juuso Pajunen
Petri Bono
Henri Mäenalanen
Stefan Kullgren
Ilari Richard
Mikko Tainio
Minttu Sinisalo
186
31. Group companies
The Group’s parent company is Terveystalo Plc domiciled in Finland.
Subsidiaries as at 31 December 2023
Company name
Alna Sverige AB
EAM TTALO Holding Oy*
Feelgood Företagshälsa Dalarna AB
Feelgood Företagshälsovård AB
Feelgood Hälsoforum AB
Feelgood Länshälsan AB
Feelgood Sjukvård AB
Feelgood Svenska AB
Idavallen AB
Länshälsan Skåne AB
Medimar Scandinavia Ab
Nämndemansgården i Sverige AB
Rela-hierojat Oy
Sauma Lastensuojelupalvelut Oy
Sivupersoona Oy
Suomen Hierojakoulut Oy
Suomen Terveystalo 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
Domicile
Sweden
Group's share
100.0%
Group's voting rights
100.0%
Finland
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Sweden
Finland
Sweden
Finland
Finland
Finland
Finland
Finland
Estonia
Finland
Finland
Finland
Finland
Finland
Finland
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%
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%
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,
Terveystalo 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 2023
Year 2023
Sustainability
Corporate Governance
Financials
Changes in the Group structure
Financial year 2023
The following mergers took place during the financial year 2023:
• 31.1.2023 Kunnon Syke Oy merged with Suomen Terveystalo Oy.
• 28.2.2023 Ludus Oy merged with Suomen Terveystalo Oy.
• 31.3.2023 Saimaan Urheilufysioterapia Oy merged with Suomen Terveystalo Oy.
• 31.5.2023 Evalua International Ltd Oy merged with Suomen Terveystalo Oy.
• 31.8.2023 Somia Reality Oy merged with Suomen Terveystalo Oy.
• 30.9.2023 Feelgood Jobbhälsan AB merged with Feelgood Företagshälsovård AB.
• 30.9.2023 Medicin Direkt Östersund AB merged with Feelgood Sjukvård AB.
• 30.9.2023 The Drawing Room AB merged with Nämndemansgården Sverige AB.
The following companies operations have ceased during the financial year 2023:
• 22.2.2023 Evalua Nederland B.V.
• 31.12.2023 Rela Estonia ÖU
Financial year 2022
The following mergers took place during the financial year 2022:
• 30.4.2022 Attentio Oy merged with Suomen Terveystalo Oy.
• 1.6.2022 Vantaan Työterveys Oy merged with Suomen Terveystalo Oy.
• 31.8.2022 Lapin Liikuntaklinikka Oy merged with Suomen Terveystalo Oy.
• 31.8.2022 Hierojakoulu Relaxi Oy merged with Suomen Hierojakoulut Oy.
• 31.8.2022 Feelgood Primärvård AB merged with Feelgood Företagshälsovård AB.
• 31.8.2022 Feelgood Online AB merged with Feelgood Företagshälsovård AB.
• 31.8.2022 Feelgood Företagshälsovård Östersund AB merged with Feelgood Företagshälsovård AB.
• 31.8.2022 Feelgood Företagshälsovård Blekinge AB merged with Feelgood Företagshälsovård AB.
• 31.8.2022 Feelgood Företagshälsovård Södra AB merged with Feelgood Företagshälsovård AB.
• 30.9.2022 Jyväskylän lastensuojelupalvelut Oy merged with Jyväskylän Hoitokoti Ankkuri Oy.
• 30.9.2022 Lastensuojelupalvelut Väylä Oy merged with Jyväskylän Hoitokoti Ankkuri Oy.
• 30.9.2022 Ankkurin Huoltamo Oy merged with Jyväskylän Hoitokoti Ankkuri Oy.
• 30.9.2022 Terapiatelakka Oy merged with Jyväskylän Hoitokoti Ankkuri Oy.
• 31.10.2022 OMT-Klinikka Kokkola Oy merged with Suomen Terveystalo Oy.
• 31.10.2022 Aktiivi-Fysioterapia Tampere Oy merged with Suomen Fysiogeriatria Oy.
• 31.10.2022 Mimmin Terapia Oy merged with Suomen Fysiogeriatria Oy.
• 31.10.2022 toi.minna Oy merged with Suomen Fysiogeriatria Oy.
• 1.11.2022 Suomen Fysiogeriatria Oy merged with Suomen Terveystalo Oy.
• 30.11.2022 Keltaisen Kartanon Kuntoutus Oy merged with Jyväskylän Hoitokoti Ankkuri Oy.
• 30.11.2022 Into Terveys Oy merged with Suomen Terveystalo Oy.
187
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
No more than approximately seventy (75) 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.
Performance Period 2024–2026 of the Restricted Share Plan (RSP)
The purpose of the Restricted Share Plan is to function as a supplementary structure for separately selected key
personnel of Terveystalo in special situations.
The share rewards will be paid in Terveystalo Plc shares after the end of the performance period, provided that
the individual participants are still employed by Terveystalo. The maximum number of shares to be paid based on
this plan is 64,000 shares.
32. Subsequent events
Terveystalo's Board of Directors has approved a new performance
period covering the years 2024–2026 of the long-term share-based
incentive plan for key personnel
Terveystalo Plc's Board of Directors has approved a new performance period covering the years 2024–2026 of the
long-term share-based incentive plan for key personnel. 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 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,
performance measures, and targets as well as earning opportunities on an annual basis. Terveystalo published the
establishment of the program and its main terms in a stock exchange release on 3 December 2020.
Performance Period 2024–2026 of the Performance Share Plan (PSP)
During the performance period 2024–2026, the participants are awarded for successful shareholder value creation.
The performance indicators based on which share rewards may be paid to 90% of the participants are absolute and
relative (compared to the OMX HKI benchmark CAP GI index) Total Shareholder Return. For 10% of the participants,
the value creation is measured by EBITA (adjusted earnings before interest, taxes, and amortisation) of the business
area or independent business that they lead.
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 2024–2026 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 achieved. The maximum number of shares to be paid based on this plan is 640,000 shares. Taxes and tax-
like payments to the recipient are deducted from the reward, after which the remaining net amount is paid to the
participants in shares.
188
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Parent company's
financial statement, FAS
Parent company’s income statement
Parent company’s statement of financial position
EUR
ASSETS
Non-current assets
Property, plant and equipment
Machinery and equipment
Investments
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
189
Note
1.1
1.1.–31.12.2023
11,487,798
1.1.–31.12.2022
1,622,050
Holdings in group companies
Loan receivables from group companies
-1,684
-1,851
Total non-current assets
Current assets
-1,889,541
-1,446,798
Receivables from group companies
Prepayments and accrued income
1.2
1.4
1.5
1.6
-232,335
-153,776
-18,227
-20,555,877
-11,363,642
3,194,991
-
-1,126,839
-3,833,481
-13,128,972
-16,959
63,777,000
-10,132,230
40,499,784
-128,348
-21,741
-8,199
-4,804,758
-4,789,646
1,629
10
-10,753
-215,450
-5,014,210
-8,937
34,634,000
-5,952,627
23,658,227
Total current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Share capital
Invested non-restricted equity reserve
Retained earnings
Profit for the period
Total equity
Appropriations
Depreciation in excess of plan
Total appropriations
Liabilities
Non-current liabilities
Bonds
Current liabilities
Trade payables
Liabilities to group companies
Other liabilities
Accruals and deferred income
Total liabilities
TOTAL EQUITY AND LIABILITIES
Note
31 Dec 2023
31 Dec 2022
2.1
2.2
2.3
2.3
2.4
2.5
2.6
86,887
60,753
516,818,244
100,000,000
616,905,132
87,022,736
1,030,499
88,053,235
704,958,366
516,818,244
-
516,878,997
41,133,012
603,637
41,736,649
558,615,647
80,000
80,000
493,503,962
493,503,962
1,855,024
40,499,784
535,938,771
25,896
25,896
13,632,562
23,658,227
530,874,751
8,937
8,937
100,000,000
-
2,296,985
56,730,930
35,585
9,930,200
168,993,700
704,958,366
1,541,585
25,159
974,548
27,731,959
558,615,647
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
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
Change in working capital
Change in trade and other receivables
Change in trade and other payables
Taxes
Net cash from operating activities
1.1.–31.12.2023
1.1.–31.12.2022
EUR
Cash flows from investing activities
50,631,069
29,610,853
Acquisition of tangible and intangible assets
Granted loan receivables to subsidiary
18,227
8,199
Net cash from investing activities
-60,564,902
-34,625,063
Cash flows from financial activities
1,765,330
224,564
Change in group bank account
-16,767,585
878,760
469,239
455,667
Proceeds of long-term borrowings
Received group contribution
Dividends paid
-4,464,873
-10,546,536
Interest and other financial expenses paid
-28,503,974
-14,403,077
Net cash from financial activities
Net change in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
1.1.–31.12.2023
1.1.–31.12.2022
-44,361
-100,000,000
-100,044,361
31,521,429
99,594,000
34,634,000
-35,435,764
-1,765,330
-68,726
-
-68,726
-7,870,194
-
58,000,000
-35,433,439
-224,564
128,548,335
14,471,803
-
-
-
-
-
-
190
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Accounting policies of parent company’s financial statements
Notes to the statement of income
The financial statements of Terveystalo Plc are prepared in accordance with Finnish Accounting Standards (FAS).
1.1 Revenue
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 the reporting date, it is reversed.
EUR
Finland
Sweden
Total
1.2 Depreciation, amortisation and impairment losses
Property, plant and equipment, and depreciation
EUR
Depreciation
Total
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.
1.3 Personnel
The depreciation is based on the following expected useful lives:
Machinery and equipment: 5 years
191
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
2023
11,455,589
32,209
2022
1,593,045
29,005
11,487,798
1,622,050
2023
-18,227
-18,227
2023
4
2023
-19,452,524
-36,242
-109,863
-14,731
-51,977
-201,761
-688,779
2022
-8,199
-8,199
2022
4
2022
-3,535,145
-33,527
-126,093
-13,121
-33,135
-239,655
-824,083
-20,555,877
-4,804,758
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Auditor's fees
EUR
Audit and auditor's statements based on laws and regulations
Audit, 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
192
2023
2022
-101,000
-101,000
-76,000
-76,000
2023
3,194,991
-
3,194,991
-1,126,839
-3,833,481
-4,960,321
2022
1,629
10
1,639
-10,753
-215,450
-226,203
Notes to the statement of the financial position
2.1 Property, plant and equipment
Machinery and equipment
EUR
Acquisition cost 1 Jan
Additions
Acquisition cost 31 Dec
Accumulated depreciation and impairment losses 1 Jan
Depreciation for the period
Accumulated depreciation and impairment losses 31 Dec
Carrying amount 1 Jan
Carrying amount 31 Dec
2.2 Investments
Holdings in group companies
2023
-16,959
2022
-8,937
63,777,000
34,634,000
63,760,041
34,625,063
EUR
Acquisition cost 1 Jan
Acquisition cost 31 Dec
Carrying amount 1 Jan
Carrying amount 31 Dec
2023
107,614
44,361
151,975
-46,861
-18,227
-65,087
60,753
86,887
2022
38,888
68,726
107,614
-38,661
-8,199
-46,861
227
60,753
2023
516,818,244
2022
516,818,244
516,818,244
516,818,244
516,818,244
516,818,244
516,818,244
516,818,244
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Parent company ownerships:
Holdings in group companies
Terveystalo Healthcare Holding Oy
2.3 Receivables from group companies
EUR
Loan receivables
Total
EUR
Non-current receivables
Trade receivables
Group contribution receivables
Prepayments and accrued income*
Total
* 2023 including rechargeable management fees EUR 14.8 million and interest receivables EUR 3.2 million.
2.4 Prepayments and accrued income
EUR
VAT receivables
Prepayments and accrued income
Total
2023
100%
2022
100%
2023
100,000,000
100,000,000
2023
4,418,475
827,512
2022
-
-
2022
4,494,632
586,503
63,777,000
34,634,000
17,999,749
87,022,736
1,417,878
41,133,012
2023
477,423
553,076
1,030,499
2022
393,681
209,957
603,637
2.5 Changes in equity
Restricted equity
Share capital
EUR
At the beginning of the period
At the end of the period
Total restricted equity
Unrestricted equity
Invested non-restricted equity reserve
EUR
At the beginning of the period
At the end of the period
Retained earnings
EUR
Retained earnings at the beginning of the period
Dividends paid
Retained earnings at the end of the period
Net income
Total unrestricted equity
Total equity
193
2023
80,000
80,000
80,000
2022
80,000
80,000
80,000
2023
493,503,962
2022
493,503,962
493,503,962
493,503,962
2023
37,290,789
-35,435,764
1,855,024
40,499,784
2022
49,066,001
-35,433,439
13,632,562
23,658,227
535,858,771
530,794,751
535,938,771
530,874,751
TerveystaloAnnual Report 2023
Terveystalo Plc issued senior unsecured sustainability-linked notes in the aggregate principal amount of EUR 100 million
in June 2023. The Notes will mature on 1 June 2028 and carry initially a fixed annual interest of 5.375 percent. The notes
were listed on the official list maintained by Nasdaq Helsinki Ltd on 5 June 2023.
Year 2023
Sustainability
Corporate Governance
Financials
Distributable equity
EUR
Invested non-restricted equity reserve
Retained earnings
Net income
Total
2023
493,503,962
1,855,024
40,499,784
2022
493,503,962
13,632,562
23,658,227
535,858,771
530,794,751
Shares and share capital
On 31 December 2023, the amount of shares is 127,036,531 of which 480,230 is held by EAM TTALO Holding Oy,
a company which is under the control of Terveystalo Plc.
The company has a 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 dividends 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.
Invested non restricted equity reserve
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.
2.6.2 Current liabilities
EUR
Trade payables
Other liabilities to group companies
Other liabilities
Accruals
Total
2.6.3 Liabilities to Group companies
EUR
Trade payables
Group bank account payables
Accruals and deferred income
Total
2.6.4 Accruals and deferred expenses
2023
100,000,000
100,000,000
2022
-
-
EUR
Personnel-related accrued expenses
Other
Interest liabilities
Income tax liability
Total
2.6 Liabilities
2.6.1 Non-current liabilities
EUR
Bonds
Total
194
2023
2,296,985
2022
1,541,585
56,730,930
25,190,668
35,585
9,930,200
25,159
974,548
68,993,700
27,731,959
2023
265,918
2022
-
56,440,316
24,918,886
24,697
271,781
56,730,930
25,190,668
2023
841,720
2,845,628
3,195,139
3,047,713
9,930,200
2022
271,105
274,428
-
429,014
974,548
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Other notes
3. Collateral and other contingent liabilities
EUR
Suretyship*
Guarantees
2023
2022
305,000,000
420,000,000
81,927
81,927
* Suretyship given by Terveystalo Plc to subsidiaries' financial institution loans
195
TerveystaloAnnual Report 2023 Year 2023
Sustainability
Corporate Governance
Financials
Signatures to the financial statements
and Board of Director’s report
Helsinki, 13 February 2024
Kari Kauniskangas
Chairman of the Board of Directors
Sofia Hasselberg
Member of the Board of Directors
Ari Lehtoranta
Member of the Board of Directors
Carola Lemne
Member of the Board of Directors
Kristian Pullola
Member of the Board of Directors
Matts Rosenberg
Member of the Board of Directors
Katri Viippola
Member of the Board of Directors
Ville Iho
President and CEO
Auditors note
A report on the audit has been issued today.
Helsinki, 13 February 2024
KPMG Oy Ab
Audit firm
Henrik Holmbom
Authorised Public Accountant
196
TerveystaloAnnual Report 2023
Year 2023
Sustainability
Corporate Governance
Financials
Auditor’s Report
To the Annual General Meeting of Terveystalo Plc
Report on the Audit of the Financial Statements
Opinion
Materiality
We have audited the financial statements of Terveystalo Plc (business identity code 2575979-3) for the year ended
31 December 2023. 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 material
accounting policy information, as well as the parent company’s balance sheet, income statement, statement of
cash flows and notes. In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards 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.
Our opinion is consistent with the additional report submitted to the Audit Committee.
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.
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.
197
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.
Key Audit Matters
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.
TerveystaloAnnual Report 2023 Year 2023
Sustainability
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 5)
• The consolidated revenue for 2023 amounted to
1.286 M€ million and consist of numerous types
of individual service transactions and service com-
binations 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.
• As part of our audit procedures, we evaluated the
sales-related internal control environment, as well
as tested the key controls. We also performed
substantive audit procedures.
• We tested the processes to record sales transactions
as well as the sales pricing and invoicing processes.
We assessed the appropriateness of the revenue
recognition for the sales transactions.
• Given the variety and large number of sales
• We evaluated the IT systems relevant for revenue
transactions, revenue recognition is considered
a key audit matter.
recognition.
• We considered the appropriateness of the disclosures
presented for revenue in the consolidated financial
statements.
• At the year-end 2023 the goodwill amounted to
• We assessed the key assumptions used in the
impairment tests, such as profitability, 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 assessed the appropriateness of the assumptions
used and the technical accuracy of the calculations. This
included a comparison to external market and industry
forecasts.
• In addition, we considered the appropriateness of the
disclosures in respect of goodwill, impairment testing
and acquisition related intangible assets.
824 M€ and accounted for 58 % of the consolidated
total assets and for 160 % of the consolidated equity.
• The acquisition-related recognised assets for cus-
•
tomer relationships and trademark and at the year-
end 2023 were in total 57 M€.
in 2023 Terveystalo has changed the operational
model and financial reporting structure. Accordingly,
the composition of the cash-generating units
changed and goodwill was reallocated to the new
cash-generating units.
• Terveystalo determines recoverable amounts for
impairment tests based on value in use. Preparation
of cash flow projections underlying impairment tests
requires management judgments for profitability,
long-term growth rate and discount rate.
• As a result of the impairment tests, the Group
recognized a 55 M€ million impairment related to
goodwill and a 29 M€ impairment related to
customer relationships for the Portfolio Businesses
Public payor cash-generating unit.
• Given the high level of management judgment
related to the forecasts used and the significant
carrying amounts involved, valuation of goodwill
and acquisition related intangible assets is
considered a key audit matter.
198
TerveystaloAnnual Report 2023
Year 2023
Sustainability
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 IFRS Accounting Standards 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, matters
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
• 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 audi-
tor’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 statements
give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the group to express an opinion on the consolidated financial statements. We are responsible for the direc-
tion, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
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.
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
requirements 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.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
From the matters communicated with those charged with governance, we determine those matters that were of
professional 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.
• 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.
199
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 matter
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 2023 Year 2023
Sustainability
Corporate Governance
Financials
Other Reporting Requirements
Information on our audit engagement
We have acted as auditors appointed by the Annual General Meeting uninterrupted for twelve 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 infor-
mation 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
financial 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, 13 February 2024
KPMG Oy Ab
HENRIK HOLMBOM
Authorised Public Accountant, KHT
200
TerveystaloAnnual Report 2023 TERVEYSTALO OYJ
Jaakonkatu 3 A, 6th floor
00100 Helsinki
Exchange: 030 633 11
www.terveystalo.com