XHEL:TTALO ESEF Annual Report
Terveystalo Oyj (XHEL:TTALO)
ESEF Annual Report
2025-03-14
For: 2024-12-31
View Original
Added on
September 24, 2026
TERVEYSTALO PLC
Report of the Board of Directors and consolidated financial statements 31 December 2024
(Unofficial translation)
2
Terveystalo Group’s Report of the Board of Directors and Consolidated Financial Statements 31 December
2024
Report of the Board of the Directors
Calculation of financial ratios and alternative performance measures ..................................................................... 23
Reconciliation of alternative performance measures ............................................................................................... 26
Sustainability statement ............................................................................................................................................ 30
Consolidated financial statements, IFRS
Consolidated statement of comprehensive income ................................................................................................ 112
Consolidated statement of financial position .......................................................................................................... 113
Consolidated statement of cash flows .................................................................................................................... 114
Consolidated statement of changes in equity ......................................................................................................... 115
1. Corporate information ......................................................................................................................................... 116
2. Accounting policies for the consolidated financial statements ........................................................................... 116
3. Business combination ......................................................................................................................................... 129
4. Segment information........................................................................................................................................... 132
5. Revenue ............................................................................................................................................................. 133
6. Other operating income ...................................................................................................................................... 135
7. Material and services .......................................................................................................................................... 135
8. Employee benefit expenses ............................................................................................................................... 135
9. Depreciation, amortization and impairment ........................................................................................................ 135
10. Other operating expenses ................................................................................................................................ 136
11. Financial income and expenses ....................................................................................................................... 137
12. Taxes ................................................................................................................................................................ 137
13. Earnings per share ........................................................................................................................................... 140
14. Tangible assets ................................................................................................................................................. 141
15. Intangible assets ............................................................................................................................................... 143
16. Impairment testing of cash-generating units including goodwill ....................................................................... 144
17. Investment properties ....................................................................................................................................... 146
18. Associated companies ...................................................................................................................................... 147
3
19. Share-based payments .................................................................................................................................... 147
20. Financial assets and liabilities – carrying amount, fair value and fair value hierarchy ..................................... 149
21. Financial risks ................................................................................................................................................... 150
22. Trade and other receivables and contract assets ............................................................................................ 153
23. Cash and cash equivalents .............................................................................................................................. 154
24. Share capital and invested non-restricted equity reserve ................................................................................ 154
25. Financial liabilities ............................................................................................................................................. 156
26. Trade and other payables ................................................................................................................................. 156
27. Provisions ......................................................................................................................................................... 157
28. Defined benefit plans ........................................................................................................................................ 157
29. Collateral and contingent liabilities ................................................................................................................... 158
30. Related party transactions ................................................................................................................................ 159
31. Group companies ............................................................................................................................................. 162
32. Subsequent events ........................................................................................................................................... 163
Parent company’s financial statements, FAS
Parent company’s statement of income ................................................................................................................. 165
Parent company’s statement of financial position .................................................................................................. 165
Parent company’s statement of cash flows ............................................................................................................ 167
Parent company’s accounting policies and measurement and recognition principles and methods ..................... 167
Notes to the parent company’s financial statements .............................................................................................. 168
Signatures to the financial statements and Board of Director’s report
4
Report of the Board of Directors
Operating environment
Target markets
Demand for healthcare services in Finland was strong in 2024, especially among corporate and insurance customers. The supply and
booking rates were at a good level. The autumn flu season started earlier than usual, and morbidity was higher than normal, leading to
some increase in visits. The overall employment situation in Finland is good. Demand for out-of-pocket dental care services and massage
services was dampened by weaker consumer confidence and purchasing power. Only smaller tenders for digital services were seen in the
publicly funded market.
In Sweden, the demand for occupational health services was satisfactory, while demand for organisation and leadership consultation and
harmful use rehabilitation services continued to be weak. The termination of public sector contracts at the beginning of 2024 reduced
revenue.
Terveystalo continued to invest in the recruitment of professionals and was successful in steadily increasing supply. To strengthen supply,
development efforts have been increasingly shifted towards solutions that enhance the work and productivity of professionals.
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 lengthening queues in public healthcare, support growth in
the future. As one of the most preferred employers, Terveystalo is well-positioned to drive growth going forward, supported by its strong
market position.
The impacts of inflation
Inflation levelled off during the year. Terveystalo actively negotiated with its suppliers to limit the impact of inflation on costs. Also,
electricity prices levelled off from the comparison period. One of the key areas of the profit improvement programme was to mitigate the
impacts of inflation and reduce costs in selected product and service categories.
During the spring 2024, a new two-year collective agreement was negotiated for the private healthcare sector for the period 1 May 2024–
30 April 2026, covering the largest group of employees at Terveystalo, nurses. In 2024, salaries were increased by 2.4 percent with a general
and scale increase on 1 September 2024, plus there was a one-off payment of 500 euros in December 2024 and a local instalment of 0.4
percent. In 2025, from 1 May 2025 to 30 April 2026 (12 months), salaries will be increased by a general and scaled increase, the amount and
timing of which will be determined by the salary increases in certain benchmark sectors.
In other professions, wage inflation is also present. Most of the physicians who work in Terveystalo are private practitioners (approximately
96 percent), who are not in employment with the company. At the beginning of 2024, Terveystalo introduced a new remuneration model
for private practitioners in occupational health, which enables more effective inflation management.
In addition, Terveystalo has implemented commercial initiatives to mitigate the effect of inflation as a part of the profit improvement
programme.
From 1 September 2024, the general VAT rate in Finland went up from 24 percent to 25.5 percent. The increase in the VAT rate is estimated
to increase Terveystalo's costs by approximately EUR 2 million annually.
5
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. According to the
Finnish Institute for Health and Welfare (THL), at the end of August 2024, more than 166,000 patients were waiting for non-urgent specialist
care in the well-being services counties, which was 4000 more than in April 2024. In August, almost 18 percent, or more than 31,000
patients, had been waiting more than six months for access to treatment. The number grew by almost 4,000 patients during the summer of
2024. Valvira (The National Supervisory Authority for Welfare and Health) has ordered 14 wellbeing services counties and the HUS Group to
make access to non-urgent specialised care legally compliant by 31 March 2025 at the latest. At the beginning of 2025, the maximum time
limits for access to primary care were extended, i.e. the guarantee of care was relaxed. The guarantee is now 3 months for outpatient
primary care and 6 months for dental care. The maximum time limits for follow-up visits to doctors, dentists, and specialist dentists were
also extended. At the beginning of the year, the Health Care Act was amended to allow public service providers, such as well-being areas, to
procure surgery from the private sector to a greater extent. The amendment will be complemented by a decree at the beginning of 2025.
The decree will specify the services that can be procured from the private sector.
The government programme, published in the summer of 2023, aims to increase cooperation between private and public healthcare to
improve the effectiveness and cost-efficiency of the service system. The government has already followed up on its programme by
increasing Kela reimbursements from 1 January 2024 (https://www.kela.fi/sairaanhoito). On 9 October 2024, the Government outlined that
the Kela reimbursement system will be completely reformed in 2025 (Government to reform Kela reimbursements - The Ministry of Social
Affairs and Health (stm.fi/en)). The reimbursement of fertility treatments will be increased, most likely during the spring of 2025.
Reimbursements for ophthalmologists, gynaecologists, dental care, and mental health services will be reformed and increased.
Reimbursement for physiotherapy and visits to oral hygienists will also be developed. The changes are planned to come into force during
the first half of 2025. A freedom-of-choice pilot for people aged 65 and over will be launched in autumn 2025. A personal doctor model will
be explored, and trials will be launched. In total, EUR 500 million is planned to be allocated to all the above reforms during the government
term, of which EUR 335 million will be provided by the state. By reallocating reimbursements, the government aims to promote access to
services and freedom of choice. The government also intends to remove other legal barriers to the use of private providers in the wellbeing
services counties. The measures are expected to support the growth in demand for private services and create new opportunities for the
delivery 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
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.
6
Guidance for 2025
Terveystalo expects its full-year 2025 revenue to grow (2024: EUR 1,340 million) and adjusted EBIT to be 10.7–11.8 percent of revenue
(2024: 10.5 percent).
The estimates are based on a stable demand environment, employment levels, and typical morbidity rates. Due to ending contracts, they
account for a decrease of approximately EUR 25 million in revenue within the Portfolio Businesses segment's outsourcing operations.
Profitability is expected to strengthen in all business segments. The estimates do not account for significant acquisitions or divestments.
Medium-term financial targets
Profitable growth:
•
EPS to grow on average by 10 percent p.a.
•
We expect faster earnings per share growth in 2025, as fewer items affecting comparability are expected.
Moderate leverage ratio:
•
Net debt to EBITDA not to exceed 2.5x
•
Indebtedness may temporarily surpass the target level, particularly in conjunction with acquisitions.
Attractive dividends:
•
At least 80 percent of net result to be distributed as dividends
•
The dividend proposal must consider the company's long-term potential and financial status.
Financial targets until the end of 2024
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.
7
Key figures
Terveystalo Group, EUR mill.
2024
2023
2022
Revenue
1,340.0
1,286.4
1,259.1
Adjusted EBITDA, *
1)
245.9
200.2
178.0
Adjusted EBITDA, % *
1)
18.4
15.6
14.1
EBITDA
1)
222.5
179.2
168.8
EBITDA, %
1)
16.6
13.9
13.4
Adjusted EBITA *
1)
171.0
125.6
105.2
Adjusted EBITA, % *
1)
12.8
9.8
8.4
EBITA
1)
147.6
104.4
95.9
EBITA, %
1)
11.0
8.1
7.6
Adjusted operating profit (EBIT) *
1)
140.5
93.1
73.4
Adjusted operating profit (EBIT), % *
1)
10.5
7.2
5.8
Operating profit (EBIT)
116.1
-14.7
33.9
Operating profit (EBIT), %
8.7
-1.1
2.7
Return on equity (ROE), %
1)
13.5
-7.6
4.1
Equity ratio, %
1)
39.4
36.5
40.2
Earnings per share (€)
0.57
-0.33
0.19
Net debt
504.8
598.1
566.6
Gearing, %
1)
92.1
116.0
95.7
Net debt/EBITDA
1)
2.3
3.3
3.4
Net debt/Adjusted EBITDA
1)
2.1
3.0
3.2
Total assets
1,398.4
1,419.5
1,479.4
Average personnel FTE
2)
5,841
6,426
6,552
Personnel (end of period)
3)
9,153
9,824
10,933
Non-employees (end of period)
6,015
6,092
5,928
Adjusted EBITDA, excluding IFRS 16 *
1)
189.5
142.8
122.2
Net debt, excluding IFRS 16
313.0
379.0
386.8
Net debt/Adjusted EBITDA, excluding IFRS 16 *
1)
1.7
2.7
3.2
* 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 and other items affecting comparability.
1)
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.
2)
Does not include Medimar Scandinavia Ab and the companies acquired during 2024 in Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy, Kajaanin
Radiologikeskus Oy and Cityläkarna Mariehamn Ab).
3)
Does not include the companies acquired during 2024 in Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy,Kajaanin Radiologikeskus Oy and
Cityläkarna Mariehamn Ab).
8
Share-related key figures
2024
2023
2022
Equity per share, EUR
4.3
4.1
4.7
Earnings per share, EUR
0.57
-0.33
0.19
Dividend per share, EUR
0.48
1
)
0.30
0.28
Dividend payout ratio, %
84.2 %
190.9 %
2)
145.0 %
Effective dividend yield, %
4.6 %
3.9 %
4.5 %
Price-to-earnings ratio (P/E)
18.5
neg.
32.9
1)
Board of Directors’ proposal.
2)
In 2023, the dividend payout ratio of adjusted earnings per share (0.47 EUR) was 63.8 percent.
Financial development
Revenue
In 2024, the Group’s revenue
increased by 4.2 percent year-on-year to EUR 1,340.0 (1286.4) million.
The Healthcare Services segment revenue increased by 9.9 percent and was EUR 1042.8 (948.6) million. The revenue increase was mainly
driven by improved sales mix and successful commercial actions. Revenue grew in all customer and service groups.
The Portfolio Businesses segment revenue decreased by 10.7 percent and was EUR 238.5 (267.2) million. Revenue decreased in all
businesses.
The revenue from Sweden decreased by 11.6 percent due to lower demand and ended contracts and came to EUR 81.8 (92.5) million.
Without the currency effect, the revenue decreased by 11.7 percent. Acquisitions increased revenue in Sweden by approximately EUR 2.5
million.
In 2024, there were 252 (251) working days.
EUR mill.
2024
2023
Change, %
Healthcare services
1,042.8
948.6
9.9
Portfolio business
238.5
267.2
-10.7
Sweden
81.8
92.5
-11.6
Segments total
1,363.1
1,308.2
4.2
Other
-23.1
-21.8
-5.6
Total
1,340.0
1,286.4
4.2
reporting segments.
9
Financial performance and cash flow
The Group’s adjusted earnings in 2024
before interest, taxes, amortisation, and impairment losses (EBITA) increased by 36.2 percent to
EUR 171.0 (125.6) million, representing 12.8 (9.8) percent of revenue.
The profitability improved in Healthcare Services and Portfolio Businesses. Profitability was strengthened by successful commercial actions;
better sales mix and improved operational efficiency. Higher personnel costs due to wage increases had a negative impact on profitability in
the fourth quarter. In Sweden, profitability weakened clearly from the comparison period, mainly due to decreased revenue caused by
lower demand and ended contracts.
Adjusted EBITA
EUR mill.
2024
2023
Change, %
Healthcare services
162.0
109.0
48.6
Portfolio business
10.3
8.7
18.2
Sweden
-2.0
3.7
-155.0
Segments total
170.3
121.4
40.2
Other
0.7
4.2
-82.3
Total
171.0
125.6
36.2
Material expenses and service purchasing increased by 2.5 percent year-on-year and amounted to EUR -549.8 (-536.2) million. Employee
benefit expenses decreased by 4.3 percent year-on-year and amounted to EUR -427.8 (-447.0) million. Personnel costs decreased due to the
actions of the profit improvement programme, lower sick leaves and terminated outsourcing contracts. Personnel costs, on the other hand,
increased due to new recruitments, as well as salary increases. Other operating expenses increased by 12.1 percent to EUR -143.7 (-128.2)
million. Of the other expenses, around EUR 6 million was related to renovation and maintenance liabilities in a single location.
The Group’s adjusted EBITDA increased by 22.8 percent year-on-year to EUR 245.9 (200.2) million. Adjusted EBIT amounted to EUR 140.5
(93.1) million. Operating profit (EBIT) came to EUR 116.1 (-14.7) million. In the comparison period, the operating result was negatively
impacted by write-offs totalling EUR 84.6 million related to goodwill and to purchase price allocations relating to public outsourcing
customer relationships within the Portfolio Businesses.
Net financing costs increased to EUR -26.5 (-24.2) million mainly due to higher interest rates. The result before tax was EUR 89.6 (-38.9)
million. Income taxes were EUR -18.0 (-3.3) million. The result for the reporting period amounted to EUR 71.7 (-42.2) million, and earnings
per share were EUR 0.57 (-0.33).
Cash flow from operating activities increased to EUR 223.7 (157.8) million, driven mainly by improved profitability development, the impact
of which was strengthened by a decrease in working capital.
Cash flow from investing activities decreased to EUR -47.4 (-44.2) million. The change from the comparison period mainly consisted of an
increase in investments in acquisitions and tangible fixed assets and decrease in investments in intangible assets.
Cash flow from financing activities amounted to EUR -148.8 (-116.0) million. The difference to the comparison period was mainly due to
refinancing and increased net financial expenses during the reporting period.
10
Profit improvement programmes
During the fourth quarter of 2022, Terveystalo launched a profit improvement programme, which aimed for an inflation -adjusted,
annualised (run-rate) EBITA improvement of at least EUR 50 million by the end of 2024. The overall target of the programme was exceeded
at the end of 2023, when the measures implemented were estimated to have an annual run-rate impact of over EUR 60 million on
profitability. The adjusted EBITA impact of the programme during 2023 was EUR 37 million. In 2024, measures were focused on achieving
the 12 percent profitability target (adjusted EBITA -%) during 2025. The target was achieved already in 2024.
During the fourth quarter of 2023, a profit improvement programme was launched in Sweden targeting a structural change in the
profitability in 2025. The cost structure has been adjusted to match the weakened demand, which started to be reflected, among other
things, in lower personnel costs in the second half of the year. The programme will now focus on improving operational efficiency and
commercial measures.
The total costs related to the programmes in 2022–2024 were EUR 45.1 million. The costs are related to restructuring and advisory fees.
Advisory fees are tied to the results achieved by the programmes. The costs of the programmes are treated as items affecting
comparability. The costs of the programmes were approximately EUR 18.1 million in 2024. In 2023, the costs amounted to EUR 21.7 million.
In 2025 the costs are estimated to be EUR 7 million.
Financial position
Terveystalo’s liquidity position is strong. Cash and cash equivalents at the end of the reporting period amounted to EUR 65.2 (37.7) million.
The total assets of the Group amounted to EUR 1,398.4 (1,419.5) million.
Equity attributable to owners of the parent company totalled EUR 548.2 (515.4) million.
Gearing (including lease liabilities) was 92.1 (116.0) percent and net debt amounted to EUR 504.8 (598.1)
million. Net debt, excluding IFRS
16 (lease liabilities) amounted to EUR 313.0 (379.0) million. The average maturity of Terveystalo's financial loans was 3.0 (3.0) years at the
end of the reporting period, and in 2024, the average interest rate for loans from financial institutions was 4.9 (4.0) 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 agreements for long-term loans of total EUR 200 million and refinanced the current
revolving credit facility (RCF). The loans are bullet loans, and the maturity of the loans is three years supplemented by two one-year
extension options. The loans were withdrawn fully and used to refinance bank loans maturing during 2025 and 2026. In connection with the
refinancing, the company agreed on the refinancing of EUR 80 million revolving credit facilities maturing in 2026 and 2027. The maturity of
the syndicated credit revolving facility is three years supplemented by two one-year extension options.
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 93.0 (98.0) million.
Return on equity (LTM) for the reporting period was 13.5 (-7.6) percent. The equity ratio was 39.4 (36.5) percent.
Terveystalo's financing arrangements and risks are described in more detail in note 21 to the consolidated financial statements.
11
Seasonal variation and the impact of the number of business days
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 were 252 (251) working days in October–December 2024. In 2025, there are 251 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
2023
2024
2025
Q1
64
63
62
Q2
60
61
60
Q3
65
66
66
Q4
62
62
63
Full year
251
252
251
Investments and acquisitions
Net investments* in 2024, including M&A, amounted to EUR 47.8 (43.9) million. The Group’s net capital expenditure, excluding M&A,
amounted to EUR 39.4 (39.8) million. The investments consisted mainly of investments in the digital application and service development, IT
system projects, medical equipment, and network. The relative share of tangible investments in gross investments increased year-on-year,
while the total investment level remained at comparison year’s level.
Terveystalo sold the entire share capital of Sivupersoona Oy, a company providing sign language interpreting services, to the company's
management with an agreement dated in February. Terveystalo acquired the share capital of SRK Group Oy at the end of March. Feelgood
acquired the share capital in Clarahälsan AB in July. In September Terveystalo acquired the share capital of Cityläkarna Mariehamn Ab in
Åland.
* 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.
Intangible assets and development expenses
Terveystalo’s key intangible assets include the company’s brand and reputation, built over the years, Terveystalo’s professionals, and
strategic partnerships with key suppliers. These resources enable Terveystalo to maintain its competitive advantage and are a central part
of Terveystalo’s strategy.
Capitalised development expenses in 2024 were EUR 12.2 (23.2) million and were included in other intangible assets.
12
Personnel
The number of Terveystalo’s salaried employees on 31 December 2024 in Finland was 8,383 (8,950), in Sweden 770 (874), and in total 9,153
(9,824). In FTEs, the average number of salaried employees in Finland was 5,144 (5,597), in Sweden 697 (829) and in total 5,841 (6,426).
The number of non-employees in Finland was 5,967 (5,987), in Sweden 48 (105) and in total 6,015 (6,092). The decrease in the number of
employees in Finland was affected by the measures of the profit improvement programme and the termination of outsourcing contracts. In
Sweden the number of employed staff and private practitioners was reduced due to ended customer contracts as part of the profit
improvement programme.
Personnel
2024
2023
Change, %
Average salaried employees, (FTEs)
1)
Finland
5,144
5,597
-8.1
Sweden
697
829
-15.9
Total
5,841
6,426
-9.1
Salaried employees (at the end of period)
2)
Finland
8,383
8,950
-6.3
Sweden
770
874
-11.9
Total
9,153
9,824
-6.8
Non-employees (at the end of period)
2)
Finland
5,967
5,987
-0.3
Sweden
48
105
-54.3
Total
6,015
6,092
-1.3
1)
Does not include Medimar Scandinavia Ab and the companies acquired during 2024 in Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy, Kajaanin Radiologikeskus Oy and Cityläkarna
Mariehamn Ab).
2)
Does not include the companies acquired during 2024 in Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy, Kajaanin Radiologikeskus Oy and Cityläkarna Mariehamn Ab).
13
Reporting segments
Terveystalo Group comprises of three reporting segments: Healthcare Services, Portfolio Businesses, and Sweden.
Healthcare 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 specialised care, diagnostic, and day surgery. In Healthcare Services,
the goal is to be the best provider of integrated care and to grow profitably.
Key figures
2024
2023
Change, %
Revenue, MEUR
1,042.8
948.6
9.9
EBITA, MEUR
154.0
107.1
43.8
EBITA, % of revenue
14.8 %
11.3 %
3.5%-p.
Adjusted EBITA, MEUR
162.0
109.0
48.6
Adjusted EBITA, % of revenue
15.5 %
11.5 %
4.0%-p.
In 2024, the revenue from Healthcare Services
increased by 9.9 percent and amounted to EUR 1,042.8 (948.6) million. Revenue increased
in all customer and service groups. There was one working day more than in the comparison period.
Revenue from corporate customers increased by 13.3 percent to EUR 638.9 (564.0) million. Revenue from preventive occupational health
services
1)
by 5.9 percent to EUR 313.4 (296.1) million. The revenue increased due to higher sales from services produced for insurance companies and
successful commercial actions. The revenue from public sector customers increased by 2.3 percent to EUR 90.5 (88.5) million.
The revenue from appointment services increased by 11.0 percent to EUR 686.1 (618.3) million, mainly due to improved customer mix and
successful commercial actions in all customer groups. The number of physical appointments increased by 0.2 percent, and the number of
remote appointments decreased by 1.4 percent from the comparison period. Revenue from diagnostics services (laboratory and imaging)
increased by 10.7 percent and amounted to EUR 254.2 (229.6) million. The revenue from other services increased by 1.8 percent and was
102.5 (100.7), driven by surgical operations.
1)
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.
14
Healthcare Services, revenue by customer groups, and services
Healthcare services, revenue
10-12/2024
10-12/2023
2024
2023
EUR mill.
Change, %
Change, %
By customer
Corporate
175.0
156.5
11.8
638.9
564.0
13.3
Consumer
82.2
74.9
9.7
313.4
296.1
5.9
Public sector
24.2
23.3
3.8
90.5
88.5
2.3
Total
281.3
254.7
10.4
1,042.8
948.6
9.9
By service
Appointments
186.7
169.4
10.2
686.1
618.3
11.0
Diagnostics
66.3
56.7
17.1
254.2
229.6
10.7
Other
28.3
28.6
-1.0
102.5
100.7
1.8
Total
281.3
254.7
10.4
1,042.8
948.6
9.9
Corporate customers
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
themselves or by their insurance companies.
The services offered to
public sector
sector. Outsourcing and staffing services are included in Portfolio Businesses.
Healthcare Services, number of visits
Visits
10-12/2024
10-12/2023
Change, %
2024
2023
Change, %
Appointments
1,658,543
1,688,123
-1.8
6,058,492
6,069,111
-0.2
Physical appointments
1,322,124
1,319,576
0.2
4,758,350
4,750,619
0.2
Remote appointments
336,419
368,547
-8.7
1,300,142
1,318,492
-1.4
Diagnostics
345,950
318,756
8.5
1,304,306
1,285,980
1.4
Other
16,251
16,554
-1.8
62,418
48,984
27.4
Total
2,020,744
2,023,433
-0.1
7,425,216
7,404,075
0.3
In the Healthcare Services in 2024
, adjusted earnings before interest, taxes, amortisation, and impairment losses (EBITA) increased by 48.6
percent and amounted to EUR 162.0 (109.0) million, representing 15.5 (11.5) percent of revenue. Profitability was supported by successful
commercial actions, improved operational efficiency and improved sales mix.
15
Portfolio Businesses
The Portfolio Businesses segment consists of business areas that aim for independent value creation utilising Terveystalo’s
capabilities according to their needs. The Portfolio Businesses segment include publicly funded services, such as outsourcing
and staffing services, as well as services aimed at consumers, including dental care and massage.
Key figures
2024
2023
Change, %
Revenue, MEUR
238.5
267.2
-10.7
EBITA, MEUR
9.7
8.3
15.7
EBITA, % of revenue
4.1 %
3.1 %
1.0%-p.
Adjusted EBITA, MEUR
10.3
8.7
18.2
Adjusted EBITA, % of revenue
4.3 %
3.3 %
1.0%-p.
In 2024, revenue
9.1 percent and amounted to EUR 82.8 (91.1) million. The planned reduction of the outsourcing portfolio continued, but additional invoicing
increased the revenue. Revenue from staffing services decreased by 13.7 percent, mainly due to proactive customer selection and
amounted to EUR 73.1 (84.7) million. Revenue from dental care decreased by 7.7 percent due to lower demand and amounted to EUR 50.3
(54.5) million. Revenue from other services decreased by 12.3 percent and amounted to EUR 32.4 (36.9) million.
Portfolio businesses, revenue
2024
2023
EUR mill.
Change, %
Outsourcing services
82.8
91.1
-9.1
Staffing services
73.1
84.7
-13.7
Dental care
50.3
54.5
-7.7
Other
32.4
36.9
-12.3
Total
238.5
267.2
-10.7
In the Portfolio Businesses in 2024
, adjusted earnings before interest, taxes, amortisation, and impairment losses (EBITA) increased by 18.2
percent and amounted to EUR 10.3 (8.7) million, representing 4.3 (3.3) percent of revenue. Termination of low-margin outsourcing
contracts, successful commercial actions and improved operational efficiency improved profitability year-on-year. The improvement was
partially offset by cost inflation.
16
Sweden
The Sweden segment consists of Feelgood subsidiaries’ operations in Sweden, which are focused on occupational health and
consultation for organi sational management and harmful use rehabilitation services. Terveystalo aims to significantly improve
profitability in Sweden in the short term.
Key figures
2024
2023
Change, %
Revenue, MEUR
81.8
92.5
-11.6
EBITA, MEUR
-8.6
2.1
>-200,0
EBITA, % of revenue
-10.5 %
2.3 %
-12.8%-p.
Adjusted EBITA, MEUR
-2.0
3.7
-155.0
Adjusted EBITA, % of revenue
-2.5 %
4.0 %
-6.5%-p.
In the Sweden segment in 2024
, revenue decreased by 11.6 percent and amounted to EUR 81.8 (92.5) million. Without the currency effect,
the revenue decreased by 11.7 percent. The increased economic uncertainty affected the demand for organizational leadership
consultation and the harmful use rehabilitation services, which are sensitive to macroeconomic changes. Ended contracts also had a
negative year-on-year impact on revenue. Acquisitions increased revenue in Sweden by approximately EUR 2.5 million.
In the Sweden segment in 2024
, adjusted earnings before interest, taxes, amortisation, and impairment losses (EBITA) decreased to EUR -
2.0 (3.7) million, representing -2.5 (4.0) percent of revenue. Profitability was weakened by the decline in revenue, as well as cost inflation.
In the business area, a profit improvement programme was launched in the fourth quarter of 2023 to achieve a structural change in
profitability in 2025. The programme has progressed as planned. The cost structure has been adjusted to match the weakened demand,
which was reflected, among other things, in lower personnel costs in the second half of the year. The programme will now focus on
improving operational efficiency and commercial measures.
Shares and shareholders
Terveystalo Plc has one share series (TTALO), which is listed on Nasdaq Helsinki Ltd. At the end of 2024, Terveystalo’s market value was EUR
1,336 (983) million and the closing price was EUR 10.52 (7.74). During 2024, the highest price of Terveystalo’s share was EUR 10.88 (8.53),
the lowest price was EUR 7.09 (6.43), and the average price was EUR 8.96 (7.70). A total of 12.7 (20.6) million shares were traded. The
turnover of shares traded was EUR 115.1 (152.1) million. At the end of the reporting period, the number of Terveystalo shares registered in
the Trade Register was 127,036,531 (127,036,531). Each share entitles its holder to one vote at the Annual General Meeting. During 2024,
the weighted average number of shares outstanding was 126,605,000 (126,556,000). Terveystalo and its subsidiaries hold 431,705
(480,230) own shares for reward purposes, corresponding to 0.3 (0.4) percent of all outstanding shares. The total number of shareholders
was 33,544 (34,025) at the end of 2024.
17
The largest registered shareholders,31 December 2024
Name
Number of shares
% of shares
Votes
% of votes
Varma Mutual Pension Insurance Company
22,151,945
17.44
22,151,945
17.44
Rettig Investment AB
21,153,191
16.65
21,153,191
16.65
Pohjola Insurance Ltd
10,530,332
8.29
10,530,332
8.29
Hartwall Capital
8,231,690
6.48
8,231,690
6.48
OP Life Assurance Company Ltd
7,119,783
5.60
7,119,783
5.60
Ilmarinen Mutual Pension Insurance Company
5,382,000
4.24
5,382,000
4.24
LocalTapiola Mutual Insurance Company
2,600,000
2.05
2,600,000
2.05
Elo Mutual Pension Insurance Company
2,030,000
1.60
2,030,000
1.60
Evli Finnish Small Cap Fund
1,685,000
1.33
1,685,000
1.33
The State Pension Fund of Finland
1,300,000
1.02
1,300,000
1.02
Ten largest in total
82,183,941
64.69
82,183,941
64.69
The list is based on the register of shareholdings maintained by Euroclear Finland Ltd , and it does not include nominee-registered shares.
Distribution of ownership, 31 December 2024
Number of shares
Number of
shareholders
% of
shareholders
Number of
securities
% of
securities
Number of
votes
% of
votes
1–100
16,025
47.77
687,080
0.54
687,080
0.54
101–500
12,218
36.42
3,079,960
2.42
3,079,960
2.42
501–1,000
2,806
8.37
2,159,705
1.70
2,159,705
1.70
1,001–5,000
2,012
6.00
4,117,385
3.24
4,117,385
3.24
5,001–10,000
223
0.66
1,652,796
1.30
1,652,796
1.30
10,001–50,000
181
0.54
3,917,865
3.08
3,917,865
3.08
50,001–100,000
27
0.08
1,986,192
1.56
1,986,192
1.56
100,001–500,000
29
0.09
5,970,475
4.70
5,970,475
4.70
500,001–
23
0.07
103,465,073
81.45
103,465,073
81.45
Total
33,544
100.00
127,036,531
100.00
127,036,531
100.00
of which nominee-
registered
11
0.03
12,854,260
10.12
12,854,260
10.12
Non-transferred, total
0
0
0
0
0
In general account
0
0
0
0
In special accounts, total
0
0
0
0
Total issued
127,036,531
100.00
127,036,531
100.00
Shareholder groups, 31 December 2024
Shareholders by sector
Number of shares
% of shares
Households
9.8
Public entities
24.4
Financial and insurance institutions
23.8
Companies
12.9
Non-profit institutions
2.3
Foreign owners
16.7
Total
100.0
18
of which nominee-registered
10.1
Management shareholding, 31 December 2024
Name
Position
Number of
shares
% of shares
% of votes
Kari Kauniskangas
Chairman of the Board of Directors
25,363
0.02 %
0.02 %
Matts Rosenberg
Member of the Board of Directors
16,595
0.01 %
0.01 %
Carola Lemne
Member of the Board of Directors
6,799
0.01 %
0.01 %
Kristian Pullola
Member of the Board of Directors
10,304
0.01 %
0.01 %
Ari Lehtoranta
Member of the Board of Directors
8,177
0.01 %
0.01 %
Sofia Hasselberg
Member of the Board of Directors
4,172
0.00 %
0.00 %
Teija Sarajärvi
Member of the Board of Directors
1,673
0.00 %
0.00 %
Ville Iho
President and CEO
23,566
0.02 %
0.02 %
Juuso Pajunen
Chief Financial Officer
20,697
0.02 %
0.02 %
Petteri Lankinen
Chief Medical Officer
0
0.00 %
0.00 %
Sari Heinonen
Executive Vice President, Healthcare Services
0
0.00 %
0.00 %
Henri Mäenalanen
Executive Vice President, Portfolio Businesses
3,163
0.00 %
0.00 %
Stefan Kullgren
Executive Vice President of the Swedish Business Area
and CEO of Feelgood AB
10,000
0.01 %
0.01 %
Ilari Richard
Senior Vice President, Digital Services
3,834
0.00 %
0.00 %
Minttu Sinisalo
Senior Vice President, Human Resources
4,081
0.00 %
0.00 %
Petra Gräsbeck
Senior Vice President, Communications and Public Affairs
175
0.00 %
0.00 %
Management shareholding in total
116,842
0.10 %
0,10 %
Number of shares total
127,036,531
100.00 %
100.00 %
Notifications of major shareholdings
On 28 June 2024, Terveystalo Plc received a notification under Chapter 9, Section 5 of the Securities Market Act, according to which the
holding of Rettig Investment AB in Terveystalo Plc’s shares and votes had risen above 15 percent on 27 June 2024. The holding of Rettig
Investment AB has increased to 16.65 percent and 21,153,191 shares of the total of Terveystalo's shares and votes. This notification relates
to an internal restructuring within the group, in which Rettig Group AB, the previous direct holder of the shareholding notified herein, had
on 27 June 2024 merged with and into Rettig Investment AB. Therefore, Rettig Investment AB owns directly 21 153 191 shares in
Terveystalo Plc, which have transferred to the ownership of Rettig Investment AB from Rettig Group AB as a result of the merger.
The Board’s authori sations
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 2024 proposed by the Board
The objective of Terveystalo’s Dividend Policy is to distribute a minimum of 80 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 0.57 (-0.33).
The parent company’s distributable funds totaled EUR 558.9 (535.9) million, of which EUR 61.0 (40.5) million is the result for the financial
year. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.48 (0.30) per share totaling EUR 60.8 (38.0)
million be paid based on the balance sheet adopted for the financial year ended 31 December 2024.
19
The dividend would be paid in two instalments as follows:
●
The first dividend instalment of EUR 0.24 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 10 April 2025.
The Board of Directors proposes that the first dividend instalment would be paid on 17 April 2025.
●
The second dividend instalment of EUR 0.24 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 8 October
2025. The Board of Directors proposes that the second dividend instalment would be paid on 15 October 2025. The Board of
Directors also proposes that the Annual General Meeting would authorise the Board of Directors to resolve, if necessary, on a new
record date and date of payment for the second dividend instalment should the rules of Euroclear Finland Ltd or 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 jeopardised by the proposed distribution of profits.
Decisions of the Annual General Meeting 2024 and the first Board meeting
The Annual General Meeting of Terveystalo Plc was held on 26 March 2024 in Helsinki, Finland. The Annual General Meeting adopted the
financial statements for the financial year 2023 and discharged the members of the Board of Directors and the CEO from liability. The
Annual General Meeting approved the remuneration report for governing bodies and decided to support the amended remuneration policy
for governing bodies, which was presented to the Annual General Meeting. The Annual General Meeting decided, in accordance with the
proposal of the Board of Directors, that a total dividend of EUR 0.30 per share (which corresponds to a total of approximately EUR 38
million with the current number of shares in the company) will be paid based on the balance sheet adopted for the financial year ended 31
December 2023.
The dividend was paid in two instalments as follows:
●
The first dividend instalment of EUR 0.15 per share was paid to shareholders who were entered in the shareholders’ register of
the company maintained by Euroclear Finland Oy on the record date of the first dividend instalment 28 March 2024. The first
dividend instalment was paid on 8 April 2024.
●
The second dividend instalment of EUR 0.15 per share was 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
second dividend instalment was paid on 16 October 2024. 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 system change or otherwise so require.
The number of members of the Board of Directors was confirmed to be seven (7). Kari Kauniskangas, Sofia Hasselberg, Ari Lehtoranta,
Carola Lemne, Kristian Pullola and Matts Rosenberg were re-elected as members of the Board, and Teija Sarajärvi was elected as a new
member of the Board for a term that ends at the end of the Annual General Meeting 2025.
KPMG Oy Ab was elected as the company's auditor and the sustainability reporting assurance provider. KPMG Oy Ab has notified that
Henrik Holmbom, APA and Authorised Sustainability Auditor (ASA), would be acting as the principal auditor and the principally responsible
sustainability reporting assurance provider.
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
20
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 percent 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 2025.
As proposed by the Board of Directors, the Annual General Meeting resolved to authorise the Board of Directors to decide on donations in a
total maximum of EUR 150,000 for charitable or corresponding purposes. The authorisation will remain effective until the end of the next
Annual General Meeting 2025, however no longer than for a period of 18 months from the date of the resolution of the Annual General
Meeting.
The new Board elected Kari Kauniskangas as Chairman of the Board and Matts Rosenberg as Vice Chairman of the Board. Kristian Pullola
was elected Chairman of the Audit Committee and Sofia Hasselberg and Matts Rosenberg were elected members.
Kari Kauniskangas was elected Chairman of the Remuneration Committee and Carola Lemne, Ari Lehtoranta and Teija Sarajärvi were
elected members.
Changes in the management team
Sari Heinonen, member of Terveystalo's Executive Team and Executive Vice President, Healthcare Services, has announced that she will
leave the company on 15 April 2025 to move to a new position as President of LocalTapiola Group. Terveystalo will announce Heinonen's
successor at a later date.
Corporate governance
Terveystalo Plc’s Corporate Governance Statement, Remuneration Policy, and Remuneration Report for 2024 have been published as part
of the Annual Report 2024.
Events after the end of the reporting period
Terveystalo Plc's Board of Directors has approved a new performance period covering years 2025‒2027 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 2025–2027 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 2025–2027 of the Performance Share Plan (PSP)
During the performance period 2025–2027, 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.
21
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 2025–2027 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 700,000 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 80 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 2025–2027 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 70,000 shares.
Notifications pursuant to Chapter 9, Section 5 of the Securities Markets Act
After the end of the reporting period, on 18 February 2025, OP Financial Group's insurance companies transferred their Terveystalo Plc
shares to OP Cooperative. This transaction left OP Financial Group's total holding in Terveystalo Plc unchanged at 13.91 percent, equating to
17,675,975 shares. As part of the arrangement, Terveystalo Plc received the following flagging notifications on 19 February 2025.
Terveystalo Plc received a notification in accordance with Chapter 9, Section 5 of the Securities Markets Act, according to which OP
Cooperative's holding of Terveystalo Plc's shares and votes has exceeded 10 percent on 18 February 2025.
Terveystalo Plc received a notification in accordance with Chapter 9, Section 5 of the Securities Markets Act, according to which Pohjola
Insurance Ltd's holding in Terveystalo Plc's shares and votes has fallen below 5 percent on 18 February 2025.
Terveystalo Plc received a notification in accordance with Chapter 9, Section 5 of the Securities Markets Act, according to which OP Life
Assurance Company Ltd's holding of Terveystalo Plc's shares and votes has fallen below 5 percent on 18 February 2025.
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.
●
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.
22
●
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 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.
●
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 realised 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.
●
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.
●
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, aging 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.
●
Ongoing profit improvement programs may fall short of their targets and / or the improvements may not be sustainable.
●
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 Report.
Annual General Meeting in 2025
Terveystalo Plc's Annual General Meeting (AGM) is planned to be held on Tuesday 8 April 2025. The meeting will be convened by the
company's Board of Directors separately at a later date.
Terveystalo Plc
Board of Directors
23
Calculation of financial ratios and alternative performance measures
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)
x 100%
Equity (including non-controlling interest) (average)
Equity ratio, %
=
Equity (including non-controlling interest)
x 100%
Total assets - advances received
Gearing, %
=
Interest-bearing liabilities - interest-bearing receivables and cash and cash
equivalents
x 100%
Equity
Net debt/EBITDA (LTM) *
=
Interest-bearing liabilities - interest-bearing receivables and cash and cash
equivalents
EBITDA (LTM)
Net debt/Adjusted EBITDA (LTM) *
=
Interest-bearing liabilities - interest-bearing receivables and cash and cash
equivalents
Adjusted EBITDA (LTM)
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
Alternative performance measures to the statement of income
The company presents the following alternative performance measures to the statement of income, as in the company's view, they increase
understanding of the company's results of operations. In addition, the adjusted alternative performance measures are widely used by
analysts, investors and other parties and facilitates comparability between periods.
Adjusted EBITDA*
=
Earnings Before Interest, Taxes, Depreciation, Amortisation, Impairment
losses and adjustments
24
Adjusted EBITDA, %*
=
Earnings Before Interest, Taxes, Depreciation, Amortisation, Impairment
losses and adjustments
x 100%
Revenue
Adjusted EBITA*
=
Earnings Before Interest, Taxes, Amortisation, Impairment losses and adjustments
Adjusted EBITA, %*
=
Earnings Before Interest, Taxes, Amortisation, Impairment losses and
adjustments
x 100%
Revenue
Adjusted operating profit (EBIT)*
=
Earnings Before Interest, Taxes and Share of profits in associated companies,
and adjustments
Adjusted operating profit (EBIT), %*
=
Earnings Before Interest, Taxes and Share of profits in associated companies,
and adjustments
x 100%
Revenue
EBITDA
=
Earnings Before Interest, Taxes, Depreciation and Amortisation and Impairment losses
EBITDA, %
=
Earnings Before Interest, Taxes, Depreciation and Amortisation and
Impairment losses
x 100%
Revenue
EBITA
=
Earnings Before Interest, Taxes, Amortisation and Impairment losses
EBITA, %
=
Earnings Before Interest, Taxes, Amortisation and Impairment losses
x 100%
Revenue
Operating profit (EBIT)
=
Earnings Before Interest, Taxes and Share of profits in associated companies
Operating profit (EBIT), %
=
Earnings Before Interest, Taxes and Share of profits in associated companies
x 100%
Revenue
Adjusted EBITDA, excluding IFRS 16 *
=
Earnings Before Interest, Taxes, Depreciation, Amortisation, Impairment
losses and adjustments, excluding IFRS 16 lease adjustments
* Adjustments are material items outside the ordinary course of business and these relate to acquisition-related expenses, restructuring-
related expenses, gains and losses on sale of assets (net), impairment losses and other items affecting comparability.
Share key figures
Earnings per share, (EUR)
=
Profit for the period attributable to owners of the parent company
Average number of shares during the period
25
Effective dividend yield, %
=
Dividend per share
x 100%
Share price at the end of the period
Price-to-earnings ratio (P/E)
=
Share price at the end of the period
Earnings per share
26
Reconciliation of alternative performance measures
Return on equity, %
2024
2023
2022
Net income
71.7
-42.2
24.4
Equity (including non-controlling interest) (average)
531.8
553.7
600.4
Return on equity, %
13.5
7.6
4.1
Equity ratio, %
2024
2023
2022
Equity (including non-controlling interest)
548.2
515.4
592.0
Total assets
1,398.4
1419.5
1,479.4
Advances received
6.9
6.4
7.1
Equity ratio, %
39.4
36.5
40.2
Gearing, %
2024
2023
2022
Interest-bearing liabilities
570.0
635.8
607.0
Interest-bearing receivables and cash and cash equivalents
65.2
37.7
40.4
Equity
548.2
515.4
592.0
Gearing, %
92.1
116.0
95.7
Net debt / EBITDA
2024
2023
2022
Interest-bearing liabilities
570.0
635.8
607.0
Interest-bearing receivables and cash and cash equivalents
65.2
37.7
40.4
EBITDA
222.5
179.2
168.8
Net debt / EBITDA
2.3
3.3
3.4
Net debt / Adjusted EBITDA
2024
2023
2022
Interest-bearing liabilities
570.0
635.8
607.0
Interest-bearing receivables and cash and cash equivalents
65.2
37.7
40.4
Adjusted EBITDA
245.9
200.2
178
Net debt / Adjusted EBITDA
2.1
3.0
3.2
Adjusted EBITDA, EUR mill.
2024
2023
2022
Net income
71.7
-42.2
24.4
Income tax expense
18.0
3.3
6.5
Share of profits in associated companies
-
0.0
0.1
Net finance expenses
26.5
24.2
2.9
Depreciation, amortisation and impairment losses
106.4
193.8
134.9
Adjustments*
23.5
21.1
9.2
Adjusted EBITDA
245.9
200.2
178
Adjusted EBITDA, %
2024
2023
2022
Adjusted EBITDA
245.9
200.2
178
Revenue
1340.0
1,286.4
1,259.1
Adjusted EBITDA, %
18.4
15.6
14.1
.
27
Adjusted EBITA, EUR mill.
2024
2023
2022
Net income
71.7
-42.2
24.4
Income tax expense
18.0
3.3
6.5
Share of profits in associated companies
-
0.0
0.1
Net finance expenses
26.5
24.2
2.9
Amortisation and impairment losses
31.5
119.1
62
Adjustments*
23.5
21.5
9.2
Adjusted EBITA
171.0
125.6
105.2
Adjusted EBITA, %
2024
2023
2022
Adjusted EBITA
171.0
125.6
105.2
Revenue
1340.0
1,286.4
1,259.1
Adjusted EBITA, %
12.8
9.8
8.4
Adjusted operating profit (EBIT), EUR mill.
2024
2023
2022
Net income
71.7
-42.2
24.4
Income tax expense
18.0
3.3
6.5
Share of profits in associated companies
-
0.0
0.1
Net finance expenses
26.5
24.2
2.9
Adjustments*
24.4
107.8
39.5
Adjusted EBIT
140.5
93.1
73.4
Adjusted operating profit (EBIT), %
2024
2023
2022
Adjusted EBIT
140.5
93.1
73.4
Revenue
1,340.0
1286.4
1259.1
Adjusted EBIT, %
10.5
7.2
5.8
EBITDA, EUR mill.
2024
2023
2022
Net income
71.7
-42.2
24.4
Income tax expense
18.0
3.3
6.5
Share of profits in associated companies
-
0.0
0.1
Net finance expenses
26.5
24.2
2.9
Depreciation, amortisation and impairment losses
106.4
193.8
134.9
EBITDA
222.5
179.2
168.8
EBITDA, %
2024
2023
2022
EBITDA
222.5
179.2
168.8
Revenue
1340.0
1,286.4
1259.1
EBITDA, %
16.6
13.9
13.4
28
EBITA, EUR mill.
2024
2023
2022
Net income
71.7
-42.2
24.4
Income tax expense
18.0
3.3
6.5
Share of profits in associated companies
-
0.0
0.1
Net finance expenses
26.5
24.2
2.9
Amortisation and impairment losses
31.5
119.1
62
EBITA
147.6
104.4
95.9
EBITA, %
2024
2023
2022
EBITA
147.6
104.4
95.9
Revenue
1340.0
1,286.4
1,259.1
EBITA, %
11.0
8.1
7.6
Operating profit (EBIT), EUR mill.
2024
2023
2022
Net income
71.7
-42.4
24.4
Income tax expense
18.0
3.3
6.5
Share of profits in associated companies
-
0.0
0.1
Net finance expenses
26.5
24.2
2.9
EBIT
116.1
-14.7
33.9
Operating profit, (EBIT), %
2024
2023
2022
EBIT
116.1
-14.7
33.9
Revenue
1340.0
1,286.4
1259.1
EBIT, %
8.7
-1.1
2.7
Adjustments based on subject area* , EUR mill.
2024
2023
2022
Acquisition-related expenses
1)
-0.7
-0.8
2.8
Restructuring-related expenses
2)
1.9
3.2
1.5
Gain on sale of asset
3)
0.6
-
-
Impairment losses
0.9
80.8
30.3
Strategic projects and other items affecting to comparability
21.6
18.8
5
Adjustments
24.4
101.9
39.5
Adjustments based on account group* , EUR mill.
2024
2023
2022
Other operating income
-1.0
-0.8
-0.1
Personnel expenses
18.0
3.1
1.3
Other operating expenses
23.1
18.7
8
Depreciation and impairment
0.9
86.7
30.3
Deferred tax
-
-5.9
-
Adjustments
24.4
101.9
39.5
Adjusted EBITDA, excluding IFRS 16
2024
2023
2022
Net income
71.7
-42.2
24.4
29
Income tax expense
3.3
3.3
6.5
Share of profits in associated companies
-
0.0
0.1
Net finance expenses
26.5
24.2
2.9
Depreciation, amortisation and impairment losses
106.4
193.8
134.9
Adjustments*
23.5
21.1
9.2
IFRS 16 lease expense adjustment
-56.4
-57.4
-55.8
Adjusted EBITDA, excluding IFRS 16
189.5
142.8
122.2
Net debt/Adjusted EBITDA, excluding IFRS 16
2024
2023
2022
Interest-bearing liabilities
378.2
416.7
427.2
Interest-bearing receivables and cash and cash equivalents
65.2
37.7
40.4
Adjusted EBITDA
189.5
142.8
122.2
Net debt/Adjusted EBITDA, excluding IFRS 16
1.7
2.7
3.2
* 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)
3)
30
Sustainability statement
ESRS 2 - General disclosures
BP 1, 2 - Basis for preparation of the sustainability statement
Terveystalo Plc is a Finnish public limited liability company incorporated under the laws of Finland and domiciled in Helsinki. The Group’s
parent company Terveystalo Plc is listed on Nasdaq Helsinki. The Terveystalo Group consists of the parent company and 24 subsidiaries. The
company is the largest private healthcare service provider in Finland in terms of revenue, and one of the leading occupational health
providers in Finland and Sweden. The company offers general medicine, occupational health and specialised care services, diagnostics
services, outpatient surgery, oral health services and other complementary health services to corporate, private, and public sector
customers.
In the sustainability statement, operations are reported on at Terveystalo Group level, and the scope of consolidation is the same as in the
consolidated financial statements, unless otherwise stated. The information provided in the statement regarding Terveystalo's own
operations covers the entire Group’s own workforce, i.e. both employees and non-employees (including self-employed people), unless
otherwise stated. For the S1 - Own Workforce standard, the comparative figures for the comparison year have not been reported, with a
few exceptions, based on the transitional provision of ESRS (European Sustainability Reporting Standards) - 1 10.3 regarding the
presentation of comparative data. The sustainability statement covers the material impacts, risks and opportunities related to Terveystalo’s
upstream and downstream value chain. The sustainability report is published annually. The reporting period corresponds to the financial
reporting period 1 January 2024–31 December 2024. In the sustainability statement, the time horizons are defined in accordance with the
reporting time horizons provided in the ESRS standard: short-term = reporting period (one year), medium-term = 1–5 years, and long-
term: >5 years. The necessary reporting principles concerning different topics are presented in connection with each topic-specific
standard. No metrics that include estimates of upstream or downstream value chain figures have been used in the sustainability statement.
KPMG Oy Ab has verified the sustainability statement in accordance with the ISA 3000 assurance standard as a limited assurance
engagement.
Governance
GOV-1–2 The role of the administrative, management and supervisory bodies and the information
provided to and sustainability matters addressed by them
The sustainability statement includes disclosures on the management of sustainability. Further information on the general tasks,
composition, diversity and competence of the administrative, management and supervisory bodies, as well as internal control, internal
audit and risk management processes is provided in Terveystalo’s Corporate Governance Statement.
The Board of Directors and its committees
Terveystalo Plc’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 accordance with the applicable legislation, Terveystalo
Plc’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
decides on matters of principle and on any issues that could have broad -ranging implications for the company. 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 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.
31
In accordance with Terveystalo’s ESG governance model, the Board of Directors discusses and steers the sustainability strategy and key
action plans, decides on the setting of sustainability-related targets and monitors their achievement. The Board of Directors also approves
the Group’s key sustainability -related policies and Terveystalo’s Code of Conduct. In accordance with its charter, the duties of the Board of
Directors include monitoring and overseeing not only the financial reporting process but also the sustainability reporting process. The Board
of Directors prepares the election of the sustainability assurance provider, monitors the sustainability reporting assurance process and
approves Terveystalo’s sustainability statement.
The Board of Directors ensures that the company has defined policies concerning internal control, internal auditing and risk management,
and monitors compliance with such policies. In accordance with Terveystalo’s internal control and risk management policy, the Board of
Directors is responsible for the adequacy of risk management and approves the risk management policy. Internal control has been
integrated into Terveystalo’s management and reporting system and is implemented by Terveystalo’s Board of Directors and its Audit
Committee as well as the Group’s senior management, operational management and employees, and the Group’s internal audit and quality
assurance function. Internal control is based on Terveystalo’s risk management system, the company’s business culture, and respective
practices. Terveystalo’s values and Code of Conduct and the Group’s policies and procedures constitute part of the foundation and
organisation of internal control.
Terveystalo’s Vice President in charge of sustainability presents material sustainability -related matters to the Board of Directors at least
once a year in connection with the Board's discussion of the broader sustainability agenda and review of targets and performance.
Sustainability-related matters are also discussed in meetings of the Board of Directors as necessary when there are material issues to
communicate or decide on. In 2024, the following sustainability-related matters were discussed in the Board of Directors’ meetings, among
other things: The results of Terveystalo’s double materiality assessment, Terveystalo's material impacts, risks and opportunities, the
achievement of the sustainability targets set for 2023, progress towards the sustainability targets set for 2024, the structure of
Terveystalo’s sustainability reporting and assessing Terveystalo's preparedness for reporting. The Board of Directors has discussed
sustainability management at Terveystalo and Terveystalo’s sustainability strategy and its practical implementation as part of the overall
strategy. The Board of Directors has discussed Terveystalo’s Environmental, Social and Governance (ESG) roadmap and plans, as well as the
impacts, risks and opportunities related to the material sustainability themes identified in the double materiality assessment. The Board of
Directors has also discussed and examined metrics related to Terveystalo’s sustainability themes and their progress. Risk management,
Terveystalo’s environmental management system and information security and related risk management were also on the agenda of the
Board of Directors during the year. In addition, the Board of Directors participated in training related to sustainability reporting and
assurance.
The Board of Directors has established two committees to improve the efficacy of the Board: an Audit Committee and a 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, and the sustainability reporting process and assurance, as well as the supervision of matters related to reporting, internal
control, internal auditing, and risk management. The Audit Committee monitors and assesses the company’s financial and sustainability
reporting systems as well as the quality and integrity of the financial statements, other financial reports and sustainability statements. The
Audit Committee also monitors the statutory audit of the financial statements and consolidated financial statements and the assurance of
the sustainability statement. The Audit Committee also assesses the competence and independence of the external auditor and the
sustainability reporting assurance provider, prepares a proposal for a decision on the election of the auditor and the sustainability reporting
assurance provider, and monitors compliance with laws and regulations. The Audit Committee also monitors and assesses the efficiency of
the company’s internal control, internal auditing, and risk management systems and assesses the performance of internal auditing. The
Remuneration Committee of the Board of Directors, in turn, assists the Board in preparing matters related to remuneration, for example.
Among other things, the Remuneration Committee prepares the Remuneration Policy of Governing Bodies and the Remuneration Report,
prepares and assesses the remuneration of the CEO and other members of the Executive Team reporting directly to the CEO, and prepares
short-term and long-term incentive plans. The Remuneration Committee prepares matters concerning the appointment of the CEO and
other members of the Executive Team reporting directly to the CEO.
The committees discuss sustainability-related matters whenever there are material issues to communicate or decide on. In 2024, the Audit
Committee focused particularly on the reporting requirements arising from the Corporate Sustainability Reporting Directive (CSRD),
Terveystalo’s preparedness for reporting and the CSRD-compliant assurance process. During the year, the Remuneration Committee
32
prepared short-term and long-term incentive plans for the CEO and other members of the Executive Team reporting directly to the CEO.
The purpose of the incentive plans is, among other things, to steer the performance towards the achievement of Group -level and individual
targets based on the key strategic priorities for each year and towards specific Group-level targets. When preparing short-term and long-
term incentive plans, the Remuneration Committee evaluates the metrics and performance targets relevant to the plans, which are used as
performance criteria in remuneration. These metrics can be related to sustainability or other topics. The committees report on their work to
the Board of Directors on a regular basis.
CEO and Executive Team
The CEO is responsible for the day-to-day management of the company and for executing the company’s 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. 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. In
accordance with Terveystalo’s internal control and risk management policy, the CEO is also responsible for the organisation of Terveystalo
Group's risk management and the monitoring and guidance of the senior management with regard to risk management. The CEO manages
sustainability-related risks as part of the company’s general risk management. The 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. 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.
The Executive Team assists the CEO with, among other things, the preparation and execution of matters related to the company’s strategy,
business plans, matters of principle, and any other important matters. In accordance with Terveystalo's internal control and risk
management policy, the Executive Team supports the CEO in implementing risk management, risk monitoring, and risk assessment. The
members of the Executive Team are responsible for implementing risk management-related measures in their respective areas of
responsibility. Sustainability risks are assessed as part of Terveystalo Group’s general risk management. The purpose of risk management is
to support the achievement of business objectives by supporting informed decision-making and ensure the fulfilment of the customer
promise, patient safety and occupational safety, high-quality operations, financial performance, business continuity, a good public image for
the company, and corporate social responsibility. Risk management is an integral part of Terveystalo Group's planning processes and
monitoring and reporting practices, and risk-taking relative to risk-bearing capacity is assessed particularly in connection with work on the
strategy and when decisions are made on business projects or investments that are significant for the Group. Risk management is an
integral part of management. It contributes to strategic development, helps managers make informed choices, puts measures in priority
order, takes into account opportunities, uncertainties, and their effects, and distinguishes between alternative approaches. As stated
above, the Group’s management also participates in the implementation of internal control.
In accordance with Terveystalo’s ESG governance model, the Executive Team examines the Group’s sustainability approach, commitments,
investments and targets and decides on their submission to the Board of Directors for final approval. The Executive Team monitors progress
with regard to sustainability targets, commitments and the roadmap and is responsible for ensuring that sustainability commitments are
integrated into the Group’s overall strategy and operations as part of the strategy process. The Executive Team examines the Group’s
sustainability-related policies and guidelines and submits the most material of them to the Board of Directors for approval. The CEO and
certain members of the Executive Team also have the right to approve policies and guidelines that fall within their competence.
Terveystalo’s management and supervisors are responsible for the communication and implementation of Terveystalo's Code of Conduct,
and monitoring compliance with the Code of Conduct. The CEO reports to the Board of Directors of Terveystalo Plc and the other members
of the Executive Team report to the CEO.
The Vice President in charge of sustainability, who reports to the CFO, discusses sustainability-related matters with the CFO and CEO on a
regular basis and as necessary when there are material issues to communicate or decide on. Sustainability -related matters are also regularly
on the agenda of the Executive Team. In 2024, the CEO and the Executive Team particularly focused on Terveystalo’s sustainability strategy
and its practical implementation as part of Terveystalo’s overall strategy and sustainability management in Terveystalo .
Other responsibilities related to the management of the sustainability themes
33
Terveystalo’s Quality Steering Group and Medical Forum are responsible for ensuring and developing quality and patient safety. The
Director of Quality leads the Quality Steering Group, which is responsible for the development of Terveystalo’s quality management system
in accordance with the strategic priorities in order to achieve quality targets and results. The medical management of Terveystalo is
responsible for the compliance of the operations, medical content of services, monitoring of treatment effectiveness and patient safety.
The Chief Medical Officer leads the Medical Forum, which discusses the most significant medical issues that require policy decisions. In
addition to the Quality Steering Group and the Medical Forum, the administrative bodies responsible for steering the assurance and
development of quality and patient safety at the Group level include the Data Protection Team, the Safety Team and the Patient Safety
Team. Internal control is integrated into Terveystalo’s management and reporting system. Adherence to the environmental management
system is the responsibility of the Director of Quality, who reports to the Chief Medical Officer. The achievement of the goals of the
environmental management system is monitored by the environmental management system steering group, and operational activities are
the responsibility of the operative group.
In the beginning of 2025, the Quality Steering Group became the ESG and Quality Steering Group. It monitors sustainability -related
development and regulation and steers and supports the Group's quality and sustainability strategy. The steering group is chaired by the
Director of Quality, with the Vice President in charge of sustainability as the vice chair. The duties of the steering group are specified in
Terveystalo’s ESG governance model. The steering group supports the organisation in setting sustainability and quality targets and metrics,
and achieving the target level, commitments and targets set by the Board of Directors. The steering group defines the key metrics and
targets for sustainability and quality and evaluates the quality and sustainability policies and updates to the policies for approval by the
Executive Team or the Board of Directors. The group monitors the achievement of targets during the year and ensures that the necessary
analyses and corrective measures are taken at the Group level. The steering group reports to the Executive Team on a quarterly basis.
Human resources management and its development at Terveystalo is the responsibility of the Senior Vice President, People and Careers,
who is a member of the Executive Team and reports to the CEO.
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 Sweden, Feelgood has its own Data Protection Officer. The responsibility for day-
to-day information security management lies with the Chief Information Security Officer of the Group, who reports to the Executive Team
member responsible for information security and digital services. Terveystalo also has data protection and information security teams that
discuss and monitor issues 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 compliance function is responsible for preparing and updating compliance programmes and related policies. The compliance
function is also responsible for investigations and process development related to compliance with the Code of Conduct. The compliance
function reports annually to Terveystalo Plc’s Board of Directors on the most material compliance themes and targets. The compliance
function also reports to the Group’s senior management on a regular basis. Terveystalo’s senior management and supervisors are
responsible 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. The compliance function also trains personnel and
management on tailored compliance themes, such as the use of Terveystalo’s whistleblowing channel and related requirements.
Composition of the Board of Directors
According to Terveystalo Plc’s Articles of Association, the Board of Directors shall have a minimum of five and a maximum of eight ordinary
members. In 2024, the Board of Directors had seven members. The term of the members of the Board of Directors expires at the closing of
the Annual General Meeting following their election. Until 26 March 2024, the Board of Directors consisted of Kari Kauniskangas
(Chairman), Matts Rosenberg, Sofia Hasselberg, Ari Lehtoranta, Carola Lemne, Kristian Pullola and Katri Viippola in accordance with the
decision of the 2023 Annual General Meeting. The Annual General Meeting held on 26 March 2024 re-elected Kari Kauniskangas
(Chairman), Matts Rosenberg, Sofia Hasselberg, Ari Lehtoranta, Carola Lemne and Kristian Pullola as members of the Board of Directors.
Teija Sarajärvi was elected as a new member. There are no employee representatives among the members of the Board of Directors.
Presentations of the members of the Board of Directors are provided in Terveystalo’s Corporate Governance Statement.
34
Persons elected as a member of the Board of Directors must have the qualifications required for the position and the opportunity to devote
sufficient time to performing their duties. The company has drafted principles concerning the diversity of the Board of Directors. According
to the principles applied in financial year 2024, diversity was assessed from several perspectives, including age and gender as well as
educational and professional background. Terveystalo considers the realisation of diversity on the Board of Directors to be a key factor that
supports the company’s business and its development as well as the achievement of its strategic objectives. The work of the Board of
Directors requires understanding of differences in cultures, values, and business practices. The structure, size, composition, diversity and
succession needs of the Board of Directors are assessed annually, including whether the Board of Directors represents appropriate
experience, diverse business knowledge and skills, independence and other necessary qualities. The Shareholders' Nomination Board plans
the composition of the Board of Directors from the perspective of the company’s current and future business needs, taking into account
diversity of the Board.
Terveystalo's material sustainability themes were confirmed on the basis of the company’s double materiality assessment. The material
themes are own workforce, consumers and end-users and good corporate governance/business conduct. The members of Terveystalo Plc’s
Board of Directors represent expertise in the healthcare sector and business conduct in the company’s target markets (Finland and
Sweden), among other areas of expertise. The Board of Directors also includes members who have an educational background in medicine.
The members of the Board of Directors have experience from many different industries and a wide range of management positions in
companies serving different customer groups. They represent expertise related to business conduct and good corporate governance,
including strategic management, financial management and risk management, as well as business ethics and compliance. The Board
members also have expertise in topics related to sustainability (ESG), as well as human resources management and occupational safety. The
Board of Directors and its committees may also use external legal, financial, sustainability-related or other advisers to the extent they deem
necessary.
The age range of the Board of Directors whose term ended on 26 March 2024 was 40–65 years on 26 March 2024. Three (43%) of the Board
members were between the ages of 30 and 49, and four (57%) were aged 50 or older. The age range of the new Board of Directors that was
elected by the Annual General Meeting held on 26 March 2024 was 41–66 years on 31 December 2024. Two (29%) of the Board members
were between the ages of 30 and 49, and five (71%) were aged 50 or older.
Three (43%) of the members of the Board of Directors whose term ended on 26 March 2024 were women and four (57%) were men.
Similarly, three (43%) of the members of the Board of Directors whose term started on 26 March 2024 were women and four (57%) were
men. On average, during the year, 43 percent of the Board members were women and 57 percent were men. Persons outside Finland
accounted for two (29%) of the members of the Board of Directors that served until 26 March 2024 and the Board of Directors that served
thereafter.
The Board conducts an annual assessment of its operations and working practices in accordance with the Corporate Governance Code
published by the Finnish Securities Market Association. In preparing its proposal on the composition of the Board of Directors, the
Shareholders' Nomination Board must take into account the requirements 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 the Corporate Governance Code,
the principles concerning the diversity of the Board of Directors, and other applicable regulations. According to the assessment of the Board
of Directors, all of the members (100%) of the Board of Directors on 31 December 2024 are independent of the company. Six out of seven
members (86%) are also independent of the company’s significant shareholders.
GOV-3 Integration of sustainability-related performance in incentive schemes
Remuneration of the Board of Directors
The Shareholders’ Nomination Board prepares and reviews the remuneration principles for the members of the Board of Directors as set
out in the Terveystalo Plc's Remuneration Policy for Governing Bodies. Each year, the Shareholders’ Nomination Board also prepares a
proposal for the remuneration of the members of the Board of Directors. The proposal must be based on the principles set out in
Terveystalo Plc's 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.
35
In 2024, the remuneration of the Board of Directors consisted of annual remuneration and meeting fees, in addition to which the Board
members were entitled to compensation for reasonable travel expenses related to their work. The annual remuneration is paid either partly
in Terveystalo’s shares and partly in cash, or fully in cash. Terveystalo's Annual General Meeting held on 26 March 2024 resolved that, for
the term starting from the Annual General Meeting, the annual remuneration of the Board would be paid as a combination of company
shares and cash in such a manner that 40 percent of the annual remuneration would be paid in shares purchased from the market on behalf
of the Board members at a price determined in public trading, and 60 percent would be paid in cash. The Annual General Meeting resolved
that the Board of Directors’ meeting fees would be paid in cash. In 2024, 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 CEO’s remuneration principles as set out in the Terveystalo Plc's Remuneration Policy
for Governing Bodies on the basis of preparatory work carried out by the Remuneration Committee of the Board of Directors, and decides
on the CEO’s pay, incentive schemes and related targets on the basis of preparatory work carried out by the Remuneration Committee of
the Board of Directors. The Board of Directors also decides on all share-based incentive schemes based on the preparatory work of the
Remuneration Committee.
In 2024, the CEO’s total remuneration consisted of fixed and variable components. The fixed component includes the base salary, benefits
and insurance. The base salary provides core compensation for the role and takes into account several factors, such as the individual’s
personal performance level and contribution to the business, the individual’s skills and experience, the internal salary levels and the
external market conditions. The base salary is reviewed annually. Taxable fringe benefits, Terveystalo’s standard personnel benefits, and
other similar benefits are included in the base salary. In 2024, the insurances included, among other things, leisure-time accident insurance,
travel insurance, and liability insurance for the management. The Board of Directors has a possibility to decide on a supplementary defined
contribution pension in line with local market practices.
The variable components of the CEO’s remuneration consist of short-term and long-term incentives. The short-term incentives are aimed at
driving short-term performance towards specific Group -level targets and individual objectives that are based on the key strategic priorities
for each year. Performance is measured over a period of one year, and potential rewards are paid the following year. The Board of Directors
sets annual performance criteria based on the key priorities for the financial year. The criteria may include both financial and non-financial
criteria. Following the end of the earnings period, the Board of Directors confirms the achievement of the criteria and determines the
amount of the payout. According to the Remuneration Policy for Governing Bodies last handled at Terveystalo's Annual General Meeting
held on 26 March 2024, at the maximum level of performance, the incentive opportunity could not exceed 150% of the annual base salary.
In 2023 and 2024, the employee Net Promoter Score (eNPS) was one of the indicators included in the CEO’s short-term performance
targets. eNPS indicates the proportion of Terveystalo’s personnel and private practitioners who would recommend Terveystalo as a
workplace to others. The short-term incentive paid to the CEO in 2024, based on the performance in 2023, was based on the eNPS indicator
with a weight of 20 percent. The eNPS target for the incentive was linked to Terveystalo’s target level. In 2023, eNPS was the only indicator
of sustainability-related performance included in the CEO’s performance targets. The other indicators affecting the amount of the short-
term incentive were adjusted EBITA and the progress of the profit improvement programme initiated in 2022. In 2024, the CEO’s short-term
incentive was based on the eNPS indicator with a weight of 10 percent. The eNPS target for the incentive was linked to Terveystalo’s target
level. The second sustainability-related performance indicator in 2024 was the Patient Enablement Instrument (PEI), which measures
medical quality in terms of the customer’s ability to deal with their illness after their appointment. In 2024, the CEO’s short-term incentive
was based on the PEI indicator with a weight of 10 percent. The PEI target is specified in the incentive scheme. The third indicator affecting
the amount of the short-term incentive in 2024 was Terveystalo's adjusted EBITA. The short-term incentive for 2024 will be paid in 2025.
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 toward specific Group-level
targets, to engage the CEO’s commitment to the company and to align the interests of the CEO with interests of the shareholders. In 2024,
the long-term share-based incentive schemes for the management did not include sustainability-related performance indicators. In the
performance periods 2022–2024, 2023–2025 and 2024–2026, the performance criteria for the CEO's share-based long-term incentive
schemes are the company's absolute and relative Total Shareholder Return (TSR).
36
GOV-4 Statement on due diligence
The adjacent table and the references presented in it describe Terveystalo’s current state with regard to the identification, assessment and
mitigation of adverse environmental and human rights impacts, and the monitoring and communication of related results. The process will
be developed with regard to the supply chain in 2025.
CORE ELEMENTS OF DUE DILIGENCE
PARAGRAPHS IN THE SUSTAINABILITY STATEMENT
a)
Embedding due diligence in governance, strategy and
business model
ESRS 2 GOV-2, ESRS 2 GOV-3, ESRS 2 SBM-3
b)
Engaging with affected stakeholders in all key steps of the
due diligence
ESRS 2 GOV-2, ESRS 2 SBM-2, ESRS 2 IRO-1, ESRS S1-2, ESRS
S4-2
c)
Identifying and assessing adverse impacts
ESRS 2 IRO-1, ESRS 2 SBM-3, ESRS S1-3, ESRS S1-4, ESRS S4-3,
ESRS S4-4
d)
Tracking the effectiveness of these efforts and
communicating
ESRS 2 GOV-2, ESRS S1-4, ESRS S1-5, ESRS S4-4, ESRS S4-5
In late 2024, Terveystalo carried out a human rights impact assessment concerning the entire value chain. Terveystalo’s human rights
policy, which was formed on the basis of the impact assessment, entered into effect in January 2025. The identified potential adverse
impacts will be taken into account in the update of the double materiality assessment in 2025 and the development of due diligence
processes during 2025.
GOV-5 Risk management and internal controls over sustainability reporting
The purpose of internal controls related to the sustainability reporting process is to ensure that Terveystalo Group’s sustainability reporting
is reliable and that the information reported in the sustainability statement has been prepared in accordance with Terveystalo’s calculation
and accounting principles. Internal control is based on Terveystalo’s risk management system, business culture, and respective practices.
Terveystalo's Group-level principles and processes concerning statutory reporting, risk management and internal control are observed in
sustainability reporting. The internal control of sustainability reporting is based on risk identification and analysis, the targeting of control at
the most material identified risks, and adherence to the best practices of internal control. Risks are prioritised based on their weighted
severity and likelihood.
Sustainability reporting is centralised in the company’s financial function under the Vice President, Investor Relations and Sustainability. The
identified key risks of sustainability reporting are the accuracy and coverage of the reported information. To ensure the accuracy and
coverage of the reported information, Terveystalo has defined and implemented a sustainability reporting governance model that specifies
the roles and responsibilities for sustainability reporting. The content owners of the reported topic areas are responsible for ensuring that
Terveystalo’s process environment is able to produce the necessary reportable information. The content-related responsibility for the
accuracy of the information and the responsibility for adherence to reporting schedules and delivering the information to the Investor
Relations and Sustainability team lies with the content and data owners defined in the reporting governance model, i.e. the roles defined in
Group functions such as HR, quality management, legal & compliance, and environment.
Internal controls have been implemented to ensure the accuracy of the reported content, and the reporting governance model designates
an ESG controller whose task is to ensure the accuracy of the information and compliance with the preparation principles.
Sustainability reporting and related observations were discussed a total of five times in the company’s Audit Committee meetings in 2024.
37
Strategy
SBM-1 Strategy, business model and value chain
Terveystalo plays a key role in the renewal of healthcare in Finland, the prevention of illnesses and the promotion of people’s
well-being.
In addition to preventive occupational health services, Terveystalo offers a wide range of services in primary healthcare and specialised
care, diagnostics, and day surgery, including general practitioner and specialist services, imaging and laboratory tests. In addition, the
company offers demanding surgery, well-being services, oral health services, public healthcare outsourcing services, healthcare staffing
services, rehabilitation services and child welfare services.
The services are offered both digitally and at approximately 360 Terveystalo clinics around Finland, including 18 hospital units and 31 dental
clinics. In 2024, Terveystalo had a total of 1.2 (1.2) million customers, 7.6 (7.6) million customer visits in Finland, and a total of 1.7 (1.8)
million end-customers of occupational health services in the Nordic countries.
Terveystalo’s digital platform has more than 2.6 million registered users. In Finland, Terveystalo provides occupational health services to
over 26,000 companies and organisations that have approximately 744,000 employees covered by the occupational health services.
In Sweden, Terveystalo offers occupational health, organisational management consulting and addiction prevention and rehabilitation
services to its corporate customers. Terveystalo has more than 800 professionals in Sweden, serving customers digitally and in person at
approximately 140 locations. Terveystalo serves approximately 8,000 corporate customers in Sweden, which have about one million
employees covered by occupational health services. Terveystalo’s customer groups and service offering are described in more detail in
section S4 – Consumers and end-users on pages 82–84xx.
Terveystalo’s service offering is divided into three business areas: Healthcare Services, Portfolio Businesses and Sweden, which are also
Terveystalo’s reporting segments. Significant events concerning the business activitites of the business areas and their financial
performance during the reporting period are presented in the Business Areas section of the Report of the Board of Directors on pages 13–
16.
Terveystalo’s mission is to fight for a healthier life. Terveystalo’s values – human being at the centre, steered by medical science and
reforming healthcare – are the foundation of all of Terveystalo’s operations. The most significant positive sustainability impact of
Terveystalo’s operations arises from providing fluent, caring and effective integrated care to customers, which is also at the core of
Terveystalo’s strategy. According to Terveystalo's strategy, integrated care means that Terveystalo understands customers and their needs,
prevents and manages health risks, guides the customer to the right service and treatment, takes care of the patient throughout the care
path, cooperates as teams of experts, and measures and improves the outcomes of care. The integrated care model aims for a positive
social impact, which can be reflected in the prevention of illnesses, quick access to care, fluent care paths and good outcomes of care,
among other things. High-quality occupational healthcare that is based on integrated care is effective when it promotes the health, work
ability and well-being of employees effectively and with measurable results. Effectiveness is reflected in, for example, reduced sickness
absences, improved work ability and productivity, as well as increased well-being at work, which reduces early retirement and saves costs
for client companies.
Terveystalo’s digital solutions play a key role in integrated care paths and their development. They ensure smooth workflow for
Terveystalo's professionals, the best care and prevention outcomes for its customers, and help to address the care gap in the industry.
Terveystalo uses data to identify and prevent health risks and select the right treatment. The aim is to increase the overall capacity of care
through digital solutions to enable quick access to care under an optimised multi-channel production model. Digital tools are also aimed at
creating smoother workflow for professionals through the development of tools and processes, multidisciplinary collaboration and the
productivity of operations. The continuity of care is improved by guiding the customer and the professional through the entire care path
from the first contact to the end of the care path. Terveystalo systematically measures the effectiveness of care and develops its operations
to improve the outcomes. Terveystalo supports Finland’s 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. The material sustainability
38
matters related to Terveystalo’s customers, including the targets related to the sub-topic, are described in more detail in section S-4
Consumers and end-users on pages 82–96.
Terveystalo is one of the largest employers in Finland. At the end of 2024, Terveystalo's operations in Finland had 8,383 (8,950) employees
and 5,967 (5,987) non-employees. In Sweden, Terveystalo’s subsidiary Feelgood had 770 (874) employees and 48 (105) non-employees. The
decrease in the number of employees in Finland was affected by the measures of the profit improvement programme and the termination
of outsourcing contracts. In Sweden the number of employed staff and private practitioners was reduced due to ended customer contracts
as part of the profit improvement programme. As the need for care increases due to the ageing of the population, the shortage of
professionals is the greatest challenge in healthcare. With this in mind, it is a key strategic goal for Terveystalo to ensure that the company
has an adequate number of engaged and highly competent healthcare professionals for Terveystalo to meet the growing demand and
achieve its strategic targets. Terveystalo’s goal is to be the best and most attractive employer in its industry. The material sustainability
matters related to Terveystalo’s personnel, including the targets related to the sub-topic, are described in more detail in section S-4 Own
workforce on pages 64–81.
Each year, Terveystalo purchases services, materials and supplies for its clinics from approximately 4,400 suppliers. Of these, the 180 largest
suppliers account for about 80% of total purchasing expenditure. The largest procurement categories are ICT purchases, the rental of
premises and subcontracted services, such as laboratory services. Terveystalo Group also expects its suppliers to observe high standards of
sustainability with regard to ethical, social and environmental perspectives, as well as occupational health and safety. The material
sustainability matters related to Terveystalo’s suppliers, including the targets related to the sub-topic, are described in more detail in
section G-1 Business conduct on pages 97–111.
39
SBM-2 Interests and views of stakeholders
Terveystalo’s role in society means that the company has several stakeholders with whom it engages in active dialogue and develops its
operations on the basis of stakeholder feedback. In addition to customers, personnel, private practitioners, suppliers and shareholders, the
key stakeholders include the public 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. Stakeholder expectations and feedback are discussed regularly by Terveystalo’s Executive Team and Board of Directors.
Stakeholder views were taken into account in the
double materiality assessment conducted in 2023, which served as the foundation for confirming Terveystalo's material themes of
sustainability. The materiality assessment is described in Material sustainability impacts, risks and opportunities on pages 48–50.
The table below describes Terveystalo’s engagement with the most important stakeholders and how the themes that are important to
them are taken into account in the company’s strategy and business model.
Stakeholder
Interaction
channels/Stakeholder
engagement
Stakeholder expectations/Themes
of high importance to the
stakeholder
Meeting the
expectations/Impact on
operations, business model
and
strategy
Customers
Physical and digital customer
encounters, online services,
feedback surveys and channels,
marketing communications,
social media, whistleblowing
channel (WhistleB) and
materiality analysis.
Access to care, quality and impact
of care
Patient data protection and
information security
Patient safety
Effective digital services
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. Terveystalo aims to
stand out by providing an
excellent experience in all
customer encounters,
irrespective of the channel.
At Terveystalo, customer
feedback is collected
systematically and customers
are provided with many
different channels for giving
feedback. Customer feedback
is regularly monitored and
reported on, 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.
40
Personnel and private
practitioners
Personnel Forum, shop stewards,
employee representatives and
the health and safety
representative, personnel
satisfaction surveys,
development discussions,
discussions with private
practitioners, personal
interaction, materiality
assessment, intranet,
newsletters, training, webinars,
seminars and other events, and
the whistleblowing channel
(WhistleB).
Responsible management, clear
management structures, smooth
interaction, equality, a good
working atmosphere and working
conditions, development of
competence, competitive pay.
Terveystalo’s goal is to be the
best and most attractive
employer in its industry.
Terveystalo strengthens its
attractiveness as a workplace
by providing professionals
with interesting and
meaningful work,
competitive pay, diverse
career and development
opportunities, and ensuring
that professionals can work
smoothly and focus on what
matters.
The aim is to provide a
humane and well-functioning
working environment where
the professionals can focus
on meaningful matters.
The development of tools
and processes to make work
smoother continued in 2024.
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 strategy and
related measures.
Shareholders
Open and active dialogue;
regular and continuous reporting
with stock exchange releases and
reports, personal communication
channels, such as meetings with
investors and analysts, general
meetings of shareholders,
materiality assessment, Capital
Markets Day and other events.
The Investor Relations function
coordinates interaction with
investors, aiming to ensure equal
opportunities to receive
information and meet with the
company management.
Creating financial added value,
transparent and open
communication about the
implementation of the strategy and
financial performance, predictable
business development, sustainable
business.
Terveystalo communicates
with shareholders and
investors on a regular and
continuous basis with regard
to material topics, such as
the implementation of the
strategy, the development of
the business and market
environment, and financial
performance. Shareholder
feedback and expectations
are taken into account when
updating the strategy and
financial targets. The topics
discussed during
Terveystalo’s Capital Markets
Day event in December 2024
41
included Terveystalo’s
operating environment,
strategy and the future focus
areas of capital allocation.
Terveystalo participated in
several ESG surveys that
serve responsible investing.
Suppliers
Supplier cooperation in
accordance with Terveystalo’s
Supplier Relationship
Management (SRM) model
Supplier self-assessment
Audits
Reliability and financial stability
Clear agreements and payment
terms
Continuity and long-term
cooperation
Openness, communication and
feedback
Sustainability and ethics
Competitive purchasing volumes
and prices
The success of Terveystalo’s
business and maintaining its
competitiveness require
efficient and sustainable
supplier cooperation.
Terveystalo expects its
suppliers to observe high
standards of sustainability
with regard to ethical, social
and environmental
perspectives, as well as
occupational health and
safety. Terveystalo Group’s
Supplier Code of Conduct
sets out the minimum
requirements that all
suppliers and 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. Supplier
relationship management
provides better visibility into
the supply chain, improving
delivery reliability, quality
management and risk
management, and increasing
visibility into total costs and
the flexibility of the supply
chain.
The authorities and
decision-makers
Open and active dialogue,
meetings and communication
directly and in various working
groups and events.
The obligations associated with
the Finnish Transparency
Register are observed in
communication activities.
Good cooperation and open
disclosure 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 has the
competence, innovation
capacity and willingness to
develop Finnish healthcare,
which is why Terveystalo
actively participates in
dialogue with decision-
makers and authorities to
promote progress. Through
42
its labour market and
advocacy organisations (the
Finnish Association of Private
Care Providers HALI, the
Association of Finnish Private
Healthcare Providers LPY and
Healthtech Finland, and their
umbrella organisations, the
Confederation of Finnish
Industries and Suomen
Yrittäjät), Terveystalo
participates in position-taking
and advocacy efforts in the
private healthcare industry.
Terveystalo also engages in
active dialogue at the
national level with ministries,
political decision-makers and
key authorities, such as Kela
and the Finnish Institute for
Health and Welfare. In 2024,
Terveystalo also
strengthened its connections
to the wellbeing services
counties by establishing the
Health Partner organisation.
It includes, among other
members, wellbeing services
county-specific customer
account owners, whose task
is to identify the individual
needs of the wellbeing
services counties and offer
solutions to the identified
needs. Terveystalo has the
particular capability to
increase cost efficiency and
the availability of services,
which are necessary for the
Finnish healthcare and social
welfare service system.
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SBM 3- Material impacts, risks and opportunities and their interaction with the strategy and
business model
The following tables describe the sustainability-related impacts, risks and opportunities that Terveystalo has identified and assessed as
material as a result of its double materiality assessment process. More information on how Terveystalo manages its impacts and risks is
provided in the topic-specific sections. The material risks or opportunities had no financial effects on the company’s financial position, result
or cash flows during the financial period. As Terveystalo is reporting in compliance with the ESRS (European Sustainability Reporting
Standards) for the first time, there are no year-on-year changes with regard to the material impacts, risks and opportunities.
S1 – Own workforce
Material impacts, risks and opportunities related to own workforce
Material sub-topic
Material impacts, risks and/or opportunities
Working conditions
Adequate wages
Risk (potential): Terveystalo’s business is
labour-intensive and payroll costs have a
significant effect on Terveystalo’s profitability. If
Terveystalo were to fail to attract and retain
professionals on reasonable terms, it could lead
to an increase in Terveystalo’s personnel and
recruitment costs. Terveystalo may also be
subject to strikes or other industrial action,
which may cause disruptions to Terveystalo’s
business operations. Employer organisations
representing Terveystalo and other employers
may not be able to negotiate satisfactory
collective agreements after previous
agreements have expired. The tight labour
market and increased inflation may cause
increasing pressure on personnel costs and
other operating expenses.
Work-life balance
Positive impact (actual):
A healthy work-
life balance supports the well-being,
productivity and job satisfaction of the
personnel, as well as their ability to cope
with the demands of work. A healthy
work-life balance is also indirectly
reflected in better treatment outcomes
and a better customer experience.
Safety and health
Positive impact (actual):
Ensuring the
health and safety of employees improves
their work ability and job satisfaction and
reduces sickness absences and work-
related accidents. This has a positive
impact on Terveystalo’s employer image,
employee recruitment and commitment,
as well as an indirect positive impact on
Terveystalo’s operational and financial
performance.
44
Equal treatment and opportunities for all
Training and skills development
Positive impact (actual):
Systematic and
business-driven personnel development,
smooth work and responsible, good
supervisory work ensure the competence
and well-being of Terveystalo’s
personnel, which in turn benefits
customers through better care and a
positive customer experience.
Company-specific topics
Efficient working methods/Efficient use of
personnel resources
Positive impact (actual), opportunity:
Efficient working methods and smooth
workflows have a key positive impact on
the well-being, motivation and
commitment of Terveystalo’s
professionals and indirectly on
Terveystalo’s operations and
performance. If the factors affecting the
smoothness of workflows, such as clear
work processes, excellent management,
sufficient resources and effective digital
tools, are in order, they provide a
competitive advantage for Terveystalo.
This allows professionals to focus on
high-quality customer work without
unnecessary interruptions, which
improves the quality of care and
customer satisfaction. Professionals with
a high level of well-being and motivation
are more committed, which reduces
personnel turnover and sickness
absences. These have an indirect positive
impact on Terveystalo’s operational and
financial performance.
Engagement of employees and professionals
Risk (potential):
for qualified and competent employees and
personnel in the healthcare sector.
Terveystalo's business is dependent on the
company's ability to identify, recruit, and retain
qualified and competent healthcare
professionals, employees and executives. If
Terveystalo were to fail to attract and retain the
necessary professionals on reasonable terms, it
could lead to an increase in Terveystalo’s
personnel and recruitment costs and adversely
affect Terveystalo's ability to maintain or
develop its business. In addition, high turnover
among employees, private practitioners or
executives may have a negative impact on the
quality of Terveystalo’s services.
The realisation of these risks could have a
material adverse impact on Terveystalo’s
business, financial position, profitability and
future prospects.
S4 - Consumers and end-users
45
Material impacts, risks and opportunities related to consumers and end-users
Material sub-topic
Material impacts, risks or opportunities
Information-related impacts for consumers and/or end-users
Patient data protection and
information security
Negative impact (
actual and potential
):
Compromised data protection or information
security may jeopardise the privacy and data
protection of Terveystalo’s patients, customers,
personnel, partners or other stakeholders.
Compromised data protection or information
security may expose sensitive personal data to
misuse, which may cause both tangible and
intangible damage to a person. For example, the
person may be subjected to fraud, identity theft,
discrimination or bullying, or their reputation may
be damaged. The person may also suffer other
financial losses or social harm. The impacts related
to compromised data protection and information
security can be isolated or broad.
Risk
(actual and potential):
information security or data protection, such
as a breach of confidentiality, integrity or
availability, may cause restrictions on
operations imposed by the public authorities,
financial sanctions, claims for damages and
other financial losses, which would have an
adverse impact on Terveystalo's financial
performance. Compromised information
security and data protection could have a
detrimental impact on Terveystalo’s
reputation, which in turn could have a
detrimental impact on the availability of
professionals, the cooperation partnerships
available to Terveystalo, customerships and,
through these, also on the company’s
productivity.
Personal safety of consumers and/or end-users
Access to care and the quality and
effectiveness of care (including
patient safety)
Positive impact
(actual):
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 customers. Terveystalo’s
fluent integrated care paths and digital services
enable faster access to care. 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 occupational health developed by
Terveystalo improves the mental health of
customers while reducing sickness absences
related to mental health.
Cooperation and partnerships with the public
sector provide solutions for improving access to
care.
Company-specific topic
46
Customer experience
Positive impact (actual):
out by providing an excellent experience in all
customer encounters, irrespective of the channel.
When customers use Terveystalo’s services, the
aim is for each customer to feel that they receive
high-quality and smooth service and that they
experience the encounter as caring and personal.
The patient experience is an important part of the
overall customer experience in healthcare.
Successful encounters and interaction support the
patient’s commitment to care and the
effectiveness of care. The customer experience and
the effectiveness of care are measured on a
continuous basis at Terveystalo. High customer
satisfaction has an indirect positive impact on
Terveystalo’s operational and financial
performance.
G1 – Business conduct
Material impacts, risks and opportunities related to business conduct
Material sub-topic
Material impacts, risks or opportunities
Corporate culture
Positive impact (
potential
)
: A value-based and
ethical corporate culture is a prerequisite for
Terveystalo’s operations and existence. It
supports Terveystalo’s attractiveness as a
workplace for highly competent professionals
and increases the commitment of the personnel
and the sense of meaningfulness experienced by
the members of the work community. An ethical
corporate culture also supports Terveystalo’s
attractiveness as a reliable service provider for
customers and as a partner for other
stakeholders.
Risk (
potential
)
: If Terveystalo's value-based
and ethical corporate culture were to be
jeopardised or weakened, it could have a
detrimental impact on the customer
experience, the experience of professionals
and the trust of customers, professionals and
partners, which, in turn, could have a
detrimental impact on the availability of
professionals, the cooperation partnerships
available to Terveystalo, customerships and,
through these, the company’s operational and
financial performance.
Prevention of corruption and bribery
Positive impact
(potential)
:
Effective processes
for the prevention and identification of
corruption and bribery can prevent illegal
incidents of corruption and bribery and ensure
that potential incidents are investigated
promptly and appropriately. Potential identified
incidents can be used to develop even more
effective and efficient processes for preventing
and identifying corruption and bribery to enable
the identification of potential misconduct
incidents and risks.
Risk
(potential)
:
If Terveystalo were to fail to
prevent or detect incidents of corruption and
bribery, it could have a detrimental impact on
the company's reputation and the trust of
customers, partners, suppliers and
professionals, which, in turn, could have a
detrimental impact on the availability of
professionals, the cooperation partnerships
available to Terveystalo, customerships and,
through these, the company’s operational and
financial performance. Such failures could also
have other significant negative financial
consequences for the company.
47
Responsible supply chain
Positive impact
(potential)
: Selecting partners
that are responsible and operate in adherence to
high standards of sustainable business promotes
the realisation of ethical, social and
environmental aspects throughout the value
chain and supply chain and in society as a whole.
Risk
(potential):
Unethical or illegal practices
occurring in Terveystalo’s value chain or supply
chain could have an indirect detrimental
impact on the trust of customers, professionals
and partners, which in turn could have a
detrimental impact on the availability of
professionals, the cooperation partnerships
available to Terveystalo, customerships and,
through these, the company’s operational and
financial performance. Although the majority
of the company’s suppliers are domestic, there
may still be unidentified risks related to the
supply chain and individual product or service
categories.
Respect for human rights
Negative impact
(potential):
human rights risks and impacts and manage
adverse impacts could lead to violations of the
human rights of customers, personnel, partners
or other stakeholders in Terveystalo’s value
chain.
Risk
(potential):
Suspected or actual human
rights violations in Terveystalo’s own
operations or its value chain could have a
detrimental impact on Terveystalo’s
reputation, which in turn could have a
detrimental impact on the availability of
professionals, the cooperation partnerships
available to Terveystalo, customerships and,
through these, also on the company’s
operational and financial performance. Failure
to protect human rights could also cause
financial losses to Terveystalo in the form of
potential sanctions and legal costs.
Responsible tax payment
Positive impact
(actual):
The tax revenue
received by the state from the financial result of
Terveystalo’s operations is used to fund public
services and investments to support the state’s
capabilities, responsibility and responsiveness.
48
Impact, risk and opportunity management
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
Terveystalo has defined its material sustainability matters in cooperation with its key stakeholders. In addition to continuous stakeholder
dialogue, Terveystalo conducted a double materiality assessment in accordance with the principles laid down in the European Sustainability
Reporting Standards (ESRS) of the Corporate Sustainability Reporting Directive in 2023 to identify Terveystalo's material sustainability-
related impacts, risks and opportunities. The content of Terveystalo’s sustainability reporting was determined on the basis of the results of
the double materiality assessment.
The double materiality assessment comprised two dimensions: the materiality of impacts and financial materiality. According to ESRS 1, a
sustainability matter is material from an impact perspective when it pertains to the undertaking’s material actual or potential, positive or
negative impacts on people or the environment in the short-, medium- or long-term. A sustainability matter is material from a financial
perspective if it triggers or could reasonably be expected to trigger material financial effects on the undertaking.
To identify the material impacts related to sustainability maters, Terveystalo's materiality assessment process assessed Terveystalo’s actual
and potential negative and positive impacts over different time horizons, and the views of different stakeholders were taken into account to
identify and assess the impacts. Each sustainability matter with a material impact was also assessed with regard to whether it triggers or
could potentially trigger material financial effects on Terveystalo.
The steps of the assessment process
Initially, a long list of sustainability matters that are potentially relevant to Terveystalo was compiled on the basis of various sustainability
frameworks, such as SASB (The Sustainability Accounting Standards Board), GRI (The Global Reporting Initiative) and CSRD ESRS 1 Appendix
B. The sustainability topics identified as material in Terveystalo’s previous materiality assessment in 2019 were also included. The
identification of potential topics also took into account the sustainability themes and trends of the industry and Terveystalo's competitors,
as well as sustainability topics that had received media coverage. Based on these, the first long list of potentially material sustainability
matters was compiled.
In the subsequent steps of the process, the topics were assessed by the core team for reporting, as well as based on a personnel survey,
internal interviews and internal workshops. The employee survey was used to assess Terveystalo’s most important positive and negative
impacts on its employees. Customer views were taken into account based on previous feedback (SBM-2 on page 39). The identified
sustainability matters were scored and prioritised in two internal workshops whose participants included specialists in the quality of care
and patient safety, legal affairs and compliance, information security and data protection, environmental matters, human resources and
procurement. Each topic was first assessed and scored based on the related impacts. The impacts were assessed with regard to
Terveystalo’s own operations and the upstream and downstream value chain. Impact materiality was assessed on a scale of 1–5 based on
the severity of the impacts, i.e. the scale, scope and irremediable character of the impacts. The likelihood of the potential impacts was
assessed and scored by combining a qualitative assessment of the likelihood of the impacts with Terveystalo’s measures to manage the
impacts. Positive impacts related to the sustainability matters were assessed on the basis of their scale and scope, and potential positive
impacts were also assessed on the basis of the combination of their likelihood and the measures taken to pursue them.
Each sustainability matter assessed as having material impacts was also assessed from the perspective of risks and opportunities and the
financial effects potentially related to the sustainability matter in the short (reporting period, i.e. one year), medium (1–5 years) and long
term (>5 years). The assessment aimed to identify material dependencies related to each sustainability matter that may cause material risks
to Terveystalo’s operations and financial performance, for example, in relation to the adequacy of personnel, customer data protection or
the quality of care received by customers. The financial effects were assessed qualitatively on a scale of 1–5 (1 = “not at all” and 5 =
“absolute”). The identification and scoring of financial effects also took into account megatrends that have an impact on Terveystalo and
observations from interviews with institutional investors representing significant shareholders.
49
After each sustainability matter had been assessed and scored in terms of the related impacts and risks/opportunities, the scores were
validated in a workshop attended by specialists from different functions. Finally, all of the scored sustainability matters were placed in
matrices, where the X-axis scores describe the severity of impacts in terms of impact materiality and the Y-axis scores describe the
likelihood of the impacts and, with regard to the materiality of risks/opportunities, the scale of the financial effects and the likelihood of the
risk/opportunity. Placed on the location of the coordinates, the threshold value was set in the top corner of the matrix (coordinate value
3.5;3.5 on a scale of 1–5). Based on this, the most material sustainability matters related to Terveystalo’s personnel (ESRS S1 – Own
workforce), customers (ESRS S4 – Consumers and end-users) and ethical business (ESRS G1 – Business conduct) were selected. The material
sustainability matters identified on the basis of the materiality assessment were approved by Terveystalo's Executive Team and Board of
Directors in 2023.
Sustainability risks are also assessed as part of Terveystalo Group’s general risk management. Terveystalo identifies risks using operating
environment and stakeholder analyses, business performance indicators, market analyses, effectiveness information, customer feedback,
register data, inspection reports and enquiries 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 management system, the ISO 14001:2015 environmental management system and the ISO 13485 quality
management system for application development. Sustainability-related opportunities are assessed as part of the company’s annual
strategy process. Resilience in relation to Terveystalo’s material impacts and risks was assessed in the short, medium and long term as part
of a double materiality assessment. The relevant personnel resources were increased following the assessment. To increase resilience,
Terveystalo will conduct a climate risk analysis and further specify the environmental and social impacts of its value chain in 2025. The
assessment of resilience will be further specified in connection with the update of the double materiality assessment in 2025.
The assessment process that served as the basis for the 2024 report was focused on the largest business segment, Healthcare Services, the
operations of which generate the company’s most significant and extensive impacts, risks and opportunities, and whose activities are fully
under the company’s own operational control. The results have not been separately validated in the subsidiaries, which represent less than
10 percent of the company’s revenue.
Terveystalo will update its double materiality assessment in 2025 in accordance with the ESRS requirements. The key results of the human
rights impact assessment carried out in late 2024 will be taken into account in the update of the double materiality assessment and the
development of the company’s due diligence process in 2025. The assessment of climate -related environmental impacts will also be
expanded to cover the supply chain more comprehensively in 2025.
Non-material sustainability matters
Based on the results of the double materiality assessment, climate change is not one of Terveystalo’s material sustainability themes. Of the
environment-related standards, ESRS E2 – Pollution, ESRS E3 – Water and marine resources, ESRS E4 – Biodiversity and ecosystems, and
ESRS E5 – Resource use and circular economy have also not emerged as material topics and have not been included in the sustainability
statement.
Terveystalo assesses the climate-related impacts of its operations by calculating and reporting the Scope 1 and Scope 2 emissions caused by
its operations annually, and Scope 3 emissions from 2024 onwards. From the perspective of Terveystalo’s operations, the total emissions
are not significant in scale. Terveystalo’s value chain is clear, as is typical of service businesses, and the number of significant operators in
the value chain is manageable. For 2024, Terveystalo voluntarily reports its emissions in the Environment Appendix of the Annual Report.
Terveystalo does not operate in an industry that is significantly exposed to transition risks related to climate change. The company also does
not develop services or solutions for climate change mitigation or adaptation. Global warming increases morbidity, which may increase the
demand for the company’s services. Climate change or other environmental matters were not highlighted as a material topic in the
stakeholders’ expectations. Terveystalo will develop its climate risk assessment process in 2025 to comply with the ESRS requirements.
50
However, for the sake of transparency and the continuity of reporting, Terveystalo continues to voluntarily report information related to its
key environmental impacts in the Environment Appendix of the Annual Report, but Terveystalo does not adhere to the requirements of the
ESRS environmental standards with respect to the disclosures in question.
Terveystalo has not, in connection with the double materiality assessment, assessed climate-related physical or transition risks with the
help of scenario analyses as required by the ESRS standard. The risks have been otherwise assessed by internal specialists. Based on the
assessment, Terveystalo’s physical risks related to climate change concern the clinic and hospital properties at which the company
operates. All of the company’s sites are located in Finland and Sweden, which means that acute physical risks are low. The chronic climate
change-related risks to the property portfolio are potentially reflected in higher rental costs. The term of the lease agreements is typically in
the range of 3–7 years, depending on the site. However, the company has good bargaining power, and lease or energy costs do not
represent a significant part of its costs.
Terveystalo’s site-specific environmental programmes assess the environmental impacts of operations from the perspective of waste
management, chemical safety, energy use, the use of technology, equipment safety and material procurement.
Terveystalo’s water consumption is assessed as part of unit-specific environmental programmes. Water used in operations is mainly
municipal water, which is included in the rent of the premises. Terveystalo strives to reduce water use by replacing taps with automatic taps
when the company's business premises are renovated, for example. In equipment procurement, water-consuming equipment is procured
on a centralised basis, taking environmental factors into account. The company has not organised any consultations with regard to pollution
or water use. Terveystalo has also not assessed the impacts of its operations on biodiversity.
The most significant waste fractions generated in Terveystalo’s operations are documents subject to data protection, mixed waste and
wastepaper and cardboard. At most of the company’s sites, the owner of the property is responsible for waste management. For 2024,
Terveystalo voluntarily reports on waste volumes in the Environment Appendix of the Annual Report. In Terveystalo’s environmental
programme, equipment safety and material purchasing are assessed from a life-cycle perspective, taking into account the adverse
environmental impacts of equipment purchasing and choices of materials. In equipment purchasing, the aim is to purchase equipment only
when its estimated utilisation rate and service life are significant. The procurement process takes into account the equipment's recyclability
and life-cycle extension opportunities through regular servicing and maintenance. In the purchasing of materials, the recyclability of
materials is taken into account and the aim is to minimise logistics related to the transport of materials.
ESRS S2 – Workers in the value chain and ESRS S3 – Affected communities did not emerge as material topics and are therefore not included
in the sustainability statement.
51
IRO-2 ESRS Disclosure Requirements in ESRS covered by the sustainability statement
General disclosures
ESRS 2
Disclosure Requirement
Paragraph
Page
number
BP-1
General basis for preparation of sustainability statements
Basis for preparation of the sustainability
statement
30
BP-2
Disclosures in relation to specific circumstances
Basis for preparation of the sustainability
statement
30
GOV-1
The role of the administrative, management and supervisory
bodies
The role of the administrative, management and
supervisory bodies and the information provided
to and sustainability matters addressed by them
30–34
GOV-2
Information provided to and sustainability matters addressed by
the undertaking’s administrative, management and supervisory
bodies
The role of the administrative, management and
supervisory bodies and the information provided
to and sustainability matters addressed by them
30–34
GOV-3
Integration of sustainability-related performance in incentive
schemes
Integration of sustainability- related
performance in incentive schemes
34–36
GOV-4
Statement on due diligence
Statement on due diligence
36
GOV-5
Risk management and internal controls over sustainability
reporting
Risk management and internal controls over
sustainability reporting
36
SBM-1
Strategy, business model and value chain
Strategy, business model and value chain
37–38
SBM-2
Interests and views of stakeholders
Interests and views of stakeholders
39–42
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
Material impacts, risks and opportunities and
their interaction with the strategy and business
model
43-47
IRO-1
Description of the processes to identify and assess material
impacts, risks and opportunities
Description of the processes to identify and
assess material impacts, risks and opportunities
48-50
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
Disclosure Requirements in ESRS covered by the
sustainability statement, and IRO-2 List of
datapoints in cross-cutting and topical standards
that derive from other EU legislation
51-58
Environmental
information
Taksonomia
EU taxonomy reporting
59-63
Social information
ESRS S1
Own workforce
Disclosure Requirement
Paragraph
Page
number
ESRS 2, SBM-2
Interests and views of stakeholders
Interests and views of stakeholders
39–42
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
Material impacts, risks and opportunities related
to own workforce
64
S1-1
Policies related to own workforce
Policies related to own workforce
65–67
S1-2
Processes for engaging with own workers and workers’
representatives about impacts
Processes for engaging with own workers and
workers’ representatives about impacts
68–70
S1-3
Processes to remediate negative impacts and channels for own
workers to raise concerns
Processes to remediate negative impacts and
channels for own workers to raise concerns
69–70
S1-4
Taking action on material impacts on own workforce, and
approaches to mitigating material risks and pursuing material
opportunities related to own workforce, and effectiveness of
those actions
Taking action on material impacts on own
workforce, and approaches to mitigating
material
risks and pursuing material opportunities related
to own workforce, and effectiveness of
those actions
70–74
S1-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
Targets related to managing material negative
impacts, advancing positive impacts, and
managing mat
74-75
S1-6
Characteristics of the undertaking’s employees
Characteristics of the undertaking’s employees
76
S1-7
Characteristics of non-employee workers in the undertaking’s
own workforce
Characteristics of non-employees in the
undertaking’s own workforce
77
52
S1-8
Collective bargaining coverage and social dialogue
Collective bargaining coverage and social
dialogue
78
S1-9
Diversity metrics
Diversity metrics
78
S1-10
Adequate wages
Adequate wages
79
S1-13
Training and skills development metrics
Training and skills development metrics
79
S1-14
Health and safety metrics
Health and safety metrics
80
S1-15
Work-life balance metrics
Work-life balance metrics
81
Social information
ESRS S4
Consumers and end-users
Disclosure Requirement
Paragraph
Page
number
ESRS 2, SBM-2
Interests and views of stakeholders
Interests and views of stakeholders
39–42
ESRS 2, SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model
Material impacts, risks and opportunities related
to
consumers and end-users
82–83
S4-1
Policies related to consumers and end-users
Policies related to consumers and
end-users
84–87
S4-2
Processes for engaging with consumers and end-users about
impacts
Processes for engaging with consumers and end-
users about impacts
87
S4-3
Processes to remediate negative impacts and channels for
consumers and end-users to raise concerns
Processes to remediate negative impacts and
channels for consumers and end-users to raise
concerns
87–88
S4-4
Taking action on material impacts on consumers and end-users,
and approaches to managing material risks and pursuing
material
opportunities related to consumers and end-users, and
effectiveness of those actions
Taking action on material impacts on consumers
and end-users, and approaches to managing
material risks and pursuing material
opportunities related to consumers and end-
users, and effectiveness of those actions
89–93
S4-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities
Targets related to promoting material positive
impacts on end-users
93–95
Governance information
ESRS G1
Business conduct
Disclosure Requirement
Paragraph
Page
number
ESRS 2, GOV-1
The role of the administrative, supervisory and management
bodies
The role of the administrative, management and
supervisory bodies and the information provided
to and sustainability matters addressed by them
30–34
ESRS 2, IRO-1
Description of the processes to identify and assess material
impacts, risks and opportunities
Description of the processes to identify and
assess material impacts, risks and opportunities
48-50
G1-1
Business conduct policies and corporate culture
Business conduct policies and corporate culture
97-103
G1-2
Management of relationships with suppliers
Management of relationships with suppliers
103-104
G1-3
Prevention and detection of corruption and bribery
Prevention and detection of corruption and
bribery
105-106
53
IRO-2 List of datapoints in cross-cutting and topical standards that derive from other EU legislation
Disclosure
Requirement
Related
datapoint
Sustainability
disclosure
SFDR (Sustainable
Finance
Disclosures
Regulation)
reference
Pillar 3 reference
Benchmark
Regulation reference
EU Climate Law
reference
Page
number
ESRS 2 GOV-1
Paragraph
21 (d)
Board's gender
diversity
Indicator number
13 of Table #1 of
Annex I
Commission
Delegated
Regulation (EU)
2020/1816, Annex II
34
ESRS 2 GOV-1
Paragraph
21 (e)
Percentage of board
members who are
independent
Delegated
Regulation (EU)
2020/1816, Annex II
34
ESRS 2 GOV-4
Paragraph
30
Statement on due
diligence
Indicator number
10 Table #3 of
Annex I
36
ESRS 2 SBM-
1
Paragraph
40 (d) i
Involvement in
activities related to
fossil fuel activities
Indicators number
4 Table #1 of
Annex I
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453 Table
1: Qualitative
information on
Environmental risk
and Table 2:
Qualitative
information on
Social risk
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
ESRS 2 SBM-
1
Paragraph
40 (d) ii
Involvement in
activities related to
chemical production
Indicator number
9 Table #2 of
Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
ESRS 2 SBM-
1
Paragraph
40 (d) iii
Involvement in
activities related to
controversial
weapons
Indicator number
14 Table #1 of
Annex I
Delegated
Regulation (EU)
2020/1818, Article
12(1)
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
ESRS 2 SBM-
1
Paragraph
40 (d) iv
Involvement in
activities related to
cultivation and
production of tobacco
Delegated
Regulation (EU)
2020/1818, Article
12(1)
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
ESRS E1-1
Paragraph
14
Transition plan to
reach climate
neutrality by 2050
Regulation (EU)
2021/1119, Article
2(1)
Non-
material
54
ESRS E1-1
Paragraph
16 (g)
Undertakings
excluded from Paris-
aligned Benchmarks
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 1:
Banking book –
Climate Change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
Delegated
Regulation (EU)
2020/1818,
Article12.1 (d) to (g),
and Article 12.2
Non-
material
ESRS E1-4
Paragraph
34
GHG emission
reduction targets
Indicator number
4 Table #2 of
Annex I
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment metrics
Delegated
Regulation (EU)
2020/1818, Article 6
Non-
material
ESRS E1-5
Paragraph
38
Energy consumption
from fossil sources
disaggregated by
sources (only high
climate impact
sectors)
Indicator number
5 Table #1 and
Indicator n. 5
Table #2 of Annex
I
Non-
material
ESRS E1-5
Paragraph
37
Energy consumption
and mix
Indicator number
5 Table #1 of
Annex I
Non-
material
ESRS E1-5
Paragraphs
40–43
Energy intensity
associated with
activities in high
climate impact
sectors
Indicator number
6 Table #1 of
Annex I
Non-
material
ESRS E1-6
Paragraph
44
Gross Scope 1, 2, 3
and Total GHG
emissions
Indicators number
1 and 2 Table #1
of Annex I
Article 449a;
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 1:
Banking book –
Climate change
transition risk:
Credit quality of
exposures by
sector, emissions
and residual
maturity
Delegated
Regulation (EU)
2020/1818, Article
5(1), 6 and 8(1)
Non-
material
55
ESRS E1-6
Paragraphs
53–55
Gross GHG emissions
intensity
Indicators number
3 Table #1 of
Annex I
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
Template 3:
Banking book –
Climate change
transition risk:
alignment metrics
Delegated
Regulation (EU)
2020/1818, Article
8(1)
Non-
material
ESRS E1-7
Paragraph
56
GHG removals and
carbon credits
Regulation (EU)
2021/1119, Article
2(1)
Non-
material
ESRS E1-9
Paragraph
66
Exposure of the
benchmark portfolio
to climate-related
physical risks
Delegated
Regulation (EU)
2020/1818, Annex II
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
ESRS E1-9
Paragraph
66 (a)
Disaggregation of
monetary amounts by
acute and chronic
physical risk
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraphs 46 and
47; Template 5:
Banking book -
Climate change
physical risk:
Exposures subject
to physical risk.
Non-
material
ESRS E1-9
Paragraph
66 (c)
Location of significant
assets at material
physical risk
Non-
material
ESRS E1-9
Paragraph
67 (c)
Breakdown of the
carrying value of its
real estate assets by
energy-efficiency
classes
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation (EU)
2022/2453
paragraph 34;
Template
2:Banking book -
Climate change
transition risk:
Loans
collateralised by
immovable
property - Energy
efficiency of the
collateral
Non-
material
ESRS E1-9
Paragraph
69
Degree of exposure of
the portfolio to
climate-related
opportunities
Delegated
Regulation (EU)
2020/1818, Annex II
Non-
material
56
ESRS E2-4
Paragraph
28
Amount of each
pollutant listed in
Annex II of the E-PRTR
Regulation (European
Pollutant Release and
Transfer Register)
emitted to air, water
and soil
Indicator number
8 Table #1 of
Annex I
Indicator number
2 Table #2 of
Annex I
Indicator number
1 Table #2 of
Annex I
Indicator number
3 Table #2 of
Annex I
Non-
material
ESRS E3-1
Paragraph
9
Water and marine
resources
Indicator number
7 Table #2 of
Annex I
Non-
material
ESRS E3-1
Paragraph
13
Dedicated policy
Indicator number
8 Table 2 of Annex
I
Non-
material
ESRS E3-1
Paragraph
14
Sustainable oceans
and seas
Indicator number
12 Table #2 of
Annex I
Non-
material
ESRS E3-4
Paragraph
28 (c)
Total water recycled
and reused
Indicator number
6.2 Table #2 of
Annex I
Non-
material
ESRS E3-4
Paragraph
29
Total water
consumption in m3
per net revenue on
own operations
Indicator number
6.1 Table #2 of
Annex I
Non-
material
ESRS 2 – IRO-
1 – E4
Paragraph
16 (a) i
Indicator number
7 Table #1 of
Annex I
Non-
material
ESRS 2 – IRO-
1 – E4
Paragraph
16 (b)
Indicator number
10 Table #2 of
Annex I
Non-
material
ESRS 2 – IRO-
1 – E4
Paragraph
16 (c)
Indicator number
14 Table #2 of
Annex I
Non-
material
ESRS E4-2
Paragraph
24 (b)
Sustainable land /
agriculture practices
or policies
Indicator number
11 Table #2 of
Annex I
Non-
material
ESRS E4-2
Paragraph
24 (c)
Sustainable oceans /
seas practices or
policies
Indicator number
12 Table #2 of
Annex I
Non-
material
ESRS E4-2
Paragraph
24 (d)
Policies to address
deforestation
Indicator number
15 Table #2 of
Annex I
Non-
material
ESRS E5-5
Paragraph
37 (d)
Non-recycled waste
Indicator number
13 Table #2 of
Annex I
Non-
material
ESRS E5-5
Paragraph
39
Hazardous waste and
radioactive waste
Indicator number
9 Table #1 of
Annex I
Non-
material
ESRS 2 –
SBM-3 – S1
Paragraph
14 (f)
Risk of incidents of
forced labour
Indicator number
13 Table #3 of
Annex I
64
ESRS 2 –
SBM-3 – S1
Paragraph
14 (g)
Risk of incidents of
child labour
Indicator number
12 Table #3 of
Annex I
64
ESRS S1-1
Paragraph
20
Human rights policy
commitments
Indicator number
9 Table #3 and
Indicator number
11 Table #1 of
Annex I
66
57
ESRS S1-1
Paragraph
21
Due diligence policies
on issues addressed
by the fundamental
International Labor
Organisation
Conventions 1 to 8
Delegated
Regulation (EU)
2020/1816, Annex II
65
ESRS S1-1
Paragraph
22
Processes and
measures for
preventing trafficking
in human beings
Indicator number
11 Table #3 of
Annex I
65
ESRS S1-1
Paragraph
23
Workplace accident
prevention policy or
management system
Indicator number
1 Table #3 of
Annex I
67
ESRS S1-3
Paragraph
32 (c)
Grievance/complaints
handling mechanisms
Indicator number
5 Table #3 of
Annex I
69-70
ESRS S1-14
Paragraph
88 (b) and
(c)
Number of fatalities
and number and rate
of work-related
Indicator number
2 Table #3 of
Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
80
ESRS S1-14
Paragraph
88 (e)
Number of days lost
to injuries, accidents,
fatalities or illness
Indicator number
3 Table #3 of
Annex I
80
ESRS S1-16
Paragraph
97 (a)
Unadjusted gender
pay gap
Indicator number
12 Table #1 of
Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
ESRS S1-16
Paragraph
97 (b)
Excessive CEO pay
ratio
Indicator number
8 Table #3 of
Annex I
Non-
material
ESRS S1-17
Paragraph
103 (a)
Incidents of
discrimination
Indicator number
7 Table #3 of
Annex I
Non-
material
ESRS S1-17
Paragraph
104 (a)
Non-respect of UNGPs
on Business and
Human Rights and
OECD
Indicator number
10 Table #1 and
Indicator n. 14
Table #3 of Annex
I
Delegated
Regulation (EU)
2020/1816, Annex II
Delegated
Regulation (EU)
2020/1818 Art 12 (1)
Non-
material
ESRS 2 –
SBM-3 – S2
Paragraph
11 (b)
Significant risk of child
labour or forced
labour in the value
chain
Indicators number
12 and n. 13 Table
#3 of Annex I
Non-
material
ESRS S2-1
Paragraph
17
Human rights policy
commitments
Indicator number
9 Table #3 and
Indicator n. 11
Table #1 of Annex
I
Non-
material
ESRS S2-1
Paragraph
18
Policies related to
value chain workers
Indicator number
11 and n. 4 Table
#3 of Annex I
Non-
material
ESRS S2-1
Paragraph
19
Non-respect of UNGPs
on Business and
Human Rights
principles and OECD
guidelines
Indicator number
10 Table #1 of
Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
Delegated
Regulation (EU)
2020/1818, Art 12
(1)
Non-
material
ESRS S2-1
Paragraph
19
Due diligence policies
on issues addressed
by the fundamental
International Labor
Organisation
Conventions 1 to 8
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
58
ESRS S2-4
Paragraph
36
Human rights issues
and incidents
connected to its
upstream and
downstream value
chain
Indicator number
14 Table #3 of
Annex I
Non-
material
ESRS S3-1
Paragraph
16
Human rights policy
commitments
Indicator number
9 Table #3 of
Annex 1 and
Indicator number
11 Table #1 of
Annex I
Non-
material
ESRS S3-1
Paragraph
17
Non-respect of UNGPs
on Business and
Human Rights, ILO
principles or and
OECD guidelines
Indicator number
10 Table #1 Annex
I
Delegated
Regulation (EU)
2020/1816, Annex II
Delegated
Regulation (EU)
2020/1818, Art 12
(1)
Non-
material
ESRS S3-4
Paragraph
36
Human rights issues
and incidents
Indicator number
14 Table #3 of
Annex I
Non-
material
ESRS S4-1
Paragraph
16
Policies related to
consumers and end-
users
Indicator number
9 Table #3 and
Indicator number
11 Table #1 of
Annex I
84-87
ESRS S4-1
Paragraph
17
Non-respect of UNGPs
on Business and
Human Rights and
OECD guidelines
Indicator number
10 Table #1 of
Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
DelegatedRegulation
(EU)2020/1818, Art
12 (1)
84-87
ESRS S4-4
Paragraph
35
Human rights issues
and incidents
Indicator number
14 Table #3 of
Annex I
Non-
material
ESRS G1-1
Paragraph
10 (b)
United Nations
Convention against
corruption
Indicator number
15 Table #3 of
Annex I
Non-
material
ESRS G1-1
Paragraph
10 (d)
Protection of whistle-
blowers
Indicator number
6 Table #3 of
Annex I
102-103
ESRS G1-4
Paragraph
24 (a)
Fines for violation of
anti-corruption and
anti-bribery laws
Indicator number
17 Table #3 of
Annex I
Delegated
Regulation (EU)
2020/1816, Annex II
Non-
material
ESRS G1-4
Paragraph
24 (b)
Standards of anti-
corruption and anti-
bribery
Indicator number
16 Table #3 of
Annex I
Non-
material
59
Environmental information
EU taxonomy reporting
The EU taxonomy is a classification system for sustainable finance that establishes criteria for determining environmentally 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 an 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 substantially to any of these objectives, while doing no significant harm to the other objectives and complying with
minimum social safeguards, can be considered environmentally sustainable under certain criteria. Large companies must report the
proportion of sustainable activities in their business in accordance with the taxonomy criteria.
At present, the 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 healthcare services, are almost completely excluded from the scope of the current
taxonomy.
Terveystalo has determined its taxonomy eligibility by examining its activities in relation to the economic activities listed in the taxonomy.
Only one of Terveystalo’s businesses is classified in the taxonomy (12.1 Residential care activities).
After this, Terveystalo has evaluated the taxonomy alignment of the activity. The activity is classified as taxonomy -aligned if the taxonomy
criteria are met: 1. The activity contributes substantially to the achievement of at least one environmental objective, 2. it does not have
significant adverse impacts from the perspective of the other environmental objectives, and 3. the activity complies with the minimum
social safeguards defined in the taxonomy. Based on this assessment, Terveystalo's taxonomy-listed activity (12.1 Residential care activities)
cannot be considered taxonomy-aligned because the activity, due to its nature, does not target or support the achievement of the
environmental objectives of the taxonomy.
Based on the assessment, the significance of Terveystalo's taxonomy-eligible activities is negligible in terms of key performance indicators.
The key performance indicators are the taxonomy -eligible and taxonomy-aligned activities' proportion (percent) of turnover, operating
expenditure and capital expenditure. According to the company's estimate, 1 percent of Terveystalo’s turnover and capital expenditure and
4 percent of Terveystalo’s operating expenditure are taxonomy -eligible, whereas 99 percent of Terveystalo’s turnover and capital
expenditure and 96 percent of Terveystalo’s operating expenditure are non-eligible. The proportion of turnover is calculated by dividing the
turnover of child welfare services (taxonomy -eligible activity) by the total turnover of the Group. The proportion of capital expenditure
(CapEx) is calculated by dividing the investments made in child welfare services during the year by the net investments 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). Taxonomy -aligned activities account for
0 percent of Terveystalo’s turnover, operating expenditure and capital expenditure, while activities that are not taxonomy -aligned account
for 100 percent. The evaluation according to the EU taxonomy described above has been performed through an internal assessment by
representatives of the sustainability and financial management organisation.
60
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities 2024
1 January 2024–31 December
2024
2024
Substantial contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
Economic Activities (1)
Code
(
2)
Turnover
(3)
Proporti
on of
turnover,
year
2024 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (A.1) or eligible (A.2) turnover, year
2023 (18)
Category enabling activity (19)
Category transitional activity (20)
MEUR
%
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
%
E
T
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)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Child welfare services
CCA
12.1
11
1%
1%
Turnover of Taxonomy -eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
11
1%
1%
A Turnover of Taxonomy -eligible
activities (A.1+A.2)
1%
1%
B TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy -non-eligible
activities
1,329
99%
99%
TOTAL
1,340
100%
100
%
61
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities 2024
1 January 2024–31 December
2024
2024
Substantial contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
Economic Activities (1)
Code
(
2)
CapE
x (3)
Proportio
n of
CapEx,
year 2024
(4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) CapEx, year
2023 (18)
Category
enabling activity (19)
Category transitional activity (20)
MEU
R
%
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
%
E
T
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)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Child welfare services
CCA
12.1
0
1%
0%
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
0
1%
0%
A. CapEx of Taxonomy-eligible activities
(A.1+A.2)
1%
B TAXONOMY-NON-ELIGIBLE ACTIVITIES
0%
CapEx of Taxonomy-non-eligible activities
39
99%
100
%
TOTAL
39
100%
100
%
62
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities 2024
1 January 2024–31 December
2024
2024
Substantial contribution criteria
DNSH criteria ("Does Not Significantly
Harm")
Economic Activities (1)
Code
(
2)
OpEx
(3)
Proportio
n of
OpEx,
year 2024
(4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) OpEx, year 2023
(18)
Category enabling activity (19)
Category transitional activity (20)
MEU
R
%
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
%
E
T
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)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Child welfare services
CCA
12.1
10
4%
1%
OpEx of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
10
4%
1%
A OpEx of Taxonomy-eligible activities
(A.1+A.2)
10
4%
B TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
284
96%
99%
TOTAL
295
100%
100
%
63
Template 1: Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research,
development, demonstration and deployment of innovative
electricity generation facilities that produce energy from nuclear
processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to
construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of
district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available
technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe
operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.
No
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to
construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to
construction, refurbishment, and operation of combined
heat/cool and power generation facilities using fossil gaseous
fuels.
No
6.
The undertaking carries out, funds or has exposures to
construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
No
64
Social information
S1 – Own workforce
SBM-3 Material impacts, risks and opportunities related to own workforce
Terveystalo is one of the largest employers in Finland. At the end of 2024, Terveystalo's operations in Finland had 8,383 (8,950) employees
and 5,967 (5,987) non-employees. In Sweden, Terveystalo’s subsidiary Feelgood had 770 (874) employees and 48 (105) non-employees. The
decrease in the number of employees in Finland was affected by the measures of the profit improvement programme and the termination
of outsourcing contracts. In Sweden the number of employed staff and private practitioners was reduced due to ended customer contracts
as part of the profit improvement programme.
As the need for care increases due to the ageing of the population, the shortage of professionals is the greatest challenge in healthcare.
With this in mind, it is a key strategic goal for Terveystalo to ensure that the company has an adequate number of engaged and highly
competent healthcare professionals for Terveystalo to meet the growing demand and achieve its strategic targets. Terveystalo’s goal is to
be the best and most attractive employer in its industry. In accordance with its strategy, Terveystalo aims to strengthen its attractiveness as
a workplace and promote its positive impacts related to its own workforce, for example by offering professionals competitive
remuneration, a healthy and safe working environment and diverse career and development opportunities. Terveystalo develops the digital
tools used by its professionals to streamline work, increase productivity and improve the quality of care.
If Terveystalo were to fail to attract and retain the necessary professionals on competitive terms, it could lead to an increase in
Terveystalo’s personnel and recruitment costs, which could adversely affect the maintenance and development of business operations. The
realisation of this risk could have a material adverse impact on Terveystalo’s business, financial position, profitability and future prospects.
In 2024, Terveystalo was able to increase the supply of professionals through various measures, and Terveystalo was able to meet the
demand for health services in terms of human resources, even though the number of personnel decreased from the comparison period.
Management structures were streamlined as part of the profit improvement programme, and the personnel reductions made under the
programme mainly concerned administrative roles. The supply was also affected to some extent by measures to streamline work processes
and the resulting increase in productivity.
The material impacts, risks and opportunities related to Terveystalo's own workforce have been identified in the company’s double
materiality assessment, and they are presented in more detail on pages 43–44. of the sustainability statement. Based on the material
impacts, risks and opportunities identified in the double materiality assessment (described on pages 48–50), Terveystalo’s material
sustainability matters related to its own workforce are:
●
adequate wages/remuneration (risk)
●
work-life balance (positive impact)
●
health and safety (positive impact)
●
training and skills development (positive impact)
●
efficient working practices/efficient use of human resources (positive impact, opportunity)
●
engagement of employees and professionals (risk).
In the double materiality assessment, Terveystalo has not identified any activities that involve significant risks related to the use of forced
labour or child labour. In the materiality assessment, Terveystalo has not separately identified negative impacts on employees with
particular characteristics, those working in particular contexts or those undertaking particular activities. Terveystalo has also not identified
any material impacts on the company’s own workforce that may arise from transition plans for reducing negative impacts on the
environment and achieving greener and climate-neutral operations. The impacts, risks and opportunities related to the company’s own
workforce have been assessed at the level of the company’s entire workforce. The company’s own workforce includes Terveystalo’s
employees and non-employees, such as self-employed private practitioners and temporary agency workers. Terveystalo’s employees
include representatives of several professional groups, with the key groups being physicians, nurses, other healthcare professionals, digital
65
workers and people in administrative and management roles. Private practitioners include among others physicians and therapists. Unless
otherwise stated, reporting in accordance with this standard covers Terveystalo’s own workforce in its entirety.
S1-1 Policies related to own workforce
The management of the impacts, risks and opportunities related to Terveystalo’s own workforce is guided by the applicable legislation, the
company’s values, the Code of Conduct and the remuneration policy, among other things. Terveystalo's values and corporate culture, and
the key policies pertaining to human rights, equality and non-discrimination, remuneration, personnel development and occupational
health and safety are described briefly in the paragraphs below.
Terveystalo's values and corporate culture
Terveystalo’s mission is to fight for a healthier life. According to Terveystalo’s Code of Conduct, Terveystalo’s values are the foundation for
all of the company's operations, and they are recorded in the Code of Conduct as follows:
●
Human being at the centre
: We take responsibility for the health and well-being 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 decisions are steered by the
effectiveness of care and the well-being of our customers.
●
Reforming healthcare
: We foster continuous progress. We challenge ourselves to build more functional healthcare for everyone
and reform the industry with open-minded use of technology.
The company’s Code of Conduct states that Terveystalo is a company with strong values operating in a value-based industry, and that
Terveystalo's corporate culture combines a strong work ethic, professionalism, solution-driven teamwork and the pursuit of measurable
impact in everything the company does. Terveystalo’s corporate culture is described in more detail in section G1 – Business conduct on
pages 101–102.
Code of Conduct
According to Terveystalo’s Code of Conduct, Terveystalo ensures that its professionals have a safe working environment that supports well-
being and in which everyone can work in the best possible way. Everyone at Terveystalo is responsible for promoting safety and well-being
at work. The best way to do this is to follow common instructions and to actively report any incidents or safety-related shortcomings. In
addition to physical safety, Terveystalo aims to promote the mental health and well-being of its personnel.
Terveystalo’s Code of Conduct contains key principles concerning human rights, equality, diversity, non-discrimination, inclusion and
respectful treatment. 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.
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. Discrimination and unfair treatment are prohibited in recruitment, remuneration, training, promotion or other terms of employment.
There company has zero tolerance for sexual harassment and other forms of harassment and bullying.
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 Organization (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 members of
trade unions or similar advocacy organisations and participate in their activities.
Terveystalo’s Code of Conduct includes a commitment to always complying with the laws and regulations governing Terveystalo’s
operations. The Code of Conduct is the foundation of Terveystalo’s corporate culture and human resources management. It applies to the
66
entire Group and its own workforce as well as all identified material impacts, risks and opportunities related to its own workforce. The Code
of Conduct is described in more detail in section G1 – Business conduct on pages 97–98.
Human rights policy
Terveystalo is committed to respecting the fundamental rights and freedoms of all individuals in accordance with international human
rights standards. Terveystalo’s first human rights policy, approved in January 2025, emphasises the company’s commitment and approach
to respecting human rights. The human rights policy is described in section G1 – Business conduct on page 100.
Work community development plan
Terveystalo has, in cooperation with personnel representatives in its Finnish operations, prepared a work community development plan for
the long-term and systematic development of the work community. The plan includes a description of the current state of the personnel, as
well as targets and measures for developing and maintaining personnel competence and promoting well-being at work. The development
plan concerns the employees of Terveystalo’s operations in Finland.
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 maintaining a
healthy work-life balance. The implementation of equality and non-discrimination 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 promote equality in Terveystalo’s work
communities and customer encounters. It meets quarterly to discuss topics related to equality. In 2024, the main focus was on developing
the realisation of equality, particularly from the perspective of sexual and gender minorities, and on assessing practices that would enable
equality to be realised even better at Terveystalo and its work communities. In 2024, the working group included 11 Terveystalo
professionals representing different parts of the Finnish organisation. The composition of the working group changes annually so that as
many people as possible have the opportunity to participate in the activities.
The work community development plan is updated regularly, and it serves as a tool for dialogue with the personnel. The most recent work
community development plan was prepared in early 2024 and approved by Terveystalo’s Personnel Forum. Terveystalo's Senior Vice
President, Human Resources is the senior executive responsible for the implementation of the development plan.
Policies concerning remuneration
One of the areas of Terveystalo’s human resources 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 defined in the Remuneration Policy approved by the company’s Board of Directors. The Remuneration Policy
applies to the entire Group and its employees. The remuneration principles 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. The Group’s Senior Vice President, Human Resources is in charge of the implementation of the Remuneration Policy.
In Finland, 65 percent of Terveystalo’s employees are covered by collective agreements. Three different collective agreements are in use in
Finland: The collective agreement for the private healthcare sector, the collective agreement for the private social services sector and the
collective agreement for the staffing services sector. Directors and senior salaried employees, including for example the majority of
physicians and psychologists, are not covered by the collective agreements. For persons covered by collective agreements, such as nurses,
compensation is based on the pay categories specified in the collective agreement. Pay is also influenced by role-specific responsibility
supplements, the employee’s seniority, individual performance and competence. For senior salaried employees and managers, pay is
determined on the basis of the position and the demands of the job, as well as competence, experience, performance and results. In
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Sweden, 100 percent of the employees are covered by collective agreements. Two collective agreements are in use in Sweden: Healthcare
Companies Branch D Occupational Health Services, and Healthcare Companies Branches E and F Care and Treatment.
Pay equality is assessed and promoted regularly as part of the work community development plan. Gender, for example, 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.
Policies concerning health and safety
The occupational safety of Terveystalo’s own workforce in Finland is developed and managed at the Group level, taking company-specific
and business-specific differences into account. Group-level policies and instructions concerning occupational safety are put into action in
accordance with the management processes of each business-specific organisation. Where necessary, the businesses prepare targeted
instructions, taking the Group policies and guidelines into consideration. The different levels of the organisation know and recognise their
responsibilities with regard to occupational safety in compliance with Finnish legislation. The legally required occupational safety and health
activities are ensured through Group-level cooperation with active occupational safety and health personnel. The health and safety
representative is elected by the employees from among their number.
The Group supports all of its businesses in the development of occupational safety. Terveystalo’s goal is to be a safer working environment
every day.
Occupational healthcare plays an important role in the identification of health risk factors and the prevention of illnesses. In Finland,
occupational healthcare for Terveystalo's employees is organised to prevent and control health risks and problems related to work and
working conditions and to protect and promote the safety, work ability and health of employees. The occupational healthcare services
offered to Terveystalo’s employees exceed the statutory requirements to a substantial degree, as the employees also have extensive access
to other healthcare services in addition to legally required services.
The safety of the company's operating premises is the responsibility of the persons in charge of each site and designated facility and safety
specialists, safety officers and safety supervisors. They implement the practices established for the development and assurance of facilities
safety at each site to ensure that Terveystalo's operating premises are safe for both customers and the personnel. Terveystalo works closely
with lessors and the rescue authorities to ensure the safety of facilities.
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 leve l 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 statutory occupational health action plan includes the general objectives of occupational healthcare as well as the workplace conditions
identified in workplace surveys (e.g. noise, exposure to biological hazards and the potential threat of violence) and the measures necessary
to manage the aforementioned conditions. The action plan is reviewed annually based on workplace visits and Terveystalo’s work ability
management needs, for example. Terveystalo's private practitioners are not covered by occupational health care. Instead, as self-employed
persons, they arrange their own occupational healthcare.
In Sweden (Feelgood), the occupational safety and health of the company's own workforce is organised in accordance with Swedish
legislation. The operations are guided by a certified ISO 45001 occupational health and safety system, which includes requirements
concerning the occupational health and safety policy, targets and measures, among other things.
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S1-2 Processes for engaging with own workers and workers’ representatives about impacts
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. Dialogue between the employer and personnel
representatives takes place in the Personnel Forum, which meets five times a year, and whose members represent the employees of
Terveystalo's Finnish operations broadly (both professionally and geographically). In addition, the chief shop stewards meet regularly, on a
weekly basis, with the Group-level executive in charge of employment relationships. The chief shop stewards are supported by regional
shop stewards, who engage in dialogue on regional matters with the business management and the regional HR partner.
Employee representatives and their role in engaging with own workers
Employees in Terveystalo's Finnish operations are represented by shop stewards, employee representatives and health and safety
representatives, who all play an important role in developing the effectiveness of the work community and working conditions, as well as
safeguarding the rights of employees. Shop stewards represent trade unions and their members at the workplace. In cooperation
negotiations and workplace-specific local negotiations, the shop steward represents 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, Terveystalo and the health services sector union Terveyspalvelualan Unioni ry. The
shop steward agreement defines the number of shop stewards at Terveystalo and how they allocate their time, among other things.
Employees who do not have a shop steward as referred to in a binding collective agreement pursuant to the Collective Agreements Act can
elect a representative from among their number, subject to an agreement with the employer. The duties and mandate of an elected
representative are determined by the provisions of the Employment Contracts Act and other applicable labour legislation. At Terveystalo,
psychologists have an elected representative.
The safety and working conditions of the workplace are monitored and supervised by a health and safety representative. The health and
safety representative is familiar with occupational safety and health and the applicable legislation. The health and safety representative
represents all personnel regardless of union membership. The health and safety representative works together with the shop steward to
promote the occupational 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 personnel, 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 ry, 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,
Human resources, as well as other executives depending on the topic being discussed. Minutes are prepared on the meetings and posted
on the company's intranet, where they are accessible to all employees. During the period 2022–2024, the Personnel Forum had 12
members and two deputy members, and it met four times per year.
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The Group’s Senior Vice President, Human Resources is responsible for ensuring that dialogue and communication take place as described
above and that the issues raised in the dialogue are taken into account in the company’s operating practices.
In addition to the legally required dialogue, Terveystalo engages in dialogue with employees in regular development discussions that are
usually held twice a year, in one-to-one discussions that are held at least once a month, and with private practitioners in private practitioner
discussions that are available at least once a year.
Terveystalo conducts a professional survey twice a year. The survey is an important tool for improving internal operating practices and
supervisory work. The survey is aimed at professionals who work at Terveystalo, including private practitioners. The professional survey
provides information on the professionals' experiences of well-being at work, leadership and the effectiveness of the work community,
among other things.
Terveystalo also actively shares information with the personnel on current topics, such as the implementation of the strategy, by organising
regular personnel webinars and supervisor briefings. The company’s intranet is a key information sharing channel for all common
information, policies and guidelines.
Development discussions and private practitioner discussions support management and cooperation
At Terveystalo, annual development discussions are held with employees to support goal-driven and motivated work. The development
discussion includes a review of the previous period's successes and lessons learned 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, and cooperation, as well as long-term objectives and wishes. In Finland,
the themes discussed in the development discussion are revisited in regular one-to-one discussions and more extensive half-year reviews.
The development discussions are a key aspect of the practical implementation of Terveystalo’s strategy, values and professional skills as
well as performance management and enhancing the experience of Terveystalo's professionals.
Terveystalo also engages in active dialogue with the private practitioners working at Terveystalo. The private practitioner discussion is a
regular personal discussion with the aim of developing cooperation and the conditions for work as a private practitioner at Terveystalo.
The professional survey as a tool for developing operations and the professional experience
Terveystalo conducts an annual professional survey in Finland with the aim of giving a voice to Terveystalo’s professionals, increasing
interaction with them and, above all, developing operations and the professional experience based on the results of the survey. The target
group of the survey includes both employees and private practitioners. The results of the surveys are discussed in management groups,
teams and the Personnel Forum, for example. Based on the results, development plans and measures are created at the organisational
level, professional group level and team level. Examples of topics that are closely monitored include satisfaction with supervisory work,
satisfaction with the work community and opportunities for success in one’s work. Typically, a second and smaller follow-up survey is
carried out each year for the same target group. An annual personnel survey is also carried out in Sweden.
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns
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
Group 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, 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. In HR-related matters, the primary contact channel is Terveystalo’s HR unit. Terveystalo also has a whistleblowing channel that
is open to everyone. The whistleblowing 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. In Sweden, Feelgood Svenska AB and its subsidiaries have their own
whistleblowing channel, which is intended for internal use within Feelgood. Reports received via Terveystalo's whistleblowing channel are
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processed only by persons designated to process reports in Terveystalo and Feelgood and, where necessary, specialists and external
advisors appointed on an investigation-specific basis.
The Whistleblower Protection Act does not apply to matters that concern labour law, but the whistleblowing channel can also be used to
report actual or suspected violations that are not within the scope of application of the Whistleblower Protection Act. In such cases, the
whistleblower does not enjoy protection under the Whistleblower Protection Act. Instead, labour legislation and other applicable legislation
are applied to reports that concern labour law, for example. Even in such cases, a whistleblower who acts in good faith is protected against
retaliation on the basis of the applicable labour legislation. The Whistleblower Protection Act does not apply to reports related to the
following matters, for example, which are processed by the HR unit as a rule:
●
unilateral downgrading of work duties
●
harassment or discrimination
●
occupational safety issues
●
problems related to the atmosphere at the workplace
●
inappropriate behaviour or treatment by a supervisor or colleague.
Terveystalo encourages all of its employees and private practitioners to report any potential misconduct without delay. One of the focus
areas of Terveystalo's compliance function has been to increase awareness of the whistleblowing channel to make the threshold for
reporting as low as possible. Terveystalo estimates that this effort has been successful. Terveystalo Group's Code of Conduct emphasises
that it is important to report actual or suspected violations of the Code of Conduct and describes the available reporting mechanisms.
Terveystalo also has online training on the Code of Conduct aimed at everyone in the organisation. The training includes instructions on
highlighting and reporting misconduct. The online course is mandatory for all Terveystalo employees, and its aim is to improve awareness of
key themes related to compliance and the mechanisms for reporting non-compliance. Any suspected misconduct and violations are
investigated appropriately and confidentially. Processes to remediate negative impacts and channels for raising concerns are described in
more detail in section G1 – Business conduct on pages 102–103.
S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce, and effectiveness of those actions
Terveystalo’s people strategy aims to ensure the engagement of professionals
One of Terveystalo’s strategic goals is to be the best and most attractive employer in its industry for all professionals. To achieve this goal,
Terveystalo has drawn up a people strategy that aims to ensure the engagement, job satisfaction and productivity of professionals through
various measures and continuous development.
The most important strategic measures during the strategy period 2025–2026 are as follows:
●
developing the user experience of the digital work environment used by professionals,
●
developing resource management and shift planning tools,
●
the renewal of remuneration models,
●
developing management and leadership skills and
●
an expanded training offering.
Terveystalo measures the success of the people strategy by means of the employee engagement index, eNPS (Employee Net Promoter
Score), sickness absences and the exit turnover of personnel, among other indicators. The measures described in the following paragraphs
are part of Terveystalo’s people strategy and continuous development with regard to the impacts on its own workforce and, at the same
time, measures for managing risks related to its own workforce.
Measures concerning health and safety
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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.
An annual action plan is prepared for the development of occupational safety in Terveystalo’s operations in Finland. The following measures
were taken in 2024, among others:
●
training on threatening and violent situations for all personnel
●
a new annual calendar for job-specific hazard assessments was implemented
●
a new occupational safety and health period began, and the health and safety representatives' takeover of the new areas went
according to plan
●
the Group's updated safety instructions were deployed across all operating locations
A new operating model for job-specific hazard assessment was deployed in 2023 and its implementation was continued successfully in
2024. In accordance with the annual calendar for job-specific hazard assessment, the focus in 2024 was on identifying workplace hazards
and estimating the magnitude of the risks caused by the identified hazards.
All occupational accidents and commuting accidents at Terveystalo are reported and investigated. In addition, hazardous incidents
concerning the personnel are actively recorded and monitored in order to improve the safety of operations. From the perspective of
developing occupational safety, it is important to identify and report hazards and hazardous incidents in the working environment.
According to the Finnish Occupational Safety and Health Act, employees must report any observed occupational safety deficiencies to the
employer without delay. Terveystalo records approximately 1,400 hazardous incidents concerning the personnel each year. Only a small
fraction of these incidents causes a work-related accident. Terveystalo has not had any occupational accidents or commuting accidents
resulting in death or serious injury for several years.
In addition to providing the legally required occupational health services, Terveystalo provides its employees in Finland with a
comprehensive range of primary healthcare, specialised care and well-being services, such as physiotherapy and Mielen Chat and Mielen
Sparri, which are digital services that support mental well-being. Mielen Chat and Mielen Sparri are low-threshold services that are provided
remotely via the Terveystalo app. Brief psychotherapy is also part of Terveystalo’s occupational health services. The aim is to seek solutions
to challenges related to work ability and occupational health at an early stage through cooperation with occupational health services.
The safety and working conditions of the workplace are also monitored and supervised by a health and safety representative. The health
and safety representative is familiar with occupational safety and health and the related legislation and regulations. The health and safety
representative represents all personnel in their area regardless of union membership. The health and safety representative participates in
the preparation of the occupational safety and health action programme, the preparation of the annual occupational safety and health
action plan, job-specific hazard assessments, workplace visits and occupational safety and health inspections. Occupational safety and
health personnel have jointly agreed-upon meeting practices and the training opportunities necessary for their duties. The Group-level
occupational health and safety action plan describes the planned measures for the development of 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. The occupational safety and health action plan for 2024 included
measures such as the implementation of training on threatening and violent situations for all personnel and the implementation of job-
specific hazard assessments in accordance with the annual calendar.
The action plan that guides occupational health activities is updated annually and available to the personnel on the company’s intranet.
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 normal cooperation with occupational health services and insurance company partners. In the
treatment of serious illnesses, Terveystalo cooperates with primary healthcare and specialised healthcare. The occupational health action
plan for 2024 was focused on the development of basic processes, such as health check-ups and workplace surveys.
Measures concerning work-life balance
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As an employer, Terveystalo strives to support its personnel in maintaining a healthy work-life balance, because
a healthy work-life balance supports the well-being, productivity and job satisfaction of the personnel, which is also reflected in customer
encounters. In the healthcare sector, where work is often demanding and there can be a lot of time pressure, finding a healthy balance can
occasionally be challenging. With this in mind, Terveystalo aims to promote a healthy work-life balance by means of the measures described
below, for example.
Terveystalo is flexible in its contractual relationships and, where possible, offers different forms of employment 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 situations where the need for
labour is low and occasional. Temporary agency workers are used as needed and typically in the event of sudden substitution needs.
Employees in different life stages have different needs regarding work-life balance. 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.
Work at Terveystalo takes place flexibly and on a location-independent basis. The goals of the job 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.
Terveystalo has also developed flexible work opportunities for professionals who work at the customer interface. Flexible work
arrangements are now routine for physicians, occupational health professionals and those who work at customer service centres, for
example.
Measures concerning training and skills development
Terveystalo actively develops the competence of its personnel and supports professional growth. Diverse training in various areas is offered
to employees. Private practitioners also have opportunities to train and develop their competence at Terveystalo.
The annual company-level planning of training ensures that Terveystalo anticipates training needs and that the training activities
correspond to the competence needs of business operations. The training plan is reviewed by the Personnel Forum as part of the work
community development plan. Terveystalo also creates personal training paths for employees to make training more systematic and plan
driven. A personal training path is an individual training plan that enables the employee and the supervisor to agree on the individual's
training for the next 6–12 months. Personal training paths had previously been introduced for occupational health professionals, and, in
2024, training paths were also introduced for nurses and radiographers. Terveystalo intends to expand the use the personalised plans in the
near future to include general practitioners and laboratory professionals. Training is also discussed at the individual level as part of
development discussions.
In 2024, training was arranged in Terveystalo for an average of 13.4 hours per employee. Significant training investments were made in, for
example, the development of supervisory work and leadership, building more in-depth professional expertise for different professional
groups, the high-quality orientation training of new Terveystalo employees, and enhancing the use of digital tools among professionals.
High-quality supervisory work and leadership are among Terveystalo’s strengths, and significant investments were again made in their
development in 2024. All supervisors had the opportunity to participate in training on topics such as feedback culture, rewards and high-
quality performance management. Each year, Terveystalo trains dozens of new supervisors through the supervisor orientation programme
and the Academy for new supervisors. Supervisors are also supported by means of regular supervisor briefings and supervisor letters, for
example. In 2024, Terveystalo also started a leadership development programme that takes almost a year and has over 150 managers
participating in it. The programme supports managers in their new, more demanding roles, strengthens Terveystalo’s common
management method and enables personal competence development and growth for managers.
Examples of training activities focused on professional competencies included dedicated training days for different professional groups,
including nurses, physicians, occupational physiotherapists and occupational health psychologists. Training offered to physicians included
several webinars and online courses as well as regular "From knowledge to skill" training organised approximately 2–3 times per month. In
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2024, Terveystalo focused on areas such as developing the competence of physicians and raising broader general awareness of menopause
symptoms and their diagnosis and treatment. Physicians were also offered a wide range of specialisation opportunities. The occupational
health path specialisation program is the most extensive of the specialisation paths, and it is possible to specialise at almost all Terveystalo’s
occupational health clinics in Finland. The specialisation training is carried out in close cooperation with the medical faculties of universities.
In addition, over 100 of Terveystalo's physicians, nurses, physiotherapists and psychologists received specialised training on occupational
health in 2024 by participating in a 15-credit occupational health study programme leading to a qualification in occupational healthcare. The
training prepares the participants to work as an occupational healthcare professional and specialist.
In 2024, the orientation training of several professional groups working in Finland, such as dentists, physicians and nurses, was developed
and orientation paths were built in Academy, which is Terveystalo’s online training environment. The online learning environment enables
the improved targeting of study activities at new Terveystalo professionals and provides increased opportunities for orientation training
regardless of time and place.
Measures concerning efficient working methods
Terveystalo continuously develops the digital tools used by its professionals to streamline work, increase productivity and improve the
quality of care.
In 2024, a new user interface, Ella, was introduced for Terveystalo’s online chat professionals. Ella is an application that combines an online
chat screen with patient information retrieved from the patient information system. Ella provides professionals with more time for
customer encounters, improves the quality of online appointments and speeds up online chat-based work. This also supports the provision
of care that is effective and caring, improves the customer experience and promotes the continuity of care. The new system is being
developed to expand its use from online chat appointments to other types of appointments as well. The development work is being carried
out together with healthcare professionals. The aim is that, in the next few years, the majority of appointments, both in person and
remotely, will be handled through a completely new user interface. The aim is for the service to save time for the professional, increase
productivity, make the working day less burdensome and make Terveystalo the most attractive place to work because the professional can
focus on meaningful matters.
When it comes to supporting and streamlining the work of professionals, Terveystalo also invests in improving the content and guidance of
work by developing care guidance and care paths. Care guidance based on care paths aims to provide more consistent and effective care to
customers and facilitate the work of professionals. The measures related to the development of care paths are described in more detail in
in the section S4 Consumers and end-users on page 90.
All Terveystalo’s occupational health customers have access to the Symptom Assessment tool, a CE-marked medical device that makes the
use of occupational health 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 Symptom Assessment tool also supports the streamlining of the work of
professionals by taking care of certain routine tasks on the professional’s behalf, allowing them to allocate more time to customer
encounters.
The role of customer feedback is key in the development of work. Terveystalo’s specialists have expressed a wish for direct, personal
customer feedback in addition to unit-specific feedback. Specialist-specific customer feedback is collected in connection with all of
Terveystalo’s physician’s appointments and remote appointments in Finland. Personal feedback is an important tool for professional
development.
Measures concerning remuneration
In Finland, 65 percent of Terveystalo’s employees are covered by collective agreements, which provide the framework for the development
of remuneration.
In 2024, the wage decision concerning the collective agreement for the private healthcare sector (TPTES) included a local tranche in
addition to general increases. At Terveystalo, the local tranche was implemented as personal increases. In accordance with the principles
agreed upon with personnel representatives, the local tranche was allocated to committed and high-performing individuals whose wages
were lower than their peer group. Terveystalo distributed 12 percent more increases than what was required for the local tranche under
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the TPTES agreement. In addition, a one-off payment of EUR 500 was paid to those covered by the TPTES agreement in December 2024.
Personnel covered by the collective agreement for the private social services sector (YSOSTES) received a one-off payment of EUR 470 in
addition to the general increase. The one-off payment was made in June 2024.
At Terveystalo, personnel benefits are an important part of overall remuneration. Terveystalo offers its employees comprehensive
occupational healthcare, a lunch benefit and a sports, culture and well-being benefit. In 2024, Terveystalo also introduced a company
bicycle benefit to encourage physical activity and promote the well-being of employees.
In late 2024, Terveystalo paid its employees a one-off bonus of EUR 500 as a reward for good work. The bonus was paid in late 2024 to
approximately 5,500 people, more than half of whom work as nurses or customer service professionals. Terveystalo's has a significant
number of private practitioners in addition to employees. In 2024, Terveystalo introduced a new remuneration model for certain groups of
private practitioners to guarantee more stable earnings for the professionals. Under the new model, Terveystalo guarantees a minimum
level of remuneration for the private practitioners and sets a ceiling on remuneration.
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
Terveystalo has set two targets for managing the impacts and risks related to its own workforce: strengthening the commitment of
professionals and keeping the sickness absences of the personnel at a low level. These targets cover all of the sustainability matters
described above and measure the success of Terveystalo’s measures pertaining to its own workforce. The targets have been set by
Terveystalo’s Senior Vice President, Human Resources and the Vice President, Sustainability, and approved by Terveystalo’s Executive Team
and Board of Directors. The same targets are also monitored as part of the reporting to management, and the aim is to develop and
improve operations based on the results of the metrics. The personnel in a broader sense or their representatives have not been involved in
the process of setting the targets reported in the sustainability statement. The metrics related to Terveystalo's own workforce have not
been separately verified by an external assurance provider.
Engagement index for Terveystalo
professionals
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 developing the professional experience, the commitment of professionals, internal operating
practices and supervisory work. The engagement index for Terveystalo professionals is measured as part of Terveystalo's professional
survey. The target is for the index to be at least 4 (on a scale of 1–5) each year. In Finland, the professional survey is aimed at both
employees and private practitioners. In Sweden, the professional survey is aimed at employees. In 2024, the index value was 4.2.
Target
Metric (KPI)
Scope
Target level
Target year
Base year
2024
Strengthen the
commitment of
professionals to
Terveystalo
Engagement index
for Terveystalo
professionals
Terveystalo’s
employees and private
practitioners
At least 4
Continuous
2024
4.2
Sickness absences
Terveystalo's target is to keep the sickness absence rate of its personnel at a low level, i.e. below 4 percent. The monitoring and reduction
of sickness absences promotes the company’s operating capacity and profitability. A low sickness absence rate is generally indicative of a
work community with a high level of health and well-being, where employees feel well and are able to do their work efficiently.
Terveystalo's occupational healthcare focuses on maintaining the personnel's work ability and the treatment of illnesses, which helps to
reduce absences and supports the employees' ability to cope with the demands of work. In addition, preventive measures, such as
improvements to ergonomics and supporting coping at work, help to reduce long sickness absences and prevent problems related to work
ability. In 2024, the sickness absence rate of the personnel was 4.0 (4.3) percent.
Target
Metric (KPI)
Scope
Target level
Target year
Base
2024
2023
75
year
Keeping sickness
absences at a low level
Sickness absence
rate, %
Terveystalo
employees
No higher
than 4
2026
2023
4.0
4.3
Basis of preparation of the indicators
Entity-specific metric - Engagement index for Terveystalo
professionals
The engagement index for Terveystalo professionals is based on four questions from Terveystalo’s annual professional survey. The results
are used to calculate the index value, i.e. the average of the results. The questions concern supervisory work (I am satisfied with my
supervisor’s actions), the preconditions for success at work (I have the opportunity to succeed in my work), work communities (We have a
good team spirit in our work community) and commitment (I want to continue to work at Terveystalo). The index is expressed on a scale of
1–5.
Entity-specific metric - Sickness absence rate
The sickness absence rate is calculated as follows: the number of sickness absence days for the reporting period/the average number of
employees * the number of working days during the reporting period. Sickness absences are reported for Terveystalo’s employees,
comprising operations in Finland and Sweden.
Exceptions in the scope of data
The engagement index and sickness absence rate above do not include Medimar Scandinavia Ab and the companies acquired during 2024 in
Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy, Kajaanin Radiologikeskus Oy and Cityläkarna Mariehamn Ab), whose
personnel are not in Terveystalo’s centralised HR system. They represent 102 employees, or approximately 1.1 percent of all employees.
Medimar Scandinavia Ab is also not included in the figures reported on the following pages for the employee Net Promoter Score (eNPS),
the figures related to training and skills development (S-13), or the figures related to health and safety (S-14). The companies acquired
during 2024 are not included in any of the indicators in S1-Own workforce standard.
For the Own Workforce standard, the comparative figures for the comparison year have not been reported for any of the data points
presented on the following pages, based on the transitional provision of ESRS-1 10.3 regarding the presentation of comparative data.
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S1-6 Characteristics of the undertaking’s employees
Number of employees by gender
Gender
2024
Male
1,736
Female
7,417
Total employees
9,153
Number of employees in countries in which the undertaking has 50 or more employees
Country
2024
Finland
8,383
Sweden
770
Number of employees by contract type, broken down by gender
2024
Women
Men
Total
Number of employees (head count)
7,417
1,736
9,153
Number of permanent employees (head count)
6,005
1,454
7,459
Number of temporary employees (head count)
358
95
453
Number of non-guaranteed hours employees (head
count)
1,167
221
1,388
Number of employees by contract type, broken down by country
2024
Finland
Sweden
Total
Number of employees (head count)
8,383
770
9,153
Number of permanent employees (head count)
6,748
711
7,459
Number of temporary employees (head count)
394
59
453
Number of non-guaranteed hours employees (head count)
1,320
68
1,388
Rate of employee turnover and total number of employees who have left the undertaking
2024
Rate of employee turnover, %
31%
The total number of employees who left the company
2,959
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S1-7 Characteristics of non-employees in the undertaking’s own workforce
At the end of 2024, Terveystalo had 5,979 non-employees in its operations in Finland. Terveystalo also operates in Sweden, where
Terveystalo’s subsidiary Feelgood had 48 private practitioners. In Sweden, the number of private practitioners was reduced due to
terminated customer contracts.
Characteristics of non-employees in the undertaking’s own workforce
Non-employees in the undertaking’s own workforce
2024
Private practitioners
3,223
Others
2,792
Total number of non-employees in the undertaking’s own workforce
6,015
Basis of preparation of the indicators
S1-6
The number of employees is reported as the headcount of persons at the end of the reporting period, not as full-time equivalents. The
figures also include non-active employees, such as those on study leave or family leave.
The gender breakdown of the personnel is presented only as women and men, as information on gender is not collected separately.
Instead, information on gender is generated in the HR system based on the personal identity code. Consequently, there is no "other"
category in the gender breakdown. The figures are the headcount of persons at the end of the reporting period.
In the breakdown of personnel by country, the number of employees in Sweden has been decided to be reported separately (even though it
is less than 10 per cent of the total number of employees) as it is considered to be material information.
The number is reported as the headcount of persons at the end of the reporting period.
All employees are reported for the number of employees by contract type. Non-guaranteed hours employees include employees on hourly
wages and employees working under a framework agreement. The number of employees for each contract type is reported as the number
of employees at the end of the reporting period. The sum of the numbers of employees for the different contract types does not
correspond to the total number of employees, as some employees work under multiple contracts. For example, a person may work on
hourly wages in one of the Group companies and in a permanent part-time employment relationship in another. In this case, the person
counts as a non-guaranteed hours employee and a permanent employee.
All employees count towards the rate of employee turnover and the total number of employees who have left the undertaking. The rate of
employee turnover and the number of employees who have left the undertaking includes all reasons for the termination of employment,
except transfers from one Group company to another. The rate of employee turnover is calculated by dividing the number of employees
who left the undertaking during the reporting period by the average number of employees. The average number of employees is calculated
by dividing the number of employees on the last day of 2023 and the number of employees on the last day of 2024 by two. Under the
transitional provision, the numbers of full-time and part-time employees are not reported.
S1-7
The reported number of non-employees in the undertaking's own workforce is the number at the end of the reporting period. Not all non-
employees work full-time. They may also work part-time or individual hours. Private practitioners include people who work at Terveystalo
as a physician or in another healthcare role through their own company. In addition to private practitioners, non-employees in Terveystalo's
own workforce include, for example, professionals and subcontractors who work through another company. They also work in healthcare
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roles. In addition, Terveystalo has a small number of temporary agency workers in more project -based administrative duties, who are not in
Terveystalo’s centralised HR system and who are not included in the numbers due to their small number.
S1-8 Collective bargaining coverage and social dialogue
Collective Bargaining Coverage
Social dialogue
Coverage Rate
Employees – EEA
(for countries with >50
employees)
Employees – Non-EEA
(estimate for
regions with >50 empl.
representing >10% total
employees)
Workplace
representation (EEA
only)
(for countries
with >50
employees)
0-19%
20–39 %
40–59 %
60–79 %
Finland
80–100 %
Sweden
Basis of preparation of the indicators
S1-8
The number of personnel within the scope of collective agreements is calculated by dividing the number of employees covered by collective
agreements by the total number of employees. These numbers of personnel are the numbers of persons at the end of the reporting period.
Three different collective agreements are in use in Finland: The collective agreement for the private healthcare sector, the collective
agreement for the private social services sector and the collective agreement for the staffing services sector. Directors and senior salaried
employees are not within the scope of the collective agreements. They include the majority of physicians and psychologists, for example.
Two collective agreements are in use in Sweden: Healthcare Companies Branch D Occupational Health Services, and Healthcare Companies
Branches E and F Care and Treatment.
S1-9 Diversity metrics
Gender distribution in top management
Gender
2024
Men in top management, number
6
Men in top management, %
67%
Women in top management, number
3
Women in top management, %
33%
Age distribution
Age distribution of employees
2024
Under 30 years
13%
30–50 years
54%
Over 50 years
33%
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Basis of preparation of the indicators
S1-9
The top management consists of the members of the Group's Executive Team, who report to the CEO.
The age distribution of employees takes into account employees and their age at the end of the reporting period. The percentages are
calculated by dividing the number of representatives of each age group by the total number of employees. The figures are the numbers of
persons at the end of the reporting period.
S-10 Adequate wages
Terveystalo pays adequate wages to all employees in employment relationships based on collective agreements and/or regular market
wage comparisons.
S-13 Training and skills development metrics
The percentage of employees that participated in regular performance
reviews, %
2024
Salaried employees
57%
Men
38%
Women
62%
The average number of training hours per employee
2024
Salaried employees
13.4
Men
7.0
Women
14.9
Basis of preparation of the indicators
S-13
At Terveystalo, annual development discussions are held with all full-time employees to support goal-driven and motivated work.
Development discussions are also held with many part-time employees, but a formal discussion that is documented in the HR system is not
mandatory for hourly workers, for example. Only a development discussion on which a form is completed in the centralised HR system is
considered a completed development discussion, and the reported figure is therefore likely to be lower than the actual number of
development discussions. Supervisors are responsible for conducting development discussions. In addition, the implementation and
number of discussions can be monitored in real time via the reporting system.
In the number of development discussions held, development discussions held with persons whose employment relationship was valid at
the end of the reporting period are taken into account. The proportion of employees is calculated by taking the number of completed
development discussions by gender and dividing it by number of employees (S1
-
6).
80
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. The number of training hours only includes training completions recorded in
training systems, and since not all training activities were covered by the training systems in 2024, the actual number of training hours is
also likely to be higher than the reported figure. In the number of completed training hours, only employees whose employment
relationship was valid at the end of the reporting period are taken into account. The average number of training hours is obtained by taking
the number of hours completed, by gender, and dividing it by the previously reported numbers of personnel (S1-6). The average number of
training hours includes Terveystalo’s employees, except Medimar Scandinavia AB and the companies acquired during 2024 in Finland.
S-14 Health and safety metrics
Health and safety indicators
2024
The percentage of own workers who are covered by the undertaking’s
health and safety management system, %
100
The number of fatalities as a result of work-related injuries and work-
related ill health
0
The number of fatalities as a result of work-related injuries and work-
related ill health of other workers working on the undertaking’s sites
0
Number of accidents
299
Accident frequency (per one million working hours)
19.9
The number of cases of recordable work-related ill health
0
Basis of preparation of the indicators
S-14
The percentage of the undertaking's own workforce who are covered by the undertaking’s health and safety management system
corresponds to all persons working for Terveystalo, as everyone has the right to a safe working environment regardless of the type of
employment relationship.
The number of fatalities due to work-related injuries and work-related ill health includes work-related accidents and commuting accidents
among employees, and occupational diseases that meet the criteria laid down in the Workers' Compensation Act. The decision on whether
the criteria are met is made by the accident insurance company. The number of fatalities is monitored on the basis of statistics reported by
the accident insurance company.
The number of fatalities due to work-related injuries and work-related ill health among workers of other undertakings working at
Terveystalo's sites is determined on the basis of information obtained from the employers of the workers in question.
The number of work-related accidents includes work-related and commuting accidents among employees that meet the criteria for work-
related and commuting accidents laid down in the Workers' Compensation Act, regardless of whether or not they result in sickness absence.
The decision on whether the criteria are met is made by the accident insurance company. The number of work-related and commuting
accidents is monitored using statistics provided by the accident insurance company. The final number of work-related accidents for the
reporting year is usually confirmed during the first quarter of the following year. The calculation of the accident frequency includes work-
related and commuting accidents and occupational diseases that have occurred in the work of employees, based on statistics provided by
insurance companies, as well as the actual working hours of the same personnel group in accordance with payroll monitoring.
The number of cases of work-related ill health/among the company’s employees, i.e. the number of occupational diseases, includes cases
that meet the criteria for occupational diseases laid down in the Workers' Compensation Act. The decision on whether the criteria are met
is made by the accident insurance company. The number of occupational diseases is monitored on the basis of statistics reported by the
accident insurance company.
81
Under the transitional provision, Terveystalo has omitted from the table data points on cases of work-related ill health and on number of
days lost to injuries, accidents, fatalities and work-related ill health.
The numbers in the table do not include private practitioners.
S-15 Work -life balance metrics
The percentage of entitled employees that took family-related leave,
and a breakdown by gender
2024
Female
6%
Male
4%
Total
6%
Entity-specific metric - eNPS, employee Net Promoter Score
In Terveystalo's professional 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 2024 professional survey, the eNPS was 14. In 2023 and 2024, Terveystalo streamlined its operating model and organisational
structure as part of the profit improvement programme. These changes affected the willingness to recommend the company as a
workplace. Terveystalo’s strengths include well-functioning work communities, effective cooperation and good team leadership.
Entity-specific metric - eNPS, employee Net Promoter Score
2024
Finland
15
Sweden
-11
Total
14
Basis of preparation of the indicators
S-15
The number of entitled employees that took family-related leave takes into account the Group's employees whose employment
relationship was valid at the end of the reporting period and who took family-related leave during the year. The percentages are calculated
by taking the number of these persons by gender and dividing it by the previously reported number of employees at the end of the
reporting period (S1-6).
Entity-specific metric - e
NPS
The employee Net Promoter Score (eNPS) is based on the question “How likely would you be to recommend your workplace (on a scale of
0-10)?”. The respondents can choose an answer between 0 (very unlikely) and 10 (very likely), and the eNPS is reported as a score between
-100 and +100. The higher the number, the more likely the employees are to recommend the workplace to others. The eNPS is calculated by
subtracting the percentage of detractors from the percentage of promoters: eNPS = (% of promoters) – (% of detractors). The professional
survey, which includes the eNPS question, is aimed at all of the Group’s employees and private practitioners (excluding private practitioners
in Rela, Medimar Scandinavia AB and the companies acquired during 2024 in Finland).
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S4 – Consumers and end-users
SBM-3 Material impacts, risks and opportunities related to consumers and end-users
Terveystalo plays a key role in the renewal of healthcare in Finland, the prevention of illnesses and the promotion of people’s well -being.
The company provides private healthcare services in Finland and occupational health services in Sweden through its subsidiary Feelgood. In
2024, Terveystalo had a total of 1.2 (1.2) million customers, 7.6 (7.6) million customer visits in Finland, and in total more than 1.7 (1.8)
million end-customers of occupational health services in the Nordic countries. Terveystalo’s digital channels have over 2.6 million registered
users in Finland.
The most significant positive sustainability impact of Terveystalo’s operations arises from providing fluent, caring and effective integrated
care to customers, which is also the core of Terveystalo’s business strategy. According to Terveystalo's strategy, integrated care means that
Terveystalo understands customers and their needs, prevents and manages health risks, guides the customer to the right service and
treatment, takes care of the patient throughout the care path, cooperates as teams of experts, and measures and improves the outcomes
of care.
According to Terveystalo's strategy, the integrated care model aims for a positive social impact, which can be reflected in the effective
prevention of illnesses, quick access to care, fluent care paths and good outcomes of care, among other things. High-quality occupational
healthcare that is based on integrated care is effective when it promotes the health, work ability and well-being of employees effectively
and with measurable results. Effectiveness is reflected in, for example, reduced sickness absences, improved work ability and productivity,
as well as increased well-being at work, which reduces early retirement and saves costs for client companies. Terveystalo’s digital services
speed up access to care and smooth integrated care paths ensure effective and timely 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 ensures the safety of care and protects 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. Compromised patient
safety 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. Everyone working at
Terveystalo and on behalf of Terveystalo must ensure the protection of privacy and the realisation of data protection in all activities
involving the processing of patient information. Compromised information security or data protection may cause restrictions on operations
imposed by the public authorities, financial sanctions, claims for damages and other financial losses, which would have an adverse impact
on Terveystalo's financial performance.
The material impacts, risks and opportunities related to consumers and end-users have been identified in the company’s double materiality
assessment, and they are presented in more detail on pages 45–46. of the sustainability statement. The material impacts, risks and
opportunities related to end-users include all end-users likely to be subject to material impacts caused by Terveystalo’s operations. In the
double materiality assessment, Terveystalo has not separately formed an understanding of how end-users with particular characteristics or
who use particular services may be at greater risk of harm.
Based on the impacts, risks and opportunities identified in the double materiality assessment (described on pages 48–50), Terveystalo’s
material sustainability matters related to consumers and end-users are:
●
patient data protection and information security (adverse impact and risk)
●
access to care, availability, quality and effectiveness of care and the customer experience (positive impact).
Terveystalo's customer groups
83
Terveystalo provides services to three customer groups: corporate customers, consumer customers and public sector customers.
Corporate customers
Corporate customers constitute Terveystalo’s largest customer group. Terveystalo provides statutory occupational health services and other
healthcare and well-being services for companies of all sizes. In Finland, Terveystalo provides occupational health services to over 26,000
companies and organisations that have approximately 744,000 employees covered by the occupational health services.
In Sweden, Terveystalo offers occupational health, organisational management consulting and addiction prevention and rehabilitation
services to its corporate customers. Terveystalo serves approximately 8,000 corporate customers in Sweden, which have about one million
employees covered by occupational health services.
Consumer customers
Consumer customers are Terveystalo’s third-largest customer group. Consumer customers are private individuals who pay for their services
themselves or through health insurance. Easy and fast access to Terveystalo’s services, a wide range of services, high-quality and effective
care and personalised digital services can improve the health and quality of life of customers.
Public sector customers
Terveystalo’s public sector customer group consists of Finnish public sector organisations, such as the wellbeing services counties that are
responsible for the organisation of publicly funded healthcare and social welfare services, and occupational health customers in the public
sector. Terveystalo offers solutions to the public sector in relation to personnel shortages in healthcare, improved access to care and digital
services. The services offered to public sector customers include full and partial outsourcing, healthcare staffing services, specialised care
services, and occupational health services.
According to the double materiality assessment, the end customers who use Terveystalo’s health services may face adverse impacts related
to the protection of their privacy and personal data if a data protection or information security risk were to materialise. Terveystalo’s
services are not assessed to have any adverse impacts on the freedom of expression or non-discrimination of end-users. In some situations,
end-users of the services may be dependent on accurate and easily available product and service information, such as instructions for
seeking treatment, instructions for follow-up care, or instructions on the use of a medicine. Based on the double materiality assessment,
Terveystalo’s customers are not particularly vulnerable to potential negative impacts on health or privacy, nor to marketing and sales
strategies. Terveystalo’s services also do not naturally increase the risk of chronic diseases for any customer group. Processes for engaging
with end-users about impacts are described on page 39.
Terveystalo’s service offering
In addition to preventive occupational health services, Terveystalo offers a wide range of services in primary healthcare and specialised
care, diagnostics, and day surgery, including general practitioner and specialist services, imaging and laboratory tests. In addition, the
company offers demanding surgery, well-being services, oral health services, public healthcare outsourcing services, healthcare staffing
services, rehabilitation services and child welfare services.
Terveystalo offers appointments with general practitioners and occupational health physicians as well as physicians representing different
specialties, both in person at approximately 360 units across Finland and through digital channels in the form of video or chat
appointments.
Preventive occupational health services include workplace surveys to evaluate workplace conditions and factors that expose employees to
health risks, health check-ups, and action proposals for the improvement of working conditions and the promotion of the work ability of
employees. In addition to statutory services, Terveystalo provides a comprehensive range of primary and specialised healthcare services,
diagnostics and well-being services for corporate customers.
Terveystalo's diagnostics services include laboratory services, X-ray, CT, and MRI services, among others.
Terveystalo's hospital services include, among others, general surgery, orthopaedic surgery, and eye surgery. Terveystalo offers these
84
services through its network of 18 hospital units. Terveystalo's well-being services include physiotherapy, psychologist and psychotherapist
services, nutritional therapy, work ability coaching, massage services and vaccination services.
S4-1 Policies related to consumers and end-users
Terveystalo’s policies concerning consumers and end-users apply to activities that are under the operational control of the company and its
subsidiaries. In activities in which the company operates at the client's premises, using the client's personnel and equipment, the client's
policies apply.
Quality is managed at all levels and implemented in everyone’s work
The goal of Terveystalo's quality efforts is to ensure access to services, patient safety, an excellent and continuously improving customer
experience, the realisation of data protection and information security, compliance with recommendations and clinical practice guidelines,
and developing the effectiveness of treatment. Terveystalo’s quality is monitored and measured at many levels. The results of operations
are reviewed regularly, and development areas are identified and necessary changes made based on them. Terveystalo’s quality efforts are
based on a quality management system that meets the requirements of the international ISO 9001 quality management system standard.
Terveystalo has set goals for its quality efforts that exceed the requirements of the standard. Quality is managed as part of management
structures at all organisational levels, from senior management to the day-to-day work of teams and individuals.
Everyone at Terveystalo is responsible for implementing and ensuring patient safety and high-quality care. In addition to the quality
management system, operations are guided by several other requirements and binding obligations, which are documented in Terveystalo’s
integrated management system. The quality management system and the integrated management system are tools used by everyone at
Terveystalo to ensure that their actions comply with the applicable requirements and produce the desired outcomes. Terveystalo’s policies
(self-assessment plan, operating policy, quality policy, internal control and risk management policy, Code of Conduct, data protection and
information security policy and environmental policy) guide operations in addition to common processes, guidelines, operational procedure
rules and standards. Policies and procedures pertaining to the data protection of patient data are documented in the company's Data
Protection Handbook for patient care. The Current Care Guidelines and the legislation and regulatory obligations applicable to the industry
and the operations of private service providers, as well as customer agreements, are also key requirements implemented in operations that
Terveystalo complies with. The company’s policies are in line with, or exceed, the internationally recognised norms related to end-users and
pertaining to business and human rights, such as the UN Guiding Principles.
In accordance with Terveystalo’s human rights policy, the company is committed to respecting human rights in accordance with the UN
Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Terveystalo is also committed to
the international human rights framework (Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights
and the International Covenant on Economic, Social and Cultural Rights) and the ILO Declaration on Fundamental Principles and Rights at
Work (freedom of association, the right to collective bargaining, the elimination of all forms of forced or compulsory labour, the abolition of
child labour, the elimination of discrimination in respect of employment and occupation, a safe and healthy working environment). Should
any activities have the potential to affect vulnerable groups, Terveystalo also takes into account other international norms and principles,
such as the Convention on the Rights of the Child.
During the reporting period, Terveystalo was not made aware of any incidents related to end-users of services that involved non-
compliance with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at
Work and the OECD Guidelines for Multinational Enterprises.
The following paragraphs describe the key policies and procedures that guide operations with regard to access to care and the quality and
effectiveness of care, as well as the customer experience, patient data protection and information security.
Terveystalo’s Code of Conduct and internal control and risk management policy are described in section G1 – Business conduct on pages
97–99 of the sustainability statement.
85
Self-assessment plan
In Finland, pursuant to the Act on the Supervision of Social Welfare and Health Care (741/2023), the service provider must supervise the
quality and appropriateness of its own operations and those of its subcontractors, as well as customer and patient safety. Service organisers
and service providers that provide services at more than one service unit are required to draw up a self-assessment plan in electronic
format regarding the tasks and services they are responsible for, and publish the self-assessment plan in a public information network or in
another manner that promotes public access to the information in question. A service provider's self-assessment plan covers all of the
service provider's service units. In order to ensure the quality, appropriateness and safety of daily operations and to monitor the adequacy
of the personnel involved in customer and patient work, the service provider must draw up a self-assessment plan covering all the services
provided in the service unit by and on behalf of the service provider.
The self-assessment plan must include a description of the procedure for reporting and learning of incidents. The service provider must
draw up the self-assessment plan electronically and publish it in a public information network or in another manner that promotes public
access to the self-assessment plan and keep the self-assessment plan publicly accessible at the service unit.
Pursuant to the Act on the Supervision of Social Welfare and Health Care Services, the implementation of the activities described in the
service unit’s self-assessment plan must be monitored and any deficiencies observed in the course of monitoring must be rectified. A report
must be prepared on the monitoring, and changes implemented as a result of the monitoring activities must be published at fou r-month
intervals in a public information network or in another manner that promotes public access to the information in question, and the
information must be kept publicly accessible at the service unit.
The self-assessment programme and observations made on the basis of the monitoring of the implementation of the self-assessment
programme must be published at four-month intervals in a public information network or in another manner that promotes public access to
the information in question.
Terveystalo adheres to a self-assessment plan drawn up 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. Each site
must have defined practices for implementing the measures presented in the self-assessment plan.
Terveystalo’s self-assessment plan is drawn up by the persons in charge of each function and approved by the Chief Medical Officer. The
implementation of the self-assessment plan is monitored in internal and external audits, for example.
Terveystalo publishes its self-assessment plan and programme on its website. The monitoring of the self-assessment plan is reviewed
quarterly by the Group's Patient Safety Team and any changes are reported every four months when the self-assessment plan is updated.
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 priorities, harmonised processes and measurability
help steer operations toward consistent high quality. Terveystalo’s quality policy is approved by the Quality Steering Group, which is also
responsible for monitoring its implementation.
Terveystalo’s quality policy serves as the foundation for quality targets and the development of processes to ensure quality management,
and it describes Terveystalo’s commitment to high quality standards and the continuous improvement of operations. Quality efforts
support Terveystalo’s mission, values and strategy.
The cornerstones of Terveystalo’s quality management system are patient safety and national legislation. It comprises clinical, operational
and experienced quality. Terveystalo measures, monitors and manages its quality systematically and in a target -driven manner at all levels
of the organisation.
Medical quality and effectiveness are measured extensively, and the results are utilised in management and development. Patient safety is
a key part of medical quality. Its realisation is monitored, for example, by the number of procedure-specific and clinic-specific post-surgery
infections, reported hazardous incidents, official requests for clarification, and the decisions of the Patient Insurance Centre.
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The management and development of operational quality includes ensuring compliance with operating processes and instructions, risk
management, the implementation of data protection and information security, and the promotion of environmental responsibility. These
targets are achieved through audits and self-assessments.
Feedback from customers and professionals is used extensively in the management of experienced quality and effectiveness.
In 2024, quality management was streamlined and enhanced by harmonising management forums and reporting practices and by further
specifying responsibilities.
Continuity plan
As a key healthcare provider, Terveystalo plays a significant role in access to care at the national level, also in exceptional circumstances.
The continuity plan defines and describes the organisation’s operating 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 and is part of Terveystalo’s management and reporting system. The management teams at
Terveystalo’s various organisational levels are responsible for continuity management in accordance with the Group’s guidance.
Data protection and information security policies
The data protection policy sets out the principles, obligations, 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 stakeholders with regard to personal data. The data protection policy sets out the principles and
methods for ensuring the appropriate processing of personal data throughout the life-cycle of personal data; these principles and methods
guide all activities at Terveystalo. It also ensures compliance with legislation governing privacy, data protection and other applicable special
laws. The principles underpinning the policy are legal compliance and transparency, purpose limitation, data minimisation, accuracy,
restriction of storage, integrity and confidentiality. All Terveystalo personnel must comply with the data protection policy. The data
protection policy is confirmed by Terveystalo Group’s CEO and maintained by Terveystalo's Legal Affairs department. The policy is updated
as necessary. In Sweden, Feelgood has its own data protection policy, which sets out the principles, obligations, responsibilities,
organisation, operating practices and monitoring practices that Feelgood observes in the implementation and development of data
protection.
In addition to the data protection policy, Terveystalo has a comprehensive data protection handbook for patient care. Its purpose is to
provide guidance on the manner and criteria of processing patient data and personal data, the circumstances in which data can be
disclosed, and to which parties data can be disclosed. The data protection handbook for patient care is intended particularly for use by
Terveystalo professionals who work with patients. The handbook contains instructions on, among other things, the processing of patient
data, informing patients and patient consent, the disclosure of patient data, the data subject's right of access, the rectification and erasure
of patient record entries, log data requests, suspected misuse and data protection incidents, and the storage and destruction of patient
records. The data protection handbook for patient care is approved by the Data Protection Officer and confirmed by the Chief
Administrative Physician.
The objectives, responsibilities, and implementation 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 operations and the appropriate management of information risks, and ensuring the reliability and cost-effectiveness of
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information processing. The information security policy is developed according to the observations made. The Chief Information Security
Officer is in charge of the development efforts.
S4-2 Processes for engaging with consumers and end-users about impacts
Terveystalo aims to provide an excellent customer experience across all of its service channels. Customer feedback provides valuable
information for the development of operations and services, which aims to strengthen Terveystalo’s positive impacts on end-users.
Terveystalo collects customer feedback systematically and provides several feedback channels, including the Terveystalo app, online forms,
feedback forms at clinics, and oral and written feedback.
The customer experience and customer satisfaction are measured by means of a continuous Net Promoter Score (NPS) survey that is based
on random sampling and text messages, as well as customer experience surveys aimed at corporate customers. The customer experience
and customer satisfaction are also measured on a professional -specific basis after each appointment with a physician. The appointment-
specific effectiveness of care is measured by the Patient Enablement Instrument (PEI), which measures the customer’s perceived ability to
cope with their illness or health status after the appointment. The NPS and the PEI index are key performance indicators for which
measurable targets have been set. The targets are described on page 120 along with a more detailed explanation of the NPS and PEI
calculation principles.
Terveystalo has a harmonised procedure and monitoring practices for processing customer feedback. Each clinic has a designated quality
and patient safety officer who is in charge of processing feedback and ensures that feedback is carefully processed. Customers are always
provided with a response if they request one. Customer feedback is regularly monitored and reported on, and used in internal and external
quality audits to assess the measures taken and their impacts. Customer feedback is an important tool for developing operations and
increasing customer satisfaction. The Executive Vice Presidents in charge of each business area are responsible for ensuring that customer
feedback is taken into account in the monitoring, implementation and development of overall quality in their respective areas.
Terveystalo does not have a separate customer feedback process with regard to data protection or information security, but the end-user
can provide feedback in the same way as for other services. Incident reports can be made regarding information security and data
protection.
S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
Terveystalo’s customers have access to several channels to raise concerns and report any deficiencies or adverse incidents related to the
care or service they have received. A brief description of these channels and the processes for handling feedback or reports received
through them is provided below.
Incident report
All Terveystalo employees have an obligation to submit an incident report if they observe 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. In a
near miss, an incident that jeopardises patient safety, customer safety or data protection nearly occurred, 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 means that an incident that jeopardises a patient’s safety or data protection actually took place, such as when a
patient is given the wrong dose of medication or a patient's sensitive information is disclosed to third parties. The notification is made by
Terveystalo’s personnel using an electronic form. The patient, customer, relative or a family member, can also submit an incident report
using the dedicated form available on Terveystalo’s website.
In the incident processing procedure, an e-mail alert is sent for each incident report to the clinic’s quality and patient safety officer, the
feedback and incident handlers and the physician in charge of the clinic. The quality and patient safety officer and the feedback and incident
handler are responsible for initiating the processing of the incident and coordinating the processing with the persons in charge of different
functions. The physician in charge of the clinic is responsible for the medical assessment of the incident. The quality and patient safety
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officer and the feedback and incident handler ensure that a root cause analysis is carried out and corrective measures are taken. In 2024,
the proportion of near-miss reports at Terveystalo was 54.1 (54.3) percent of incidents.
Patient ombudsperson
In healthcare and social services, patient ombudspersons and social services ombudspersons are appointed to ensure the rights and legal
protection of patients and the clients of social services (Act on Patient Ombudspersons and Social Services Ombudspersons 739/2023). The
legislation applies to the wellbeing services counties and the City of Helsinki and HUS Group. The wellbeing services counties and the City of
Helsinki are responsible for patient ombudsperson and social services ombudsperson activities also when it comes to private service
providers. If necessary, Terveystalo's customers can contact the patient ombudsperson of their wellbeing services county or the City of
Helsinki for help or advice.
Objections in healthcare
A patient who is not satisfied with the healthcare or medical care or the related treatment received by him/her has the right to file an
objection on the matter to the director responsible for healthcare in the healthcare unit in question (Act on the Status and Rights of
Patients, Patient Act, 1992/785, section 10). If the patient is unable to file an objection themselves due to illness, incapacity or similar
reason, or if they are deceased, the objection may also be filed by their legitimate representative, family member or other related party.
The operational unit must adequately inform its patients of the right to object, and make it as convenient as possible for patients to file an
objection. As a rule, objections should be filed in writing. However, an objection can also be submitted orally if there is a special reason for
it. The operational unit must process the objection appropriately and provide a written response within a reasonable period of time after
the objection has been filed. The response must be justified in the manner required by the nature of the case.
The response to an objection cannot be appealed. Filing an objection does not restrict the patient’s right to file a complaint about their
care, or treatment related to their care, with the supervisory authorities for healthcare.
Complaints in healthcare
Anyone who is dissatisfied with their care, treatment or related procedures may file a complaint in accordance with Chapter 8a of the
Administrative Procedure Act. Filing an objection does not prevent a person from filing a complaint. As a rule, complaints are filed with the
Regional State Administrative Agency (AVI). Complaints can be filed with the National Supervisory Authority for Welfare and Health (Valvira)
only in special circumstances.
Notice of injury
The patient has the right to file a notice of injury with
the Patient Insurance Centre
malpractice. In that case, the issue is investigated and resolved by the PIC. The patient ombudsperson for the wellbeing services county
provides advice on filing a notice of injury.
In 2024, Terveystalo's ratio of compensated patient injuries to the total number of
appointments was 0.0005 (0.0016) percent.
Whistleblowing channel
Consumers and end-users can report ethics-related shortcomings or legal violations via Terveystalo’s whistleblowing channel (WhistleB).
The whistleblowing channel and the processing of whistleblower reports are described in more detail in section G1 – Business conduct on
page 102–103 of the sustainability statement.
Calculation principles
Near misses/hazardous incidents
The purpose of the metric is to improve patient safety. The ratio of near misses to hazardous incidents indicates how well Terveystalo
anticipates potential risks. The factors leading to the near miss are identified through root cause analysis and decisions are made on
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measures to prevent hazardous incidents. The figure includes all appointments in Terveystalo's Finnish operations, excluding staffing
services, outsourcing, child welfare services and massage services. The figure does not include data protection incidents.
Reimbursed patient claims/all appointments
The ratio of reimbursed patient claims to the number of appointments with a physician describes the proportion of appointments that
result in reimbursed patient claims. Notices of injury reported in the indicator are expressed relative to the number of appointments in the
year the report is received. The figure includes all appointments in Terveystalo's Finnish operations, excluding staffing services, outsourcing,
child welfare services and massage services. When interpreting the indicator, it should be noted that the figures change as the Patient
Insurance Centre issues decisions on cases and Terveystalo is informed of the decisions. The Patient Insurance Centre takes eight months on
average to process notices of injury.
S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing
material risks and pursuing material opportunities related to consumers and end-users, and effectiveness
of those actions
The most significant positive sustainability impact of Terveystalo’s operations arises from providing fluent, caring and effective integrated
care to customers, which is also the core of Terveystalo’s business strategy.
The goal of Terveystalo’s integrated care model is to seamlessly combine the different stages of care and create positive impacts on
different customer groups. For the consumer customer, value is created by quick access to appropriate care, continuous support
throughout the care path, and the best possible outcomes of care. For companies, value is created by reducing sickness absences and
related costs through effective preventive measures and care paths. For insurance companies, value is created by efficient care paths that
speed up recovery and thus reduce the total costs of the insurance event. For the public sector, value is created by cost-effective and high-
quality partnership models for addressing bottlenecks in the healthcare system. Terveystalo evaluates the success of its care models from
many different perspectives, including the experiences of patients and diagnosis-specific effectiveness indicators. In addition, quick access
to care and an excellent customer experience are key quality criteria. Terveystalo continuously develops its services across the entire care
path, including prevention, assessment of the need for care, appointments, diagnostics, day surgery and rehabilitation.
The medical strategy for healthcare services, which supports the Group’s business strategy and its implementation, sets out the most
important measures and initiatives aimed at improving access to care and the quality and effectiveness of care, as well as the customer
experience. Measures have been defined for all stages of the care path, and their implementation is monitored with the help of targets and
indicators. In the Portfolio Businesses segment, the key focus area is the development of cooperation with Finland’s wellbeing services
counties, which are primarily responsible for organising public healthcare and social welfare services.
The following paragraphs describe the most significant planned measures, as well as the measures initiated or implemented in 2024, to
promote positive impacts on Terveystalo’s customers.
Integrating blood analysis technology into occupational health to improve the prevention of illnesses
From the beginning of 2024, Terveystalo’s occupational health customers in Finland gained access to Nightingale Health blood analyses as
part of occupational health check-ups. The technology helps detect the risk of the most common chronic diseases, and Terveystalo's
occupational health services can use it to help prevent diseases. Terveystalo looks after the health of approximately 730,000 Finns of
working age and offers more and more people a view of their personal susceptibility to common chronic diseases and support for lifestyle
changes.
Common chronic diseases reduce work ability and require continuous monitoring, but many of them are preventable. By the end of 2024,
approximately 115,000 of Terveystalo's individual occupational healthcare customers had received a risk report based on a blood analysis.
In 2025, the aim is to particularly develop various interventions, such as digital lifestyle coaching, in order to reduce the risks of illness
detected among customers. Monitoring will be used to ensure that the interventions actually reduce these risks.
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Treatment model for chronic diseases promotes the health and well-being of occupational health customers
In 2024, Terveystalo introduced a treatment model for chronic diseases for its occupational health customers in Finland. In the treatment
model, the customer’s individual situation regarding the need for treatment of a long-term illness is assessed automatically and the
customer is contacted if, based on the assessment, the treatment of the illness at Terveystalo does not appear to be implemented in
accordance with the national Current Care Guidelines. Medical criteria have been applied to select the diseases covered by the treatment
model. It covers chronic illnesses that are common among people of working age and which, when the balance of care is poor, cause the
most health problems, affect coping and reduce work ability. The medical conditions covered by the model are type 2 diabetes,
hypertension and high cholesterol. The treatment model aims to ensure that monitoring is carried out in the optimal manner and the
progression of the disease and any resulting complications and work ability-related challenges are prevented. The plan for 2025 is to expand
the model to include other chronic diseases and develop the automation of treatment plans.
Symptom Assessment tool facilitates access to care and smoother workflows for healthcare professionals
In autumn 2023, Terveystalo’s occupational health customers in Finland were given access to the Symptom Assessment tool, a CE-marked
medical device that makes the use of occupational health services smoother in the event of illness. The tool refers customers to the
appropriate specialist and the right service channel in a timely manner. In 2024, the customer guidance model was further developed based
on customer feedback in order to improve the service so that it meets the needs of customers and professionals even better. When an
occupational health customer uses Terveystalo’s digital service channels, they are requested to describe their symptoms. The Symptom
Assessment tool analyses the customer's responses and determines the urgency of the case. Based on this assessment, the customer is
referred to the appropriate service channel and specialist. The results of the analysis are forwarded to the receiving specialist in advance,
which speeds up the treatment process and makes the service smoother and more streamlined. The Symptom Assessment tool reduces the
need for the customer to make their own assessments of whom to turn to. For example, a customer with musculoskeletal symptoms can be
referred directly to an appointment with a physiotherapist instead of a physician. The system also distinguishes between cases in which
care can be provided remotely and cases that require an in-person appointment.
The effectiveness and benefits of the Symptom Assessment tool are assessed by customer feedback, among other things; customers have
given an average score of 4/5 for the ease of use of the tool.
Terveystalo’s care paths support self-care and improve the efficiency of healthcare operations
Since 2021, Terveystalo has developed care paths based on the Current Care Guidelines and other generally accepted clinical practice
guidelines. The aim of care paths is to ensure the consistency and effectiveness of care, support the work of healthcare professionals,
promote the health of customers and ensure the implementation of diagnostics and monitoring.
Care paths serve as a tool for healthcare professionals. The patient information system provides them with alerts on treatment
recommendations and follow-up measures based on the working diagnosis. They include suggested diagnostics, such as laboratory and
imaging tests, and situations in which a specialist consultation or therapies such as brief psychotherapy or physiotherapy are
recommended. The care paths also help the customer by providing clear instructions in the Terveystalo app on preparing for examinations,
self-care and, if necessary, starting therapies. For the customer, the care paths enable clearer and smoother care and a better
understanding of the course of care. For healthcare professionals, they provide tools that make their work easier, reduce the administrative
burden and support decision-making.
Approximately 80 care paths were in use at the end of 2024. They included care paths related to the treatment of lower back pain,
depression and anxiety, insomnia and paediatric lower respiratory tract infections, for example. The aim is to further develop the care paths
in 2025 by, for example, automating the monitoring of the effectiveness of care and visualising the care process.
Developing patient safety culture as part of high-quality and safe care
At Terveystalo, the development of patient safety is a key part of the quality of care and sustainable operations. Patient safety culture
constitutes the foundation of these efforts. Its aim is to create an open and trust-based atmosphere in which employees can raise concerns
and report incidents without fear of sanctions or blame. The systematic processing of concerns and incidents ensures that similar situations
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can be prevented in the future. The maintenance and development of patient safety culture is supported in various ways, including a
mandatory online course on patient and customer safety. The course is included in orientation training for new employees and completing
the course is mandatory for all employees in care work and personnel whose roles include responsibility for patient safety.
The development of patient safety is supported by a regular customer and patient safety culture survey, which provides valuable
information on the current state of operations and areas requiring further development. The most recent survey was carried out in 2023. It
was responded to by 1,293 professionals working with patients, 12 percent of whom were physicians. The results showed that Terveystalo’s
patient safety culture is widely held in high regard. Awareness of incident reporting and notification systems had improved when compared
to the previous years, and patient safety competence was rated as high. The results of the 2023 survey were thoroughly analysed by the
Patient Safety Working Group, on the basis of which development areas were identified as priorities for the next two -year period. The
impacts of the development measures will be assessed in the 2025 customer and patient safety culture survey, the results of which will
again guide Terveystalo's strategic development efforts.
Health partnership and digital services support the transformation of wellbeing services counties
The Portfolio Businesses segment strengthens its connections to Finland’s wellbeing services counties through the new Health Partner
organisation. Finland is divided into 21 wellbeing services counties and the City of Helsinki and HUS Group, which is the specialised
healthcare provider in the Uusimaa region. The wellbeing services counties and the City of Helsinki and HUS Group are responsible for
organising public healthcare and social welfare services. The wellbeing services counties started their operations at the beginning of 2023,
but the building of their organisations and financial challenges have limited the opportunities for developing long-term strategic solutions
and cooperation with private service providers. Terveystalo established the Health Partner organisation in autumn 2024 to focus on
identifying and responding to the individual challenges of the wellbeing services counties. Health partnership includes staffing services,
digital solutions for public services, rehabilitation, child welfare services and public partnerships, i.e. outsourcing. Of these, Terveystalo
focuses particularly on three areas: digital services, ensuring the availability of personnel through staffing services and ensuring the
availability of services by offering Terveystalo's service production capacity to the wellbeing services counties. Through more in-depth
knowledge of their respective regions, Terveystalo also aims to develop new services that correspond to the needs of the wellbeing services
counties.
The Finnish healthcare and social service system is facing major challenges: the population is ageing, the need for services is growing, and
resources – both human and financial – are limited. The production of services must be even more efficient than before, and digitalisation
is one of the key solutions to these challenges. Terveystalo’s digital platform enables professionals to make more efficient use of their time,
which creates cost savings for the wellbeing services counties. Automation supports the continuity of care, increases efficiency, improves
quality and enhances patient safety. Using a single integrated electronic service platform instead of multiple individual systems makes the
use of services easier and clearer for patients. Terveystalo’s digital platform is already in use in four wellbeing services counties: Southwest
Finland, Satakunta, South Ostrobothnia and Lapland.
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S4-4 Actions and approaches related to the management of material impacts on end-users, and the
effectiveness of those actions
Terveystalo's actions concerning patient data protection and information security, which is an identified material risk relat ed to end-users,
are described below. The process for managing risks related to data protection and information security has also been integrated into the
company's existing general risk management process.
Actions related to patient data protection and information security
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 is responsible for statutory reporting directly to
Group management. Terveystalo has data protection teams that discuss and monitor issues related to data protection and develop related
functions and activities. The Data Protection Officer reports on data protection to the supervisor on a weekly basis and to Terveystalo’s
Data Protection Team on a quarterly basis. Under the General Data Protection Regulation, the data protection requirements in Sweden are
the same as in Finland, but the local legislation governing healthcare and social services in Sweden differs from Finland in certain respects.
For this reason, in Sweden, Feelgood has its own data protection policy, which sets out the principles, obligations, responsibilities,
organisation, operating practices and monitoring practices that Feelgood observes in the implementation and development of data
protection. Feelgood has appointed its own Data Protection Officer to monitor compliance with data protection legislation at Feelgood.
Information security is an integral part of securing and developing Terveystalo’s operations as a whole. 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 use working practices that ensure information security. The unit director is responsible for ensuring
that each employee and private practitioner working at the unit is capable of 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 Chief Information Security Officer appointed by the Chief Financial Officer is in charge of day-to-day information
security management. The duties of the Chief Information Security Officer include the promotion of projects related to information
security, the development of guidelines, advice and training, the specification of technical information security requirements, 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 Chief Information Security Officer reports to the Executive Team
member responsible for information security and digital services.
Data protection is closely linked to information security, and the realisation of data protection is contingent on information security
measures. At Terveystalo, patient data is stored in information security certified patient information systems. Terveystalo’s patient
information systems in Finland are category A systems in accordance with the regulations issued by the Finnish Institute for Health and
Welfare, and they have undergone information security certification in accordance with the regulations related to the provision of Kanta
services. Terveystalo currently has category A1 certified products without a Kanta interface. In addition, Terveystalo uses category A3
certified patient information systems from external suppliers that are connected to the Kanta system. Terveystalo’s data protection and
information security is regularly audited in accordance with the ISO 9001:2015 certified quality management system, both internally and by
an external party. In Sweden, Feelgood uses a patient information system that is a national medical information system registered by the
Swedish Medical Products Agency. Feelgood's data protection and information security is regularly audited in accordance with the ISO
27001:2013 certified information security management system, both internally and by an external party.
Terveystalo ensures the realisation of the legal rights 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 the aforementioned
rights. A legally compliant data protection notice and other documentation required by legislation or the authorities are prepared on the
processing of personal data. As a rule, data subjects are informed of the processing of personal data in connection with the collection of
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personal data. Data subjects can read the data protection notice 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.
Terveystalo applies the appropriate physical, technical and administrative protection measures to protect data from misuse. These
measures include, for example, 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 and training 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 agreements and other arrangements, such as written instructions, to ensure that they process data in
compliance with the law and good data protection practices.
The Chief Information Security Officer is authorised and obligated to conduct assessments and audits related to information security. The
Chief Information Security Officer is responsible for taking action to eliminate any identified information security threats and deviations,
and reporting them to the authorities if necessary. Corrective actions are assessed on a risk basis and they include both technical and
administrative measures. These measures include, for example, updating information security practices, increasing the organisation’s
information security awareness, strengthening technological solutions and continuous risk management. Everyone working at Terveystalo
has an obligation to report any observed information security deficiencies and problems to the information security organisation.
Terveystalo provides its personnel with training and instructions on the processing of personal data and emphasises the particular
confidentiality and protection of patient data. An updated mandatory data protection course intended for everyone at Terveystalo was
introduced in autumn 2023. In connection with this, the course content was revised and moved to a new online platform to improve the
user experience. In 2024, a new online course was introduced for professionals whose work involves the disclosure of patient data. The
purpose of the course is to provide training to Terveystalo professionals who disclose patient data on the rules and instructions concerning
the disclosure of patient data. In addition to launching the new online course, Terveystalo organised four support workshops related to the
disclosure of patient data during the year.
S4-5 Targets related to promoting material positive impacts on end-users
Terveystalo has defined three key targets that promote Terveystalo’s positive impacts on end-users, namely access to care, the quality of
care, the effectiveness of care and the customer experience. Two of the targets – the NPS for appointments and the referral rate for brief
mental health psychotherapy – are targets that are also incorporated into the sustainability -linked financing framework published in 2023.
Customers or their representatives have not been engaged in the process of setting the targets described below. The targets have been set
by the Executive Team as part of the annual strategy process and approved by the company’s Board of Directors. The indicators used are
indirect indicators that include several material sustainability matters. Indirect indicators are used to ensure the broadest possible
coverage. The actual figures that reflect the achievement of the targets have only been verified by the primary provider of third-party
assurance. Terveystalo has not set a target related to the management of data protection and information security risks for publication in
the sustainability statement.
Effective treatment for mental health problems
Mental health problems are among the three most common diagnosis categories at Terveystalo, and they are a significant cause of human
suffering and related sickness absences and early retirement in Finland. The implementation of correct and effective treatment for mental
health problems is one of the focus areas of Terveystalo’s medical strategy. Patients receiving brief psychotherapy treatment have been
found to recover faster than those given only sickness absence and/or medication. Those who receive brief psychotherapy treatment also
have fewer sick days. Terveystalo’s aim is to increase the use of brief psychotherapy in occupational healthcare in the treatment of people
diagnosed with depression or anxiety disorders. When more and more people receive care at an early stage, resources are freed up for
long-term rehabilitative psychotherapy 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 proportion of people diagnosed with depression or anxiety disorders who receive a referral to brief
psychotherapy in occupational healthcare to 25 percent by 2026. This is an ambitious target, as the number of people suffering from
depression or anxiety increases every year. Reaching the target will require the continued development of processes and the training and
recruitment of professionals, among other measures.
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Terveystalo’s Fokus Mieli special unit monitors progress towards the target and supports its achievement by means of training and
communications. Terveystalo’s Fokus Mieli special unit provides specialist services in the fields of psychology, neuropsychology, psychiatry,
psychotherapy, substance abuse medicine and sex therapy. The unit assesses, supports and manages mental health by providing services to
occupational health, organisations, communities and private customers regardless of age, also via remote channels.
In 2023, Terveystalo deployed a reporting tool that the physicians in charge of each Terveystalo unit can use to examine the progress
towards the target in their area of responsibility and compare the results with those of similar units.
In 2024, the proportion of occupational health patients referred to brief psychotherapy was 14.8 (10.8) percent of all occupational health
patients diagnosed with anxiety or depression. The result for 2024 was in line with the target.
Excellent customer experience
Terveystalo strives to stand out by offering fluent and effective healthcare services that convey a feeling of caring to the customer. NPS (Net
Promoter Score) is Terveystalo’s most important indicator of the quality of the customer experience. Terveystalo develops its services by
listening to its customers, streamlining processes from both the customer’s and the professional’s perspective, and by utilising new
technology. The Net Promoter Score (NPS) measures the individual customer’s experience of the service they receive. NPS is closely linked
to customer loyalty: a satisfied customer is less likely to switch to a competitor and is more committed to the company they use and the
services it offers. NPS expresses the willingness to recommend, i.e. how likely the customers are to recommend Terveystalo’s services to
others. NPS is a sensitive indicator – it reacts quickly to patient satisfaction or dissatisfaction. The customer experience can be influenced,
for example, by the availability of appointments, the perceived quality of care, interaction with a professional or other personnel, or the
feeling of being heard.
Terveystalo’s NPS target is 83 for appointments and 95 for hospitals. In 2024, the NPS for appointments was 87.7 (84.8) and the NPS for
hospitals was 96.2 (94.5), which
were
Effective care at every appointment
Terveystalo aims to provide its patients with the most effective care. The company measures the appointment-specific effectiveness of care
with the Patient Enablement Instrument (PEI). PEI measures the customer’s perception of coping with their illness or condition after an
appointment, i.e. 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 (on a scale of 1–4). PEI is commonly used in Finnish primary healthcare. Terveystalo’s target for the PEI
index is at least 71 percent. In 2024, the PEI index was 69 (66) percent. In other words, approximately 69 percent of Terveystalo’s customers
felt that they are able to cope better or much better with their illness after the appointment.
Target
Metric (KPI)
Scope
Target
level
Target year
Base year
2024
2023
2022
Increase the share
of occupational
healthcare
patients diagnosed
with anxiety or
depression and
who are referred
to brief
psychotherapy to
25% by 2026
The share of
occupational
healthcare patients
diagnosed with
anxiety or
depression and who
are referred to brief
psychotherapy
Occupational
health
customers in
Finland
25%
2026
2022
14.8%
10.8%
8.5%
Maintain a
customer
satisfaction score
of 83 at a
minimum
NPS (Net Promoter
Score) for
appointments
Terveystalo’s
customer
appointments in
Finland
At least 83
Continuous
2022
87.7
84.8
82.7
For hospitals,
maintain a
customer
satisfaction score
NPS (Net Promoter
Score) for hospitals
Customers who
visited
Terveystalo’s
hospitals in
At least 95
Continuous
2022
96.2
94.5
95.3
95
of 95 at a
minimum
Finland
PEI index of 71
percent at a
minimum
PEI index (Patient
Enablement
Instrument)
Customers who
have had an
appointment
with a physician
in healthcare
services
At least
71%
2026
2024
69%
66%
-
Other indicators of the quality of care
In addition to the aforementioned targets and key performance indicators, Terveystalo monitors its clinical, experience-based and process
results extensively. Terveystalo publishes its continuously updated quality indicators on its website. The achievement of the quality targets
is monitored by Terveystalo’s Quality Steering Group on a quarterly basis. The actual figures for the indicators have been verified only by
the company’s assurance service provider.
Availability of care as measured by T3 (the third available appointment), clinics
Terveystalo aims to continuously improve access to care, for example by developing digital services and making the work of healthcare
professionals more streamlined. The availability of care is measured by the T3 indicator, which is the number of days until the third
available non-urgent appointment at the clinics of the Healthcare Services business area. In 2024 the T3 indicator for appointments with a
physician was 1.2 (1.7). 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 digital appointments is measured in seconds on average.
Basis of preparation of the indicators
The share of occupational healthcare patients diagnosed with anxiety or depression and who are referred to brief
psychotherapy
The indicator is calculated by dividing the number of occupational healthcare patients with a diagnosis of depression or anxiety and who are
referred to brief psychotherapy by the total number of occupational healthcare patients with a diagnosis of depression or anxiety.
Occupational healthcare patients are in Finland, Sweden is not included in the figure.
There was an error in the 2023 figure given for the referral rate for brief mental health psychotherapy (12.6 percent) in the 2023
sustainability report. The figure was restated in the 2023 status report on the sustainability-linked bond. In 2023, the proportion of
occupational healthcare patients referred to brief psychotherapy of all occupational healthcare patients diagnosed with anxiety or
depression was 10.8 percent, not 12.6 percent. Sustainability reporting on the year 2023 was voluntary and not aligned with the ESRS
standards.
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NPS (Net Promoter Score)
The NPS for appointments 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).
The NPS for appointments includes customers who have had an in-person appointment with Healthcare Services in Finland.
The NPS is measured by means of a survey sent by text message in cooperation with Confidently. The text messages are sent to customers,
based on random sampling, four hours after the appointment (or the next day if the appointment is in the evening). The condition is that
the same customer must not have been sent the survey within the previous 30 days. The NPS survey for hospital services is sent after each
visit if the customer has not received the survey within the previous 30 days.
The NPS for hospitals includes customers who have visited the hospitals of Healthcare Services. The Group's services in Sweden are not
included in these NPS measurements. The reported NPS figures are based on actual results from the 90 days preceding the end of the
reporting period.
PEI index (Patient Enablement Instrument)
The PEI index is used to measure the customer's perceived ability to cope with their symptom or illness after an in-person appointment. The
scale is 1–4. The customer is asked to assess whether they are able to cope with their symptom or illness much better (4), better (3), same
as before (2), or much worse (1) after the appointment. The PEI index is calculated by taking the percentage of patients who felt they are
able to cope with their health condition better or much better and comparing it to the total number of respondents. The PEI index includes
customers who have had an appointment with a physician in Terveystalo's Healthcare Services segment. The customers of the Portfolio
Businesses segment are not included in the PEI measurement. The Group's services in Sweden are also excluded from PEI measurements.
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G1 – Business conduct
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 ensure compliance with Terveystalo’s values, internal guidelines and the applicable
legislation. They support a company culture that takes ethical perspectives into account and combines a high work ethic, professionalism,
solution-oriented cooperation and the pursuit of measurable impact in everything the company does. Responsible business is also
financially profitable and sustainable.
The material impacts, risks and opportunities related to business conduct have been identified in the company’s double materiality
assessment (described on pages 48–50). The sustainability matters identified as material in the double materiality assessment in relation to
business conduct are:
●
corporate culture (positive impact and risk),
●
responsible supply chain (positive impact and risk),
●
prevention of corruption and bribery (positive impact and risk),
●
respect for human rights (negative impact and risk) and
●
responsible tax payment (positive impact)
.
The identified material impacts, risks and opportunities related to business conduct are presented on pages 46–47 of the sustainability
statement.
G1–1 Business conduct policies and corporate culture
Business conduct policies
Code of Conduct
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. Ethics, responsibility and compliance are essential in Terveystalo’s operations, also due to the sector 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 Terveystalo's corporate culture and provides a framework that helps ensure compliance with Terveystalo’s
values, internal guidelines and the 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 widely accepted ethical standards, such as the UN Global Compact (UNGC) principles. Terveystalo also
continuously develops its compliance program and the related 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 compliance with legislation and ethical business principles, anti-bribery and anti-corruption, avoidance of conflicts of interest, fair
competition and the prevention of money laundering, environmental compliance, ensuring privacy and patient safety, employee equality,
non-discrimination and the freedom of association, compliance with insider regulations, responsible communications and the reporting of
misconduct, among other things. The Code of Conduct is connected to the following material sustainability matters related to business
conduct as defined by Terveystalo: corporate culture, responsible supply chain, prevention of corruption and bribery, and respect for
human rights.
Everyone at Terveystalo is required to observe the Code of Conduct, regardless of their business unit or role. The same Code of Conduct is
also observed at Feelgood in Sweden.
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Terveystalo’s Board of Directors approves the Code of Conduct. Management and supervisors are responsible for the communication and
implementation of the Code of Conduct, and monitoring compliance with the Code of Conduct. Terveystalo’s Legal and Compliance
department supports the organisation with issues related to the Code of Conduct and provides training to the personnel on the Code of
Conduct. Terveystalo’s Code of Conduct is published and available to everyone on the company’s external website.
Supplier Code of Conduct
Terveystalo Group also expects its suppliers to observe high standards of sustainability 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 4,400 suppliers. Of these, the 180 largest suppliers account for about 80 percent of total purchasing expenditure. The largest
procurement categories are ICT purchases, the rental of premises and subcontracted services, such as laboratory services.
Terveystalo Group’s Supplier Code of Conduct sets out the minimum requirements that all suppliers and 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 health
and safety, environmental protection, human rights, labour rights, ethics and integrity in business, responsible tax payment and systems for
managing the sustainability of operations. Sustainable operating practices are developed in cooperation with Terveystalo’s contractual
partners. The Supplier Code of Conduct is connected to all material sustainability matters related to business conduct as defined by
Terveystalo:
responsible tax payment
.
Terveystalo’s Supplier Code of Conduct was last updated in late 2023 and is available on Terveystalo’s external website. Terveystalo Plc’s
Board of Directors approves the Supplier Code of Conduct. Other policies and documents that support Terveystalo’s sustainable
procurement and supplier cooperation include Terveystalo’s procurement policy, the related procurement guidelines, the supplier
management handbook, and audit plans.
Processing instructions for the reporting channel
The principles and practices according to which all parties operating within Terveystalo’s organisation or as Terveystalo Group’s partners
can report suspected crimes, violations, misconduct or other deviations confidentially are set out in the processing instructions for
Terveystalo’s reporting channel, which are available to everyone in Finnish on Terveystalo's external website. The processing instructions
for the reporting channel include the principles and practices related to 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, among other things. The processing instructions do not supersede the rules
or obligations arising from national legislation or EU law.
The processing instructions for the reporting channel apply to Terveystalo’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 (supervisor, management), unless otherwise stated in the processing
instructions.
The processing instructions and the related processes were updated 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. Terveystalo’s Legal and Compliance department is responsible for maintaining and updating the processing
instructions. Also, the violations of the processing instructions must be reported to Terveystalo’s Legal and Compliance department.
In Sweden, Feelgood Svenska AB and its subsidiaries have their own reporting channel for internal use and processing instructions for the
channel. Feelgood's processing instructions include the principles and practices related to whistleblower protection, internal reporting
channels and the submission of reports, the investigation of received reports, the persons processing reports, processing time limits and the
processing of personal data, among other things.
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The processing instructions for the reporting channel are connected to all material sustainability matters related to business conduct as
defined by Terveystalo:
corporate culture, responsible supply chain, prevention of corruption and bribery, respect for human rights and
responsible tax payment.
Competition law guidelines
Terveystalo’s Code of Conduct includes a commitment to fair, honest and legally compliant competition. 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 include instructions on compliance with competition rules in relation to competitors,
suppliers, independent private practitioners and customers, as well as instructions pertaining to memberships in industry associations,
among other things. The competition law guidelines are connected to following material sustainability matters related to business conduct
as defined by Terveystalo: corporate culture, responsible supply chain, prevention of corruption and bribery, and responsible tax payment.
The 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 and Compliance department
is responsible for maintaining and updating the competition law guidelines.
Internal control and risk management policy
Terveystalo’s internal control and risk management policy sets out the purpose, objectives and responsibilities of internal control and risk
management, and describes the risk classification and risk management structures and the risk assessment process. The internal control
and risk management policy is connected to all material sustainability matters related to business conduct as defined by Terveystalo:
corporate culture, responsible supply chain, prevention of corruption and bribery, respect for human rights and responsible tax
payment
.
The purpose of internal control is to ensure that Terveystalo’s operations are efficient and effective, the information used by the senior
management in decision-making is reliable, policies are observed, and Terveystalo operates in compliance with laws and regulations.
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 Plc’s Board of Directors, the Audit Committee, Group management, operational
management and employees, and 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
fulfillment of the customer promise, patient safety and occupational safety, high-quality services, financial performance, business
continuity, a good public image for the company, and corporate social responsibility. Risk management also involves conscious risk-taking to
seize opportunities. The objectives of risk management include ensuring Terveystalo’s clinical quality and patient safety, the fulfillment of
customer promises, business continuity and the achievement of strategic and operational targets, as well as ensuring personnel
competence and occupational safety, information security and data protection. Terveystalo Plc’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.
The internal control and risk management policy is approved by Terveystalo Plc's Board of Directors. Terveystalo’s internal control, risk
management and internal auditing are described in more detail in Terveystalo’s Corporate Governance Statement.
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Policies related to respect for human rights
Terveystalo is committed to respecting the fundamental rights and freedoms of all individuals in accordance with international human
rights standards. Terveystalo’s first human rights policy, approved in January 2025, emphasises the company’s commitment and approach
to respecting human rights. Terveystalo’s mission to “fight for a healthier life” is the foundation of the human rights policy. The human
rights policy is connected to following material sustainability matters related to business conduct as defined by Terveystalo : corporate
culture, responsible supply chain, and respect for human rights.
In accordance with Terveystalo’s human rights policy, the company is committed to respecting human rights in accordance with the UN
Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Terveystalo is also committed to
the international human rights framework (Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights
and the International Covenant on Economic, Social and Cultural Rights) and the ILO Declaration on Fundamental Principles and Rights at
Work (freedom of association, the right to collective bargaining, the elimination of all forms of forced or compulsory labour, the abolition of
child labour, the elimination of discrimination in respect of employment and occupation, a safe and healthy working environment). Should
any activities have the potential to affect vulnerable groups, Terveystalo also takes into account other international norms and principles,
such as the Convention on the Rights of the Child.
The human rights policy describes the company’s most significant human rights risks and impacts, the processes for managing, mitigating
and eliminating the most significant risks, and whistleblowing mechanisms. The human rights impact assessment carried out in late 2024
constitutes the basis for the policy, and will be taken into account as part of the update of the double materiality assessment in 2025. The
process for managing, mitigating and eliminating the most significant risks will be further developed in 2025, particularly with regard to the
supply chain. Terveystalo’s human rights policy is approved by Terveystalo's Board of Directors. Terveystalo’s Executive Team is responsible
for ensuring that the principles set out in the policy are taken into account in the Group’s strategy and day-to-day operations.
Policies related to the payment of taxes
Terveystalo’s tax position is guided by Terveystalo's tax policy, which covers the group-level guideline, and is a publicly available document.
Terveystalo's tax policy is revised regularly. The responsibility for keeping the tax policy adequate and updated lies with Terveystalo's tax
team within the finance unit. Changes to Terveystalo's tax policy are approved by Terveystalo's CEO. The tax policy is based on Terveystalo's
strategy and values, according to which the company aims to be the leader and policy maker in its industry. Further, Terveystalo’s intention
is to positively impact society. Matters related to taxation always have business reasons at Terveystalo – taxation does not drive the
conduct of business abroad.
In accordance with Terveystalo’s policies related to the payment of taxes, the company pays, collects, remits and reports its indirect and
direct taxes in full at the right time and place, i.e. where the economic activity, value-added and work generating the profit actually take
place. This means that Terveystalo, as a Group, pays the majority of its taxes to Finland, which is where most of its operations take place. In
addition, taxes were paid in 2024 to Sweden for the Feelgood business and to Estonia for the operations of Terveystalo Estonia Oü.
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, sustainability, 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 corporate income tax, transfer tax and real estate tax, and the company’s indirect taxes include
value added tax, for example. Terveystalo’s income taxes are reported on a cash basis, which is why the amount of corporate income tax
varies between financial periods. The amount of corporate income tax depends on the taxable profit of the separate companies, and the
taxable profit is affected by the Group companies’ business operations and changes during the financial period. 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.
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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 companies. 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 period 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 amount of net remitted VAT depends on the extent of business operations subject to VAT, which
varies from one financial period to the next. Period-specific fluctuations in volume are reflected in period-specific differences in the amount
of net remitted VAT.
Terveystalo's corporate culture
Terveystalo’s mission is to fight for a healthier life by focusing on the meaningful matters. Terveystalo aims to always offer fluent, caring
and effective integrated care to its customers. The cornerstones of Terveystalo’s strategy are:
●
Understanding customers and their needs.
●
Preventing and managing health risks.
●
Referring people to the right service and treatment.
●
Caring for the patient throughout the care pathway.
●
Cooperating in multidisciplinary teams.
●
Measuring and improving the effectiveness of care.
With the integrated care model, Terveystalo aims to achieve both a positive social impact and high profitability. Terveystalo’s values
constitute the foundation for all of Terveystalo’s operations:
●
Human being at the centre: We take responsibility for the health and well-being 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 decisions are steered by the
effectiveness of care and the well-being of our customers.
●
Reforming healthcare: We foster continuous development. We challenge ourselves to build more functional healthcare for
everyone and reform the industry with open-minded use of technology.
A value-based and ethical corporate culture is a prerequisite for Terveystalo’s operations and existence. It supports Terveystalo’s
attractiveness as a workplace for highly competent professionals and increases the commitment of the personnel and the sense of
meaningfulness experienced by the members of the work community. An ethical corporate culture also supports Terveystalo’s
attractiveness as a reliable service provider for customers and as a partner for other stakeholders. The objectives of Terveystalo’s corporate
culture are a high work ethic, professionalism, solution-oriented cooperation and measurable impact in everything the company does.
Highly competent and committed personnel are the most important resource in Terveystalo's operations, and Terveystalo’s attractiveness
as an employer and the well-being at work and job satisfaction of Terveystalo’s employees and practitioners constitute the foundation of
everything the company does. Terveystalo’s goal is to be the best and most attractive employer in its industry for all professionals.
Terveystalo invests in the competence and well-being of its personnel and the corporate culture. Equality, fairness and non-discrimination
are its key policies.
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 they are, who they are with, or what the circumstances are. A workplace culture
that does not compromise on doing what is right creates a foundation for long-term success. Responsible business is also financially
profitable and sustainable. An ethical corporate culture supports Terveystalo’s attractiveness as a reliable service provider for customers
and as a partner for other stakeholders. Making sustainable choices and doing what is right strengthens customers’ trust in Terveystalo,
builds long-term cooperation and creates value for Terveystalo’s shareholders. At the same time, it ensures that Terveystalo remains 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.
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The responsibilities of Terveystalo Plc's Board of Directors 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 CEO is responsible for the day-to-day
management of the company and for executing the company’s 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 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 important matters. At Terveystalo, the management approach is evaluated on the basis
of audit observations, feedback, identified development areas and the achievement of Terveystalo’s targets. The management approach is
adjusted as necessary.
In addition to the company’s mission, values and strategy, Terveystalo’s operations are guided by Terveystalo’s Code of Conduct and
Supplier Code of Conduct. Terveystalo’s management and supervisors are responsible for the communication and implementation of the
Code of Conduct, and monitoring compliance with the Code of Conduct. Terveystalo has online training on the Code of Conduct for all
Terveystalo personnel. Its aim is to improve awareness of key themes related to compliance and to promote the continued development of
an ethical and compliance-driven culture. Terveystalo Group also expects its suppliers to observe high standards of sustainability with
regard to ethical, social and environmental perspectives, as well as occupational health and safety.
Terveystalo is a signatory to the UN Global Compact (UNGC) initiative. Terveystalo is committed to the UN Guiding Principles on Business
and Human Rights, the conventions of the International Labour Organization (ILO) and the Ten Principles of the UN Global Compact.
Terveystalo is continuing to integrate the Global Compact principles concerning the environment, human rights, labour and anti-corruption
into Terveystalo’s operations, culture and value chain.
Terveystalo’s strategy and business model are described in more detail in the section Strategy, business model and value chain (SBM-1) on
pages 37–38.
Mechanisms for identifying, reporting and investigating concerns
One important aspect of Terveystalo’s culture of doing the right thing is that everyone who acts on behalf of or with Terveystalo Group, and
every customer, partner and supplier, can freely report any suspicions of misconduct and trust that Terveystalo will take appropriate
measures to investigate the matter. Terveystalo Group 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. The training is described in more detail below in the section on targets
related to business conduct on pages 106–107 and in the section on actions related to business conduct on page 109.
Terveystalo Group's Code of Conduct emphasises that actual or suspected violations of the Code of Conduct must be reported to the
supervisor, the supervisor’s supervisor or Terveystalo’s Legal and Compliance department. 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. Anyone can submit an incident report via Terveystalo’s website if they observe that patient
safety or data protection has been compromised. In HR-related matters, the primary contact channel is Terveystalo’s HR unit.
Suspected misconduct can also be reported via Terveystalo’s reporting channel, 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
https://www.report.whistleb.com/en/terveystalo
one possible avenue for reporting suspected misconduct or violations. In Sweden, Feelgood Svenska AB and its subsidiaries have their own
reporting channel, which is intended for internal use within Feelgood. Terveystalo and Feelgood use technical reporting channel platforms
developed by external service providers, but process and investigate the received reports themselves as described below. All reports and
suspicions of misconduct are investigated without delay, independently and impartially regardless of the channel used to report the
suspected misconduct, or whether the suspicion of misconduct arises in connection with normal operating activities.
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The reporting channel can be used to submit reports concerning actual or suspected misconduct related to the following topics, for
example: 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 security of network and information systems, taxation, product safety and compliance, as well as actual or
suspected violations of the applicable industry-specific regulations, including the Radiation Act and the Medicines Act.
The identity of whistleblowers and the subjects of whistleblower reports, as well as other matters related to the reports, are kept
confidential in accordance with the law, and whistleblowers are protected in compliance with the national legislation enacted in Finland
and Sweden to implement the European Union’s Whistleblower Protection Directive (Directive (EU) 2019/1937). If a suspected violation
proves to be unwarranted, there are no negative consequences to the reporter provided that the reporter has acted in good faith. No
retaliation of any kind is allowed. This includes 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 received via Terveystalo's reporting channel are processed only by persons designated to process reports in the HR or Legal and
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 pages of each language version
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, Human Resources and the HR Director process reports concerning HR matters, the Chief Administrative Physician and Chief
Medical Officer of the Healthcare Services process reports concerning medical matters, and the Data Protection Officer processes reports
concerning data protection. Reports concerning other matters are processed by Terveystalo’s Legal and Compliance department. 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 a particular employment relationship, the supervisor of the reporter’s supervisor is also engaged in the investigation
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. The persons handling reports are trained on current themes related to
whistleblower protection as necessary. Reports received through Feelgood’s internal reporting channel are processed by Feelgood’s Legal
Department and/or Quality Manager. If necessary, other specialists can also be appointed internally to the investigation team, and the
assistance of external advisors can be requested as necessary.
Any identified incidents of material misconduct are reported to Terveystalo’s senior management and the Audit Committee of the Board of
Directors, which monitors the procedures for handling complaints and concerns raised anonymously or otherwise regarding financial
reporting, internal control or auditing, potential violations of the rules governing the financial markets, other breaches of legislation or the
company’s Code of Conduct, or other violations. In Sweden, any identified incidents of misconduct are reported to Feelgood’s CEO, who is
also a member of the Terveystalo Group's Executive Team. If the CEO is disqualified, the misconduct is reported to the Board of Directors of
Feelgood Svenska AB or Terveystalo’s General Counsel. The potential findings arising from reported incidents and completed investigations
are taken into consideration in the development of Terveystalo Group’s processes.
G1-2 Management of relationships with suppliers
The success of Terveystalo’s business and maintaining its competitiveness require efficient and sustainable supplier cooperation.
Terveystalo has a Supplier Relationship Management (SRM) model in place for supplier management.
The goals of the SRM model are as follows:
1. Ensuring the availability of supply and services: responsible cooperation ensures business continuity even in disruptions.
2. Improving the predictability of prices and cost control: close cooperation helps to manage the total costs of procurement.
3. Ensuring sustainability: suppliers commit to Terveystalo’s sustainability requirements, which cover financial, tax-related, social and
environmental impacts.
4. Maintaining and improving quality: cooperation ensures high and consistent quality and a good customer experience while ensuring
sustainability.
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5. Taking advantage of innovation: close supplier cooperation provides information on products, services and operating models and
produces new sustainable innovations.
The implementation of the SRM model at Terveystalo is the responsibility of a specialist designated for each supplier relationship. They
maintain adherence to the SRM model in supplier cooperation. The specialist is responsible for the designated procurement area and
coordinates supplier cooperation with the supplier in question for all of Terveystalo’s functions. The SRM model covers supplier relationship
life-cycle management. The procurement function is responsible for analysing supplier volume and the classification of suppliers and, if
necessary, participates in supplier cooperation or supports specialists in the implementation of the SRM model.
Supplier relationship management provides better visibility into the supply chain, improving delivery reliability, quality management and
risk management, and increasing visibility into total costs and the flexibility of the supply chain.
Management of the procurement process
Terveystalo’s procurement principles are focused on supporting strategic business objectives, sustainability, cost efficiency and quality
assurance. Procurement is systematic and requirements driven.
In accordance with the procurement process, Terveystalo’s sourcing is subject to competitive tendering, and decisions are made on the
basis of tenders and negotiations. Terveystalo ensures that the sourcing process is transparent, appropriate and cost-efficient. Depending
on the business significance, and its scope and contract value, the relevant stakeholders are engaged in the procurement process. Changes
in markets, service quality, the legal framework and price are taken into account in Terveystalo's procurement activities. The selection
criteria include professional competence, reliability, financial stability, sustainability, resources, life-cycle costs, quality and competitive
pricing. As a rule, Terveystalo’s general terms of agreement apply to all procurements and agreements, subject to case-by-case assessment.
Purchase invoice process
Terveystalo ensures that purchase invoices are paid in a timely manner. The majority, approximately 95 percent, of purchase invoices are
received as e-invoices or by e-mail, which makes the invoice management process more efficient and ensures that invoices are received.
The use of artificial intelligence in invoice processing means that most invoices are automatically circulated without any delays. Invoices
requiring manual processing are forwarded to the relevant party on the day they are received. The system sends daily reminders to end-
users about incomplete tasks, and separate reminders are sent to inspectors and approvers regarding overdue invoices. Terveystalo’s
internal processes and division of responsibilities support the smooth circulation of invoices and the transition to the payment stage. During
holidays, invoice inspectors and approvers are reminded of the importance of out-of-office settings. Approval authorisations can be
transferred to a substitute in accordance with the approval matrix, which ensures that invoices are processed on schedule even during
absences. For procurement agreements, the payment terms stipulated by the agreement are observed. The invoicing address information
recommends a payment term of at least 30 days, but the aim is to circulate and pay invoices faster than that, especially with respect to
smaller companies and suppliers.
Penalty interest and related costs of late payment are monitored as performance indicators of the accounts payable team, and the
processes are continuously developed using based on related analyses. The responsible and smooth processing of purchase invoices
supports not only Terveystalo’s operations but also the financial stability of its partners.
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G1–3 Prevention and detection of corruption and 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 (UNGC) initiative and its anti-corruption principles. Terveystalo’s operations are
also guided by the Code of Conduct, which lays down the main principles for the prevention of corruption and bribery including, for
example, giving and accepting gifts and hospitality, the avoidance of conflicts of interest, and fair competition. Terveystal o has an anti-
corruption and anti-bribery compliance programme that includes policies, process instructions and other supplementary instructions on the
subject. The guidelines cover, among other things, gifts and hospitality, disqualification, fair competition and a sustainable supply chain and
value chain.
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, understanding and avoiding conflicts of interest, and fair competition. All of
Terveystalo’s contract suppliers and suppliers participating in tendering processes are required to accept Terveystalo’s Supplier Code of
Conduct, which includes guidelines and requirements concerning the prevention of corruption and bribery, conflicts of interest, and fair
competition, amongst other things. The Code of Conduct, Supplier Code of Conduct and other key policies and guidelines related to the
prevention of corruption and bribery are described above in the section on policies related to business conduct, on pages 97–100.
Terveystalo’s Code of Conduct emphasises that Terveystalo does not give or accept gifts or other benefits that could affect business
decisions or have considerable personal or financial value. Any gifts given and hospitality offered must support a clear business objective, be
of reasonable value and be appropriate with regard to the nature of the business relationship. In accordance with the Code of Conduct, all
decisions and transactions made at Terveystalo must be in Terveystalo’s best interest and not based on anyone’s personal interests. Friends
and relatives must be treated like any other partners, and personal relationships with partners must not influence decision-making.
Everyone at Terveystalo must recognise and avoid conflicts of interest and refrain from making decisions that involve, or may involve, a
conflict of interest. Any circumstances that may be considered a conflict of interest must be reported to the supervisor immediately, and
the matter must be resolved in accordance with Terveystalo's interests.
In addition to customers, personnel, private practitioners, shareholders and suppliers, Terveystalo’s key stakeholders include the public
authorities and societal decision-makers that influence the legislation governing Terveystalo’s industry and the drafting of such legislation.
The development and renewal of healthcare is a shared goal for Terveystalo, the authorities and decision-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 participation in various working groups and events, among other things.
Terveystalo also has representatives in several organisations. The most significant of these are the Confederation of Finnish Industries, the
Finland 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 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.
According to the Code of Conduct, Terveystalo does not support political activities. Terveystalo does not sponsor political parties or
organisations, directly or indirectly, nor does Terveystalo fund the election campaigns of individual candidates.
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.
Terveystalo has mandatory online training on the Code of Conduct and compliance 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, the prevention of bribery, and
fair competition. The content concerning the prevention of corruption and bribery was compiled into a separate course section in the
revised online course on compliance in 2023. Among Terveystalo’s internal functions, public services, B2B sales and procurement are the
most susceptible to corruption and bribery. The aforementioned online training on the Code of Conduct, which also includes content on the
106
prevention of corruption and bribery, is mandatory for all Terveystalo employees and therefore also for all employees working in the
functions identified as having an elevated risk.
The Code of Conduct, Supplier Code of Conduct and the competition law guidelines are discussed in more detail above in the section on
policies related to business conduct, on pages 97–100. Mechanisms for identifying, reporting and investigating concerns and suspected
misconduct are discussed in more detail above on pages 102–103 and supplier audits below in section on actions concerning sustainable
supply chain on page 108. The training of personnel on compliance with the Code of Conduct and other requirements is discussed in more
detail below in the section on targets related to business conduct on pages 106–107 and in the section on actions related to business
conduct on page 109.
Targets
Terveystalo has selected two key targets for managing its impacts related to ethical business conduct. The selected targets promote the
realisation of ethical and sustainable business at Terveystalo and in its value and supply chains. Both targets are connected to following
material sustainability matters related to business conduct as defined by Terveystalo : corporate culture, responsible supply chain,
prevention of corruption and bribery, and respect for human rights. Terveystalo has not set a measurable target related to responsible tax
payment. Terveystalo reports its tax footprint annually (see pages 109–111) and monitors the efficiency of its policies and actions related to
tax payment.
Target
Metric (KPI)
Scope
Target level
Target year
Base
year
2024
2023
All employees have
completed training
on the Code of
Conduct and correct
action
Percentage of
employees in
permanent, full-
time employment
relationships who
have completed
the training
relative to
all employees in
permanent, full-
time employment
relationships
1)
Terveystalo’s
Finnish operations
100%
Continuous
2023
91%
1)
72%
1)
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 Conduct
2)
Terveystalo's
Finnish operations
100%
Continuous
2023
97%
81%
1)
The new compliance course was introduced and moved to a new online platform in spring 2023. Going forward, the course must be completed once every two years, and the course
completion period 5/2023
–12/
2025 was under way during the period 5/2023
–12/2024.
(i.e. completions that took place after the course was revised and were accomplished by 31 December 2023). The reported figure for 2024, on the other hand, includes completions for the
period 5/2023
–12/
2024 (i.e. completions that took place after the course was revised and were accomplished by 31 December 2024). The reported figures do not include Medimar
Scandinavia Ab or the companies acquired in Finland during 2024 (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy, Kajaanin Radiologieskus Oy, and Cityläkarna Mariehamn Ab), whose
personnel are not in Terveystalo's centralized personnel system and do not have access to Terveystalo's learning platform.
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2)
Terveystalo measures the share of suppliers who have approved the Supplier Code of Conduct among Terveystalo’s key suppliers representing approximately 80% 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.
Training the personnel on compliance with the Code of Conduct and correct action
Terveystalo is committed to promoting ethical business practices and provides training to its personnel on compliance with the Code of
Conduct and correct action. Terveystalo has online training aimed at everyone in the organisation 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 ethical and sustainable business is important and how it is
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, and reporting misconduct, and to further develop Terveystalo’s culture of compliance.
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 environments of administrative personnel and those
engaged in clinical work, and the training was made more interactive. The course was moved to a new online platform to improve the user
experience. The development of the online compliance course continued throughout 2024.
Everyone at Terveystalo is required to observe the Code of Conduct, regardless of their business unit or position, which is why the target is
for all Terveystalo employees to have completed the training on the Code of Conduct and correct action. Going forward, the course will
need to be taken once every two years. During the completion review period 5/2023–12/2024, 91 percent of Terveystalo's employees in
permanent, full-time employment relationships completed the training. The figures include Terveystalo’s operations in Finland. A revised
online course on compliance will be deployed in Sweden in 2025.
In 2024, measures were taken to improve the reach of the online compliance course. Communication concerning the course was increased
and clarified, the course completion and monitoring process was clarified, the monitoring of course completions was made more efficient,
and the other language versions of the course were updated to correspond to the Finnish-language course revised in 2023. The measures
taken during 2024 were reflected in a clear increase in completion activity during the year. Completion activity is monitored regularly. The
development of the online course completion and monitoring process will continue in 2025, in addition to which the content of the course
will be reviewed to ensure that it responds to changes in the operating environment.
Suppliers that have approved the Supplier Code of Conduct
Terveystalo also strives to ensure ethical and sustainable business conduct in its value and supply chains. Contractual suppliers and
suppliers participating in tendering processes are required to approve Terveystalo’s Supplier Code of Conduct, which includes guidelines
and requirements pertaining to supply chain management, product safety and compliance, and business ethics, including the prevention of
corruption and bribery, competition law, conflicts of interest and data protection, as well as human rights, fundamental 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 2024, 97 (81)
percent of key suppliers, representing approximately 80 percent of Terveystalo’s total procurement for operations in Finland, had approved
the Supplier Code of Conduct. The figures include Terveystalo’s operations in Finland.
108
Actions
Sustainable supply chain
To ensure compliance with the Supplier Code of Conduct and other contractual terms, Terveystalo conducts supplier self-assessments and
regular audits. Supplier audits are carried out on a targeted basis. A total of four supplier audits were conducted in 2024. The audited
entities are suppliers that are critical to Terveystalo. They are selected based on their business significance or risk factors related to the
supplier.
Supplier audits are carried out by Terveystalo's own personnel. The audit participants include the procurement function, the designated
specialist responsible for the supplier relationship, and other specialists involved in supplier cooperation. The audit comprises a preliminary
information form completed by the supplier, a supplier interview, a site visit and feedback sessions. The objective of supplier audits is to
develop supplier cooperation and ensure that the audited supplier’s operations satisfy the contractual requirements pertaining to the
content of the service, sustainability, 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, a corrective action plan is required to rectify
the deviations and ensure compliance with the contractual requirements. Four supplier audits were conducted in 2024. The audited entities
included a supplier of healthcare supplies, a supplier of pharmaceutical products, a supplier of healthcare equipment, and a service provider
used for textile care.
Prevention of corruption and bribery
Policy and process development concerning the prevention of corruption and bribery continued throughout 2024. The content concerning
the prevention of corruption and bribery was compiled into a separate course section in the revised online compliance course in 2023. The
aim was to identify situations that may involve a risk of corruption or bribery, and to train the personnel to act ethically and in accordance
with the requirements in the situations in question. Sections concerning the responsible supply chain and value chain have also been
integrated into the revised course content, complete with detailed examples. Course content on conflicts of interest and gifts and
hospitality has also previously been integrated into the revised online compliance course. The development of the online compliance course
continued throughout 2024. Terveystalo also continuously develops its compliance program and the related processes and controls to
ensure that they correspond to the changes in the operating environment.
One important aspect of Terveystalo’s culture of doing the right thing is that everyone who acts on behalf of or with Terveystalo Group, and
every customer, partner and supplier, 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 encourages all of its
employees and private practitioners to report any potential misconduct without delay. Observed or suspected misconduct related to the
Code of Conduct, can be reported anonymously at
. One of the focus areas of the Compliance
function has been to increase awareness of the reporting channel to make the threshold for reporting as low as possible. Terveystalo
estimates that this effort has been successful. 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 arises in connection with normal
operating activities. Potential incidents related to corruption or bribery are reported to Terveystalo’s senior 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 mechanisms for identifying, reporting and investigating concerns on pages 102–103 and in the processing instructions for
Terveystalo’s reporting channel, which are publicly available in Finnish on Terveystalo's external website.
Respect for 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 Organization (ILO) and related international conventions. The company is committed to the UN Global Compact
109
(UNGC) initiative and its principles pertaining to human rights and labour rights. Terveystalo’s service providers, suppliers and other
partners 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.
In late 2024, Terveystalo carried out a human rights impact assessment concerning the entire value chain. Terveystalo’s human rights
policy, which was formed on the basis of the impact assessment, entered into effect in January 2025. The identified potential adverse
impacts will be taken into account in the update of the double materiality assessment in 2025 and the development of due diligence
processes during 2025.
Improving the reach of the online course on compliance and the Code of Conduct that was revised in 2023
The revised version of the online course package on compliance and Terveystalo’s Code of Conduct 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 environments of administrative personnel and those engaged in clinical work, and the training was made more
interactive. One of the focus areas of the update was also to identify grey area situations in which a given course of action is not illegal but
nevertheless ethically problematic in some cases. The course was also moved to a new online platform to improve the user experience.
In 2024, measures were taken to improve the reach of the revised online course. Communications about the course were increased and
clarified, the course completion and monitoring process was clarified, course completion monitoring was enhanced and the other language
versions of the course package were updated to correspond to the Finnish-language content revised in 2023. The measures taken during
2024 were reflected in a clear increase in completion activity during the year. Completion activity is monitored regularly. During the year,
the deployment of the revised online course also began in the Group's Swedish operations. The aim is for the revised online course on
compliance to be rolled out in Sweden during 2025.
The goal of the course package 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 and the reporting of misconduct, and to further
develop Terveystalo’s culture of compliance. The course and the related actions are connected to following material sustainability matters
related to business conduct as defined by Terveystalo:
bribery, and respect for human rights.
Terveystalo pays its taxes according to the value-added chain
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 health 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 companies 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 2024, Terveystalo’s tax footprint totalled EUR 218.7 (212.1) million. The tax footprint is an indicator of the total tax revenue generated
for society by Terveystalo’s business activities. In addition, Terveystalo paid a total of EUR 399.4 (380.1) 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.
110
Terveystalo’s tax footprint
EUR million
2024
2023
Performance-based statutory payments related to personnel
72.9
79.7
TyEL employee insurance premiums (employer’s share)
53.2
55.1
Unemployment insurance contributions (employer’s share)
3.2
6.3
Accident insurance premiums and group life insurance
premiums + other social security costs
0.7
0.8
Employer’s health insurance contributions
14.5
16.3
Social security costs outside Finland
1.2
1.1
Taxes withheld from pay
1)
90.2
91.5
Taxes paid
55.7
40.9
Non-deducted VAT
2)
35.1
31.2
VAT remitted
6.2
0.4
Real estate tax
0.5
0.5
Income tax (cash-based)
12.4
6.6
Asset transfer tax
0.1
0.0
Taxes on dividend payments
1.3
2.1
Total tax footprint
218.7
212.1
Terveystalo’s tax footprint by country
EUR million
2024
2023
Finland
196.3
188.8
Sweden and Estonia
22.4
23.3
1) In addition, a total of EUR 399.4 (380.1) million in fees was paid to private practitioners who are responsible for paying taxes at their own initiative.
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.
Basis of preparation of the indicators
To ensure comparability, the basis of preparation of the tax footprint indicators have remained the same from one financial period to the
next. The tax footprint is an indicator of the total tax revenue generated for society by the company's business activities.
Statutory payments related to personnel are calculated on a performance basis, and they include the employer’s share of TyEL employee
insurance premiums and unemployment insurance contributions, accident insurance premiums and group life insurance premiums, the
employer’s health insurance contributions and social security costs outside Finland. Social security costs illustrate the social impact of the
company's employer obligations.
Taxes withheld from salaries are related to payments made to Terveystalo employees. The purpose of this calculation principle is to
describe the positive societal impact made through Terveystalo’s employees. This is supplemented by the fees paid to private practitioners,
for which each private practitioner pays their own taxes.
Taxes paid consist of the total of taxes and tax-like payments that are relevant to Terveystalo Group. Non-deducted VAT consists of the total
amount of value added taxes per financial period which Terveystalo Group cannot deduct in its value-added taxation due to the VAT-
exempt nature of the business. Starting from the financial period 2022, Terveystalo has added its net remitted VAT to its tax footprint
calculation principles. This consists of the VAT remitted to the Finnish Tax Administration for Terveystalo’s services subject to VAT. The
amount of net remitted VAT depends on the extent of business operations subject to VAT, which varies from one financial period to the
next. Period-specific fluctuations in volume are reflected in period-specific differences in the amount of net remitted VAT.
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The basis of preparation of the tax footprint also includes describing Terveystalo’s direct taxes as part of the Group's social impact.
Terveystalo Group’s direct taxes include corporate income tax, asset transfer tax and real estate tax. Terveystalo’s income taxes are
calculated on a cash basis, which is why the amount of corporate income tax varies between financial periods. The amount of corporate
income tax depends on the taxable profit of the separate companies, and the taxable profit is affected by the Group companies’ business
operations and changes during the financial period. 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. Real estate tax is
paid on properties owned by the company, such as buildings and structures, and the amount of real estate tax depends on the value and
purpose of the property. The Group’s asset transfer taxes consist of transactions subject to asset transfer tax during the financial period.
The basis of preparation of the tax footprint also includes the collection of taxes on dividends paid, which is reported on a cash basis and
disaggregated by financial period. The country-specific disaggregation of Terveystalo’s tax footprint illustrates the aforementioned taxes
and tax-like payments from a geographical perspective. The disaggregation is based on a geographical division between Finland and other
countries with business operations (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. In terms of the basis of preparation, this means that Terveystalo’s tax footprint reporting for Finland
covers all of the Group's Finnish companies. In addition, for Sweden and Feelgood, the tax footprint includes all of the companies 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.
112
Consolidated financial statements, IFRS
Consolidated statement of comprehensive income
EUR mill.
Note
1.1.-31.12.2024
1.1.-31.12.2023
Revenue
4, 5
Other operating income
6
Materials and services
7
-549.8
-536.2
Employee benefit expenses
8
-427.8
-447.0
Depreciation, amortisation and impairment losses
9
-106.4
-193.8
Other operating expenses
10
-143.7
-128.2
Operating result
-14.7
Financial income
11
Financial expenses
11
-28.6
-25.4
Net finance expenses
-26.5
-24.2
Share of results in associated companies
Result before taxes
-38.9
Income tax expense
12
-18.0
-3.3
Net income
-42.2
Profit attributable to
Owners of the parent company
-42.2
Other comprehensive adjustments
Items that may be reclassified to profit or loss
-2.0
Items that will not be reclassified to profit or loss
28
-0.1
-0.1
Other comprehensive income for the period, net of tax
-2.1
Total comprehensive income
-42.2
Total comprehensive income attributable to:
Owners of the parent company
-42.2
Earnings per share for profit attributable to the shareholders of the parent
company, in euro
Basic earnings per share
13
-0.33
Diluted earnings per share
13
-0.33
The notes are an integral part of the Consolidated financial statements.
113
Consolidated statement of financial position
EUR mill.
Note
31 Dec
2024
31 Dec
2023
ASSETS
Non-current assets
Property, plant and equipment
14
Right-of-use assets
14
Goodwill
15, 16
Intangible assets
15
Investment properties
17
Investments in associates
18
Loan receivables
20
Deferred tax assets
12
Other non-current assets
20
Total non-current assets
Current assets
Inventories
Trade and other receivables
22
Current tax receivables
Cash and cash equivalents
23
Total current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capital
Invested non-restricted equity reserve
Treasury shares
-15.2
-15.7
Translation differences
-7.3
-5.2
Retained earnings
Equity attributable to equity holders of the Company total
TOTAL EQUITY
Non-current liabilities
Non-current financial liabilities
20, 21, 25
Non-current lease liabilities
14, 21, 25
Deferred tax liabilities
12
Provisions
27
Other liabilities
Total non-current liabilities
Current liabilities
Current financial liabilities
20, 21, 25
Current lease liabilities
14, 21, 25
Current tax liabilities
Provisions
27
Trade and other payables
26
Total current liabilities
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
The notes are an integral part of the consolidated financial statements.
114
Consolidated statement of cash flows
EUR mill.
Note
1.1.-31.12.2024
1.1.-31.12.2023
Cash flows from operating activities
Profit before income taxes
-38.9
Adjustments for
Non-cash transactions
9
27
-2.1
-1.5
-6.7
Gains and Losses on sale of property, plant, equipment and other changes
-0.3
-0.2
Net finance expenses
11
Changes in working capital
-8.7
-0.1
-0.5
Interests received
Income taxes paid
-12.4
-6.6
Net cash from operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
-27.3
-24.6
Acquisition of intangible assets
-12.3
-16.4
Proceeds from sale of property, plant and equipment
Acquisition of subsidiaries, net of cash acquired
3
-8.4
-4.0
Proceeds from the disposal of subsidiaries, net of cash disposed of
Acquisition of business operations, net of cash acquired
3
-0.3
-0.3
Sale of business operation, net of cash disposed of
Dividends received
Net cash from investing activities
-47.4
-44.2
Cash flows from financing activities
Acquisition of non-controlling interests
3
-0.1
Proceeds from non-current borrowings
25
Repayment of non-current borrowings
25
-145.1
-210.0
Proceeds from current borrowings
25
Repayment of current borrowings
25
-100.1
-47.1
Payment of lease liabilities
25
-48.4
-50.9
Payment of hire purchase liabilities
25
-3.8
-4.3
Interests and other financial expenses paid
-23.7
-19.9
Interests and other financial income received
Dividends paid
-38.0
-35.4
Net cash from financing activities
-148.8
-116.0
Net change in cash and cash equivalents
-2.4
Cash and cash equivalents at 1 January
Exchange rate differences
-0.1
-0.1
Cash and cash equivalents at 31 December
The notes are an integral part of these Consolidated financial statements.
115
Consolidated statement of changes in equity
EUR mill.
Share
capital
Invested
non-
restricted
equity
reserve
Treasury
shares
Retained
earnings
Translation
differences
Total equity
Equity 1 Jan 2024
-15.7
-5.2
Comprehensive income
Net income
Other comprehensive income
-0.1
-2.0
-2.1
Transactions with owners
-38.0
-38.0
Equity 31 Dec 2024
-15.2
-7.3
EUR mill.
Share
capital
Invested
non-
restricted
equity
reserve
Treasury
shares
Retained
earnings
Translation
differences
Total
Non-
controlling
interests
Total
equity
Equity 1 Jan 2023
-15.8
-5.3
Comprehensive income
Net income
-42.2
-42.2
-42.2
Other comprehensive income
-0.1
Transactions with owners
Share-based payments
Dividends
-35.4
-35.4
-35.4
Transactions with non-controlling
interests
Transactions with non-controlling
interest
-0,0
-0,0
Other
Other corrections*
-0.4
-0.4
-0.4
Equity 31 Dec 2023
-15.7
-5.2
* Correction to figures of previous financial years.
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COMPANY INFORMATION
Name of reporting entity or other means of identification
Country of incorporation
Legal form of entity
Domicile of entity
Address of entity's registered office
Principal place of business
Finland and Sweden
Description of nature of entitys operations and principal activities
Name of parent entity
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 [email protected].
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 March 2025, 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 2024.
company legislation complementing the IFRSs.
The consolidated financial statements are presented in millions of euro and have been prepared under the historical
cost basis, unless otherwise stated in the accounting principles. All figures presented have been rounded, and
consequently the sum of individual figures may deviate from the presented aggregate figure.
2.2 Application of new and amended IFRSs and new IFRIC agenda decisions
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New and amended standards applied in the financial year 2024
The Group has applied as from 1 January 2024 the following new and amended standards that have come into
effect:
●
Lease Liability in a Sale and Leaseback:
The amendments introduce a new
accounting model for variable payments and will require seller-lessees to reassess and potentially restate
sale-and-leaseback transactions entered into since the implementation of IFRS 16 in 2019.
●
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
:
The amendments are to promote consistency in application and clarify the requirements for determining if a
liability is current or non-current. The amendments specify that covenants to be complied with after the
reporting date do not affect the classification of debt as current or non-current at the reporting date. The
amendments require to disclose information about these covenants in the notes to the financial statements.
The amendments also clarify transfer of a company’s own equity instruments is regarded as settlement of a
liability.
●
Supplier Finance Arrangements
: The amendments enhance the
transparency of supplier finance arrangements and their effects on a company’s liabilities, cash flows and
exposure to liquidity risk. Amendments require to disclose quantitative and qualitative information about
supplier finance programs.
The above-mentioned amendments have no impact on Terveystalo’s consolidated financial statements.
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:
●
IFRS 18 Presentation and Disclosure in Financial Statements*
(effective for financial years beginning on or
after 1 January 2027, early application is permitted)
IFRS 18 will replace
IAS 1
Presentation of Financial Statements
. The key new requirements are as follows:
●
operating, investing and financing—and two new subtotals—“Operating profit or loss” and “Profit or loss
before financing and income tax”.
●
are subtotals of income and expenses used in public communications to communicate management’s view
of the company’s financial performance.
●
addition, specific requirements to disaggregate certain expenses in the notes will be required for companies
that present operating expenses by function in the income statement.
Terveystalo has started a preliminary assessment of the impacts on its consolidated financial statements. The most
significant impact identified is that Terveystalo will classify income and expenses into new categories in income
statement. In addition, management-defined performance measures will be disclosed in the notes.
New and amended standards and interpretations applicable in future financial years that are not expected to have
significant impact on Terveystalo’s consolidated financial statements:
●
Classification and Measurement of Financial Instruments
* (effective
for financial years beginning on or after 1 January 2026, early application is permitted)
●
Annual Improvements to IFRS Accounting Standards—Volume 11*
on or after 1 January 2026, early application is permitted)
118
●
Sale or Contribution of Assets between an Investor and its Associate
or Joint Venture
* (available for optional adoption, effective date deferred indefinitely)
New and amended standards and interpretations applicable in future financial years that are not expected to have
impact on Terveystalo’s consolidated financial statements:
●
Lack of Exchangeability
January 2025, early application is permitted)
●
IFRS 19 Subsidiaries without Public Accountability: Disclosures*
(effective for financial years beginning on
or after 1 January 2027, early application is permitted)
* not yet endorsed for use by the European Union as of 31 December 2024.
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
assumptions about future events related, among other things, to the expected development of the Group's
economic environment in terms of sales and cost level. However, it is possible that the realised outcomes differ
from the estimates and 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 recogni sed in the period when the estimate or assumption is revised, and in the
future periods if the change affects the subsequent periods.
The most important issues requiring management’s judgement are presented below:
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 management’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.
The critical accounting estimates are presented below:
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.
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
119
flows. Management has used available market information when possible in determining the fair values. If no
market information of the asset has been available, the measurement of the intangible asset is based on the
historical yield of the asset and the planned use in operations. The valuations are based on discounted cash flows
and estimated disposal or replacement prices, and the valuation requires management to make estimates of the
future use of the asset and impact on the company’s financial position.
Management believes that the used estimates and assumptions are reasonable for measurement of fair values. In
addition, the Group’s property, plant and equipment and intangible assets are assessed to determine whether there
is any indication of impairment at least at each reporting date.
The valuation of contingent considerations
Management makes discretionary decisions and estimates when determining the valuation of deferred contingent
considerations in business combinations. Judgement is applied especially when estimating the expected amount of
payments and 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.
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
120
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 recognised in equity.
When the Group ceases to have control or significant influence, any retained interest in the entity is measured at
fair value through profit or loss.
Associates
Associates are entities over which the Group has significant influence. Significant influence generally arises when
the Group holds over 20 percent of the voting rights, or otherwise has significant influence, but no control over the
entity.
Associates are consolidated using the equity method. They are initially recognised at cost, which includes
transaction 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 recogni sed 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:
-
-
121
-
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
10 years
Buildings
10–40 years
Machinery and equipment
2–7 years
Improvements to office premises
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.
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.
122
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.
Amortisation periods used for intangible assets are as follows:
Immaterial rights
3–7 years
Software
3–5 years
Customer agreements and related customer relationships
3–12 years
Trademarks
20 years or shorter useful life
Other intangible assets
3–5 years
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
indications 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.
123
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.
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 commencement date.
A lease term is determined as the non-cancellable period of a lease. The lease term includes periods covered by an
option to extend or terminate the lease, if the Group is reasonably certain to exercise the extension option or not to
exercise the termination option. Perpetual lease contracts related to significant premises are accounted for as long-
term lease contracts, as, according to management judgment, the termination options for such contracts will not be
used. The lease term for such contracts is determined based on the Group’s strategy and network plan.
The Group does not recognise short-term leases (a lease that has a lease term of 12 months or less) and leases for
which the underlying asset is of low value. The lease payments associated with such leases are expensed on a
straight-line basis.
Initially a right-of-use asset is measured at cost, which comprises the amount of the initial measurement of the lease
liability, any lease payments made at or before the commencement date, less any lease incentives, any initial direct
costs incurred by the Group, and an estimate of restoration costs to be incurred by the Group. If a lease contains
several lease components, they are accounted for separately.
Subsequently right-of-use assets are measured at cost less any accumulated depreciation and any accumulated
impairment losses, and adjusted for any remeasurements of the lease liability. A right-of-use asset is depreciated
from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the
lease term. If the Group is reasonably certain to exercise the purchase option, the right-of-use asset is depreciated
over its useful life. The estimated useful lives of right-of-use assets are 1-13 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
commencement 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.
124
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 unreali sed 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.
The Group has not had financial assets at fair value through other comprehensive income during the periods 2023
or 2024.
The financial asset is derecognised when the contractual rights to the cash flows expire, or the financial asset is
transferred 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.
Financial liabilities at amorti sed 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
2023 or 2024.
125
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.
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.
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
profitability, are not considered in measuring the fair value of the benefit but are taken into account when estimating
the final amount of benefits. The estimate is updated at each reporting date and changes in estimates are recorded
through the statement of income
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.
126
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.
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. Terveystalo offers services to three 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.
The Group’s customer contracts include primarily one performance obligation, which is typically a single
appointment, and the transaction prices are mainly fixed. The Group also has customer contracts that include
multiple performance obligations. In some cases, the transaction price includes a variable consideration such as a
discount or penalty. Possible variable considerations are assessed at each reporting date and are allocated to one
or more 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 group also has long-term customer contracts where the delivery of a series of distinct
services to the customer has the same pattern of transfer. In long-term customer contracts, the customer
simultaneously receives and consumes the benefits from the service and, consequently, the criteria for recognising
revenue over time is met. For long-term contracts, Terveystalo measures the progress towards complete
satisfaction of the performance obligation by applying the input method, in which the revenue is recognised based
on time elapsed. The Group views that the used method best describes the transfer of control for the services
provided. Estimated costs and revenues will be re-assessed regularly during performing the services. Revisions in
profit estimates as well as projected potential losses on contracts are charged through the statement of income in
the period in which they become known. The Group has not incurred any substantial costs for obtaining customer
contracts.
Regarding private practitioners, Terveystalo acts as the principal and recognises revenue on a gross basis. Fees
related to purchasing these services are recognised in materials and services expenses.
2.16 Segment information
The reporting structure reflects Terveystalo's operating model and is aligned with the way the company’s chief
operating decision maker follows the operational performance of Terveystalo's businesses. The reporting structure
was changed in the financial year 2023 due to the change in Terveystalo's operating model. 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.
127
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 segment include publicly funded services,
such as outsourcing and staffing services, as well as services aimed at consumers, including dental care and
massage.
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.
2.18 Operating profit
IAS 1 standard does not define operating profit. The Group has defined it as follows: Operating profit is calculated
by adding other operating income to revenue, deducting costs related to materials and services, deducting costs
related to employee benefits, depreciation, amortisation and impairments as well as other operating expenses.
2.19
Earnings per share
Basic earnings per share is calculated by dividing profit or loss attributable to the shareholders of the parent
company by the weighted average number of shares outstanding during the financial period. The Group’s share-
based incentive plan has a dilution effect related to the earnings per share.
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
recognition 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.
128
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.
129
3. Business combinations
Business combinations 2024
During the year 2024, the Group has made three corporate acquisition and one business acquisition.
On 31 March 2024 Terveystalo Healthcare Oy acquired 100 percent of the imaging services provider SRK Group
Oy and an indirect 100 percent ownership in its subsidiaries Suomen Radiologikeskus Oy, iRad Oy and Kajaanin
Radiologikeskus Oy.
On 1 July 2024 Feelgood Företagshälsovård AB acquired 100 percent of the Swedish occupational health provider
Clarahälsan AB.
On 6 September 2024 Suomen Terveystalo Oy acquired 100 percent of the general and specialist medical services,
psychology services and physiotherapy services provider Cityläkarna Mariehamn Ab.
On 30 November 2024 Rela-hierojat Oy acquired massage business operations previously operated as franchising
business.
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 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
8.1
Contingent consideration
0.8
Total consideration transferred
8.9
Identifiable assets acquired and liabilities assumed
EUR mill.
Cash and cash equivalents
0.8
Intangible assets
0.2
Property, plant and equipment
0.5
Right-of-use assets
1.2
Trade and other receivables
1.5
Financial liabilities
-0.1
Lease liabilities
-1.2
Trade and other payables
-2.2
Total identifiable net assets acquired
0.6
Goodwill
8.3
As a result of these business combinations, a preliminary goodwill amounting to EUR 8.3 million was recognised.
The goodwill is attributable to skills of the workforce and synergies expected to be achieved. EUR 0.0 million of the
recognised goodwill is deductible in taxation. Cashflow impact of the acquisitions made during 2023 was EUR -7.1
million.
130
The fair value of the acquired trade and other receivables amounted to EUR 1.5 million, for which the risk of
impairment has been deemed as non-significant.
The Group has incurred acquisition-related expenses of EUR 0.3 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 2024 was EUR 6.8 million and profit was
EUR 0.1 million.
If the acquisition had occurred on 1 January 2024, management estimates that the Group’s consolidated revenue in
2024 would have been EUR 1,345.0 million and the consolidated result for the period would have been EUR 72.0
million.
131
Business combinations 2023
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 healthcare business of Quality Care AB.
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
0.6
Contingent consideration
0.5
Total consideration transferred
1.0
Identifiable assets acquired and liabilities assumed
EUR mill.
Cash and cash equivalents
0.2
Intangible assets
0.1
Property, plant and equipment
0.0
Right-of-use assets
0.3
Trade and other receivables
0.1
Lease liabilities
-0.3
Trade and other payables
-0.3
Deferred tax liabilities
0.0
Total identifiable net assets acquired
0.0
Goodwill
1.0
As a result of these business combinations, a 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 was deductible in taxation. Cashflow impact of the acquisitions made during 2023 was EUR -0.3 million. In
2024, cashflow impact arising from business combinations made in previous financial years was EUR -1.6 million
due to additional purchase prices paid.
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.
The fair value of the acquired trade and other receivables amounted to EUR 0.1 million, for which the risk of
impairment has been deemed as non-significant.
132
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.
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.
Segment information
1.1.-31.12.2024
Healthcare
services
Portfolio
Businesse
s
Sweden
Segments
total
Other
Internal
eliminatio
ns
Total
EUR mill.
Revenue
Revenues from external customers
1,026.8
231.6
81.6
1,340.0
-
-
1,340.0
Revenues from transactions with other operating segments
of the same entity
16.0
6.9
0.2
23.1
-
-23.1
-
Total revenue
1,042.8
238.5
81.8
1,363.1
-
-23.1
1,340.0
Adjusted EBITA
162.0
10.3
-2.0
170.3
0.7
-
171.0
Adjustments
7.6
0.3
6.3
14.2
9.2
-
23.5
Depreciations
6.8
1.1
7.0
14.8
60.1
-
74.9
1.1.-31.12.2023
Healthcare
services
Portfolio
Businesse
s
Sweden
Segments
total
Other
Internal
eliminatio
ns
Total
EUR mill.
Revenue
Revenues from external customers
933.5
260.7
92.3
1,286.4
-
-
1,286.4
Revenues from transactions with other operating segments
of the same entity
15.1
6.5
0.2
21.8
-
-21.8
-
Total revenue
948.6
267.2
92.5
1,308.2
-
-21.8
1,286.4
Adjusted EBITA
109.0
8.7
3.7
121.4
4.2
-
125.6
Adjustments
1.9
0.4
1.6
3.9
17.3
-
21.2
Depreciations
5.9
1.0
6.9
13.8
60.9
-
74.6
133
Adjustments (EBITA)*, EUR mill.
2024
2023
Acquisition-related expenses 1)
-0.7
-0.8
Restructuring-related expenses 2)
1.9
3.2
Gains and losses on sale of assets, net 3)
0.6
-
Strategic projects and other items affecting to comparability
21.6
18.8
Adjustments
23.5
21.2
* 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), and other items affecting comparability. Adjustments in Other section are mainly related to the
profit improvement program. Healthcare services segment adjustments in the financial year 2024 includes a one-off item of EUR 5.6 million related to
renovation and maintenance liabilities in a single location over a period of more than ten years.
1) Including transaction costs and expenses from integration of acquired businesses.
2) Including restructuring of network and business operations.
3) Including sales of business operations.
Reconciliation of the total of the reportable segment's adjusted EBITA to the Group's profit before
taxes
31 Dec
2024
31 Dec
2023
EUR mill.
Profit before taxes
89.6
-38.9
Net finance expenses
26.5
24.2
Amortisation and impairment losses
31.5
119.1
Adjustments
23.5
21.2
Other
-0.7
-4.2
Adjusted EBITA
170.3
121.4
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.
31 Dec
2024
31 Dec
2023
Finland
1,112.6
1,144.7
Sweden
69.5
75.3
Total
1,182.1
1,220.0
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.
134
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
personalised digital services give Terveystalo a competitive edge over public health care services and encourage
customers to invest in their own health. Services for private customers are paid for either by the customers
themselves or by their insurance companies.
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.
1.1.-31.12.2024
1.1.-31.12.2023
Healthcare services
1,042.8
948.6
Portfolio Businesses
238.5
267.2
Sweden
81.8
92.5
Segments total
1,363.1
1,308.2
Other
-23.1
-21.8
Other
1,340.0
1,286.4
Healthcare services, revenue
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
By customer
Corporate
638.9
564.0
Consumer
313.4
296.1
Public sector
90.5
88.5
Total
1,042.8
948.6
By service
Appointments
686.1
618.3
Diagnostics
254.2
229.6
Other
102.5
100.7
Total
1,042.8
948.6
Portfolio Businesses, revenue
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Outsourcing services
82.8
91.1
Staffing services
73.1
84.7
Dental care
50.3
54.5
Other
32.4
36.9
Total
238.5
267.2
Timing of satisfying performance obligations
135
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
At a point in time
1,255.3
1,192.9
Over time
84.7
93.5
Total
1,340.0
1,286.4
Balances in the statement of financial position
EUR mill.
31 Dec 2024
31 Dec 2023
Contract assets
7.9
10.2
Contract liabilities
7.0
8.8
The Group will satisfy performance obligations related to the contract liabilities within one year.
6. Other operating income
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Rental income
0.9
0.9
Gains on sale of property, plant and equipment
0.3
0.2
Other items
2.5
3.1
Total
3.7
4.2
7. Materials and services
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Purchases of materials
-41.4
-40.8
Change in inventories
0.1
0.5
External services
-508.5
-495.9
Total
-549.8
-536.2
8. Employee benefit expenses
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Wages and salaries
-349.5
-363.0
Share-based payments
-1.6
-1.4
Pension expenses — defined contribution plans
-56.9
-58.7
Other social security costs
-19.8
-23.9
Total
-427.8
-447.0
Number of personnel at the end of the reporting period*
9,153
9,824
* Does not include the companies acquired during 2024 in Finland (SRK Group Oy, Suomen Radiologikeskus Oy, iRad Oy and Kajaanin
Radiologikeskus Oy and Cityläkarna Mariehamn Ab).
9. Depreciation, amortisation and impairment
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Depreciation and amortisation by asset type
136
Intangible assets
-4.7
-4.7
-2.2
-9.4
-20.4
-18.2
Total
-27.2
-32.2
Property, plant and equipment
-0.1
-0,0
-16.4
-14.9
-7.3
-6.4
Total
-23.7
-21.3
Right-of-use assets
-51.2
-53.4
Investment property
-0,0
-0,0
Depreciation and amortisation total
-102.1
-107.0
Impairment losses by asset groups
-
-57.3
-
-29.3
-2.5
-0,0
-0,0
-
-0.2
-
-0.1
-
-0,0
-0,0
-0.3
-0,0
-1.1
-
-
-0.2
-0.1
-
Impairment total
-4.2
-86.9
Total depreciation, amortisation and impairment losses
-106.4
-193.8
10. Other operating expenses
Specification of other operating
expenses
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
External services
-18.6
-22.7
Operating and maintenance expenses for premises and equipment
-26.9
-25.1
ICT expenses
-43.8
-40.4
Non-statutory personnel expenses
-8.4
-7.4
Leases and charges
-6.0
-4.9
Travel expenses
-7.1
-6.9
Marketing and communication
-11.1
-8.7
Acquisition-related expenses
-0.3
-0.1
Other costs
-21.6
-12.0
Total
-143.7
-128.2
Auditor's fees
137
In thousands of euro
1.1.-31.12.2024
1.1.-31.12.2023
Audit and auditor's statements based on laws and regulations
-436.5
-481.1
-123.6
-11.0
Total
-560.1
-492.1
Non audit services
-9.8
-4.3
-30.1
-
Total
-39.9
-4.3
Auditor's fees total
-600.0
-496.4
Auditor's fees have been presented excluding value-added tax. Non-audit services paid for the parent company’s auditor, KPMG Oy Ab,
were 40 (4) thousand euros in total.
*Including limited assurance of sustainability statement.
11. Financial income and expenses
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Interest income on loans and other receivables
2.1
1.2
Dividend income
0.0
0.0
Total financial income
2.1
1.2
Interest expense on loans from financial institutions
-13.9
-14.3
Interest expense on bonds
-5.3
-3.2
Interest expenses on lease liabilities
-6.5
-5.2
Change in fair value of interest rate derivatives, no hedge accounting
-1.6
-1.9
Other financial expenses
-1.3
-0.9
Total financial expenses
-28.6
-25.4
Net financial expenses
-26.5
-24.2
12. Taxes
Income taxes in the statement of income
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Current tax for the reporting year
-20.7
-10.8
Income taxes for previous periods
-0.1
-0.1
Change in deferred taxes
2.8
7.6
Total income taxes
-18.0
-3.3
Reconciliation of the Group's tax rate to the Finnish tax rate
EUR mill.
1.1.-31.12.2024
1.1.-31.12.2023
Profit or loss before taxes
89.6
-38.9
Tax using the parent company's tax rate
-17.9
7.8
Tax rates in foreign jurisdictions
0.1
-0,0
138
Tax exempt income
0.5
0.6
Non-deductible expenses
-0.5
-11.7
Share of profit in associated companies
-
0.0
Recognition of previously unrecognised tax losses
0.0
0.2
Tax losses for which no deferred taxes are recognised
-0,0
-0.2
Taxes from previous periods
-0.1
-0.1
Other
0.1
0.1
Total income taxes in the statement of income
-18.0
-3.3
Global minimum top-up tax (Pillar 2)
Terveystalo Group has prepared calculation on 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.
12.2 Deferred tax assets and liabilities
Deferred tax assets 2024
EUR mill.
1 Jan 2024
Business
combinations
Recognised
in the
statement
of income
Translatio
n
difference
s
31 Dec 2024
Provisions
1.2
-
-0.2
-
1.0
Tax losses carried forward
1.5
-
1.1
-
2.6
Leases
1.5
0.0
0.4
0.0
1.9
Interest rate derivatives
0.0
-
0.0
-
0.1
Other temporary differences
1.8
-
-0.2
-
1.6
Total
6.0
0.0
1.2
0.0
7.1
Deferred tax liabilities 2024
EUR mill.
1 Jan 2024
Business
combinations
Recognised
in the
statement
of income
Translatio
n
difference
s
31 Dec 2024
Reversal of goodwill amortisation
3.2
-
0.2
-
3.4
Business combinations
11.9
-
-1.6
-0.1
10.2
Depreciation difference
3.3
-
0.4
-
3.7
Loan withdrawal expense
0.2
-
-0.1
-
0.2
Interest rate derivatives
0.9
-
-0.3
-
0.7
Other temporary differences
0.8
-
-0.1
-
0.7
Total
20.2
-
-1.5
-0.1
18.7
The Group has no material deductible temporary differences, unused tax losses or unused tax credits for
which no deferred tax asset has been recognised.
139
Deferred taxes from lease agreements 2024
EUR mill.
1 Jan 2024
Business
combinations
Additions
Disposals
Recognised
in the
statement of
income
31 Dec
2024
Deferred tax asset
44.8
0.2
10.5
-1.2
-15.8
38.5
Deferred tax liability
-43.3
-0.2
-10.5
1.2
16.2
-36.6
Total
1.5
0.0
0.0
0.0
0.4
1.9
Deferred tax assets 2023
EUR mill.
1 Jan 2023
Business
combinations
Recognise
d in the
statement
of income
Translation
difference
31 Dec 2023
Provisions
1.6
-
-0.4
-
1.2
Tax losses carried forward
1.8
-
-0.3
-
1.5
Leases
1.4
0.0
0.1
0.0
1.5
Interest rate derivatives
0.7
-
-0.7
-
0.0
Other temporary differences
2.1
-
-0.4
-
1.8
Total
7.7
0.0
-1.7
0.0
6.0
Deferred tax liabilities 2023
EUR mill.
1 Jan 2023
Business
combinations
Recognise
d in the
statement
of income
Translation
difference
31 Dec 2023
Reversal of goodwill amortisation
3.0
-
0.2
-
3.2
Business combinations
21.1
0.0
-9.3
-0,0
11.9
Depreciation difference
2.5
-
0.8
-
3.3
Loan withdrawal expense
0.1
-
0.1
-
0.2
Interest rate derivatives
2.0
-
-1.0
-
0.9
Other temporary differences
0.8
-
-0,0
-
0.8
Total
29.5
0.0
-9.2
-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.
Deferred taxes from lease agreements 2023
EUR mill.
1 Jan 2023
Business
combinations
Additions
Disposals
Recognised
in the
statement of
income
31 Dec
2023
Deferred tax asset
36.2
0.1
22.8
-3.5
-10.7
44.8
Deferred tax liability
-34.8
-0.1
-22.8
3.5
10.8
-43.3
Total
1.4
0.0
0.0
-0,0
0.1
1.5
140
13. Earnings per share
1.1-31.12.2024
1.1-31.12.2023
Result attributable to the equity holders of the company, EUR mill.
71.7
-42.2
Weighted average number of outstanding shares, in thousands
126,597
126,555
Diluted average number of outstanding shares, in thousands
126,727
127,037
Basic earnings per share for result attributable to the equity holders of the company, EUR
0.57
-0.33
Diluted earnings per share for result attributable to the equity holders of the company,
EUR
0.57
-0.33
141
14. Tangible assets
14.1 Property, plant and
equipment
2024
Land and
water,
buildings and
constructions
Machinery
and
equipment
Improvement to
premises
Other tangible
assets and
advances paid
Total
EUR mill.
Acquisition cost 1 Jan 2024
2.3
179.7
76.6
1.1
259.7
Business combination
-
0.5
0.0
-
0.5
Additions
-
16.6
1.0
10.1
27.6
Disposals
-
-0.3
-
-
-0.3
Translation differences
-0,0
-0.1
-0,0
-0,0
-0.1
Transfers between items
-
0.4
3.1
-3.5
-
Acquisition cost 31 Dec 2024
2.3
196.6
80.8
7.7
287.4
Accumulated depreciation and impairment
losses 1 Jan 2024
-1.2
-132.1
-42.2
-
-175.5
Depreciation
-0.1
-16.4
-7.3
-
-23.7
Impairment losses
-0.2
-0,0
-0.3
-0.1
-0.5
Translation differences
0.0
0.1
0.0
-
0.1
Accumulated depreciation and impairment
losses 31 Dec 2024
-1.5
-148.4
-49.7
-0.1
-199.7
Carrying amount 1 Jan 2024
1.2
47.5
34.5
1.1
84.2
Carrying amount 31 Dec 2024
0.8
48.2
31.1
7.5
87.7
.
2023
Land and
water,
buildings and
constructions
Machinery
and
equipment
Improvement to
premises
Other tangible
assets and
advances paid
Total
EUR mill.
Acquisition cost 1 Jan 2023
2.3
165.1
64.4
4.2
236.0
Business combination
-
0.0
-
-
0.0
Additions
-
13.8
1.7
8.8
24.3
Disposals
-
-0.5
-0.1
-
-0.6
Translation differences
0.0
0.0
0.0
0.0
0.0
Transfers between items
-
1.2
10.6
-11.8
-
Acquisition cost 31 Dec 2023
2.3
179.7
76.6
1.1
259.7
Accumulated depreciation and impairment
losses 1 Jan 2023
-1.2
-117.1
-35.8
-
-154.0
Depreciation
-0,0
-14.9
-6.4
-
-21.3
Impairment losses
-
-0,0
-0,0
-
-0,0
Translation differences
-0,0
-0,0
-0,0
-
-0,0
Accumulated depreciation and impairment
losses 31 Dec 2023
-1.2
-132.1
-42.2
-
-175.5
Carrying amount 1 Jan 2023
1.2
47.9
28.7
4.2
82.0
Carrying amount 31 Dec 2023
1.2
47.5
34.5
1.1
84.2
142
14.2 Right of-use-assets
2024
Premises
Other right-of-
use assets
Total
EUR mill.
Acquisition cost 1 Jan 2024
424.0
40.9
464.9
Business combination
1.2
-
1.2
Additions
28.4
0.2
28.7
Disposals
-6.5
-0.1
-6.5
Translation differences
-0.9
-0,0
-0.9
Acquisition cost 31 Dec 2024
446.3
41.1
487.4
Accumulated depreciation and impairment
losses 1 Jan 2024
-217.9
-34.9
-252.8
Depreciation
-48.8
-2.4
-51.2
Impairment losses
-0.6
-0.4
-1.1
Translation differences
0.4
0.0
0.4
Accumulated depreciation and impairment
losses 31 Dec 2024
-266.9
-37.7
-304.7
Carrying amount 1 Jan 2024
206.1
6.0
212.1
Carrying amount 31 Dec 2024
179.4
3.3
182.7
2023
Premises
Other right-of-
use assets
Total
EUR mill.
Acquisition cost 1 Jan 2023
331.7
41.5
373.1
Business combination
0.3
-
0.3
Additions
108.2
0.6
108.9
Disposals
-16.5
-1.2
-17.7
Translation differences
0.2
0.0
0.3
Acquisition cost 31 Dec 2023
424.0
40.9
464.9
Accumulated depreciation and impairment
losses 1 Jan 2023
-167.5
-31.8
-199.3
Depreciation
-50.2
-3.1
-53.3
Translation differences
-0.2
-0,0
-0.2
Accumulated depreciation and impairment
losses 31 Dec 2023
-217.9
-34.9
252.8
Carrying amount 1 Jan 2023
164.2
9.7
173.9
Carrying amount 31 Dec 2023
206.1
6.0
212.1
14.3 Lease liabilities
2024
Premises
Other lease
liabilities
Total
EUR mill.
Non-current lease liabilities
141.0
3.6
144.5
Current lease liabilities
45.1
2.2
47.3
Total lease liabilities
186.1
5.8
191.8
2023
Premises
Other lease
liabilities
Total
EUR mill.
Non-current lease liabilities
166.8
5.8
172.6
Current lease liabilities
44.0
2.5
46.5
Total lease liabilities
210.8
8.3
219.1
143
15. Intangible assets
2024
Goodwill
Customer
relationships
Trademarks
Other intangible
assets and
advances paid
Total
EUR mill.
Acquisition cost 1 Jan 2024
948.8
167.8
88.7
156.6
1,361.9
Business combination
8.5
-
-
0.1
8.6
Additions
-
-
-
12.2
12.2
Disposals*
-1.1
-0.1
-
-
-1.2
Translation differences
-1.4
-0.2
-0.1
-0.4
-2.1
Acquisition cost 31 Dec 2024
954.7
167.5
88.6
168.6
1,379.5
Accumulated amortisations and impairment losses 1 Jan
2024
-125.3
-156.2
-43.2
-113.9
-438.6
Amortisation
-
-2.2
-4.7
-20.4
-27.2
Impairment losses
-
-
-
-2.5
-2.5
Translation differences
-
0.1
0.0
0.2
0.2
Accumulated amortisations and impairment losses 31
Dec 2024
-125.3
-158.4
-47.8
-136.6
-468.1
Carrying amount 1 Jan 2024
823.5
11.6
45.6
42.8
923.4
Carrying amount 31 Dec 2024
829.4
9.2
40.8
32.1
911.4
* Disposals to goodwill and customer relationships relate to the sale of entire share capital of Sivupersoona Oy, a company providing sign language
interpreting services.
2023
Goodwill
Customer
relationships
Trademarks
Other intangible
assets and
advances paid
Total
EUR mill.
Acquisition cost 1 Jan 2023
947.5
167.8
88.7
140.2
1,344.2
Business combination
1.3
0.1
-
-
1.4
Additions
-
-
-
16.3
16.3
Disposals
-0.2
-
-
-0,0
-0.2
Translation differences
0.1
0.0
0.0
0.1
0.2
Acquisition cost 31 Dec 2023
948.8
167.8
88.7
156.6
1,361.9
Accumulated amortisations and impairment losses 1 Jan
2023
-68.0
-117.5
-38.5
-95.6
-319.6
Amortisation
-
-9.4
-4.7
-18.2
-32.2
Impairment losses*
-57.3
-29.3
-
-0,0
-86.6
Translation differences
-
-0,0
-0,0
-0.1
-0.1
Accumulated amortisations and impairment losses 31
Dec 2023
-125.3
-156.2
-43.2
-113.9
-438.6
Carrying amount 1 Jan 2023
879.5
50.3
50.2
44.6
1,024.7
Carrying amount 31 Dec 2023
823.5
11.6
45.6
42.8
923.4
* 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.
144
Development expenditure
Other intangible assets include development expenditure as follows:
2024
EUR mill.
Acquisition cost 1 Jan 2024
57.8
Business combination
0.1
Additions
3.9
Transfers from advance payments
8.3
Translation differences
-0.1
Acquisition cost 31 Dec 2024
70.0
Accumulated amortisations and impairment losses 1 Jan 2024
-25.2
Amortisation and impairment losses
-18.3
Accumulated amortisations and impairment losses 31 Dec 2024
-43.4
Carrying amount 1 Jan 2024
32.6
Carrying amount 31 Dec 2024
26.5
2023
EUR mill.
Acquisition cost 1 Jan 2023
34.5
Additions
12.4
Transfers from advance payments
10.8
Translation differences
0.1
Acquisition cost 31 Dec 2023
57.8
Accumulated amortisations and impairment losses 1 Jan 2023
-13.0
Amortisation and impairment losses
-12.2
Accumulated amortisations and impairment losses 31 Dec 2023
-25.2
Carrying amount 1 Jan 2023
21.6
Carrying amount 31 Dec 2023
32.6
16. Impairment testing of cash-generating units including goodwill
Goodwill is not amortised but it is tested for impairment at least annually.
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.
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.
In 2024, based on impairment testing calculations performed, there is no impairment needs to goodwill for cash-
generating units. For all cash-generating units, recoverable amounts exceeded their carrying amounts.
In 2023, 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
145
calculations performed, there was 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.
.
31 Dec 2024
31 Dec 2023
31 Dec 2023
EUR mill.
Goodwill
%
Goodwill
%
Impairment
Healthcare Services
607.2
73.2 %
603.6
73.3 %
-
Portfolio Businesses, Public payor
149.4
18.0 %
146.4
17.8 %
55.3
Portfolio Businesses, Private payor
29.1
3.5 %
29.1
3.5 %
-
Sweden
43.7
5.3 %
44.4
5.4 %
-
Total
829.4
100.0 %
823.5
100.0 %
55.3
In financial years 2023 and 2024 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 2025–2028,
including the long-term growth, which have been approved by the management.
The assumptions used in impairment calculations in 2024
Healthcare
Services
Portfolio
Businesses,
Public payor
Portfolio
Businesses,
Private payor
Sweden
The length of impairment testing period
4 years
4 years
4 years
4 years
Terminal period revenue growth rate
2.0 %
2.0 %
2.0 %
2.0 %
Profitability (EBIT %) during the terminal period
13.8 %
7.8 %
9.4 %
5.7 %
Discount rate (Pre-tax WACC)
8.5 %
9.9 %
8.5 %
8.6 %
Discount rate (Post-tax WACC)
7.2 %
8.3 %
7.2 %
7.4 %
The assumptions used in impairment calculations in 2023
Healthcare
Services
Portfolio
Businesses,
Public payor
Portfolio
Businesses,
Private payor
Sweden
The length of impairment testing period
4 years
4 years
4 years
4 years
Terminal period revenue growth rate
2.0 %
2.0 %
2.0 %
2.0 %
Profitability (EBIT %) during the terminal period
13.2 %
5.3 %
6.2 %
5.2 %
Discount rate (Pre-tax WACC)
9.6 %
10.9 %
9.6 %
8.0 %
Discount rate (Post-tax WACC)
8.1 %
9.1 %
8.1 %
6.8 %
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.
146
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.
Variable
2024
2023
Terminal period revenue growth rate
Healthcare Services
Decrease over 24.5 percentage points
Decrease over 17.1 percentage points
Portfolio Businesses, Public payor
Decrease over 2.1 percentage points
Not applicable
Portfolio Businesses, Private payor
Decrease over 21.3 percentage points
Decrease over 10.2 percentage points
Sweden
Decrease over 1.8 percentage points
Decrease over 1.0 percentage points
Profitability (EBIT %) during the terminal period
Healthcare Services
Decrease over 12.3 percentage points
Decrease over 10.6 percentage points
Portfolio Businesses, Public payor
Decrease over 2.1 percentage points
Not applicable
Portfolio Businesses, Private payor
Decrease over 8.0 percentage points
Decrease over 4.2 percentage points
Sweden
Decrease over 1.5 percentage points
Decrease over 0.9 percentage points
Discount rate (Pre-tax WACC)
Healthcare Services
Increase over 18.8 percentage points
Increase over 14.3 percentage points
Portfolio Businesses, Public payor
Increase over 2.2 percentage points
Not applicable
Portfolio Businesses, Private payor
Increase over 15.8 percentage points
Increase over 8.9 percentage points
Sweden
Increase over 1.8 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 2023, Portfolio Businesses, Public payor cash-generating unit value in use was equivalent to
book value of assets at the time of impairment testing and in consequence sensitivity analysis did not apply to this
cash-generating unit.
According to the impairment testing, for Portfolio Businesses, Public payor and Sweden cash-generating units,
changes in critical assumptions presented in table above would lead to carrying amount of assets to be equivalent
to recoverable amount. Portfolio Businesses, Public payor cash-generating unit’s carrying amount of assets at the
time of impairment testing was EUR 141.7 million. Sweden cash-generating unit’s carrying amount of assets at the
time of impairment testing was EUR 55.9 million.
17. Investment properties
Carrying amount of investment properties
147
EUR mill.
1.1-31.12.2024
1.1-31.12.2023
Carrying amount at the beginning of the period
0.3
0.5
Impairment
-
-0.2
Depreciation
-0.0
-0.0
Carrying amount at the end of the period
0.3
0.3
Income and expenses related to investment properties
EUR mill.
1.1-31.12.2024
1.1-31.12.2023
Rental income from investment properties
0.1
0.1
Operating expenses for investment properties
-0.0
-0.0
Total
0.0
0.0
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
m2
Value per m2 (In thousands of euro)
Total value (In thousands
of euro)
Koy Jyväskylän Väinönkatu 30
1,348
0.2
269
The value of Kiinteistö Oy Jyväskylän Väinönkatu has been determined based on the Group’s share of ownership
(16.81%).
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 2024
Domicile
Ownership
Voting rights
Terveyden Tuottajat Oy
Finland
0.0 %
47.4 %
Summarised financial information on associated companies
EUR mill.
2024
2023
Carrying amount
0.0
0.0
Group's share of total comprehensive income
-
0.0
19. Share-based payments
Performance Share Plan 2021
Performance Share Plan 2021 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 opportunities 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
148
share-based payment.
Under the plan, four performance periods, 2021
–
2023, 2022
–
2024, 2023 –2025 and 2024–
2026, have been launched. During the year 2024, Performance Period 2021
–
2023 ended, and, in consequence, the
shares earned were granted according to realization of the plan’s conditional performance measures. In total,
45,077 net shares were granted. The impact of the Performance Period 2021
–
2023 to the result for the period has
been EUR 0.2 million, and the total cost of the plan was EUR 2.5 million. 36 persons were 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 0.4 million, and the expected total cost of the plan is EUR 1.6 million. 43 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 0.5 million, and the expected total cost of the plan is EUR 1.6 million. 48
persons are included in the Performance Period 2023
–
2025 arrangement. The impact of the Performance Period
2024
–
2026 to the result for the period has been EUR 0.5 million , and the expected total cost of the plan is EUR 1.8
million. 68 persons are included in the Performance Period 2024
–
2026 arrangement.
Performance Share Plan 2021
2024-2026
2023-2025
2022-2024
2021-2023
Grant date
2 Apr 2024
3 Apr 2023
1 Apr 2022
1 Apr 2021
Maximum number of share awards
640,000
640,000
683,085
642,000
Outstanding at 1 Jan 2024
-
533,000
455,974
392,556
Granted share awards during the period
611,000
36,666
18,334
-
Forfeited share awards during the period
30,000
80,815
91,481
301,070
Exercised share awards during the period
-
-
-
91,486
Outstanding at 31 Dec 2024
581,000
488,666
384,308
-
Fair value of the share award at grant date
6.2
6.6
9.2
12.6
End of the performance period
28 Feb 2027
28 Feb 2026
28 Feb 2025
29 Feb 2024
End of the vesting period, expected
31 Mar 2027
31 Mar 2026
31 Mar 2025
7 Mar 2024
Vesting conditions
Service
condition,
total
Shareholder
Return (TSR),
EBITA
Service
condition,
total
Shareholder
Return (TSR)
Service
condition,
total
Shareholder
Return (TSR)
Service condition,
total Shareholder
Return (TSR),
productivity and
digital sales
Exercised
In shares and
cash
In shares and
cash
In shares and
cash
In shares and cash
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. Four vesting periods have been launched in the plan. During the year
2024, vesting period 2021
–
2023 ended, and, in consequence, the shares earned were granted according to
realization of the plan’s conditional performance measures. In total, 3,448 net shares were granted. At the end of
the reporting period, thirteen persons were included in the arrangement. The impact to the result of the vesting
periods 2021–2023, 2022–2024, 2023–2025 and 2024–2026 has been EUR 0.1 million, and the expected total cost
of the plan is EUR 0.5 million
.
Restricted Share Plan
2024-2026
2023-2025
2022-2024
2021-2023
Grant date
15 May 2024
3 Apr 2023
22 Jun 2022
15 Apr 2021
Maximum number of share awards
64,000
64,000
68,309
64,200
Outstanding at 1 Jan 2024
-
29,000
9,000
7,000
Granted share awards during the period
23,000
-
-
-
Forfeited share awards during the period
-
8,000
-
-
Exercised share awards during the period
-
-
-
7,000
Outstanding at 31 Dec 2024
23,000
21,000
9,000
-
Fair value of the share award at grant date
7.9
6.6
9.5
11.2
End of the performance period
28 Feb 2027
28 Feb 2026
28 Feb 2025
29 Feb 2024
End of the vesting period, expected
31 Mar 2027
31 Mar 2026
31 Mar 2025
7 Mar 2024
149
Vesting conditions
Service
condition
Service
condition
Service condition
Service condition
Exercised
In shares and
cash
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 2024
Financial assets
and liabilities at
fair value
Financial assets and
liabilities at
amortised cost
Carrying
amount
Fair value
Fair value
hierarchy
Financial assets
Non-current
0.0
-
0.0
0.0
Level 2
0.7
-
0.7
0.7
Level 3
Current
-
117.5
117.5
117.5
-
65.2
65.2
65.2
3.4
-
3.4
3.4
Level 2
Total
4.1
182.6
186.7
186.7
Financial liabilities
Non-current
-
249.2
249.2
249.2
Level 2
-
99.3
99.3
104.3
Level 1
-
0.0
0.0
0.0
Level 2
2.1
-
2.1
2.1
Level 3
Current
-
29.7
29.7
29.7
Level 2
-
0.0
0.0
0.0
Level 2
-
55.6
55.6
55.6
2.1
-
2.1
2.1
Level 3
0.3
-
0.3
0.3
Level 2
Total
4.6
433.8
438.3
443.4
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 1.2 (1.6) million.
150
EUR mill. 31 Dec 2023
Financial assets
and liabilities at
fair value
Financial assets and
liabilities at
amortised cost
Carrying
amount
Fair value
Fair value
hierarchy
Financial assets
Non-current
0.0
-
0.0
0.0
Level 2
0.8
-
0.8
0.8
Level 3
Current
-
127.6
127.6
127.6
-
37.7
37.7
37.7
4.8
-
4.8
4.8
Level 2
Total
5.6
165.3
170.8
170.8
Financial liabilities
Non-current
-
294.0
294.0
294.0
Level 2
-
99.1
99.1
102.7
Level 1
-
1.3
1.3
1.3
Level 2
3.3
-
3.3
3.3
Level 3
Current
-
19.8
19.8
19.8
Level 2
-
2.5
2.5
2.5
Level 2
-
49.5
49.5
49.5
2.6
-
2.6
2.6
Level 3
0.1
-
0.1
0.1
Level 2
Total
6.0
466.2
472.2
475.7
.
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
management 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 2024, the
Group’s average interest rate for loans from financial institutions has been 4.9 (4.0)
percent. If the interests would
have been one percentage point higher it would have caused an increase of EUR 1.6 (2.7) million in interest
expenses during the year 2024.
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:
●
rate and receives variable interest on EUR 30.0, 50.0 and 50.0 million loan capital.
151
●
interest 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 2024, the Group
incurred foreign exchange change of EUR -0.0 (0.0) 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.
21.3 Credit risk
The majority of the Group’s incoming cash flows are payments from established institutions, public sector and
companies 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.
The Group’s cash and cash equivalents comprise cash in bank accounts, cash in hand and cash payments not yet
recorded into the Group’s bank accounts (cash in transit) at the reporting date.
The Group manages liquidity risk by monitoring unused liquidity reserves and forecasting future cash flows.
The Group has an overdraft facility and undrawn credit facilities, of which EUR 93.0 (98.0) million remained unused
at the reporting date.
The Group has EUR 378.1 million of bank loans and bonds. 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
undiscounted and they include both interest payments and repayments of principals. Interest payments which are
based on variable rates have been presented using variable rates as of the end of the reporting date.
Maturity analysis of liquidity risk
31 Dec 2024
EUR mill.
Carrying amount
Contractual cash
flows
1 year
1–2 years
2–5 years
Over 5 years
Loans from financial institutions
278.8
274.9
15.4
18.6
240.9
-
Bonds
99.3
118.8
5.4
5.4
108.0
-
152
Lease liabilities
191.8
214.1
52.4
46.9
70.4
44.4
Hire purchase liabilities
0.0
0.0
0.0
0.0
-
-
Trade payables
55.6
55.6
55.6
-
-
-
Interest rate derivatives
0.3
-
-
-
-
-
Total
625.9
663.5
128.9
70.9
419.4
44.4
31 Dec 2023
EUR mill.
Carrying amount
Contractual cash
flows
1 year
1–2 years
2–5 years
Over 5 years
Loans from financial institutions
313.8
331.6
15.8
137.0
167.6
11.2
Bonds
99.1
124.5
5.4
5.4
113.6
-
Lease liabilities
219.1
226.5
51.5
47.4
83.8
43.9
Hire purchase liabilities
3.8
3.8
2.6
1.2
0.1
-
Trade payables
49.5
49.5
49.5
-
-
-
Interest rate derivatives
0.1
0.4
0.3
0.4
-0.4
-
Total
688.6
728.6
122.5
188.8
362.1
55.1
.
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.
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.
The development of the Group’s capital structure is monitored, amongst other things, with the following: change in
net debt, ratio of net debt to operating margin, and the cash flow forecast.
The Group’s net debt to equity ratio (gearing) was 92.1 (116.0) percent at the reporting date. The ratio is calculated
by dividing interest-bearing net debt with equity. The net debt includes interest-bearing liabilities less
interest-bearing receivables and cash and cash equivalents. The Group’s interest-bearing liabilities were EUR 570.0
(635.8) million at the reporting date. 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.
153
22. Trade and other receivables and contract assets
Carrying amounts of trade and other receivables and contract assets
EUR mill.
2024
2023
Non-current
Loan receivables
0.3
0.0
Total non-current receivables
0.3
0.0
Current
Trade receivables
109.6
117.4
Other receivables
1.9
2.3
Prepaid expenses
12.2
8.4
Derivative assets
3.4
4.8
Contract assets
7.9
10.2
Total
135.0
143.1
Specification of prepaid expenses
EUR mill.
2024
2023
Personnel related prepaid expenses
0.2
0.0
Prepayments
8.0
3.1
Other prepaid expenses
4.1
5.3
Total
12.2
8.4
During the reporting period, the Group has recognised final credit losses and expected credit losses on trade
receivables and contract assets through the statement of income totaling EUR 1.9 (2.1) 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.
Ageing of trade receivables and recognised credit losses
2024
EUR mill.
Trade receivables and
contract assets total
Expected credit loss
Recognised expected
credit loss
Carrying amount
Contract assets
7.9
-0,0%
-0,0
7.9
Not past due
97.4
-0.1 %
-0.1
97.3
Past due
7.4
-0.5 %
-0,0
7.4
1.8
-1.3 %
-0,0
1.8
2.6
-9.4 %
-0.2
2.3
2.3
-68.9 %
-1.6
0.7
154
Total
119.5
-1.9
117.5
Information about credit risk related to trade receivables is stated in note 21. Financial risks.
Ageing of trade receivables and recognised credit losses
2023
EUR mill.
Trade receivables total
Expected credit loss
Recognised expected
credit loss
Carrying amount
Contract assets
10.2
0.0 %
-0,0
10.2
Not past due
101.9
-0.1 %
-0.1
101.8
Past due
10.4
-0.4 %
-0,0
10.3
2.4
-1.3 %
-0,0
2.4
1.8
-8.4 %
-0.2
1.6
3.0
-61.3 %
-1.8
1.1
Total
129.7
-2.1
127.6
Information about credit risk related to trade receivables is stated in note 21. Financial risks.
23. Cash and cash equivalents
The Group’s cash and cash equivalents on 31 December 2024, amounting to EUR 65.2 (37.7) 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.
24. Share capital and invested non-restricted equity reserve
EUR mill.
Number of
outstanding
shares, 1,000
pcs
Number
of
treasury
shares,
1,000
pcs
Number
of shares
total,
1,000 pcs
Share capital
Invested non-
restricted equity
reserve
Treasury
shares
Total
1 Jan 2023
126,548
489
127,037
0.1
492.8
-15.8
477.1
Acquisition of treasury
shares
8
-8
-
-
-
0.1
0.1
Cancellation of treasury
shares
-
-
-
-
-
-
-
31 Dec 2023
126,556
480
127,037
0.1
492.8
-15.7
477.2
1 Jan 2024
126,556
480
127,037
0.1
492.8
-15.7
477.2
Acquisition of treasury
shares
49
-49
-
-
-
0.4
0.4
Cancellation of treasury
shares
-
-
-
-
-
-
-
155
31 Dec 2024
126,605
432
127,037
0.1
492.8
-15.2
477.6
Shares and share capital
On 31 December 2024, the amount of shares is 127,036,531 of which amount of outstanding shares is 126,604,826
and amount of treasury shares is 431,705.
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 recogni sed in the share capital, unless it has not
been according to Issuance Resolution fully or partly recognised in invested non-restricted equity reserve.
Distributable funds
On 31 December 2024, the distributable funds of the parent company totalled EUR 558.9 million including the profit
of the financial period 2024 of EUR 61.0 million. The Board of Directors proposes to the Annual General Meeting
that a dividend of EUR
) per share totalling EUR
financial position adopted for the financial year ended on 31 December 2024. The dividend would be paid in two
instalments as follows:
●
in the shareholders' register of the Company maintained by Euroclear Finland Ltd on the record date of the
first dividend installment on 10 April 2025. The Board of Directors proposes that the first dividend
installment would be paid on 17 April 2025.
●
in the shareholders' register of the Company maintained by Euroclear Finland Ltd on the record date of the
second dividend installment on 8 October 2025. The Board of Directors proposes that the second dividend
installment would be paid on 15 October 2025. 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.
The dividend proposed by the Board of Directors to the Annual General Meeting is not deducted from distributable
equity until approved by the Annual General Meeting of Shareholders.
No material changes have taken place in the company’s financial position since the end of the financial year. The
liquidity of the company is good and the proposed allocation of funds, in the view of the Board of Directors, does not
endanger the company's solvency.
156
25. Financial liabilities
Non-cash changes
EUR mill.
1 Jan 2024
Cash flows
Business
combinations
Other changes
Translation
differences
31 Dec 2024
Loans from financial institutions
313.8
-35.3
0.1
0.1
-
278.8
Bonds
99.1
-
-
0.2
-
99.3
Hire purchase liabilities
3.8
-3.8
-
-
-
0.0
Lease liabilities
219.1
-53.6
1.2
25.0
0.0
191.8
Total
635.7
-92.6
1.3
25.4
0.0
569.9
.
Non-cash changes
EUR mill.
1 Jan 2023
Cash flows
Business
combinations
Other changes
Translation
differences
31 Dec 2023
Loans from financial institutions
419.2
-105.2
-
-0.2
-
313.8
Bonds
-
99.6
-
-0.5
-
99.1
Hire purchase liabilities
8.0
-4.3
-
-
-
3.8
Lease liabilities
179.8
-50.9
0.3
90.4
-0.5
219.1
Total
607.0
-60.8
0.3
89.7
-0.5
635.7
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.
26. Trade and other payables
Carrying amounts of trade and other payables
EUR mill.
2024
2023
Trade payables
55.6
49.5
Other payables
82.3
80.1
Contract liabilities
7.0
8.8
Derivative liabilities
0.3
0.1
Accrued expenses
85.1
86.2
Total
230.3
224.7
Specification of other payables
EUR mill.
2024
2023
Doctor's fee liabilities
50.1
48.5
VAT liabilities
23.0
23.3
Other
9.1
8.3
Total
82.3
80.1
157
Specification of accrued expenses
EUR mill.
2024
2023
Personnel-related accrued expenses
74.6
74.0
Interest liabilities
4.8
6.3
Other
5.6
5.9
Total
85.1
86.2
27. Provisions
Carrying amounts of provisions
EUR mill.
2024
2023
Non-current provisions
3.3
2.8
Current provisions
2.9
3.3
Total
6.2
6.1
EUR mill.
2024
2023
Onerous contracts
3.1
4.1
Other provisions
3.1
2.0
Total
6.2
6.1
Changes in provisions during the financial year 2024
EUR mill.
Onerous
contracts
Other
provisions
Total
1 Jan 2024
4.1
2.0
6.1
Increase in provisions
0.0
2.7
2.7
Used provisions
-1.1
-1.6
-2.7
31 Dec 2024
3.1
3.1
6.2
Changes in provisions during the financial year 2023
EUR mill.
Onerous
contracts
Other
provisions
Total
1 Jan 2023
7.1
4.4
11.5
Increase in provisions
1.1
0.9
2.1
Used provisions
-4.1
-3.4
-7.5
31 Dec 2023
4.1
2.0
6.1
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
158
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 eight years at the reporting date.
Summary of the impact of the defined benefit plans in the financial statements
EUR mill.
2024
2023
Present value of the defined benefit obligations
1.3
1.3
Expenses related to defined benefit plans
0.0
0.0
Remeasurements of defined benefit obligations
0.1
0.1
Reconciliation of the defined benefit obligation
EUR mill.
2024
2023
1 Jan
1.3
1.3
Interest expense (+) / income (-)
0.1
0.1
Benefits paid
-0.1
-0.1
Remeasurement of the obligation
Actuarial gain (-) / loss (+) from change in financial assumptions
0.1
0.1
31 Dec
1.3
1.3
Applied actuarial assumptions
%
2024
2023
Discount rate
2.70
3.70
Inflation
1.80
1.70
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.
.
Sensitivity analysis of the relevant actuarial assumptions’ impact on defined benefit obligation
EUR mill.
2024
2023
0.5%-point increase in the principal assumption
Discount rate
-0,0
-0,0
Inflation
0.0
0.0
0.5%-point decrease in the principal assumption
Discount rate
0.0
0.0
Inflation
-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.
.
29. Collateral and contingent liabilities
159
EUR mill.
31 Dec 2024
31 Dec 2023
Business mortgages
0.7
7.5
Real estate mortgages
0.2
-
Total
0.9
7.5
Securities for own debts
Deposits
0.2
0.2
Guarantees
0.1
0.2
Total
0.3
0.4
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
2024
Sales
Purchases
Receivables
Payables
Associated companies
0.5
6.1
0.2
0.4
Total
0.5
6.1
0.2
0.4
2023
Sales
Purchases
Receivables
Payables
Associated companies
0.6
9.7
0.2
0.8
Other related parties
0.0
-
-
-
Total
0.6
9.7
0.2
0.8
Compensation for the key management
Remuneration to the CEO, in thousands of euro
2024
2023
Fixed pay
438.2
397.7
Other benefits
13.8
12.3
Short-term incentives
577.7
402.2
Share-based payments
336.2
348.1
Pensions (statutory)
169.1
133.4
Total
1,535.0
1,293.7
160
Renumeration to the CEO is presented on an accrual basis.
Remuneration to the members of the Executive team
(excluding CEO), in thousands of euro
2024
2023
Fixed pay
1,568.1
1,348.3
Other benefits
40.6
28.7
Short-term incentives
700.5
606.7
Share-based payments
308.3
412.1
Termination benefits
36.0
226.3
Pensions (statutory)
384.4
330.7
Total
3,037.9
2,952.8
Renumeration to the members of the Executive team is presented on an accrual basis.
Remuneration to the Board of
Directors, in thousands of euro
2024
2023
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*
Kauniskangas Kari (Chairman of
the board)
54.0
36.0
15.8
0.5
52.5
35.0
18.7
0.6
Pullola Kristian
31.8
21.2
10.7
0.3
31.2
20.8
11.7
0.3
Rosenberg Matts
31.8
21.2
10.7
0.3
31.2
20.8
12.4
0.3
Lemne Carola
25.4
16.9
14.5
0.3
24.9
16.6
18.0
0.3
Lehtoranta Ari
25.4
16.9
10.1
0.3
24.9
16.6
8.5
0.3
Hasselberg Sofia
25.4
16.9
17.2
0.3
24.9
16.6
15.4
0.3
Sarajärvi Teija**
25.4
16.9
8.1
0.3
-
-
-
-
Member of the Board of Directors
until 26 March 2024
Viippola Katri
-
-
2.0
-
24.9
16.6
13.7
0.3
Total
219.2
146.0
89.0
2.2
214.5
143.0
98.1
2.3
* Other financial benefits include transfer tax fees for the annual fees paid in shares.
** Member of the Board of Directors from 2024.
.
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.
161
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.
Management holdings
Name
Position
31 Dec 2024
Kari Kauniskangas
Chairman of the Board of Directors
25,363
Matts Rosenberg
Member of the Board of Directors
16,595
Carola Lemne
Member of the Board of Directors
6,799
Kristian Pullola
Member of the Board of Directors
10,304
Ari Lehtoranta
Member of the Board of Directors
8,177
Sofia Hasselberg
Member of the Board of Directors
4,172
Teija Sarajärvi
Member of the Board of Directors
1,673
Ville Iho
President and CEO
23,566
Juuso Pajunen
Chief Financial Officer
20,697
Petteri Lankinen
Chief Medical Officer
-
Sari Heinonen
Executive Vice President, Healthcare Services
-
Henri Mäenalanen
Executive Vice President, Portfolio Businesses
3,163
Stefan Kullgren
Executive Vice President, Swedish Business Area
10,000
Ilari Richard
Senior Vice President, Digital Services
3,834
Minttu Sinisalo
Senior Vice President, Human Resources
4,081
Petra Gräsbeck
Senior Vice President, Communications and Public Affairs
175
162
31. Group companies
The Group’s parent company is Terveystalo Plc domiciled in Finland.
Subsidiaries as at 31 December 2024
Company name
Domicile
Group's share
Group's voting
rights
Cityläkarna Mariehamn AB
Finland
100.0 %
100.0 %
Clarahälsan AB
Sweden
100.0 %
100.0 %
EAM TTALO Holding Oy*
Finland
0.0 %
0.0 %
Feelgood Alna Sverige AB
Sweden
100.0 %
100.0 %
Feelgood Företagshälsa Dalarna AB
Sweden
100.0 %
100.0 %
Feelgood Företagshälsovård AB
Sweden
100.0 %
100.0 %
Feelgood Hälsoforum AB
Sweden
100.0 %
100.0 %
Feelgood Länshälsan AB
Sweden
100.0 %
100.0 %
Feelgood Sjukvård AB
Sweden
100.0 %
100.0 %
Feelgood Svenska AB
Sweden
100.0 %
100.0 %
Idavallen AB
Sweden
100.0 %
100.0 %
Länshälsan Skåne AB
Sweden
100.0 %
100.0 %
Medimar Scandinavia AB
Finland
100.0 %
100.0 %
Nämndemansgården i Sverige AB
Sweden
100.0 %
100.0 %
Rela-hierojat Oy
Finland
100.0 %
100.0 %
Sauma Lastensuojelupalvelut Oy
Finland
100.0 %
100.0 %
Suomen Hierojakoulut Oy
Finland
100.0 %
100.0 %
Suomen Terveystalo Oy
Finland
100.0 %
100.0 %
Terveystalo Estonia OÜ
Estonia
100.0 %
100.0 %
Terveystalo Healthcare Holding Oy
Finland
100.0 %
100.0 %
Terveystalo Healthcare Oy
Finland
100.0 %
100.0 %
Terveystalo Julkiset palvelut Oy
Finland
100.0 %
100.0 %
Terveystalo Kuntaturva Oy
Finland
100.0 %
100.0 %
Terveystalo Tactus Oy
Finland
100.0 %
100.0 %
TT Ålands Tandläkarna AB
Finland
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.
Changes in the Group structure
Financial year 2024
The following mergers took place during the financial year 2024:
●
●
●
●
Financial year 2023
163
The following mergers took place during the financial year 2023:
●
●
●
●
●
●
●
●
The following companies operations have ceased during the financial year 2023:
●
●
32. Subsequent events
Terveystalo Plc's Board of Directors has approved a new performance period covering years 2025‒2027 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 2025–2027 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 2025–2027of the Performance Share Plan (PSP)
During the performance period 2025–2027, 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 amortization)
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 2025–2027 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 700,000 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 80 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.
164
Performance Period 2025–2027of 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 70,000 shares.
Notifications pursuant to Chapter 9, Section 10 of the Securities Markets Act
After the end of the reporting period, on 18 February 2025, OP Financial Group's insurance companies transferred
their Terveystalo Plc shares to OP Cooperative. This transaction left OP Financial Group's total holding in
Terveystalo Plc unchanged at 13.91 percent, equating to 17,675,975 shares. As part of the arrangement,
Terveystalo Plc received the following flagging notifications on 19 February 2025.
Terveystalo Plc received a notification in accordance with Chapter 9, Section 5 of the Securities Markets Act,
according to which OP Cooperative's holding of Terveystalo Plc's shares and votes has exceeded 10 percent on 18
February 2025.
Terveystalo Plc received a notification in accordance with Chapter 9, Section 5 of the Securities Markets Act,
according to which Pohjola Insurance Ltd's holding in Terveystalo Plc's shares and votes has fallen below 5 percent
on 18 February 2025.
Terveystalo Plc received a notification in accordance with Chapter 9, Section 5 of the Securities Markets Act,
according to which OP Life Assurance Company Ltd's holding of Terveystalo Plc's shares and votes has fallen
below 5 percent on 18 February 2025.
165
Parent company's financial statement, FAS
Parent company’s income statement
EUR
Note
1.1.-31.12.2024
1.1.-31.12.2023
Revenue
1.1
8,062,045
11,487,798
Materials and supplies
-360
-1,684
Employee benefit expenses
-2,406,187
-1,889,541
-287,420
-232,335
-17,263
-153,776
Depreciation, amortisation and impairment losses
1.2
-22,617
-18,227
Other operating expenses
1.4
-9,476,615
-20,555,877
Operating loss
-4,148,418
-11,363,642
Financial income and expenses
1.5
5,453,177
3,194,991
1,715
-
-2,389,839
-1,126,839
-5,579,405
-3,833,481
Loss before appropriations and taxes
-6,662,769
-13,128,972
Appropriations
1.6
1,824
-16,959
83,000,000
63,777,000
Taxes
-15,293,500
-10,132,230
Profit for the period
61,046,181
40,499,784
Parent company’s statement of financial position
EUR
Note
31 Dec 2024
31 Dec 2023
ASSETS
Non-current assets
Property, plant and equipment
2.1
64,270
86,887
166
Investments
2.2
516,818,244
516,818,244
Loan receivables from group companies
2.3
105,375,000
100,000,000
Total non-current assets
622,257,514
616,905,132
Current assets
2.3
94,081,527
87,022,736
2.4
623,426
1,030,499
Total current assets
90,731,399
88,053,235
TOTAL ASSETS
716,962,467
704,958,366
EUR
Note
31 Dec 2024
31 Dec 2023
EQUITY AND LIABILITIES
Equity
2.5
80,000
80,000
493,503,962
493,503,962
4,373,361
1,855,024
Profit for the period
61,046,181
40,499,784
Total equity
559,003,504
535,938,771
Appropriations
24,072
25,896
Total appropriations
24,072
25,896
Liabilities
2.6
Non-current liabilities
100,000,000
100,000,000
Current liabilities
1,718,174
2,296,985
45,978,136
56,730,930
148,460
35,585
10,090,121
9,930,200
Total liabilities
157,934,891
168,993,700
TOTAL EQUITY AND LIABILITIES
716,962,467
704,958,366
167
Parent company's statement of cash flows
EUR
1.1.-31.12.2024
1.1.-31.12.2023
Cash flows from operating activities
Profit for the period before income taxes
76,339,055
50,631,069
Adjustments
22,617
18,227
-79,860,935
-60,564,902
2,514,351
1,765,330
Change in working capital
7,036,904
-16,767,585
-2,652,245
878,760
Taxes
-13,178,727
-4,464,873
Net cash from operating activities
-9,778,979
-28,503,974
Cash flows from investing activities
Acquisition of tangible and intangible assets
-
-44,361
Granted loan receivables to subsidiary
-
-100,000,000
Net cash from investing activities
-
-100,044,361
Cash flows from financial activities
Change in group bank account
-10,468,331
31,521,429
Proceeds of long-term borrowings
-
99,594,000
Received group contribution
63,777,000
34,634,000
Dividends paid
-37,981,448
-35,435,764
Interest and other financial expenses paid
-5,548,242
-1,765,330
Net cash from financial activities
9,778,979
128,548,335
Net change in cash and cash equivalents
-
-
Cash and cash equivalents at the start of the financial year
-
-
Cash and cash equivalents at the end of the financial year
-
-
Accounting policies of parent company’s financial statements
The financial statements of Terveystalo Plc are prepared in accordance with Finnish Accounting Standards (FAS).
Measurement and recognition principles and methods
Holdings in group companies
The carrying amount of holdings in group companies consists of historical costs less impairments. If the estimated
future cash flows generated by a non-current asset are expected to be permanently lower than the balance of
carrying amount, an adjustment to the value must be made to write-down the difference as an expense. If the basis
for the impairment can no longer be justified at the reporting date, it is reversed.
Property, plant and equipment, and depreciation
168
The carrying amount of property, plant and equipment consists of historical costs less depreciation and other
deductions. Property, plant and equipment are depreciated using straight -line depreciation based on the expected
useful life of the asset.
The depreciation is based on the following expected useful lives:
Machinery and equipment: 5 years
Notes to the statement of income
1.1 Revenue
EUR
2024
2023
Finland
8,029,850
11,455,589
Sweden
32,195
32,209
Total
8,062,045
11,487,798
1.2 Depreciation, amortisation and impairment losses
EUR
2024
2023
Depreciation
-22,617
-18,227
Total
-22,617
-18,227
1.3 Personnel
Average number of personnel during financial year
4
4
1.4 Other operating expenses
EUR
2024
2023
External services
-8,562,278
-19,452,524
ICT expenses
-35,340
-36,242
Non-statutory personnel expenses
-56,370
-109,863
Leases
-12,817
-14,731
Travel expenses
-46,102
-51,977
Marketing and communication
-193,652
-201,761
Other costs
-570,056
-688,779
Total
-9,476,615
-20,555,877
Auditor's fees
EUR
2024
2023
Audit and auditor's statements based on laws and regulations
-108,900
-101,000
-89,000
-
Total
-197,900
-56,240
Non audit services
-14,000
-
Total
-14,000
-
Auditor's fees total
-211,900
-101,000
*Including limited assurance of sustainability statement
169
1.5 Financial income and expenses
EUR
2024
2023
Other interest and financial income
From group companies
5,453,177
3,194,991
From others
1,715
-
Total
5,454,892
3,194,991
Other interest and financial expenses
To group companies
-2,389,839
-1,126,839
To others
-5,579,405
-3,833,481
Total
-7,969,244
-4,960,321
1.6 Appropriations
EUR
2024
2023
Increase/decrease in depreciation in excess of plan
1,824
-16,959
Group contributions received
83,000,000
63,777,000
Appropriations total
83,001,824
63,760,041
Notes to the statement of the financial position
2.1 Property, plant and equipment
Machinery and equipment
EUR
2024
2023
Acquisition cost 1 Jan
151,975
107,614
Additions
-
44,361
Acquisition cost 31 Dec
151,975
151,975
Accumulated depreciation and impairment losses 1 Jan
-65,087
-46,861
Depreciation for the period
-22,617
-18,227
Accumulated depreciation and impairment losses 31 Dec
-87,704
-65,087
Carrying amount 1 Jan
86,887
60,753
Carrying amount 31 Dec
64,270
86,887
2.2 Investments
Holdings in group companies
EUR
2024
2023
Acquisition cost 1 Jan
516,818,244
516,818,244
Acquisition cost 31 Dec
516,818,244
516,818,244
Carrying amount 1 Jan
516,818,244
516,818,244
Carrying amount 31 Dec
516,818,244
516,818,244
Parent company ownerships
170
Holdings in group companies
2024
2023
Terveystalo Healthcare Holding Oy
100%
100%
2.3 Receivables from group companies
EUR
2024
2023
Loan receivables
105,375,000
100,000,000
Total
105,375,000
100,000,000
EUR
2024
2023
Non-current receivables
3,973,554
4,418,475
Trade receivables
634,331
827,512
Group contribution receivables
83,000,000
63,777,000
Prepayments and accrued income*
6,473,642
17,999,749
Total
94,081,527
87,022,736
* 2023 including rechargeable service fees EUR 14.8 million and interest receivables EUR 3.2 million.
2.4 Prepayments and accrued income
EUR
2024
2023
VAT receivables
153,539
477,423
Prepayments and accrued income
469,886
553,076
Total
623,426
1,030,499
2.5 Changes in equity
Restricted equity
Share capital
EUR
2024
2023
At the beginning of the period
80,000
80,000
At the end of the period
80,000
80,000
Total restricted equity
80,000
80,000
Unrestricted equity
Invested non-restricted equity reserve
EUR
2024
2023
At the beginning of the period
493,503,962
493,503,962
At the end of the period
493,503,962
493,503,962
Retained earnings
EUR
2024
2023
Retained earnings at the beginning of the period
42,354,808
37,290,789
171
Dividends paid
-37,981,448
-35,435,764
Retained earnings at the end of the period
4,373,361
1,855,024
Net income
61,046,181
40,499,784
Total unrestricted equity
558,923,504
535,858,771
Total equity
559,003,504
535,938,771
Distributable equity
EUR
2024
2023
Invested non-restricted equity reserve
493,503,962
493,503,962
Retained earnings
4,373,361
1,855,024
Net income
61,046,181
40,499,784
Total
558,923,504
535,858,771
Shares and share capital
On 31 December 2024, the amount of shares is 127,036,531 of which 431,705 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 Liabilities
2.6.1 Non-current liabilities
EUR
2024
2023
Bonds
100,000,000
100,000,000
Total
100,000,000
100,000,000
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.
2.6.2 Current liabilities
172
EUR
2024
2023
Trade payables
1,718,174
2,296,985
Other liabilities to group companies
45,978,136
56,730,930
Other liabilities
148,460
35,585
Accruals
10,090,121
9,930,200
Total
57,934,891
68,993,700
2.6.3 Liabilities to Group companies
EUR
2024
2023
Trade payables
6,151
265,918
Group bank account payables
45,971,985
56,440,316
Accruals and deferred income
-
24,697
Total
45,978,136
56,730,930
2.6.4 Accruals and deferred expenses
EUR
2024
2023
Personnel-related accrued expenses
1,135,237
841,720
Other
650,265
2,845,628
Interest liabilities
3,142,760
3,195,139
Income tax liability
5,161,860
3,047,713
Total
10,090,121
9,930,200
Other notes
3. Collateral and other contingent liabilities
EUR
2024
2023
Suretyship*
253,521,166
305,000,000
Other guarantees
22,607
81,927
* Suretyship given by Terveystalo Plc to subsidiaries' financial institution loans.
173
Confirmation of the Board of Directors and the CEO
We confirm that
●
Standards (IFRS) as adopted by the European Union and the financial statements of the parent company
prepared in accordance with the laws and regulations governing the preparation of financial statements in
Finland give a true and fair view of the assets, liabilities, financial position and profit or loss of the company
and the undertakings included in the consolidation taken as a whole;
●
position of the company and the undertakings included in the consolidation taken as a whole, together with
a description of the principal risks and uncertainties that they face and
●
reporting standards referred to in Chapter 7 of the Accounting Act and with the Article 8 of Taxonomy
Regulation
174
Signatures to the financial statements and Board of Director’s report
Helsinki, 13 March 2025
Kari Kauniskangas Sofia Hasselberg
Chairman of the Board of Directors Member of the Board of Directors
Ari Lehtoranta Carola Lemne
Member of the Board of Directors Member of the Board of Directors
Kristian Pullola Matts Rosenberg
Member of the Board of Directors Member of the Board of Directors
Teija Sarajärvi Ville Iho
Member of the Board of Directors President and CEO
AUDITORS NOTE
A report on the audit has been issued today.
Helsinki, 13 March 2025
KPMG Oy Ab
Audit firm
Henrik Holmbom
Authorised Public Accountant
175
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Auditor’s Report
To the Annual General Meeting of Terveystalo Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Terveystalo Plc (business identity code 2575979–3) for the year ended
31 December, 2024. The financial statements comprise the consolidated balance sheet, 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
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In 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 regulation (EU) 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.
Materiality
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 and/or possible 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.
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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)
—
At the year-end 2024 the goodwill
amounted to 829 M€ and accounted for 59
% of the consolidated total assets and for
151 % of the consolidated equity.
—
The acquisition-related recognised assets
for customer relationships and trademark
and at the year-end 2024 were in total 50
M€.
—
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.
—
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.
—
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.
Revenue Recognition (Accounting Principles for the Consolidated Financial Statements and
the Note 5)
—
The consolidated revenue for 2024
amounted to 1.340 M€ and consist of
numerous types of individual service
transactions generated to various customer
groups in multiple business locations.
Volumes of sales transactions processed in
the IT systems are substantial and
Terveystalo also uses a number of service
pricing models and client contract
templates.
—
Given the variety and large number of sales
transactions, revenue recognition is
considered a key audit matter.
—
As part of our audit procedures, we
evaluated the sales-related internal control
environment and 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.
—
We assessed the IT systems relevant for
revenue recognition.
—
We considered the appropriateness of the
disclosures presented for revenue in the
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consolidated financial statements.
We have not identified key audit matters relating to the parent company’s financial statements.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director 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 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 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
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism 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.
—
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 use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the parent company or the group to
cease to continue as a going concern.
178
—
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.
—
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed
for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
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.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the 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.
Other Reporting Requirements
Information on our audit engagement
We have acted as auditors appointed by the Annual General Meeting uninterrupted for thirteen years. Terveystalo
Plc became a public interest entity on 13 October 2017.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other information
comprises the report of the Board of Directors and the information included in the Annual Report, but does not
include the financial statements or our auditor’s report thereon. 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 compliance with the applicable provisions, excluding the sustainability report
information on which there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting
standards.
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 compliance with the applicable
provisions. Our opinion does not cover the sustainability report information on which there are provisions in Chapter
7 of the Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information, 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 March 2025
KPMG OY AB
179
HENRIK HOLMBOM
Authorised Public Accountant, KHT
180
This document is an English translation of the Finnish Assurance Report on the Sustainability Report. Only the Finnish version of the report is
legally binding.
Assurance Report on the Sustainability Report
To the Annual General Meeting of Terveystalo Plc
We have performed a limited assurance engagement on the group sustainability report of Terveystalo Plc (business identity code 2575979–
3) that is referred to in Chapter 7 of the Accounting Act and that is included in the report of the Board of Directors for the financial year
1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to
believe that the group sustainability report does not comply, in all material respects, with
1) the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards (ESRS);
2) the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the
establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Terveystalo Plc has identified the information for reporting in accordance with the
sustainability reporting standards (double materiality assessment) and the tagging of information as referred to in Chapter 7, Section 22 of
the Accounting Act.
Our opinion does not cover the tagging of the group sustainability report with digital XBRL sustainability tags in accordance with Chapter 7,
Section 22, Subsection 1(2), of the Accounting Act, because sustainability reporting companies have not had the possibility to comply with
that provision in the absence of the ESEF regulation or other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability report as a limited assurance engagement in compliance with good assurance
practice in Finland and with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other
than Audits or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the Responsibilities of the Authorised Sustainability Auditor section of our
report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability report of Terveystalo Plc that is referred to in Chapter 7 of the Accounting Act
has been prepared and assurance has been provided for it for the first time for the financial year 1.1.–31.12.2024. Our opinion does not
cover the comparative information that has been presented in the group sustainability report. Our opinion is not modified in respect of this
matter.
181
Authorised group sustainability auditor's Independence and Quality Management
We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in
Finland and are relevant to our engagement, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The authorised group sustainability auditor applies International Standard on Quality Management ISQM 1, which requires the authorised
sustainability audit firm to design, implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Terveystalo Plc are responsible for:
—
the group sustainability report and for its preparation and presentation in accordance with the provisions of Chapter 7 of the
Accounting Act, including the process that has been defined in the sustainability reporting standards and in which the information
for reporting in accordance with the sustainability reporting standards has been identified as well as the tagging of information as
referred to in Chapter 7, Section 22 of the Accounting Act and
—
the compliance of the group sustainability report with the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of
the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and
amending Regulation (EU) 2019/2088;
—
such internal control as the Board of Directors and the Managing Director determine is necessary to enable the preparation of a
group sustainability report that is free from material misstatement, whether due to fraud or error.
Inherent Limitations in the Preparation of a Sustainability Report
Preparation of the sustainability report requires Company to make materiality assessment to identify relevant matters to report. This
includes significant management judgement and choices. It is also characteristic to the sustainability reporting that reporting of this kind of
information includes estimates and assumptions as well as measurement and estimation uncertainty. Furthermore, when reporting forward
looking information company has to disclose assumptions related to potential future events and describe Company´s possible future actions
in relation to these events. Actual outcome may differ as forecasted events do not always occur as expected.
Responsibilities of the Authorised Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group sustainability report is free
from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our opinion.
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 decisions of users taken on the basis of the group sustainability report.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we exercise professional
judgment and maintain professional skepticism throughout the engagement. We also:
—
Identify and assess the risks of material misstatement of the group sustainability report, whether due to fraud or error, and obtain
an understanding of internal control relevant to the engagement in order to design assurance 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.
—
Design and perform assurance procedures responsive to those risks to obtain 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
182
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal
control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable
assurance engagement. The nature, timing and extent of assurance procedures selected depend on professional judgment, including the
assessment of risks of material misstatement, whether due to fraud or error. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement
been performed.
Our procedures included for ex. the following:
—
We interviewed Terveystalo’s management and persons responsible for the preparation and gathering of the sustainability
information.
—
We familiarised with interviews to the key processes related to collecting and consolidating the sustainability information.
—
We got acquainted with the relevant guidances and policies related to the sustainability information disclosed in the sustainability
report.
—
We acquainted ourselves to the background documentation and other records prepared by the Company, as appropriate and
assessed how they support the information included in the sustainability report.
—
In relation to the double materiality assessment process, we interviewed persons responsible for the process and familiarised
ourselves with the process description prepared of the double materiality assessment and other documentation and background
materials.
—
In relation to the EU taxonomy information we interviewed the management of the company and persons with key roles in
reporting taxonomy information to understand/examine how taxonomy eligible and taxonomy aligned activities have been
identified, we obtained evidence supporting the interviews and reconciled the reported EU taxonomy information to supporting
documents and to the bookkeeping, as applicable.
—
We assessed the application of the ESRS sustainability reporting standards reporting principles in the presentation of the
sustainability information.
Helsinki, 13 March 2025
KPMG OY AB
Authorised Sustainability Audit Firm
HENRIK HOLMBOM
Authorised Sustainability Auditor, KRT
183
Independent auditor's report on the ESEF financial
statements of Terveystalo Plc
To the Board of Directors of Terveystalo Plc
We have performed a reasonable assurance engagement on the financial statements 7437001AEZHLL3UEX093-
2024-12-31-0-en.zip of Terveystalo Plc (Business ID 2575979-3) that have been prepared in accordance with the
Commission's regulatory technical standard for the financial year ended 31.12.2024.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of the company's report of the
Board of Directors and financial statements (the ESEF financial statements) in such a way that they comply with the
requirements of the Commission's regulatory technical standard. This responsibility includes:
—
preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the Commission's
regulatory technical standard
—
tagging the primary financial statements, notes and company's identification data in the consolidated financial
statements that are included in the ESEF financial statements with iXBRL tags in accordance with Article 4 of
the Commission's regulatory technical standard and
—
ensuring the consistency between the ESEF financial statements and the audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial statements in accordance with the requirements of the
Commission's regulatory technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the ethical requirements that are applicable in Finland and
are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide assurance on
the financial statements that have been prepared in accordance with the Commission's regulatory technical
standard. We express an opinion on whether the consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects, in accordance with the requirements of Article 4 of
the Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted a
reasonable assurance engagement in accordance with International Standard on Assurance Engagements (ISAE)
3000.
The engagement includes procedures to obtain evidence on:
—
whether the primary financial statements in the consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory technical standard and
—
whether the notes and company's identification data in the consolidated financial statements that are included in
the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with
the requirements of Article 4 of the Commission's regulatory technical standard and
—
whether there is consistency between the ESEF financial statements and the audited financial statements.
184
The nature, timing and extent of the selected procedures depend on the auditor’s judgment. This includes an
assessment of the risk of a material deviation due to fraud or error from the requirements of the Commission's
regulatory technical standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial statements,
notes and company's identification data in the consolidated financial statements that are included in the ESEF
financial statements of Terveystalo Plc 7437001AEZHLL3UEX093-2024-12-31-0-en.zip of for the financial year
ended 31.12.2024 have been tagged, in all material respects, in accordance with the requirements of the
Commission's regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of Terveystalo Plc for the financial year ended
31.12.2024 has been expressed in our auditor's report dated 13.3.2025. With this report we do not express an
opinion on the audit of the consolidated financial statements nor express another assurance conclusion.
Helsinki 13 March 2025
KPMG OY AB
Henrik Holmbom
Authorised Public Accountant, KHT