Pihlajalinna Oyj - Inside information

Insider information, profit warning: Pihlajalinna decreases its revenue outlook as the cost liability of demanding care transfers to the well-being services county of South Ostrobothnia

Pihlajalinna Plc Insider Information 30 April 2024 at 2:30 p.m.

Insider information, profit warning: Pihlajalinna decreases its revenue outlook
as the cost liability of demanding care transfers to the well-being services
county of South Ostrobothnia

Today 30 April, Pihlajalinna's subsidiary Kuusiolinna Terveys and the well-being
services county of South Ostrobothnia has signed an agreement to transfer the
cost liability of the demanding specialised care to the well-being services
county of South Ostrobothnia retroactively as of 1 January 2024. Transfer of the
cost liability decreases Pihlajalinna's revenue approximately EUR 30 million per
year but enhances the group's profitability and the anticipated Adj. EBITA level
for the financial year as well as the predictability of the outsourcing
operations.

Pihlajalinna owns Kuusiolinna Terveys together with the wellbeing services
county of South Ostrobothnia. Pihlajalinna's share is 97 percent. The joint
company has produced social and wellbeing services for Alavus, Kuortane, Soini
and Ähtäri municipality areas since 2016. Kuusiolinna Terveys has not produced
demanding specialised care services for the region but has covered the costs as
part of the complete outsourcing agreement.

Due to the described reasons, Pihlajalinna revises its outlook for the year
2024. The Group expects the consolidated revenue to decrease from the previous
year's level (EUR 720.0 million in 2023). In other respects, the outlook remains
unchanged.

Pihlajalinna's outlook for 2024, specified

In 2024, Pihlajalinna will focus on organic growth and improving its
profitability and financial position.

  · The Group expects the consolidated revenue to decrease from the previous
year's level (EUR 720.0 million in 2023) due to the cost liability for demanding
specialised care being transferred to the well-being services county of South
Ostrobothnia on 1 January 2024.
  · The Group expects the adjusted operating profit before the amortization and
impairment of intangible assets (EBITA) to improve from the previous year's
level (EUR 37.8 million in 2023).
  · The Group continues measures to strengthen its financial position.
Efficiency measures are expected to improve Pihlajalinna's profitability.

Slowed economic growth and weakened consumer confidence may affect
Pihlajalinna's service demand and financial result more than expected. Price
increases are expected to compensate the effects of cost inflation.

Previous guidance, issued on 14 February 2024

In 2024, Pihlajalinna will focus on organic growth and improving its
profitability and financial position.

  · The Group expects the consolidated revenue to increase from the previous
year's level (EUR 720.0 million in 2023).
  · The Group expects the adjusted operating profit before the amortization and
impairment of intangible assets (EBITA) to improve from the previous year's
level (EUR 37.8 million in 2023).
  · The Group continues measures to strengthen its financial position.
Efficiency measures are expected to improve Pihlajalinna's profitability.

Slowed economic growth, weakened consumer confidence and changes in market
interest rates may affect Pihlajalinna's service demand and financial result
more than expected. Price increases are expected to compensate the effects of
cost inflation.

Pihlajalinna Plc

Further information:

Tuula Lehto, Chief Communications and Sustainability Officer
tel. +358 40 588 5343, tuula.lehto@pihlajalinna.fi

Distribution

Nasdaq Helsinki Ltd.
Key media
investors.pihlajalinna.fi

Pihlajalinna in brief
Pihlajalinna is one of the leading providers of private healthcare and social
services in Finland. The Group provides comprehensive and quality private clinic
and hospital services as well as occupational healthcare and insurance
cooperation services. To the wellbeing services counties Pihlajalinna offers
social and healthcare service production models, in which the
cooperation between the public and private sectors guarantees effective services
for citizens. Appoximately 7,000 employees and 2,200 practitioners work at
Pihlajalinna. In 2023, Pihlajalinna's revenue was 720 million euros.
Pihlajalinna's shares are listed on Nasdaq Helsinki Oy. Read more
www.pihlajalinna.fi.

Attachments:

04300763.pdf