Pihlajalinna Oyj - Interim report (Q1 and Q3)

Pihlajalinna Plc: Pihlajalinna Interim Report 1 January - 31 March 2016 (3 months)

PIHLAJALINNA PLC       INTERIM REPORT          10 May 2016 at 8:00 (EEST)


PIHLAJALINNA INTERIM REPORT 1 JANUARY-31 MARCH 2016 (3 months)


CONSOLIDATED OPERATING PROFIT IMPROVED, REVENUE GROWTH CONTINUED

BRIEF LOOK AT JANUARY-MARCH 2016 (YEAR-ON-YEAR COMPARISON IN BRACKETS):
  * Revenues amounted to EUR 100.1 (47.9) million - an increase of 109 per cent
  * EBITDA amounted to EUR 7.0 (3.0) million - an increase of 132 per cent
  * Operating profit (EBIT) amounted to EUR 4.2 (1.3) million
  * Net cash flow from operating activities amounted to EUR 14.0 (6.9) million
  * Gross investments in the reporting period amounted to EUR 10.3 (14.1)
    million
  * Number of personnel at the end of the reporting period was 4,228 (2,261)
  * Earnings per share was EUR 0.10 (0.03)

 KEY FIGURES AND RATIOS                       1-3/2016 1-3/2015 Change%    2015

                                                3 mths   3 mths         12 mths

 INCOME STATEMENT

 Revenue, EUR million                            100.1     47.9     109   213.3

 EBITDA, EUR million                               7.0      3.0     132    11.6

 EBITDA %                                          7.0      6.3      11     5.4

 Operating profit excluding non-recurring
 items (EBIT), EUR million                         4.2      1.3     220     4.5

 Operating profit % excluding non-recurring
 items                                             4.2      2.7      53     2.1

 Operating profit (EBIT), EUR million              4.2      1.3     232     3.6

 Operating profit %                                4.2      2.6      59     1.7

 Profit before tax (EBT), EUR million              3.8      0.6     559     1.3



 SHARE RELATED INFORMATION

 Earnings per share (EPS), EUR                    0.10     0.03     216    0.03

 Equity per share, EUR                            4.56     0.73     527    4.47



 OTHER INFORMATION

 Return on capital employed, % (ROCE)              4.8      5.5     -13     3.4

 Return on equity, % (ROE)                         3.5     22.8     -84     2.3

 Equity ratio, %                                  43.8      8.1     440    50.5

 Gearing, %                                       21.5    633.8            25.2

 Net debt/adjusted EBITDA, 12 mths                 1.3      5.0     -75     1.9

 Interest bearing net debt, EUR million           20.7     69.5     -70    23.5

 Gross investments, EUR million                   10.3     14.1     -27    44.6

 Cash flow from operating activities              14.0      6.9     101    17.7

 Cash flow after investments                       3.9      2.8      40   -14.4

 Average number of personnel                     4,206    2,073     103   2,503

 Personnel at the end of the period              4,228    2,261      87   3,047



Mikko Wirén, CEO of Pihlajalinna:

Pihlajalinna Group's consolidated revenue grew by 109 per cent during the first
quarter, reaching EUR 100.1 (47.9) million. A significant part of this growth
was organic, particularly from the new social and healthcare outsourcing
contracts in Kuusiokunnat, Jämsä and Kihniö. Profitability developed favourably.
EBITDA amounted to EUR 7.0 million - an increase of 132 per cent - and operating
profit improved by 232 per cent year-on-year to EUR 4.2 million.

Our revenue grew according to plan, which considerably decreased the relative
proportion of administrative costs and thereby improved the year-on-year
profitability of all of our businesses. We have successfully implemented part of
the social and healthcare outsourcing contracts and reached a satisfactory
profitability level in these. Our goal for this financial year is to improve our
profitability from last year, and so far we have succeeded in this as planned.

On 6 April 2016, the Finnish Government's ministerial working group on reforms
published further policy outlines on the healthcare and social welfare reform.
The main objectives of the reform have remained unchanged: to bridge the
sustainability gap in public finances by EUR 3 billion and narrow down
differences in health and wellbeing. The governing principle is to improve cost
management. The ambitious timetable has remained unchanged: the reform is
intended to come into force in January 2019.

The Act on Organising Healthcare and Social Welfare Services will be circulated
for consultation in May 2016. Let us hope that a sufficiently large group of
private and third-sector operators are also allowed to comment on the proposed
Act, not only the representatives of the present public operators.
The particularly positive aspects of the Government's policy included the
freedom of choice and equal operating opportunities for public, private and
third sector service providers. In practice, this will require considerably
better cost transparency, uniform quality criteria for all operators and a more
customer-oriented operating model.

We must ensure that true freedom of choice is put into practice, including in
specialised care. Otherwise, the targeted cost savings from the healthcare and
social welfare reform will not materialise. A public monopoly is justified only
in the most demanding specialised care. The crucial elements of healthcare and
social welfare include effective prevention, quick and easy access to primary
care and social services, and well-functioning integrated care pathways to cost-
effective specialised care services.

PIHLAJALINNA'S OUTLOOK FOR 2016 UNCHAGED

Pihlajalinna's consolidated revenue is expected to exceed EUR 400 million in
2016 and the EBIT margin, excluding non-recurring items, is expected to improve
compared to 2015.

In the financial year 2015, the EBIT margin, excluding non-recurring items, was
2.1 per cent.



FINANCIAL REPORTING IN 2016

Pihlajalinna will publish an additional two interim reports in 2016:

Report, Publication date
Interim report January-June 2016, Wednesday 17 August 2016
Interim report January-September 2016, Friday 11 November 2016



Helsinki, 10 May 2016

Pihlajalinna Plc's Board of Directors



BRIEFING

Pihlajalinna Plc will hold a briefing for analysts and the media on Tuesday 10
May 2016 at 9.30 a.m. at restaurant Savoy, 7th floor, meeting room 2,
Eteläesplanadi 14, 00100 Helsinki, Finland.

Registration for the briefing
Participants should register for the briefing starting on 10 May at 9.30 a.m.
via email: heidi.rainesalo@pihlajalinna.fi.

FURTHER INFORMATION
Mikko Wirén, CEO, tel. +358 50 3220 927
Niclas Köhler, CFO, tel. +358 40 342 4420
Terhi Kivinen, SVP Communications, Marketing and IR, tel. +358 40 848 4001

DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.investors.pihlajalinna-konserni.fi



Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services
providers in Finland. The Company provides social and healthcare services for
households, companies, insurance companies and public sector entities in private
clinics, health centres, dental clinics and hospitals around Finland.
Pihlajalinna provides general practitioner and specialised care services,
including emergency and on-call services, a wide range of surgical services,
occupational healthcare and dental care services, in private clinics and
hospitals operating under the Dextra brand. Under the Pihlajalinna brand the
Company, in cooperation with the public sector, offers social and healthcare
service provision models to public sector entities with the aim of providing
high quality services for public pay healthcare customers.



[HUG#2010634]

Attachments:

Pihlajalinna Q1 2016.pdf