Pihlajalinna Oyj - Interim report (Q1 and Q3)

Pihlajalinna Interim Report 1 January–30 September 2017 (9 months)

Pihlajalinna Plc          Interim Report     9 November 2017 at 8.00 a.m.

Pihlajalinna Interim Report 1 January–30 September 2017 (9 months)

Strong third quarter in Primary and Social Care

Brief look at July–September:

  · Revenue amounted to EUR 99.4 (93.9) million – an increase of 6 per cent
  · EBITDA amounted to EUR 9.1 (6.8) million
  · Adjusted EBITDA amounted to EUR 9.0 (7.8) million – an increase of 15 per
cent
  · Operating profit (EBIT) was EUR 5.5 (3.6) million
  · Adjusted operating profit (EBIT) was EUR 5.4 (4.7) million – an increase of
15 per cent
  · Earnings per share (EPS) was EUR 0.09 (0.08)

Brief look at January–September:

  · Revenue amounted to EUR 316.1 (295.4) million – an increase of 7 per cent
  · EBITDA amounted to EUR 25.2 (20.8) million
  · Adjusted EBITDA amounted to EUR 25.6 (21.8) million – an increase of 17 per
cent
  · Operating profit (EBIT) was EUR 14.6 (11.3) million
  · Adjusted operating profit (EBIT) was EUR 15.1 (12.8) million – an increase
of 18 per cent
  · Number of personnel at the end of the reporting period was 4,767 (4,470)
  · Earnings per share (EPS) was EUR 0.34 (0.27)

KEY FIGURES    7–9/2017  7–9/2016  1–9/2017  1–9/2016   2016 12 months
AND RATIOS                                   9 months
               3 months  3 months  9 months

INCOME
STATEMENT
Revenue, EUR   99.4      93.9      316.1     295.4      399.1
million
EBITDA, EUR    9.1       6.8       25.2      20.8       27.9
million
EBITDA, %      9.2       7.3       8.0       7.1        7.0
Adjusted       9.0       7.8       25.6      21.8       28.9
EBITDA, EUR
million
Adjusted       9.1       8.3       8.1       7.4        7.2
EBITDA, %
Operating      5.5       3.6       14.6      11.3       15.1
profit
(EBIT),
EUR million
Operating      5.5       3.8       4.6       3.8        3.8
profit, %
Adjusted       5.4       4.7       15.1      12.8       16.6
operating
profit
(EBIT), EUR
million
Adjusted       5.4       5.0       4.8       4.3        4.2
operating
profit, %
Profit         5.0       3.3       13.3      10.2       13.7
before tax
(EBT),
EUR million

SHARE
-RELATED
INFORMATION
Earnings per   0.09      0.08      0.34      0.27       0.39
share
(EPS), EUR
Equity per                         4.80      4.74       4.74
share, EUR

OTHER
INFORMATION
Return on                          11.4      9.0        10.8
capital
employed
(ROCE), %
Return on                          13.3      8.7        11.1
equity
(ROE),
%
Equity                             43.0      47.3       46.5
ratio, %
Gearing, %                         41.7      26.8       21.9
Interest                           43.4      27.0       22.1
-bearing net
debt, EUR
million
Net                                1.3       1.1        0.8
debt/adjusted

EBITDA, 12
months
Gross          12.8      1.1       20.5      21.9       27.4
investments,
EUR
million*
Cash flow      4.2       9.8       18.5      19.1       32.3
from
operating
activities,
EUR million
Cash flow      -4.3      7.0       3.7       -0.3       6.8
after
investments,
EUR
million
Average                            3,881     3,508      3,503
number of
personnel
(FTE)**
Personnel at                       4,767     4,470      4,407
the end of
the period
(NOE)

* Finance leases are not included in the gross investments
** Pihlajalinna has transitioned to reporting the number of personnel on average
as full-time equivalents (FTE) instead of the previous Average number of
personnel indicator.

Aarne Aktan, CEO of Pihlajalinna:

Pihlajalinna’s third quarter in 2017 was good. Profitability clearly improved,
though the organic growth in revenue remained at 2.0 per cent.

The Primary and Social Care (P & S) segment had an excellent third quarter.
Particularly the profitability of complete outsourcings exceeded our
expectations. The profitability of complete outsourcings in general is better
during summer holiday season due to decrease in personnel costs while revenue
remains constant throughout the year. The profitability of staffing services
remained good.

The third quarter of the Private Clinics and Specialised Care (C & S) segment
was in line with expectations. Cost development in Public Specialised Care was
better than expected. In accordance with the nature of Public Specialised Care,
variations between quarters are fairly big. The profitability of Private
Clinics, Occupational Healthcare and surgical operations was in line with
expectations. Demand for Dental Care, on the other hand, continued to be weak.

After the reporting period, the Finnish government presented the most recent
draft on the legislative proposal concerning the Act on Freedom of Choice,
related to the health and social services reform. The proposal did not include
any unexpected, major changes. The schedule for the freedom of choice provided
by the health and social services reform was postponed again, which will give
Pihlajalinna time to prepare for it. We believe that the legislative package
will be adopted during the first half of 2018.

The municipal market has been very active due to the postponement of the health
and social services reform, but many municipalities are waiting for the final
content of the legislative reform.

Pihlajalinna’s outlook for 2017 unchanged

Pihlajalinna’s revenue is expected to grow and adjusted operating profit (EBIT)
to improve compared to 2016. In the financial year 2016, revenue was EUR 399.1
million and the adjusted operating profit (EBIT) was EUR 16.6 million.

Pihlajalinna’s Capital Markets Day 2017 and financial reporting in 2018

Pihlajalinna’s Capital Market Day for analysts and institutional investors will
be held in on Wednesday, 22 November 2017, at 9:00 a.m.–12:30 p.m. at GLO Hotel
Kluuvi, Kluuvikatu 4, Helsinki.

Financial Statements Bulletin 2017: Tuesday, 13 February 2018
Financial Statements and Board of Directors’ report: no later than in week 11
Interim Report January–March: Friday, 4 May 2018
Half-Year Financial Report January–June: Thursday, 16 August 2018
Interim Report January–September: Thursday, 1 November 2018

Pihlajalinna Plc’s Annual General Meeting is scheduled for 5 April 2018 in
Tampere, Finland.

Briefing

Pihlajalinna will hold a briefing for analysts and the media on Thursday, 9
November 2017 at 10:00 a.m. in the Paavo Nurmi room at Hotel Kämp,
Pohjoisesplanadi 29, 00100 Helsinki, Finland.

Helsinki, 8 November 2017

Pihlajalinna Plc’s Board of Directors
Further information:
Aarne Aktan, CEO, +358 40 342 4440
Tarja Rantala, interim CFO, +358 40 774 9290
Siri Markula, Head of Communications and IR, +358 40 743 2177,
siri.markula@pihlajalinna.fi

Distribution:
Nasdaq Helsinki
Major media
investors.pihlajalinna.fi
Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services
providers in Finland. The company serves private individuals, businesses,
insurance companies and public sector entities, such as municipalities and joint
municipal authorities. In its private clinics and hospitals Pihlajalinna
provides general practitioner services, specialised care, emergency and on-call
services, a wide range of surgical services, occupational healthcare and dental
care. In addition, the company offers innovative social and healthcare service
provision models to public sector entities.

Priedai:

11080255.pdf