Pihlajalinna Oyj - Company Announcement

Pihlajalinna Oyj: Pihlajalinna acquires Itä-Suomen Lääkärikeskus

Pihlajalinna Oyj Stock Exchange release 14 December 2015, 9.55 EET

Pihlajalinna  acquires  Itä-Suomen Lääkärikeskus

According to the agreement signed this morning Pihlajalinna Oyj's subsidiary
company Pihlajalinna Terveys Oy has agreed to acquire from current owners over
90 % of all shares of Itä-Suomen Lääkärikeskus Oy. The net debt-free value of
the acquisition target is 6.8 million euros. The transaction price will be paid
fully in cash when the acquisition is completed. 

Itä-Suomen Lääkärikeskus Oy is currently in a demerging process and the
acquisition target is the company where the business operations are moved into.
In the demerger the real estate companies and the long term costs such as long
term real estate loans, subsidiary stock and investments will be left out of
the acquisition. The demerger is expected to come into force on January 1st2016
and the acquisition is expected to come into force by the end of the first
quarter of 2016.The acquired company will continue to rent the current
premises.  Itä-Suomen Lääkärikeskus Oy's two private clinics in Joensuu and
private clinics in Nurmes and Outokumpu are included in the acquisition. The
current personnel of Itä-Suomen Lääkärikeskus will continue in the service of
Pihlajalinna Group and its branch clinics will become part of Pihlajalinna's
Dextra chain. 

The acquisition strengthens Pihlajalinna's growth to become the leading social
and healthcare company in Finland according to its strategy.  Itä-Suomen
Lääkärikeskus Oy is the largest and most well-known private healthcare service
provider in Joensuu that offers comprehensive general and specialist
practitioner services, laboratory and diagnostic services as well as
occupational healthcare and private hospital services. The company has 53
healthcare professional and other staff as well as 100 practitioners.  In 2014
Itä-Suomen Lääkärikeskus Oy's net sales were 6.5 million euros (total sales
apprx. 11.8 million euros) and operating profit 1.0 million euros. Itä-Suomen
Lääkärikeskus Oy has two private clinics in Joensuu and private clinics in
Nurmes and Outokumpu. 

Pihlajalinna CEO Mikko Wirén: I'm very happy that this acquisition is realized.
Our objective is to grow to a national player and now through Itä-Suomen
Lääkärikeskus Oy we will become a significant operator in many locations in
Eastern Finland. Itä-Suomen Lääkärikeskus has operated in Joensuu already 25
years and is known for its high quality and versatile services. This
acquisition brings also more growth to Private clinics and Specialist care
segment revenue. 

Itä-Suomen Lääkärikeskus Oy CEO Urho Väätäinen: The domestic Pihlajalinna Group
offers an excellent opportunity to the high quality development of Itä-Suomen
Lääkärikeskus' private clinic operations also in the future. I believe that the
acquisition will guarantee high class private clinic services to our clients in
the locations we operate in. 

                                                                                
P&L summary, Itä-Suomen                                                     
 Lääkärikeskus Oy (FAS)                                                         
€'000                           FY13A     FY14A     1-9/2014*      1-9/2015*    
--------------------------------------------------------------------------------
Gross sales                       11 396    11 753          8 567          9 354
Practitioner's share             (5 132)   (5 210)        (3 720)        (4 207)
Net sales                          6 264     6 543          4 847          5 148
Other operating income               133       113             92             39
Materials and supplies           (1 416)   (1 589)        (1 125)        (1 165)
Personnel expenses               (2 052)   (2 114)        (1 675)        (1 751)
Other operating expenses         (1 331)   (1 498)        (1 132)        (1 218)
--------------------------------------------------------------------------------
EBITDA                             1 598     1 456          1 006          1 053
Depreciation and amortization      (275)     (466)  not available  not available
--------------------------------------------------------------------------------
EBIT                               1 323       991  not available  not available
Financial income                     181       111                              
Financial expenses                  (17)      (48)                              
Taxes                              (366)     (212)                              
Profit for the year                1 121       841                              
================================================================================
* 1-9/2015 P&L and BS are not comparable due to the                         
 inadequate closing accruals                                                    
                                                                                



                                                                                
                                                                                
Balance sheet summary                                                           
€'000                                 31.12.2013      31.12.2014  30.9.2015*    
--------------------------------------------------------------------------------
Intangible assets                          1 680           1 595           1 727
Tangible assets                              374             329             369
Investments                                3 792           5 049           5 530
Non-current assets                         5 846           6 972           7 626
Loan receivables                              54              54              49
Inventories                                  343             328             328
Short-term receivables                       799             855             592
Short-term investments                       405             191             170
Cash and cash equivalents                    133             115              48
Total assets                               7 579           8 515           8 813
================================================================================
                                                                                
Equity                                     6 775           7 104           7 514
Long-term loans                               27             609             502
Short-term loans                             777             802             797
Total equity and liabilities               7 579           8 515           8 813
================================================================================
* 1-9/2015 P&L and BS are not comparable due to the inadequate closing      
 accruals                                                                       
                                                                                

Further information:

Mikko Wirén, CEO, Pihlajalinna Oyj, +358 50 322 0927

Urho Väätäinen, CEO, Itä-Suomen Lääkärikeskus Oy, +358 400 276 438

Terhi Kivinen, SVP, Communications, Marketing and IR, Pihlajalinna Oyj, +358 40
848 4001, terhi.kivinen@pihlajalinna.fi 

Distribution

Nasdaq OMX Helsinki

Key media

investors.pihlajalinna-konserni.fi