ANNUAL REPORT 2020 REPORT ANNUAL 2020 Annual report 2020 Key figures CONTENTS Pihlajalinna 2020 .....................................2 REVENUE EUR NET DEBT/EBITDA EARNINGS PER SHARE From the CEO ..........................................4 31 Dec 2020 EUR Business and strategy ..........................5 Strategy 2021-2023 ................................5 508,7 million 3,6 0,39 Operating environment ........................6 (2019: 518,6) (31 Dec 2019: 3.5) (2019: 0,15) Trends and megatrends .......................8 -1,9% target below 3 Remote services .....................................10 ADJUSTED OPERATING PROFIT (EBIT) EUR Customer groups ....................................12 ADJUSTED EBITDA NUMBER OF PERSONNEL 31 Dec 2020 Responsibility ..........................................18 EUR Quality and safety of care ...................18 20,8 million / 4,1% Data protection and 2019: 20,8 / 4,0%) 54,6 5,995 information security ..............................20 million (31 Dec 2019: 5,815) Personnel ...................................................21 target over 7% (2019: 55,1) Economic responsibility .......................25 Impact maps .............................................26 Board of Directors ..................................30 Management Team .................................31 Report by the Board of Directors ....32 Pihlajalinna • Market leader in the complete outsourcing of social Audited financial statements ............57 and healthcare services in Finland Auditor’s report .......................................103 Pihlajalinna is one of Finland’s • The Group pays all of its taxes to Finland Information for shareholders .............107 leading providers of social, • Headquartered in Kehräsaari, Tampere healthcare and wellbeing services. • Extensive range of services offered to both private The Group’s customers include and public sector customers private individuals, businesses, • Strong geographical presence in Pirkanmaa, South Ostrobothnia, Central Finland, Pohjois-Savo and the insurance companies and public Helsinki Metropolitan Area sector entities, such as municipalities • Values: energy, ethics, open-mindedness and joint municipal authorities. • Listed on the main list of Nasdaq Helsinki in 2015 This is voluntary published pdf report, so it does not fulfill the disclosure 2 BUSINESS AND STRATEGY | RESPONSIBILITY | REPORT BY THE BOARD OF DIRECTORS | AUDITED FINANCIAL STATEMENTS obligation pursuant to Section 7:5§ of the Securities Markets Act. Timeline 2020 7 Jan 22 Jun Pihlajalinna opens Tavastia private clinic in Helsinki Pihlajalinna and the municipal education and training consortium Sasky launch training “This transaction represents an important strategic suc- 9 Jan cooperation in Tampere cess for Pihlajalinna. The acquisition of Työterveys Virta Mehiläinen’s tender offer period starts supports the growth of the new private clinic in Oulu and expands our service offering in North Ostrobothnia. At the 5 Feb The municipal education and training consortium Sasky expands same time, we will improve the services offered to Työter- Pihlajalinna opens an Uniikki special housing unit in Riihimäki its practical nurse training in Tampere in partnership with veys Virta’s existing occupational healthcare customers Pihlajalinna. Pihlajalinna has strong expertise in the production through the addition of Pihlajalinna’s nurse telephone and 24 Feb and development of social and healthcare services. The closer remote medical services and the introduction of a work Pihlajalinna launches a new cardiovascular symptom cooperation with Sasky provides an excellent foundation for new ability management portal. This will further increase the service in partnership with the Heart Hospital and inspiring approaches to learning. “Together, we can develop convenience of service use for occupational healthcare training in response to the challenges of the developing social customers,” says Joni Aaltonen, CEO of Pihlajalinna. and healthcare service sector by, for example, incorporating Pihlajalinna’s telephone service and mobile application can digital services and methods into the students’ professional skills be used to seek assistance regarding cardiovascular symp- in the early stages of the learning path,” says Elina Heliö, Chief toms in adults. The service is intended for the assessment People and Culture Officer at Pihlajalinna. 2 Nov of non-urgent sensations of arrhythmia and chest pain or Pihlajalinna opens an occupational health centre other symptoms of suspected cardiovascular origin, for in Pello example. The service is produced in partnership with the 11 Sep Heart Hospital, which offers specialised care services to Pihlajalinna is selected as the outpatient care service 25 Nov patients where necessary. The early diagnosis of cardio- Mehiläinen will not complete its tender offer vascular disease improves outcomes and helps the patient provider of Huhtasuo health centre in Jyväskylä manage in their daily life. 23 Sep 30 Nov Pihlajalinna is selected to produce COVID-19 testing Pihlajalinna starts COVID-19 antigen testing services for HUS 20 Mar 1 Dec Forever fitness centres are closed temporarily due Pihlajalinna starts as the service provider for to the COVID-19 epidemic "Pihlajalinna has a strong background as a partner to the the Huhtasuo health centre in Jyväskylä public sector, and it is important for us to contribute to the 23 Mar cooperation now that COVID-19 testing is further enhanced in Pihlajalinna starts COVID-19 testing accordance with the national test-trace-isolate strategy,” says “Our goal is to provide high-quality services in Huhta- Pihlajalinna’s Chief Operating OfficerTeija Kulmala. suo through a combination of in-person appointments 27 Mar and remote consultations. We will reshape operating Pihlajalinna temporarily withdraws its outlook due practices to combine the existing strong nurse team model with new operating methods, such as remote to the COVID-19 epidemic 29 Sep The FCCA proposes to the Market Court that the merger services, which will improve the availability and ac- 31 Mar cessibility of appointments in Huhtasuo,” says Sanna between Mehiläinen and Pihlajalinna be prohibited Poikonen, Regional Director for Central Finland at The primary care service agreement between Pihlajalinna. Pihlajalinna and Hattula expires 5 Oct Pihlajalinna petitions the Chancellor of Justice to 1 Apr investigate the drafting of the legislation on social Pihlajalinna starts cooperation negotiations with and healthcare services 8 Dec the entire personnel concerning temporary layoffs Bottenhavets Hälsa − Selkämeren Terveys 9 Oct is selected as the name of the joint venture 4 May Pihlajalinna wins a public bidding competition for the providing social and healthcare services in Forever fitness centres reopen on a restricted basis sale of Työterveys Virta Oy’s share capital and Kristiinankaupunki Pihlajalinna opens an occupational health centre in occupational healthcare services Sodankylä BUSINESS AND STRATEGY | RESPONSIBILITY | REPORT BY THE BOARD OF DIRECTORS | AUDITED FINANCIAL STATEMENTS 3 From the CEO he year 2020 was an taken in our private clinic, occupational outsourcing in Jyväskylä, which began in extraordinary peri- healthcare and hospital operations also December, has received good customer Tod globally, and its supported the improvement in earnings feedback. Huhtasuo is an important impacts were also seen at per share. proving ground for us, as we see broader Pihlajalinna. I am particularly Our COVID-19 testing operations began opportunities for our health centre service satisfied with our customer in April and the volume of testing services models in public services. service and the flexibility that subsequently began to grow significantly Customers’ service consumption habits our organisation demonstrat- in August. COVID-19 testing increased rev- changed quickly due to the COVID-19 ed in shifting the focus of our enue for the financial year 2020 by EUR epidemic. Pihlajalinna’s preparedness services – including public services 11.4 million. In addition to operating its to deliver extensive remote services as well as services offered directly own testing stations, Pihlajalinna produc- proved to be good. Our remote services to consumers – during the COVID-19 es sample-taking services for municipal were used nearly 500,000 times during epidemic. customers and HUS, for example. the year, representing 44 per cent of all I am also pleased with our strong profit In October, Pihlajalinna was selected consultations. The use of video and chat performance, especially in the fourth as the best service provider in a public consultations grew threefold. quarter, which shows that our efficiency bidding competition organised for the sale We have specified our strategy further. improvement programme has had a of Työterveys Virta Oy’s share capital and We continue to focus on good coopera- long-term impact on our profitability. occupational health services. Our position tion with our partners. Ensuring that our Partnerships and occupational healthcare in the Oulu region will be significantly services are smooth and easy to use is key have increased the use of our services and strengthened by the transaction. Our mar- to winning our customers’ trust regardless elevated the capacity utilisation rates of ket share in occupational healthcare ser- of who pays for the service. We will focus our operating locations. Nevertheless, we vices in the region will increase to approx- on digital sales and service channels and have