Welcome to this thermostat's 1st ever Capital Markets Day. My name is Kathy, and and sustainability here at Therabas. It is my great, pleasure to introduce our speakers today. First of all, Mr. Vile Ejo, our CEO, who have had the pleasure of knowing already over a decade, Vela has a long experience from trans transportation And Aviation Industries and especially transformation, project and and development in that area.
And then we have, Mrs. Evanueber Oksanen, who's, if you have any special questions related to applied mathematics or queuing theory. She's still your person to go to. She has a PhD in in that area. And Eva's our director of, a strategy and on PMO.
And then she's also been instrumental in ramping up our, testing capability in COVID-nineteen as that was also a previous role to a day ago. So Avaya is a multitasker here at Thervastava. Then we have a mid the Petri Bono, our Chief Medical Officer, Petri joined the Tervestaro in 2019, and he has a long experience from medical leadership roles and also from clinical research. Following after, after, after that, we have Mr. Nicki Kotilainen, who's already long, long term, the rest of the person, already before joining the company in 2015.
He's been working with the rest of the case in advisory role when he was working at Boston Consulting Group and advising on strategy, on when Bridgepoint was selling the company to EQ date back in the days. Then we have my old and new colleague, Nora Hatterma, who's joined the company a month ago. So I'm really impressed that she was willing to join us here today and speak about revenue management and pricing which is her area of specialty of over 15 years from both transportation and then aviation and management consulting. And then finally, we have Mr. Ilkala, who most of you already know, since the IPO, at least, he's a long timer here at joined the company already in 2012.
And then even before joining the company and in his current capacity, he worked with terrestrial case in an advisory rollback at the EU. We have really fascinating program for you today. In my humble opinion, of course, we'll be talking about a lot how we see the COVID-nineteen pandemic, transforming the industry for good and how we are prepared to take on this opportunity going forward. We'll also be talking about the strategic focus areas and then how these initiatives that, Nikkei Nora and Eva, especially will elaborate in their presentations will contribute to reaching our financial targets going forward. But without further ado, I will give this over to Will.
Excellent.
Thank you, Katip. Good day from my behalf. Kathy introduced me shortly already, but, for those of you who don't don't know me who have not met me, will EHA is the name, CEO since, last December, in Telabas Tower, extremely proud and happy to be here today presenting, our greater agenda with with the best brains, I would say, in this industry, at least in Finland. This, as Kathy said, this package is, extensive. It's fairly heavy, but very good thing about our agenda and our presentations is that we are, ready to take as difficult questions as you, can, come up with This is not headline strategy.
This is already very deep into implementation phase we are talking about. So please challenge us and challenge our experts whenever you, you are, come up with a question. Kathy, mentioned already that we are going talk about COVID-ninety. This is not COVID-nineteen presentation as such. We are talking about tervestal history, but it's proper, being in this industry to comment, quite extensively, the impact that we see of, from COVID 19 crisis to this industry in, sort of early history of the crisis 1st phase, then, present a little bit of a trading update and then how we see the future and what is going to be the permanent change, which is accelerated by this crisis.
So good things come to those who won't wait this is the this is one of the slogans that we have used during this crisis, sort of demonstrating our approach to tackling this crisis, which is agility, speed, flexibility, of course, built on hard medical science. COVID 19 has tested, terawestala, thus far in 2 different, very different phases. So, early on, of course, in this crisis, Finland was basically closing down. We had lockdown, in place, during April, then the challenge for us was, basically threefold scale down, with a very, very hard demand supply, management, services where the, demand declined. Then, shift very promptly, to, to, digital channels and then scale down the cost.
And, this 1st phase of, of corona crisis, I would say that test, that test, therapist dialogue passed with, flying colors. We reported, in our Q2, reporting, First of all, our ability to scale up, testing our ability to, ramp up digital services which is sort of unseen in this industry. And, equally importantly, our ability to scale down our cost base in this fast and dynamic situation. So you could see that, that one in our Q2 numbers and, that was, sort of surprise to the market, how, dynamic we were with our base, with our cost base. Not to ourselves, but to the rest of the world.
Then that was the 1st phase. 2nd phase, is the one that we are living right now. That sort of, post mid summer season, Finland, as we all know, is again mobile. People are moving about. People are not any more afraid of, coming to appointments or taking care of that health care needs At the same time, we have seen this search search of COVID-nineteen test for obvious reasons because Finland is mobile, and there's this risk lurking around in the corners, this, service is needed, basically.
In sort of unprecedented numbers. We, for H2, it was, of course, very difficult to make an estimate on the forecast, how we see the recovery. What we, we played with scenarios. We basically played with 4 different scenarios before H2 and then selected one as our base best scenario. So for sure, we have a scenario of how, how base underlying business is going to recover.
On that one, we, also disclosed some numbers early on, early numbers from H2. So you know how July went from, underlying business point of view for private and corporate customers. Then of course, there's a great tool available because, 2 different organizations are publishing credit card data, and we have said it, it's, that it's, quite good proxy. For, for our recovery. So, there you have, quite good information, where the underlying business is.
As to H2 in internal and underlying business in our corporate private and public businesses, we can say that we are at our plan we, we are at our scenario. Then on top of that one, of course, it has been surprise, at least for many that, and this testing activity has been so vast. So there's a lack of resources in testing, and there's a surge in demand for our testing services. For that one, we have not actively disclosed any specific numbers, but actually you can follow our testing, testing volumes in our open data. We are reporting testing volumes And then again, of course, the testing, consumer prices are available, of course, that they are out there in the open.
So course, you can do your own math and estimate what is this, additional tailwind doing, doing, for the business. Later in the presentation, Mr. Patrick Bono, who knows COVID 19 better than better than anybody, will give some more light on, sort of, medical side of COVID-nineteen and how we see that scenario building up? What are the, what are the, things that could happen when this epidemic evolves over time. So immediate, impact, on our business.
Is, sort of self evident. And, I, I sort of described a couple of, a couple of things, a couple of and few data points, how we can then then estimate, the business recovery, during H2. At least equally important is, the longer term impact of COVID-nineteen on our business, on Healthcare in generally, generally, even globally. And, in a way, this is self evident, but it's nice to have some, some proof points and some some sort of data points, what is the take, by the consumers and also by the professionals on, on, healthcare in the future and an impact of COVID-nineteen. There are many things the many trends that get accelerated by COVID-nineteen.
People are more aware of their health. They, they are interested in finding out data, around, around their own health and, and, and different diseases. Overall, well- well-being becomes more and more, interesting and important for for our people, then, people are willing actually to invest more also in their own health. Sort of, as we have seen, early on and during this COVID-nineteen crisis, this is, suddenly the most important thing that there's this, around, globally. So the this is, sort of, catalyst for transformation in this business to start with.
There are some other aspects to COVID-nineteen, we can see, in this crisis situation, of course, that mental health becomes more, more important as one, one's, one, one, medical area. And, then different type of gadgets and personal data becomes also interesting. At least I have, heard many stories around that, around, that, for example, ordering or whatever polar data was the first sign that now there's something wrong that, and the end of the day, it was COVID-nineteen. The medical science, sort of, around that one, maybe, maybe, Patrick can comment on that one. It's not hard medical science as such, but it's just a manifestation that people are really interested in, in a data and data presents an opportunity for this industry going forward.
So
So I said that the, the attitude to, health care is changing. Most self evident area where where this change, can be seen is, digital health. Here, we have some data from McKinsey. This is from U. S.
Market and, self evident shift have been seen in attitudes, both, from consumers and both from, medical organizations and professionals. What this states basically is, is that, people, on a consumer side are willing to use digital health. They are enjoying the experience they are basically already loving it. On the other hand, professional organizations and professionals are willing to accept this one. They are willing to test this one, how this actually works.
And, if you compare this, this industry to some others and to some other transformation stories, we are in a phase, after which the development is going to be really speedy. When consumers, already love this stuff, and there's a wide acceptance among professionals, this is going to be an implementation, competition going forward. Then obvious question from Tervest Telecom point of view is, where do we stand in this transformation? Are we behind? Are we ahead?
And, and, it's quite nice actually to present, some, quite impressive data points, around terabytes, tallow, digital health. Many of you have heard about Teladoc, recent merger, between Teladoc and Livingo It's sort of a rock star of, digital health with valuation around, 17,000,000,000 Then looking at the scale, Teladoc's home market, U S, if you take, Digital visits per capita, in U. S. By Teladoc and then thermostat digital visit per capita in Finland, we are, we are the, bigger one by far. So actually, you can state that we are leading this change Finland is a mature market when it comes to digital services.
And we have early on started this development, so we are already even in absolute numbers, taking into consideration the scale and the market size, this is quite impressive, This year, we are not reaching quite 1,000,000 digital visits but we will land between, 500,001,000,000, somewhere in there. So it's a, the development is really, really speedy. And we want to push this 1. Terrestrial started its digital, health organization as a separate entities on 4 years back So we have been building these pipes already, 4 years. Now, the situation was just a catalyst for this, demand.
And, we were ready. We were fast to react, and, and, you can, you can see the see this one in the numbers. From our point of view, from our business model point of view, important thing to understand is, compared to some other digital players, tervestala is not concentrating on only one slice of the care chain or service chain. Our take, on this one is as in, in our normal, services, integrated care chains. So, matching, sort of full, customer demand to our services.
That's going to be the future of health care. People are not interested in buying one slice of the service from here and the other one from there. You need to have a platform, which is combining these services in a meaningful way, to meaningful products and, and, and then, ability to operate that platform so that the delivery is seamless. And That is our DNA, and, and, and that is, that is our way forward as well. So, that was a very short commentary on COVID-nineteen's impact on the reversal of short term sort of history present, and then, a short, commentary on the transformation that, this crisis, presents to this health, health care business.
I think it's a highly valuable to, to dive slightly deeper into this area. As I said, this is not COVID-nineteen seminar as such, But since we do have, the expertise, we feel that we are leading the pack in, in the response, to this crisis, we thought that Patri Pona, our Chief Medical Officer, will give a, more details on how he sees and how we see crisis from, from medical point of view. And then you'll get even more details, more insights, and can ask more detailed questions as well. Patrick, please.
Thank you, Bill, and good afternoon, everyone. My name is Petrobrano, and I'm the chief medical officer at Theravistalo. I've been in this position for one and a half years and, before that, I've been, I've been trained at Helsinki University Hospital, 1st as a medical oncologist, and thereafter I've been in various leadership positions there leading the comprehensive cancer center for 6, 7 years. And thereafter, I was the chief medical officer of the whole, Helsinki University. Hospital.
So this is my background. How I come to this, COVID-nineteen pandemic, so And based on that experience, so I will comment how we've been, doing with the transformation test and I'm think I'm really proud to tell you today about the, ramp up and how we have asked, answered the demand of our customers to this pandemic. In the second part of my talk, I will also reflect a little bit about the world class, quality work we are doing at tervestalo. And of course in that, I will also, focus on the added value provide for our customers if they are following the way Theravistalo is taking care of them. So during the COVID pandemic, we have performed more than 70,000, COVID tests at Tervestalo.
At the moment, we do something between 2,000 or 2a half 1000 tests per day, meaning that, if we do in Finland, 10 to 13,000 tests a day, so, large number of all the test performed in Finland is actually done by, by terrorists, Tallo. We I show here the numbers on the left side of the panel And, you can see sorry for those, who cannot, follow in Finnish. We, we have actually done both tests with the classical golden standard, the PCR test. We we were the first ones in Finland, to introduce that, test as a, private provider. And then, thereafter, we also introduced the antibody test.
And now the most recent one, is the fastest antigen test, that we are now out and already testing with our first patients with that. The ramp up has been really fast. On the second panel, you can see the ramp up, And with so that, in the middle, those, smallest panels, so, so they, they were the quiet summer summer weeks when the, testing was lower in Finland and, their situation overall, was quite, stable, but now in August, you can see how fast the ramp up has been and the different colors, reflect different areas of Finland. For example, the dark blue, is, tests that have been performed here in in Helsinki. And capital area.
We published everything openly on web page. You can see the address there and you can follow also from the web page areas where we've done, different tests, how many positive, findings we've had and also you can follow that what's been the overall number of positive cases from our tests. In the beginning, it was about 5% and now during the last 2 months, it's been something like 0.2to0.3percent, percent of all the tests performed. What I'm really proud is that is the, panel on the right. That's the time it takes, from, the time from the onset of sample taken to the answer to the, patient.
So it's been 1 a half days, throughout the country, throughout the pandemic. So we've been able also in August, we've been able to maintain the speed in reporting the result to the customer. And this one and a half days, it's the speed, for the whole country. So it's, it's sure that if a sample was taken here in downtown Helsinki, it's a lot faster for the client, to get the result. But, this also includes all the cases from Eastern Finland, from Northern Finland, So the average has remained stable despite the, fast ramp up of the number of tests we have performed.
So what is the overall situation of COVID-nineteen at the moment. Globally, we are still, having increasing numbers of new cases, almost every day, and we are still in the middle of the first wave. Personally, I don't think at all that in Finland, we have a second wave ongoing, we have a second wave ongoing in testing. And, why so, is that the number absolute number of positive cases hasn't increased in Finland It's still just, 2 out of 1000 tests, that are positive in the in the tests. But in some parts of Europe, Absolutely.
It may be different. You can see on the on the left side that, the the number of positive cases after after coming coming down at the end of the, spring. So it has started to rise quite rapidly, for example, in Spain, in France, and, we may talk in on a European level, we may talk about a second wave. No one knows what actually will be the future of COVID-nineteen This is, a figure taking from one article published, in in US, about possible scenarios and this is the figure what I personally most believe in. I don't think we are just, in, just getting close to a major, major peak coming later.
I I think we are experiencing the largest and, 1st wave globally at the moment. And there will be further smaller waves, coming every now and then for the next 2, 3 years, meaning that we need to, learn how to live, with this, pandemic. At Telvestalo, we have all the testing modalities available to our customers now. And I'm really proud that we've been able, to also maintain the quality in the testing, and we've been maintained to implement them rapidly, to our armamentarium, of different, tests. However, the field is, moving forward and is changing constantly.
On the left side, this is, from Saturday new, almost landmark paper coming from the Bible of Medicine New England Journal of Medicine, where it was shown that actually what we're doing everywhere is now is that we're taking the sample from the nasopharyngeal, cavity with the swab. And, so that, if a test is taking directly from the saliva, so actually the end result is not worse. Meaning that the area where the, test will be taken is likely to change in future and also, different new, tests, test modalities that can be directly used by the, by the consumer may also become available. This is, on the right side, FDA has announced, half green light to a new kind of test by Abbott that, will, test directly, from the salive, this, the presence of, COVID-nineteen. Virus, it's it's we cannot predict that which will be the test that, everyone will be using, let's say, after next winter, but it's sure that as we've seen during the last 6 months, so there will be changes in the way Professor describes this, there's and also, what the result will mean for the patients or for the customers.
And the important thing is that, a professional can have all the available tests, in the, in the panel and, and that this is something that we've been proud all the time. And we've been able also to inform throughout the country, all our, professionals, how to use them and guide the usage of them according to the national guidelines. Actually, what we're doing, we're following the national guideline here. We have a hybrid strategy that is to test a lot, trace a lot, Then isolate and finally, try to treat, individuals. This shows about the speed of the ramp up that we've done with our digital appointments to meet the new demand.
Last year, we had about in 2019, 150,000 digital visits, and we've been able to ramp that up on some March weeks, to tenfold what it was, but, we've been able to maintain that also high level of digital visits, during the, coming coming months, now. And, at at the moment, on a weekly level, we are something between 15,000 to 20,000, digital appointments per week, which may then end up something between 500,000 to 1,000,000 which it's, in 2020, as Willa mentioned. Last year, of all doctors appointments in Atelvastala 3.5% were done via digital visits. And this year, we will probably land up some something around 15%. And, it's not just chat.
It's, also video appointments its video appointments without, reservation so that it's online video appointment. And finally, it we have also launched at the end of last year, also so called assisted reader appointment, which means that the patient can be with a nurse, 200 kilometers away from the doctor, and doctor can, as well, as school take lungs part, look at, mouse and ear and make a clinical diagnosis very well with our new new tools. Tools that we are using, at, digital appointments. And of course, this has also resulted that, our app OMA servers that you saw already a figure, in Wheeler's presentation, more customers are also getting familiar with that And actually, the users of that has been doubled during the, corona pandemic. Then life is not just about corona, although we've been very, active to maintain the quality also, related to all operations, to corona testing.
I'm really proud that we have been able to fully digitalize the path, for the customer so that, customer can, get access, to doctor within seconds make the reservation online by, himself or herself, then just go physically to get the test and then finally, automatically get the test result to the, OMA terrorist app, meaning that we have digitalized everything that can be done in the care path. And that's quality for me. But in a big picture about our other operators, if we go beyond COVID-nineteen, so, dervestalo has been showing the wave showing the way, in Nordic countries, how to do, world class quality work. On the right side, you you can see, an article, by the father of value based health care Professor Michael Porter, from Harvard Business School, who has actually published a landmark paper 4, 5 years ago about, strategy that will fix the health care. And, in a nutshell, it's about value based health care, so improving outcome and reducing cost.
And at Tervestalo, our quality framework, so we report that every year in a quality book that we've done now 4 years in a row this year's addition in 2019 that we published in February included 38 pages of quality data from our operations. So when we do our quality work. So actually what we do, we follow the international best standards. We follow the framework developed by, Michael Porter and colleagues then, that's actually provided to most, health care providers, why on non profit organization called IChom, which is, international consortium for health outcome measurement. So, our quality book includes most of the, aspects that I item recognizes being high quality work and we are really proud about that.
That means that all our professionals, including 5800, MDs, they follow the quality standards that we want them to follow. We think when we talk about quality and therverse dialogue, so of course, we have, as you can see in the quality triangle on the left side, we talk about so called, medical quality standards, like it's the outcome for the, patient and, and which can be very different in different diseases. But we also follow the customer quality and also the operational quality. Operational quality, meaning that we have swift processes, we have fast access to treatment, the lead time is fast, we avoid errors. We report and openly, we go through the, errors so that we can learn them.
We have we have an open culture for reporting and going through the errors, at terrace tallow. And by this way, we can, be better every year after year. Finally, of course, also in our quality work, we recognize that, customers need to be satisfied, what we provide for them. So of course, we, measure net promoter score, what they report and at, for example, during the COVID pandemic, that's been higher than ever before. But we also, report the functional outcome of the operations that we do so that patient reported out comes, patient repair based on experienced outcomes, which is the, grounding for the items standards.
That are followed by all major healthcare organizations globally. And finally, we've recognized that there's a new, entity called clinician's experience that is in the middle of the all the quality work, meaning that our professionals So they need also, be, satisfied with all the facilities, with all the guidance, with all the ways that we work And finally, with the open quality culture that we have at Pervestava. And of course, we measure also the improved Princeton's experience. Ai. It's in the heart, of detecting, individuals who are at risk, to develop, some illnesses in later life or are at risk, to be away from work, risk for the base, the basis, of our AI framework.
In the electrical medical records, that we have at thermostalo. We have data from over 4,000,000 Fins in our in our database. We perform our 33,500,000 visits, by that this, a year, a year, and we've been able to, to, develop algorithms based from our, database of those over 4,000,000 things so that we can, read out that in an easy format for the professional so that we can recognize, a person, for example, in in a company who may be at risk for developing, for example, mental disorder that will lead to sick leave days, that are something that, all the, employers are varied nowadays, especially when it when it comes, to working age, younger people some between 20 to 40 years. We also use a lot of questioners that our customers are answering answering in the, in the, system via OMA Terbers and all that's pulled together with these algorithms to make a good readout. OMA Therabas is an award winning app.
I won't go too much into details because we already discussed, about that but, it's good to remember that with OMA servers, you can get access to your, for example, physician or to your nurse within seconds. You can get access to video appointment within minutes. And, during the highest peaks of the pandemic, for example, yesterday, it took on average 38 seconds to go through, although we are having massive amounts of video parliaments at the moment. It means also that, a customer is having all the health information, in in his mobile app, carrying it everywhere, results from, for example, mammogram screens, they can all be found, from on thermos. And as I mentioned, the number of users has been increasing a lot during the pandemic.
Then about this added value that we provide either for the patient or for the employer. I have 2 examples here. The first one, is related to mental health care parts. So, this is something that, is that actually quite difficult to treat and where it's crucial that the patient who is having mental disorder has fast access to a professional. The way we work with mental disorders is that our customers they can access, with almost within seconds or preference, or professional through so called meal and chat and, mental health chat.
And then if, it's recognized that, further help is needed, very easy access, help called Miele Pare can be implemented And this as as 2 examples from 2 different companies, the other one with 2000, the other one with 4000 employees. So we can reduce, in the 1st company, 12.5 percent, sick leave days and in the 2nd company, about 30% or sick leave days when our way of handling mental care, is, installed in the, in, in the company. And this is added value for the employee. No doubt about it. Then we have also followed how do you go with the patients?
So with the patients within depression index, so we've been able to show that also, the patients actually when going through this and having a brief psychotherapy PRS also there. So they really feel better after this kind of program. Then last slide before conclusions. What about, risk factors for cerebrovascular diseases, risk factors for diabetes, and our Omasul and Thelma this own plan, how does it work? Do we get any benefits?
It's globally recognized that in order to produce high quality, service, for risk factors and to have them in good balance you need to measure the balance of these risks, risk factors. And we have brand new data when we have been following customers that where we have cholesterol and blood pressure levels available at least 1 year before the, onset of, making the 1st on, care care plan and thereafter in the follow-up, data available, and we've been able to show that these risk factors, for example, cholesterol and blood pressure they they are reduced the levels, at, about among 70% of, all the customers. Meaning that the benefit that will end up in 15 or 20 years, is likely, to be perceived from the Omasun in Telma, and meaning that, we we have a world class tool, that we can use in the prevention of different disease in our hands. Finally, how we have tackled this, pandemic. So I think it's fairly stated before the providers, COVID-nineteen has been a crisis.
We took down, for example, dental services by 75% during the busiest, months and, have ramped up, that back, but, we we we need to recognize that, this will be the new goal that, we need to have some tests, but we need to take care of other diseases. We cannot leave them out. In Finland, about 3.75, pacers have died due to COVID and, last year, just to compare 800 diet beauty suicide, 13,000 diet beauty cancer 1000 times to the cerebral asthma disease. So we need to take care of other diseases too at the same time. It's clear that COVID-nineteen is definitely clear when it's possible that they are familiar using digital tools to get access to healthcare professional and actually, healthcare provider that will best survive in the future is someone that is having all these, available tools.
Traditional hospital network, traditional locations for, physical doctor's appointments, but also, modern digital, tools for very fast access, to Professor's appointment. And finally, I think, during the COVID pandemic, we've shown that terrorist allows company has the capability, and we have the platform as well as, ability to rapidly change our operations and on and solve the bottlenox of a possible, supply. So I think with this, I will end up my presentation and happy to answer any questions that you may have. Thank you.
As a reminder, we also take questions, through the webcast. So so if you have any questions at any time of that day, please post them and and we'll, present them when when it's a suitable time. Do we have any questions for for either Bethri or or Ville, from the room at the moment.
While you are thinking about sort of hard questions, which I challenged you to do earlier on. Maybe just a final comment on Patrick's presentation. I think this is sort of a manifestation of the fact that we are not afraid of transformation. We are leading the transformation. There are aspects that, of course, we need to tackle on the way, but, my, smart colleagues will give some insights for example, when it comes to pricing and packaging this new type of hybrid, hybrid services.
So the traditional way of, being passive, putting responsibility of, sort of organizing your own health Healthpad to customers and queuing, from the states, states, that's, I would say, long gone. So new hybrid model will need to take over. And, as I said earlier, it's that's the one that it's in Terre West Dulles DNA.
All right. Thank you. It's Pan White from Danske Bank. I have two questions related to COVID-nineteen actually. First one on the test business or the testing volumes.
Can you comment on the profitability of the testing business and how long do you expect this to condener? Is it like a one off for this year or will it be 2 to 3 years, as you said, with COVID-nineteen?
Well, traditionally, as you know, we don't comment, the individual services. Because it this is a you can see the volumes, you can see the price points, and, we can say that it's a profitable But, it's also very complicated process in fairly difficult circumstances to conduct. So not anybody can do it. But it's, as I said, it's a nice tailwind, for our revenues and how for the profits at the moment. Then when it comes to future testing activity, I have said that, and I guess we can all agree that when it comes to COVID-nineteen and forecasting the pandemic, everybody has been wrong.
So agility is the key. And that was the fact that, Pedro was also talking about, or you need to have the, ability, you need to have to pallet of different services, different tests. From medical point of view, Petri told, and of course, he's my best source of information. He told that he believes that, a pattern of the pandemic is such that there's a one big first wave and then there's continuous, chain of smaller waves. And that kind of scenario, we are fully prepared for, and, in that kind of scenario, as better result.
We need to be agile. We need to be speedy. We need to be, on the pulse of the market. All the time, putting relevant services to the customers.
Okay. Thank you. I also wanted to ask about the public sector peers being created in this situation. And so we can read almost on a daily basis from the Finnish press that, that there is a kind of big backlog of services being created, and they will need private companies help, to clear, clear that. So can you comment on that have you seen?
What are your expectations? What kind of an opportunity will this be for, for the companies and you? Thanks.
Obviously, we do have capability. We do have the capacity. We do have ability to scale up even further. And we are more than willing to help public sector, on this, challenge. Thus far, the, of them deals with public set in fairly sporadic short term.
So there's a concept of asset and public sector and there's phone ringing, with AirVA and Petri and, and, and every week, if not every day somebody calls and wants to have tests, But, thus far, there has not been a sort of a proper large a quota based deal where public sector actually committed to the full service chain and proper quota so that we can truly ramp up. But like I said, there are discussion ongoing. And as you said, we also feel that the best way to tackle this one, the best way to open bottlenecks is is to use our agility, our capabilities to help finish society.
So, it's Jonathan from SEB Equity Research. I have two questions on the digitalization. And the first one is is that now that it's growing and it's really nice and cool that you actually know this is happening. But what does it mean to your clinic network? Are we nearing a point where you actually will start closing down units, physical units, or do you think this omnichannel type of thing will carry you through for years years with the current clinic network to be there as well.
That's a great, great, great question. As I said earlier, we are believing in hybrid model. And there are things that will need to be delivered physically, for eternity, basically. You can, you cannot take, but some, for example, through digital or anything like that. And then the deeper you call to a, an issue the most specialized professional you have, typically, you need to have, you need to have face to face.
A communication, during the chain of this, this services. So we strongly believe in hybrid model. And what I stated earlier is, is that how that, our platform is truly geared for that one, compared to fully digital, who are now forced to move to brick and mortar, basically. We have, at one point made some estimates how the digital appointments will, over time, take more role compared to physical appointments and there's clear path and clear path on how that's going to be evolved. It's going to be hybrid.
It's going to be more balanced between these 2, to, type of delivery. But as I said, physical is not going, going to go anywhere. Good thing about thermostala network is that, it's, we have not, sort of, asset heavy company. We are asset light. The facilities that we are using typically are rented and terms are, are typically quite flexible from our point of view.
And we're actively looking at that demand supply, balance, to, to, from a digital point of view and have physical point of view. And of course, more than willing to develop our network effort. And, even more important question is this, maybe this is preemptive, maybe you're about to ask this one. But of course, everybody's interested in profitability, comparison between digital and physical. And again, I will refer to, integrated kits.
That is our business. And we are not afraid of, this, this product productivity boost by, by digital. Proper combination in a full care chains product, proper products, are placed to the marketplace and then for customers. And, intelligent pricing, for example, in intelligent packaging, that's the key for profitability.
Okay. That was not actually my second question. My second question was, but thanks for that. And my second question was on the usage of the digital services. I think we all agree that it's efficient and probably saves cost.
And now we need to speak about the private and corporate customers quite a bit. But could you walk us through the public customer segment? What do you actually do in the or how much do they leverage this platform you have, if at all, really at this point? Thanks.
Yes. We do have case, maybe we can better, if you have any sort of
Yeah. Nice example. Maybe I can, I can, tell something else than rather than talking about chat or video appointments at the for example, to remote areas, we serve public segment with these assisted video appointments? So that, nurses, they're sitting in a room together with, patient. And then, for example, in Hong at the moment, and then the duck is sitting in the in the of his room, in all and taking care of the patient there.
And this kind of services, so there's certainly, larger demand also in the future. And we have tools, that actually and supervision, I can tell, when you listen to lungs, you can hear better through the USB than you do with traditional stethoscope. So though it's not about techniques anymore, it's about the attitudes and how to use them as well as this as well as possible.
It has to continue shortly that there's a high demand for that type of services, obviously. It's very difficult to get a doctor from, from Helsinki to move to, let's say, let's call it Sabokoski or whatever. But through digital and with this kind of assisted model, you can do it easily. The, maybe the inertia on public side is more on sort of a local politics because there's still some romance in there so that you need, you need to have that, your own doctor in your own community, which is nice and course, doctors, family, etcetera, etcetera. And that's sort of, that's, something that we can see in bids and in a way, public public organization's requests for the service, but it's going to evolve over time.
We have. Let's take some time for questions even though we're raining a bit behind, but that's fine.
Yes. So Iris Teemann from Carnegie. Just one question. It seems that your process is very efficient and you provide very high quality care. So what is your weakness?
Where do you see that you have room to improve?
That's a sort of a tricky question. The, I would call, weaknesses potential and its potential for industry and not for Therabaster. I would say that we are leading in this development. But obviously, when we are discussing, in more detail, our strategy plans and implementation, you can call any potential that we are presenting also a weakness because this industry traditional it's, still sort of a handy handy, handicraft, tradition, handicraft driven. And, distilling full commercial and operational potential is still fairly far away as an industry as a whole.
Yes, maybe I can comment here also that, if we go to specialty care, so we have different 50 different specialties within medicine. And of course, since we are operating throughout the country to be able to provide a specialist everywhere, but now with these new tools, it will help us so that it's an and we need to remember what comes to specialty care. So, patients are really used in those cases to go to a traditional, doctors appointment and, to how to be able to have traditional appointments and change their, patient's behavior so that they can meet, let's say, dermatologist, why are on EUV sit So it's certainly something that is difficult to have, for example, in every small location in Finland, dermatologists but with, it will so we can provide that.
We'll move ahead with the agenda and then we'll take questions after we left next presentation then.
Okay. If I may continue straight away. Alright. Let's move on to the next phase, implementation and also next phase in terawest allosteric we have talking about we have been talking about, integrated merchants and integrated platform model And that's something that we will coin, we are going to repeat, throughout the day. But first, there are maybe, especially over this webcast, there are people who don't know Terrace dollar that well.
So very, very shortly, the of Terre West tallow and structure of Terre West tallow. Terre West tallow today, is a leading platform for, health care and well-being services in the Nordics with over 1,000,000,000 revenue last year and, industriating EBITA margin. We do have a vast network, when it comes to physical, but also also best access to digital in this marketplace. We have, balanced, split between, 3 different, revenue streams and 3 different pay, payer groups, largest business still being a corporate, business with over 40% of our revenue. And then, rest is nicely, split between public and then private.
What we have been saying, many times already myself and, and, and Petri as well is, is that we are dealing with integrated care chains. That's important to understand, especially outside Finland where this is not the tradition. Phoenix Healthcare System has, basically educated us to do so, in Phoenix Healthcare System, private pay out of the pocket market and also corporate market, they are over presented and, and, on the other hand, public pay private provision is under presented. And this has led to a model where, where, sort of, we are truly following customer needs, truly following customer's wallet as well. And, in, in a dynamic manner, delivering, full service packages to different customers.
And this is in our D and A. This is important to understand And this is also best way to, get, industrial leading margins and protect them going forward. Terawest dollar, is actually a platform. It's, it's a, it's fairly fashionable to talk about platforms. But when thinking about, Finnish healthcare system, terrorist style of position in Finland, we have been a platform for a long time.
It used to be physical. We, we connected private practitioners to our physical, appointment facilities, gave access to labs imaging, and then more specialized services. On the other hand, we have been, as I said before, connecting through this platform, these services, to individual customers and corporate customers, and of course, also public, but these 2, 1st, customer groups, they have led the development to where we are today. So this truly is integrated, but form, with the ability to, mix and match, between, customer types different services and deliver, needed service in seamless manner. The rest of our history in short, again, for those who don't know, this is very, very nice story really a classic, started modestly as, as, as, many of the other course also, 1st, gain scale.
That was the 1st phase. There was a lot of conducted, some 200 acquisitions, over the years. Early on started to, centralize, functions and, and, and, hence, improve the synergies between different entities. So the ability to integrate the new entities to this, mothership has improved over time then, 3rd phase, automate, automate, and, and, and digitalize, which As I mentioned earlier, has been going on for quite many years. Terrestrial has been, front runner in, in, in that field, in Finland, and Finland is, leading country in many aspects when it comes to delivering this type of, health care service.
And, latest, face, so to speak, is personalized. There we start touching upon, truly sort of, commercialized world. In positive sense so that we are able to, really be, deliver individual service for, different customer segments and even in the individual customers. And there, we do have a lot of focus, currently. Growth, story numbers terraverse dollar growth has been, since 2014, 17% annually, obviously beating, beating the market growth by, by far equally important is that it has been profitable growth all the time.
So EBITDA in absolute terms, have, developed nicely over the years, then looking more precisely into the, organic growth once I get the slide back So, as I said, 17% were our growth during this year's out of which, 5.6 is, is, organic. And even comparing this 5.6 to total market growth, annually 2.1, you can, you can see that we have, basically tripled the growth rate of the marketplace That's based on our capabilities, our competitive edge, but also market consolidation. So market consolidation has benefited us And, there's no reason to think that, this would change going forward. So the further the market consolidates the bigger ones who are better prepared for, for example, this digital transformation get the bigger share of the pie, going forward. Obviously, we have not only, integrated and and acquired companies, with those integrations, of course, it's, worth noting that, 200, acquisitions Oh, with this time period, it's some, something like 1, 1 in 1 month, basically.
That's a fairly high rate. So, some, somebody could, think that, inside under the hood, it's it's a mess. But quite the contrary, Teradata has been able to invest in capabilities and develop its operations and commercial front, at the same time, with the speed in manner. So as, Petri pointed out, one, example from that one is, is, our customer satisfaction. At the moment, it's, record high 83 for our appointments for our surgeries.
For example, it's way higher, but this is the most, most important and relevant customer experience metrics that we are using. So that's, that's, developing very, very nicely. Then at the same time, we have been able to provide, world leading access to care, as, as Patrick explained, during H2, H1, the average waiting time for, for getting to, practitioner was 7 seconds 247, so not too bad. So that's, that's, that's also the future of health care. So nicely done.
What has made this, possible to be able to grow and be profitable at the same time with the industry leading margins, 2 very important aspects. 1, very, very traditional, which is, high operating leverage, new customers with the growth are typically for terawatt hour coming with a very nice high, high margin, and that's continued to be the case also when we are in the future expanding the service portfolio, which Eeva will discuss later today. Then even more and more important going forward is the ability to benefit from our vast database and our vast knowledge, about our customers. So we, first of all, we do have, 700,000 contracted customers giving us a great place to, sell and provide additional services across, cross sell. Then, we do have, more than 4,000,000, individuals in our patient records.
So not, everything, but very close to that, that landmark And that's still, quite underutilized resource, in, in, in our commercial operations. So Eva will discuss in detail how we see our vast customer base, translating into more visits more services and then, of course, more additional revenue. Important, clarification maybe is, is, is proper at this stage. When we are talking about tervestor form, and traditional thermostat or DNA, we are talking about, sort of, part of thermostat which is built for, fee for service, private and corporate business and public service sales. It's, operation, operation, and, and, and network is integrated entity.
And, and we are, providing services for these different customer groups from the same, same integrated network, be it digital or physical Then on top of that one, we have, to add on businesses in, under our portfolio, namely public outsourcings, which, have been thoroughly discussed in Finland lately, and then staffing business. In, in revenue numbers, West Dollar platform as we call it is 800,000,000 and, staffing 100 roughly and outsources 100 roughly. And this is important, distinction, to understand because when we are when we are talking about our when we are talking about capabilities, when we are talking about future of health care, terrestaur platform is where all the innovation is happening because that's, that's fast moving consumer driven, platform and marketplace, there we have individuals who are paying with their own money highly demanding customers. We have, an insurance company, highly, highly demanding customers and corporates highly demanding customers. And there, as we invest and as we develop the speed of change and transformation and innovation is very, very high.
Capabilities that we develop there can be then further, of course, utilized and sold to the public organizers. When we are talking about public outsources, just a couple of minutes ago, we discussed, public organization and public sites need, for example, for remote services. The need is there, but it's, it's, of course, slower moving world. Another important aspect, and take away from, from this one is that Our strategy has always been focused, on the rest of our platform, we have not speculated on any sotem model, social, social and health care reform in Finland, even though the, as I said earlier, public pay private provision is, is, on the underutilized in this market. So there's nice upside there and one point, if this opens up, we are, of course, ready and willing to add our services there, but our strategy is not based on any any given any specific model.
When it comes to, volumes and if you try to model, for example, outsourcing related us to, to Therabas dollar, outsourcing represent, as I said, roughly 100,000,000, of revenue And, as you can understand, in outsourcing business, of course, the margins are way lower than in this other part of the business. So, from margin point of view, way, way lower than than this 10% that, that you can, you can see on the revenue. But still a nice add on value adding and adding a part of our business. And if this, then then grows in the future, based on any new software platform, we are ready. We are willing to, use our capabilities there, and we can scale up fast.
So so that's, I, I, I, I think that's, that's often discussed, topic, with with terabytes and Finnish healthcare system, I think it's important to, to, note and understand. Maybe still commenting on that one even though this is, we are talking about a strategy. Publix, I do have bottlenecks. Everybody here knows knows that one. There's been a lot of, thinking around how to solve those and every, every time the answer is the same.
Use more private services. And, even though we don't speculate, the, software form or or software model we can, we can agree that, the only only way to really solve this issue is, is to use, for example, Theravestoma Mall going forward. For the rest of our platform, in our strategy, we, we have seen nice growth, pattern during the last couple of years. Future sources of growth, are still, market and a share growth even more importantly, growth in share of wallet, which, especially Eeva will discuss in more detail going forward, and, and then, still continued M and A. Right now, of course, it's quite difficult to, put an put any estimate on market recovery and, volumes, for example, next year, following year, But, underlying trends supporting healthcare, and demand for healthcare services, as we have discussed, are there, and they are becoming even even stronger, as we, are passing this, this crisis.
Other aspect is is that as, as, I told already, we have, been able to triple the overall market growth, over past years. And, as I said, to further the market consolidates we are, in our opinion, going to get, in the future also more than our fair share of the growth. One aspect related to overall offices is, of course, our capacity. We are talking about, limited resources namely, namely professionals. And, we have, Craig, recipes and and tools to tackle that challenge that Nicky Cotil and Axel will discuss those in his presentation.
The result in a shared wallet This is, as I said, underutilized, area in health care, underutilized, data on underutilized packaging of services. And continued M and A, they are, of course, a diminishing number of, targets in Finnish Healthcare Sector when it comes to our core services. But there's, quite many opportunities when it comes to, adjacencies in, in, well-being, leading sectors like a mental health and physiotherapy, just to name, name a few. So that's going to be, still in, on, on our agenda. And as, explained before, we do have a great, machine to, conduct these, these, acquisitions and integrate them in, into the, thermostat platform.
The next phase, We all, I guess, read, different descriptions of megatrends, but, when thinking about Terrever Terrever's dialogue and future of health care, it's, I, I think proper to, stay for a while with, with, megatrends that that we have, we have, described here digital, we have discussed thoroughly already. But what it means at the same time when, when, processes and services become more, more digital, is that the, requirement from the customers, they, they get, higher. Services in this industry are not only compared, with the services within the same industry, by the player, our digital services will be compared with, to name it, Amazon or whatever. So speed of, development and innovation needs to be faster than before. Then empowered consumer, talked earlier about the traditional handicraft, driven model where, healthcare provider is passive, and a consumer is busy trying to find the right, right, professional, right service that's soon going to be a long, long gone.
We need to have, analytics data to fast, fast detect what is the best first service for a certain customer and then really effectively lead him or her a frauder care chain. This trustful consumer is one of the trends Obviously, we will need more data. We will need to be more open. People are even carrying their own data to deduct those appointments And we need to have sort of, even though we believe in hardcore medicine, we do need to have open interface for this new type of information. Then, as, discussed earlier already, holistic, health and well-being is becoming a thing.
People are, thinking about them themselves as one sort of united unified human being, there's one health and well-being And, ability to, to, mix and match, right services for individual from these two baskets will be very important. People are going to live longer. So a certain disease type types will increase in numbers and, continuous relationship between healthcare provider and patient or customer, becomes a trend and sort of, new normal. Depleting resources, as I said, we are now, we have seen, with the COVID-nineteen crisis, decrease in demand early on, but, that's, of course, temporary. We will, come back to a world where everybody is competing, for the best resources and our ability to also in the future recruit the best brains, best talent will be a key.
And then changing employee expectations, especially relevant to our, occupational care services. So coming back to the, thermostat platform model, how that relates in, to the megatrends and how that relates to, to, how new, new phase and, and, strategy. This platform model, which we have developed over time, First of all, I would say that it's future proof. That's the way to organize health care services also in the future. And it's a very nice thing that, that, it's already in our DNA.
But what needs to happen also with terraverse teller, is, is that Customer interface need to take leaps forward really, really fast. And as I said, Eeva will discuss those in detail, but there are endless opportunities with, better knowing your customer, utilizing your data. Combining different services to, to, be a provider for your customers and also increase your revenue. Under the hood in, in, inside this, box of, inside this platform, we, as, any provider will need more intelligence, more integration, better, better processes, hybrid, models, between physical and digital and, better, customer steering, better, better ability to, match demand and supply and also a price intelligence, commercial intelligence. And actually, these are the 2, elements that are visible in, in our updated, strategy.
The wording that we are using for Well, the strategy is, 1st of all, when I mentioned, this, looking under the hood and adding in intelligence, We can call it engine room, for example. There, there are, wording is, terabytes tallow will become smartest platform in the industry. And, I said, Nikke Koteilano will discuss this, this area in detail. This is not headlines, as I said initially, we have, robust, plans in place already under implementation first, first sort of, good examples already delivered. Then a customer's health path, health partner, which, it's, represents, re innovating the, interface between ourselves and consumer That's, expanding the pie, so to speak.
We need to be able to, increase, our service portfolio to well-being, at the same time, we need to be engaged, we need to be active. We cannot be a passive member of this anymore, just waiting that somebody pops up. We need to have active dialogue. We need to have a proper segmentation in place. We need to have proper packaging services and, and, and, we need to be able to present these services in proper commercial manner.
Select selective M and A, as, as discussed before, more on the hell, health and more on the well-being side going forward in this market place, but there are still still some opportunities in our core health care sector. So, asset, this smartest platform of the industry, health partner for your customer. Nice headlines. A lot of implementation on underneath. We do have, Talented colleagues here who will discuss, each and every topic in more detail, from operational commercial point of view and customer engagement engagement point of view.
At this stage, I will conclude my, my, my session with, some, some, takeaways. So, database Tala as a health care provider and company today, First of all, the extremely good track record in generating growth and profitability beating the market, beating the market constantly, both, from a margin point of view and growth rate point of view. Very important going forward is to have this future proof platform model, which is asset light and can, integrate different services, different professionals with, with, different customer groups. Then, updated strategy will basically leverage our capabilities, but, we'll take terawest, tallow, a leap forward when it comes to intelligence, really distilling, operational and commercial potential out of this system. And by doing that, I'm sure we'll lead the way for health care in more general.
Thank you.
Mike on. Yes. Maybe we'll stop here for a moment for one question, from from the webcast or actually 3 interrelated questions from Alec Gibson from Morgan Stanley. First of all, given the strength of your digital offering and infrastructure, are you considering how you could capture more value from it by taking into broad and and addressing a more global patient basis. And and secondly, if, our capacity to bring, the ground health care services.
I I assume he means, the network that that we have, here locally, is a limiting factor to go abroad, could we instead the license, the technology and or partner where with the local health care providers? Or is it integratable to other service providers platforms?
Okay. So, detailed capabilities and their scalability, internationally. That was the first part. What we are doing here, for sure, is, we are building a scalable platform. And, that's not sort of a market specific assets, at least 90% of the content is not market specific.
Right now, what we are concentrating on is, really perfecting the engine room, reinventing the engagement layer with our consumers we are not, in any hurry to, start scaling it upfront, but, to the question, yes, for sure, we are building. We are not, only living, living with the, with the growth, forecast and matching those, we are building a truly scalable platform. Then licensing the Yeah.
And is it, something that we could partner with, someone who has the local facilities outside Finland and just bolt on our digital capabilities into that one?
Well, I would say that that's, that's, for sure, a possibility. And, Terevastava has been active with with M And A for, for years, and and Terevastava knows the neighboring markets as well very well. If at some point there would be a value adding match, that would be, of course, very interesting for, for terveston. Thanks.
Do we have any questions from the room at this point or shall we continue? Panu, go ahead. If you could just use the mic again.
It's Panalika from Danske. I have a question on this strategy, and related to public sector exposure, you highlighted that the strategy is based form and and and the public side is is a bit of an add on. And and do less than 2 years ago, you did a sizable acquisition of healthcare operations. So has this kind of view on the public sector changed? Is it related to the sorter reform or, how should we think about that?
That you made a big bet on on on the market and now now it seems that you're not not really, really kind of focusing on it at that much?
Maybe it's, sort of, on the statement that we are not focusing on public segment. It's a value adding business. We are interested in the deals that are floating out there So, when we are active in that business, of course, we are interested in that business. My point was that, corporate driven, private driven insurance company driven, part of the business is the one which is leading the innovation and development going forward. And then, we are able to use those scalable element from this mothership to public segment.
And of course, public segment is highly interested in those. The point is more that we are not This, ship doesn't change course based on any sorta model. We, we believe that we are building a robust and a scalable platform, which is applicable, for, for different customer segments going forward, regardless of what politicians decide.
Yes. Iris Teemann from Carnegie. Just regarding your 5% long term sales target, does that include acquisitions or do you see that the finished health care market would provide you a 5% growth organically?
Yes. On our updated targets for the strategy period, state 5% as growth targets, including basically everything. So, Ilkka will touch upon that one in more detail and also leave how we believe we will get there in the last presentation of today. So hold your breath. It's going to be fantastic.
Thanks. I don't see any other, I'm sorry. Please, Anthony, go ahead.
Hi, it's Ann Serrauser from OPE Markets. As you talk about the MMA and your core business and well-being business, do you see any differences in profitability between these two businesses or are data same level? Or how would you describe them?
Thanks.
Well, when you think about M and A logic, and these new, adjacencies, the same, sort of a virtues apply. So so that there's a high operating leverage. And we can bolt this new type of services into the same platform. So from M and A, it's no different. Than the core services.
And then if you think about services as such and their marches. I said earlier, we have not disclosed any, any, margins or pieces of, pieces of display and their margin. Again, I will refer back to at integrated care chains and their profitability, that's our business model.
I think that we're good now and then we can move ahead with better solutions with the smartest platform in the with Nora and and Nicky.
Yeah. So now it's time to get really excited because now now we have, young and fresh brains, even though, though with a lot of experience from relevant industries coming up with the Fresh Solutions.
Thank you, Bill. Hopefully, we can
slip up for the expectations. I'm sure. Hey, it's very nice to be here. My name is Niki Kotelainen. I'm the Director of Operations.
And with me are Nora Jarame, will then, continue after me and tell more details about our pricing initiatives. But I'm going to tell you more about the smartest platform and what we mean by it, in more detail. However, before going there, let me introduce myself As Kasi already mentioned, my journey with Theravesto started 8 years ago, 2012, when I was working at the Boston Consulting Group, we were helping dervestel at time to update their strategy. And, as an end result of that kind of project, preach point sold, Thervestal to EQT. Then after a couple of years of consulting, after that, I joined Tervestal at 2015, as a head of PMO, basically following EQT's value creation agenda for a couple of years until the IPO.
And since then, I have had various roles within Teradata, and currently operating as director of operations. So basically, what I'm going to say today is, is more from the perspective of the, machine room or operation engine as as Wiela referred. So starting from the conclusions, our takeaways from this presentation, you already heard many times about how Terva Estalo is the kind of industry leading in terms of operations, operative efficiency. And, and of course, we want to keep that keep that, going forward. But I want, what I want to mention about the efficiency is also what Petri mentioned, basically.
So efficiency is not it's not only profits, operational efficiency means that you get into COVID, test fast and you get the results fast. So it's also customer experience, and it's also about medical quality. So it's not all about kind of for you investors, meaning operating profits, but it's also something else. However, in order to continue on that path, we need to tackle a couple of those key trends that, Ville already discussed earlier, and how, especially, how those influence our operation operations and this operational machine. The good thing is that if we tackle the trends, right, we can, continue on this, path and also improve the customer experience.
And now let me go through in more details, a couple of those trends and how we are going to then tackle these, these changes. So basically Willow went through bunch of megatrends. On this slide, we can see 3 that are selected from the operational perspective. So when I started to work with DataVest a lot 8 years ago, you know, to simplify, just to make a point, how that company and other private healthcare companies in this industry in Finland worked was basically waiting for Pason to get sick and then then, you know, helping him or her. And then with fee for service model, billing every, every visit.
Now during years and especially during the COVID 19 crisis, of course, we can see that there is a new type of demand for different types of services, customer relevant services, whether they are then target prices or fixed prices or what Petri said, this kind of value based or outcome driven and driven models, there are definitely new types of or there is increased demand for new types of services. So of course, when we have a new type of service or contract, we also need to update our operative model a bit. The second topic here, is the shortage of health care professionals, meaning that not only we want to get the best health care professionals support our growth, but it's also, you know, who should go to whom, with which condition. And thirdly, as also Will Lamens and there is increasing demand for digital services. And the benchmark is not companies in our industry.
The benchmarks are somewhere else. I bet, you know, many of you guys have smart bots, not necessarily right now, but at your home where you can track sleep or you can track, you know, how many steps you take. That's a health data as well. So the benchmark on how convenient it is, what kind of recommendations you know, you get from from, your device is in terms of your health, that barrier, or that bar is actually, you know, set by other industries. So we need to be able to match that to continue to win in this business environment.
So What are we aiming for on on a on a title level? It's easy, of course, you know, offer the most relevant and convenient service to the customer. The tricky part is that we should be able to do it, as stated here, kind of regardless of time place channel and from the beginning, meaning the first touch point to the end of the the care chain. So let me walk you through this slide. So here, we have a illustration of a care path And once again, I'll go back 8 years ago, in a in a in a different world where basically, our industry assumed that the customer is a healthcare professional, meaning that if you have a stomach ache, you know, we assume that you know whether you need a book or time, whether you need to book the time for a doctor or a nutritionist.
And then once you have booked the time, then of course, you know, we and others, we have to platform and the right professional and then we treated you. Now going forward, we need to be better at understanding what is actually your service need. So we can guide you that, Hey, actually, based on what you test sold, digitally, use it go to nutritionist, and you can actually take the first contact via an online channel. And after that appointment, there is a OMA Therabas platform and application that will guide you forward on that care path. So basically, We have had all the steps, all the years, but what we are aiming for now is, is to be as little as said, to integrate this care path in a better way that is more customer, kind of convenient more convenient for the customer and proves the customer experience as well.
Now as a character of operations, the key question is, okay, how to do this in a scale scalable way? So personalizing the the care. Okay. Oh, no. There's a time lag with this.
So our solution is is is this so called, smartest platform. And the objective is to offer that personalized service, regardless of time, place and channel in a way that optimizes also our business at the same time. So let me walk you, walk you through the slide once again. Let's start from the right hand side. You can see a a funnel.
Maybe many of you have seen this already. A typical funnel of of, private provider in in a Finland and health care industry, basically starting from the physician appointment and then moving on where to laboratory and and imaging and surgery and so on. Now, traditionally, everyone has gone first to the doctor, and that in some cases have become a bottleneck. Now when we are talking about the smartest platform, we want to do four things. So first of all, we want to build this kind of, so called system layers that steers the customer to the right place, maybe bypassing the the physical appointment, maybe doing the physical appointment via via digital channels.
Then, of course, we will continue on, expanding the kind of traditional bottlenecks in terms of of what it comes to our supply. And, add some new, kind of features to that as well through new technologies and so on. Thirdly, you know, once you have had the appointment, we want to be more rigorous on how we are managing your care path going forward. So building care guidelines and then implementing these kind of centers of excellence is to kind of follow-up on those care guidelines to ensure that you know what happens next and that you actually do the next visit, so to say. And of course, fourthly, we want to build and continue building new offerings that are market relevant, but also increase our competencies in pricing those.
So let me walk you through the number 1, 23, and then Nora will continue on number 4. So if I start from the first ones, so the system layers, so basically what we want to do is optimize the customer for So if I, you know, use few examples so basically when a customer is contacting us, we need to understand the lake the layer one is all to say is what is your service need and how acute the need is. So using the previous example of stomach you know, once again, do you need to go to a doctor? Do you or is it actually nutritionist that you need to see? So in order to do this better, in future, we are going to or we have already, but in future, we are increasingly focusing on building care needs assessment capabilities, whether they are chat to a nurse during a booking process or an AI based care need assessment tool.
The second layer is basically then, who is the right professional for your need? So once again, personalizing this path. And to take in another example, you know, I'm father of 2, 2 small children. Maybe I need to see a pediatricianist on Sunday, but there is none available. So who should I go to with the the kind of problem that I have?
Maybe we find a suitable ear doctor who is willing to take one year old patients who has the equipment that is that are small enough in that room where he or she is operating right now. So we can find a right professional for your need. And and once again, key actions going forward, of course, we have that info already. We use it in our online booking. We have used it years, but we can be better in utilizing that data, better in updating that data and better integrating that data with the understanding of your need.
Then third layer, who is paying and are there any other kind of restrictions or or service promises that we need to deliver? So Let's take in another example. If you have a small piece of trasm in your eye, do you need to go to a nurse, to a doctor, or to an eye doctor? Maybe your, you know, employer doesn't your contract doesn't cover the eye doctor, but it does cover the nerves or the doctor So then in the booking process, we steer you to the right professional once again. And then lastly, and this is kind of my personal favorite is the kind of which available appointment time we want to offer you.
So at Terre Vestala, Monday mornings are typically the most busiest times at, during the week. So let's say you want to go to a doctor before your work day, you want to go at 8 o'clock, typically we run out of time. So who will get the kind of last available appointment time? If your medical need is not acute, but you it's convenient for you to get that timing. So who is the one who should get that time?
So previously, we have been basically giving the times for those who have been fastest in booking them. But going forward, we need to be more intelligence in terms of what kind of service more what kind of service model you have and what kind of contract you have, whether you get the most one, the time or not? So these are just examples and there are several key actions on the slide, but for instance, for the last layer, we want to build kind of revenue management capabilities to better take into consideration, the demand is supplied on that hour on that unit, on that with that need. So making it more more dynamic in terms of of timing. The second topic where we continue to focus is, of course, resourcing.
So that we have the resources to support our growth targets. And, and, of course, there are a couple of aspects. First of all, if winning and keeping the talented professor off that we have today and at at what they are in the market. Of course, you know, we we were discussing the atendo earlier So through Attendo, we got the staffing business. So staffing business is mostly focused on young professionals, So that's one way to get more current people to their investor, to work at their investor.
The second can category, then there is the smart resources. So utilizing technology and, once again, AI to better use the resources and talented people that we have today. The 3rd category Is is then, you know, how to ensure the high quality, care? And then then again, the co kind of that your care chain doesn't break up so that there is the kind of control visit or you come to the visit that was planned. So we have 2 elements, that we are going to focus on to achieve this.
First one is care guidelines and the second is centers of excellence. And I'm sure Patrick can agree on on what I'm I'm going to say here, but care guidelines are something that are not invented, but they are basically, you know, nationwide, recommendations, how you should treat different diseases or diagnosis, physicians, widely recognize those. So what we'd want to do is follow them, in more rigorous way. It doesn't mean that we haven't followed them earlier. We have had, as as Pedro said, very high medical quality, and I have here the law to clear our quality book as well.
So we have been tracking those for years. But what we want to do next is basically make it more systematic through our IT systems as well. So basically, if you get a diagnosis of you get diagnosed as type 2 diabetic, for instance, there is a list of things that you need to take care every year, whether they are, you know, there are If I remember correctly 4 to 6 different lab techs, test annually, a couple of checkups that you need to do in order to make sure that you are in good condition, So focusing on those, making sure that those will happen, has a significant potential in terms of medical quality, but also in terms of visit. Then the second term here on the slide is centers of excellence. So those are basically, as the slide says, kind of physical and virtual centers that manage these care paths.
And provide also a community for professionals that they can share new knowledge and learn. And this is once again, it's the staffing, the starting point in your career, but basically being part of this kind of center of excellence and being the driving force in one of those is is is for the more experienced. Professionals, attracting once again more professionals to work for us. And there are other benefits as well, of course, for the pays into end user, it's higher quality of care and for Theravest alloys better compliance to those care guidelines. Generating, medical outcomes and visits as well.
We have, planet, but we start with 6 centers of excellence during this strategy period still with these. We are more or less in planning mode, but going through implementation soon. So last slide on my section to conclude basically, if we are able to build more intelligent platform, meaning that these pieces that I just described make them into more kind of smarter entity, integrate these steps in a better way. There are many, many benefits for for the customer, but also for for profits as well. There are a couple of examples.
I'm not going to go through them all, but to give you some some kind of idea on how does this influence. So first of all, you know, being more personalized during booking process will definitely improve our conversion. So if we have 10,000,000 contacts to our call center and online booking, improving conversion or booking rate or conversion rate, of course, improves our sales. Or then the the example of of the centers of excellence, in the quality book, we have stated, that our objective for for the metric that home large share of patients with depression or anxiety will get referral to a short term psychotherapy. That's one key metric, and Petrobras giving you earlier an example of 2 companies gaining huge benefits for sending people to short term psychotherapy.
Our last year's number was 0.8% of all of those who get that kind of a diagnosis, we'll get re a referral to short term psychotherapy. Our goal is stated goal is 10%. So that's 12 folded the current ratio. And there's no reason why to stop to that one. But you can all understand that if we tenfold referrals on that one specific example, what would it mean if we take 10 most common diagnoses?
So you can, you can understand why this is this is meaningful, meaningful as well. But let me stop here. And let me hand it over to Nora who will then tell you how pricing is essential part of this platform.
Thank you, Nicky. So, my name is Nora Harma. Really happy to be here today. And I'll talk to you about our plans to further improve profitability and drive growth via pricing. So I recently joined Terrestrial and my professional background is within revenue management and pricing.
Mainly from the passenger transportation industry, meaning airlines and rail operator. But I've also worked as a management consultant helping different companies develop their pricing. So to start off with my definition of revenue management, It's in my opinion it's really about offering the right service to the right customer at the right time at the right price and through the right channels. The travel industry has long been considered a forerunner in this practice because they work in an environment are characterized by perishable inventory and restricted capacity. Fluctuating demand from different kinds of customer segments with different needs and also different willingness to pay and also environment of intensity and global competition.
The airlines and also to some extent hotels, they've been working with the revenue management since the 1970s. And since then, the practice has spread to also other industries, for example, e commerce. But I see that there's when you start thinking about it, healthcare actually shares many of these same features. We cannot offer yesterday's slot to our customer today. And at times, we also have restricted capacity sometimes a specialist in one area is fully booked for the day or even a week.
And also the demand fluctuates by month or week or day of week or even time of day, but Nikke was saying that Monday mornings are offering very busy. And we also operate in a fairly competitive environment. So we really see a lot of potential for the smart and considerate application of revenue management and pricing practices also within health care. And Nikki's examples about optimizing customer flows is really our interpretation of revenue management. And revenue management and pricing are really like two sides of the same coin, and now I'll talk to you more about the pricing side.
So I know many of you may be thinking that, are they going to make their pricing all dynamic now? Isn't that what the airlines do and the travel industry is famous for. But my answer is no. I think there's many other aspects to to pricing in these industries and other industries that we can benefit from and learn from. When you start pricing a product or a service, there are different lenses you can use to approach the problem of what price to set.
You can either start from basing the price on just covering your costs and adding on some kind of a margin. Or you can have a like a thorough look at your competition and see what the competition is offering and at what kinds of price points or you can also aim to price for value delivered. And actually in reality you have to do all three have to make sure that you understand your cost drivers and that you are aware of what the competition is offering and in order to really price for value, you have to make sure that you really understand your customers' needs and are creating like a value proposition that really meets those needs. And in my experience, when I've worked with different industry like airlines and rail operators for example, it really means that the service design and the pricing people really need to collab from an early stage in any development project in order to make sure that the value propositions are really clear that they meet the needs of the customers, but also that there's a thorough understanding of the willingness to pay off those customer segments and that you end up really developing a product or a service, which is also commercially viable.
And then pricing also has a role in supporting sales to make sure that the sales is also able to communicate the value to the customers and the benefits and not just focus on the features of the service or product in question. So I'll show you a few examples from other industries and share some ideas on how these concepts could be applied to health care. The first example is branded fares, which is what airlines are adopted when they sense the need to really shift from physical sales channels with travel agents selling the fares. And moved on to like online digital sales channels, which were first primarily the airline's own websites and later also their mobile And examples of flights are really they are sadly few and far between at the moment, but here's an In this example, we have an airline selling tickets from our Lake, Saima region to Berlin, and it offers 4 different types of categories or fair types to choose from. The one on the left is the value fair starting at 2499, and it only comes with 1 small cabin bag included.
And then you see the regular and the plus and all the way to flexi plus with more and more benefits and features being added to the fare type. So the flexi pluses then the most flexible one with for example, advanced seat reservation and fully flexible fare type. So it's the most flexible option. So the idea here is to clearly display the options that there are and make it as easy as possible for the customer to find the suit the fare type that really suits their needs, whether it's a focus on, you know, the lowest cost or lowest price available or a fully flexible fare type. And on the right hand side, you see what we have been working on at Terraceawa.
We also have an existing service offering for our occupational health customers where we have different kinds of packages. And of course, healthcare is much more complex than the airline fare types. But, what we see is that we have a lot of potential to still enhance how we display these products and services and how we communicate What kind of, like what where is the value in the value based health care that Petri was talking about? Like what kind of an impact can you have by choosing a certain type of package for your employees.
If I may add on
the Sure.
On the right hand side, the from the operational machine perspective, the trick here is that each of these are kind of modular So, so if you take the contract to Yuba, we know what it includes. So not all the contracts are different, but they modular. So it's easier for all the kind of operational machines to understand that now there is a customer with this type of contract rather than every contract is a different type type of work.
It's very true. It's a good point because the pricing and the product and the service and the operations, they all have to know what they're talking about and offer the same like consistent service then to the customer. And we're also working on extending our offering to the occupational health care customers. We're working on offering, packages with fixed monthly fees, which would then be targeted especially to those customers for whom the like the predictability of their health care related spending is important. And I don't think that this is this is in no way our threat to our existing business because It does not only mean that we have the very bare minimum product available, but we can also have like different price points and different services included in the different packages.
Then
agreements in a way that who gets to adapt to within 48 hours or 24 hours, so on?
Yes. So there's a lot of cooperation required between our teams. When we work together to develop these new packages. The second example I have really highlights
It takes a while. Patience.
Patience. Okay. So the second example highlights new pricing models. And on the top left corner, you see our Helsinki Regional Transport Authority offering auto renewing saver subscription. You don't even have to remember to like renew your monthly subscription anymore.
And of course, the idea is to make daily commuting by train, bus or metro, really easy and affordable and take away all the households related to buying a ticket. And of course, the aim is to also increase ridership and reduce the traffic congestion in the capital area by having people choose the public transportation instead of their private cars. And on the bottom left corner, we have an example from e commerce with Amazon Prime offering those super fast deliveries for all those all the stuff people buy online, plus access to a wide range of digital entertainment ranging from e books to music to movies and also exclusive shopping deals. And all this comes with a like a monthly or annual subscription fee. And this is also something that we see a lot of potential for because we have the extensive platform and we have a wide array of services that we could, offer to especially our private customers.
For some kind of a like a subscription based model to increase the loyalty of those customers towards their lifestyle and also make the really the health partnership reality. So some things that we are thinking about is that, our private customers could get for example, a cap on their service fees per year plus discounts to selected services and access to a whole range of digital well-being related content. And like with this kind of new model, we really hope to incentivize people to I think about preventive healthcare and well-being and, not only for themselves, but also for their family members. So to conclude, how will we really approach developing pricing into a core competence? What are we going to do in practice?
And, I talked a lot about developing these new services or pricing models for the future. But I see that there's also like significant potential in just making sure that we also price our existing offering competitively and like a structured manner. So what we'll do is we'll work to further improve the transparency into pricing data to make sure that we can make Fact based decisions concerning our like list prices and discount structures when doing the transactional like customer level pricing because even small changes there can have a very positive impact on both our revenues and profits without really compromising the customer experience at And of course, this requires clear roles and responsibilities and that we have the right competencies and skills in place. So what we're actually doing is we're like creating our own internal center of excellence around pricing. And In my experience, pricing really is a function where success is very dependent on forming active relationships.
With those different internal stakeholders all the way from marketing and sales to operations. And I must say I'm truly excited to about this opportunity to work with this great team. It's exceptionally talented and there's a lot of energy in Terrestrial at the moment. And it's really been a pleasure getting to know both the team and the company and the whole new industry. Thank you.
Now I'll hand it over to Nikky to conclude this section.
So basically, just to conclude, we need to work jointly basically with pricing and our service offering, when it comes to our operative model. And we do it in a way that is scalable, while personalizing service for the end customer. So being truly increasing our customer experience and Evo will soon tell you more about, you know, how become a health partner for you as an end user. But from the operational and service and pricing perspective, this is, this is our focus area, as well to maintain the operative margin that we have had earlier.
Thanks Nicky and Nora. I think it's a really fascinating area of development for Tervastra in this industry as a whole. Do we have any questions from the room YUTa? Please go ahead.
So it's Tarahikkanen from SEB. A question here on the implementation part and people involved? And I'm thinking about the private practitioners in specific. Are they is this a win win, or is it possible that from a private additional point of view, new pricing models actually can be a treat to their either kind of earnings model or the patient volumes they will meet. So how does it look from a doctor's point of view?
All this now discussed?
So if I start, from the kind of, to put patient volumes. So kind of the challenge has been that that there are there are some bottlenecks within the health care professional. So if we are better in steering the right customer to the right professional, they are actually, you know, getting the same volumes, but actually getting more relevant patients. If I once again give you an example, it's very common for us the special doctor, you know, like, it's German English.
Internal specialist.
Internal specialist is also doing, appointments as a general practitioner So once again, if you take the booking process, many time, times, you know, this kind of specialist will get patients that are actually kind of more for general practitioners. And he is not seeing he he's not seeing the cases that are related to your problems with your, internals. So being better in steering spaces actually improves, not not only maintains the volumes, but improves the relevancy of the patients for the doctor as well.
Any other questions from the room? I have one question for Nora. You have an extensive background in revenue management and pricing. And I'm not talking Thervastala specifically, but you've been also consulting companies on this area in different industries. And just in your professional view, What kind of potential are we talking about when you when you implement this kind of, pricing and and intelligence in into, relatively on mature, industry?
Well, let's say this comment does not apply specifically to their hairstyle now, but in my let's say pricing consultant experience. Whenever we approached our customer as consultants. We always thought that it's generally possible to find opportunities to develop that will have anything from 1% to 3% or 1% to 4% impact on revenue. If you are plan well and you also implement fully. So I think that was the magnitude though.
Anything less would be a disappointment.
Great. Thanks. And then we have one question from the webcast from James. I'm Tempest from Jefferies. Nikki, you mentioned in your, highly illustrative example that there's a potential of, 25,000,000 to 40,000,000 extra is from higher conversion rates.
How often is a location of our facility or reason for the customer trying to book a time to go to the competitor and, be excluding the locations, what are the main reasons the customer would choose to go with the competitor that that you could address?
It's impossible to say the magnitude, but of course, what we have said years that the most important thing is availability. So if you are in a need, if you get the treatment when you want it and where you want it. And now digital channel is one opportunity here. You will, that's the main reason for your selection. Then of course, we have contract customers like occupational customers who will come to us in a short term in, in any case.
So meaning, once again, regarding this patient steering, for those who have more flexibility in choosing the provider, within the short term horizon, we want to ensure that on Monday mornings, there's a time for you so that you don't go to a competitor. And for the contract customers, of course, we want to keep our contract customers happy. So we need to find good times for them, as well. But they work in a different way. The magnitude is difficult to say what is the magnitude, in the decision making, but as we have said for years, availability is the key.
Yes, absolutely. Thanks. Any other questions from the room to either Nicki or nor? If not, we'll have a short bio break. It was scheduled to to be a 20 minute break, but I think we'll, set out with 10 and start with the scheduled time at 20 past to with the next presentation coming up from the second strategic focus area from Evanueberoksanen, who will talk about the health partnership with individual customers.
Go ahead, F.
Thank you, Kathee. And and good afternoon. Well, so my name is Evan Newberg Oksenen. I'm I'm director of her strategy and PMO. And in charge of our strategy implementation.
I have a 4 year background at Tervastalo. I was head of operations. And then for the last 2 years, been charge of our laboratory diagnostics business unit. And and I have a 15 year experiencing in the healthcare sector. And maybe I could describe myself as being one of the first engineers that ventured into healthcare.
15 years ago. Nowadays, there are quite a lot of, engineers holding positions in health care, but at that time, it was quite rare. And of course, together with Petri, we're pretty much the 1st also in Perroastalo, but also in the Finnish private sector to venture into COVID-nineteen testing. So trying new things and and and making them work is is one passion. Today, there well, there's 2 keywords.
There's health and partner and and to elaborate on health we're we're building and what I'm talking to you about is is capturing this trend of health and well-being. So doing something new and something that we know already now through our 3 years experience in well-being that is it grows faster than Zevrastalo. As as on a as an average. The well-being market is polarized, but the demand for services grows. And when I say polarized, it's it's kind of built on 2 different parts of where you need well-being services.
So there's the reactive well-being services of which Patrick already gave gave nice examples. And actually, Nikki also touched upon those examples. So to do with mental health, issues. You kind of already have a diagnostic or a diagnosis, but you need you need therapeutic treatments, maybe not Doctor. Treatments.
And we already know that there's there are large health risks in this area. So 50% percent of finished working age people have some lifestyle disease. And the source here is the finish institute for health and well-being and some other Finnish sources. We know that 75% of over thirty year old Fins are overweight or 10% have diabetes and so on. And we have already, as the example showed, and I will touch upon them again, we've we've created services for these for these situations.
But at the same time, there's that proactive low entry service, kind of doing something about it before you need before you need to visit the doctor. And and maybe before when it's when it's just a risk, when it's something that you're not you don't even know. It might be you would just want to keep yourself healthy. And so there's nutritional trends, of course, wearables tweaking, tweaking the way the way you do you your exercise and and and competing in triathlons and so on. And but also visiting, a yoga studio and winding down down from busy hectic life.
And and these are very different in a way in the look and feel, but they're actually the science is the same. It's just a different different part in in our in our kind of life where we need these services. So what do we have already? We've been thermostat has been for 3 years in the well-being. Services.
We have a large pool of well-being professionals from from nutritional therapists to workability coaching. We're in we've ventured into all our pharmacies and are part of have small booths in in pharmacies. And we have digital services. Petri already showed results from 2 of our customers on on this meal and chat. The meal is Paris.
So mental chat and and rentals sparring, I guess you would call. And the idea is that there's it's very low entry, easy to accessible, the the chat services is it's a 20 fourseven chat as all our chat services are. And you have a quick access, and and you discuss it with with a nurse. So you kind of maybe it may you're stressing your presentation today or whatever, and and you you chat with the nurse. And then they will forward you to a professional, and that would be the mail in spottery, where you have up to 5 video meetings with the same, well, being professional, but it's a video meeting.
It's remote. It's digital. And it's preventative, it's goal oriented program, but the point is that you you use it not because you have a diagnosis, but but before, actually, so to prevent you from having sick leave or diagnosis. And and we've these these are these are products services that we already have And I guess in a startup language, I would say that we already have the product market fit. We have occupational health customers that are using these.
These services. And and now look, going forward, we just want to scale this to a larger customer base. If you look at kind of is is in the healthcare sector, primary health primary care, secondary care, we're quite balanced in primary care. So primary care would be the general practitioners or clinics, kind of the the basic thermostat. And then, secondary care would be when when you, for example, need need surgery.
But we and well-being looks small, in in, for example, in the private for the private customers, but for occupational health sector, it's actually already half of of the finished occupational health sector model. And our customers, are more and more investing into preventive care. So we have the tools. We have we have the services. We have the data.
We have the artificial intelligence. That Bethri showed, and and we are already using it to some some of our, occupational health care customers. And that is what we want to build upon and just scale it to the next level and especially to the private sector. Because we've been doing this for a while, we know that it's there are there are challenges or or and issues to be solved. And some of them we have already solved, but these these are good to good to note.
So there's I don't know how many of you knew that we have have these services. So there may be is some low awareness of well-being services still a high price image. If you think of price image, you go to a COVID test and it's over €200. You visit a doctor. It's it's over €100.
And maybe what when you visit a therapist, you visit them ten times, it it's something that the price per visit will be smaller, but it's a recurring recurring event. And so there's we need to we need to work on that, and that's what that what Nauta was presenting earlier. Maybe factory like remote, maybe clinic, it's kind of a sterile sterile, health health facility, not a nice ambient yoga studio. There's high barriers repurchasing, maybe also because you don't really know which therapist do I need to visit a doctor? Do I need to visit a therapist?
Of course, Nicky will sell that for us. And and then there's a perception of medical care that it's it's more medical than it's more health than well-being. And, of course, inside the firm, inside in the profession, there is a change of mindset. And I know you will ask me what the change will be, so I'll just kind of said already now, the biggest change is going from reactive to proactive. So doing something based on risk, not when a person is already sick.
So beforehand, when when they're still it might be that everything's okay. It might not be, but acting now is better than acting later. And that is a quite a profound difference, the kind of the whole notion of risk for for the medical community. But these are all we are all able to tackle these. And And so what are we offering?
What is the way that we're building this to the next level after 3 years of experience? It's all around digital engagement and and engaging the the the customer, the consumer, the person, on the health journey and being a partner on that health journey. So expanding the digital platform, we have the OMA Tervos application it's a door to all our services. So in a sense, it's it's that is that's the platform that the the customer sees. Bringing relevant content to that platform.
You already have your test results and your appointments and you can make an appointment and and you have your Umazonita Olma Healthcare plan in in in this application. It also reminds you of if if you have to renew a prescription for for and so on, but it could be even more and and we've been already building some of these things, but it could have free content on issues to do with well-being. And and you and maybe then you continue from there and find what what you need. Personalizing services. So we we already do a health questionnaire.
This is this is this is kind of in essence what the Evoloa Ebola Firm is doing a digital health questionnaire for occupational health customers. And based on that type of that questionnaire or something alongside that questionnaire, we we can gather data and then return that data to the customer and kind of help and guide along that path. What what is needed? And because we want to do this in affordable way and in a way that that kind of it's easy, easy to well, easy to buy, but also kind of easy to stay motivated and use these services If not on a daily basis, a weekly basis or monthly basis, we have to do it in a digital, scalable way, which make it more affordable, but at the same time, we're solving some of the bottlenecks of supply. And and and the pool of professionals that we have can take care of a larger population.
So just as an example, you only need to visit the therapist maybe every 5th time and and 4 out of 5 times you're able to do it with with the omotero's application and and all that content and questionnaires and webinars and so on that are inside that. So you kind of have a digital Digital Health Coach. It's good. I pause. So already now, we have OMAte or OMAteros app users.
We have active app users, 200 over 200,000. We have people using our digital appointments and reserving a time through through our our web pages and our app, we have over a 1,000,000, but really active on whatever's users that that visited and used the information in it, are around 200,000. That's quite a large number. Large number for any any company, and it's still just one sixth of our kind of active or or, or our customers that visit us once a year. And we know that they spend twice as much when they're active.
So they're, of course, active active in keeping themselves healthy, but they also, get things out of, so to say, of of our, our, OMA Thera's app. But at the same time or on kind of, yes, this is a way of getting a share of wallet, But when you invest in your health, when you invest in yourself, where thermostat, of course, helps, you also get better outcomes as Petri showed. So There's both was the mental health care care paths and then having this meal and chat me and his body that I just showed you which you can access through the OMA OMA Therabasis application, but also when you do your personal health plan, through OMA Devra's, which you call OMA or in English, my plan, you're you get better results. So there are health risks already in the in in, well, the whole western commute of the world, but especially in Finland, we we we, we know that we can we can help them. And at the same time, based on our health questionnaire data, which again is is is the evaluah data, we know that there's still 53% of the working age population in our own data, the own occupational health care data that we have.
Here, we have 22,000 people and and what that we evaluated. We know that they have some like, one significant risk. So if if we use the traffic lights, there they have they're red, 53% have one red in one of these these areas. And again, they're pretty much the same as what I showed in for the whole population. Based on Finnish Institute, research, weight in diabetes is is 30%, mental health, 17% and and pain and physical impairment 14%.
But when we combine and that you have at least 1, it's 53%. So there's still there's need to do it. And And we have very good results, but we could be better. It's all based on these these health assessments and data. And on the on top, there is the current model.
And and then the future model down there, and they're kind of linked So we in a way, when we think about the way we operate, we always start with kind of the appointment or maybe at least last year. We started with the maybe we were better already this year, but we already started with an appointment to the doctor. And we gather this electronic medical record data, so patient data. And then we do some diagnostics based on that. Then some that would be like the 1,200,000 people that visit us.
And then we do around Well, less than 100,000 health questionnaires each year to some occupational health care. Customers. And then for some of them, we do a MyPlan. And so the data to those that kind of followed through this whole chain, the results are very good, but we we started too late in a way. We we we we we should start from the health questionnaires.
If we want to be preventive, want to be interested in well-being, we need to start with kind of the assessment in a in a risk risk management world, it's just called a risk assessment. And for us, it's a health risk questionnaire. And then based on the results of this and third party information, wearable data might be diagnostics and and looking further into it, we we can we can kind of see if it's if you're green, yellow, or red and then help you along that path. So if If you are healthy, we just help you to stay healthy with the different might be even totally free content But but then if you need, really, you have health risks and you need to work on them, then then you can visit the doctor and really go through the whole whole care chain. And then, of course, something in between.
So this change is also the way we gather data and how we use data. So we we we have we we are very good in using our, EMR data but we kind of nowadays start from a doctor centric data collection. So there's more we have more EMR data on our on our customers than this well-being data. And so going up. And now we want to kind of turn that around and and start start with helping each of our customer to to stay healthy and and understand what needs to be due and kind of plan that health journey together with us.
And this helps us in in personalizing, personalizing the offering and really, really relevant offering. And and and sometimes it's it's it's it's free, and sometimes we do whatever it takes to to, get you healthy again. If we can just kind of an example, I was saying that we have 1,200,000 customers that visited us in 1 year and we have 0.8 that have visited us in the past 2 to 3 years. So 2,000,000 customers in this area that are kind of we could say they they they're thermostat of customers, and they're loyal thermostat of customers. If if we can help them, with with the health issues maybe between visits, maybe offering more therapy heutic services after surgery and so on just by a 10 these are just examples, but by a 10% increase in the average spend, that is already €80,000,000 or customers that didn't really know that we have well-being services, but actually are looking for scientifically based good services that our professionals are able to provide and and just 10% of these these customers maybe with a much smaller spend than our current customers that is already 1,000,000.
And then there are quite a lot of services if we are in kind of this low low threshold affordable services like, referral free laboratory tests or or, health checkups and so on that we can offer for private customers that we do for occupational health customers, these checkups we don't do them that much for private customers. That would then be 1,000,000. But this, of course, regards new business models, new pricing models, new service design. And and and so we have alongside our fee for service models that we have now, we we have more low entry services and also free services. And and then work with Nora to combine these into subscription models models for for our loyal customers.
So that's what this is pretty much what we're kind of wanting to do to change the industry standards from from very clinical health care to having a proactive role in in promoting customer health. And there's one key element here is is that has to be something that recurs. It has to be motivating. It's kind of, you know, investing a penny each day into piggyback, and that just becomes something larger than than than than doing something big once a year. So small incremental steps as in the well-being, micro breaks, and so on.
So we assist people in staying healthy with with these small steps every day, make motivating them with digital engagement tools and and And then and also help with motivation to make our services accessible to everyone, because it's sometimes the hardest step is that first step the well-being path and the health path. And but we also ensure continuity of care. So there's, each one of us at some point in life, we're we're feeling very healthy and then we're sick and then we may be then we're be again. And we kind of are changing between between these states, but that's that's part of the the whole health journey. So so the thermostat platform, it's winning when when we have the customer there.
The customer has an active part in it. We're we're at actually doing all this that we've been describing to help the customer stay healthy and and and where we're really a partner that that gives them value value. Well-being is at the moment. It's it's around 1 10th of what what we do with small, but it's it's kind it's vital. It's it's it's in if you ask anybody or if I ask you, you're more well than sick.
So it's a bigger part of or everyday life. And in the future, we have we will look at the customer as a whole and and health health as a whole. And, and we tailor to that health and well-being journey to what individual needs And and the customer has an active role, and this is kind of important in in the digital engagement model, has an active role in kind of defining what is healthy. What is enough? And and the professionals that Therastello has are then kind of aligned around around him or her and helping them achieve those goals.
So there's still a lot of unrealized potential within our well-being business we we we already know what it is and what what the what the what the obstacles are, but but we already have plans on how to go forward and really scale them to a new level. It's all based on the digital engagement model, utilizing data returning it to the customer and helping them set reach their own goals in a personalized way. And And we also take a proactive role, kind of as an industry, but also as a company to ensure the continuity of care and also to react a bit a bit earlier than than later. Okay. Thank you.
So time for questions.
Thanks, Eva. Do we have any questions for Eva from the room? Yes, Yoda, go ahead. I'll just pick up the webcast line in between.
So, it's Ytter Agha from SEB. A question kind of to make this all happen from a commercial point of view. So, who is it? Who is pushing this message to your clients and potential new clients. Does this rely on the sales force or the account managers as you probably call them in occupational health are there sort of incentivized to make sure that the client, the company must assume then switches to a package or solution where the well-being is a part of that.
I mean, this is always great, but I'm just thinking about, because it's also about changing habits, purchasing habits for the companies. So how to make it happen?
Well, I think there it's a combination of our director for private services and our occupational health healthcare. So we know that companies, they already now purchase many of these things for their employees. But they may may not discuss with us within this occupational health care meeting about these services, but we've had We've actually been able to show the need for many of these services through data to many And in Petrie's example, they were they were real, real big, big, companies that have realized that they need to also spend a bit more than if the Finnish world that what the Kala reimburse is, they need to spend more on the well-being of their employers. So it's a it's a it's a combination of 2, but then I think now that and we've got gotten good results with kind of this tactic that that it's part of the offering and we do we do we do bring them up in these meetings I think we need to now also make them even more, kind of, how do you say? More look at the private sector in that sense that they're even more for consumer product so that they really look nice and and and they motivate you And then the pay the who pays for that service might be might be diverse.
So more of the service design into the digital product.
Thanks. Any other questions from the room? I think I'm standing in front of the camera. If not, thank you very much, Eva, and we'll continue with the with Ilkka's presentation who will summarize how all this, together combines into, achieving our financial targets.
Yes. So, good afternoon, on my behalf as well. So my name is Hilorla. I'm the CFO of the company. I have already turned thermostat back at 2012.
And, I've been CFO since 2015, But my sort of longer finance, I'll background is from, in which I mostly work with the transactions. And, in that role, I also carried out of DD of Terreva Stella Violet was de listed at the end of 2000 and 8. So I'm seeing the delisting of Trevor Stylo2 private equity rounds, listing the company, and now being a CFO for listed company for for 3 years. So so it's been a journey. I have to say it's been a journey.
In my presentation, like like Kathy told, I'll I'll try to 1st summarize our recent development since the IPO, when it comes to the financial financials, then I'll I'll I'll try to summarize what is the sort of the logic and the impact from the, from the, from those presentation that Nicky, EVA and Nora told you and how we are able to achieve our financial targets. And finally, the third part is that how we are able to finance all these fan settings and growth and investment in the future. But starting from the, our updated financial targets. So since the IPO, We have kept our financial targets the same. Now, during this year, already, we announced our new finance sell targets for the next strategy period.
There's slight updates on those, to quote target is now to have at least 5% growth. You have heard today the thought of that, that the reasoning behind that is it's more related to overall macroeconomic development in Finland. And we are taking sort of more steps towards consumer service and business service industry than the traditional health care service industry. The previous growth target was linked how the overall health care market has has grown historically and what has been our growth over that. And on top of that, there was a small piece of smaller M and A included in that.
So basically, the definition definition behind that growth target has changed a bit. The secondly why it's at least 5% is, of course, because it includes the M and A now, So basically, of course, when we will have a larger M and A acquisition, it might be well above that 5%. That's quite obvious. We still kept the profitability target on that 12% to 13% and I'll open the logic why we don't see that and why we see that we are able to achieve it and why we don't see, sort of any major risk for the dilution of that that margin. For the indebtedness, we made basically only the technical updates.
So So up to up from 3x to 3.5x is pretty much the impact of the IFRS 16, so implementation. So that's purely you could say a technical update on that sense. And the dividend payout ratio has also slightly increased up to 40% from 30%. Then, how we have then performed since the IPO. On the left hand side, you can see, the growth numbers, 2019 numbers excludes the attentive acquisitions, and you can see that the day car has been at 9%.
Even though that you would include some sort of estimated pro form a, which is, of course, which is, of course, not the official, IFRS numbers, but some kind of estimate for the 2017 numbers regarding the missing 3 months of the aircraft acquisition, you will still end up on having 7% to 8% K car growth out of that 6% to 8% revenue growth target. On the profitability, You already saw today the trend from 2014 up to 2019, and you saw that absolute EBITDA profitability has increased every year, so has actually the relative that the percentage increase up until 2018 when it was at 11.8. Then we made the upend of acquisition, which had that EBITA profitability of 7.8. And of course, it had, at the time, the diluting impact for the total margin. Although with the underlying margin still for the, for the, for, remaining terabytes tallow, developed positively.
And the absolute EBITA growth has been up 26%. When it comes to the leverage ratio, we said that it will not exceed 3 times, EBITDA, although it might do so in conjunction with the right larger acquisition. And that exactly was what happened. So basically, at the end of 2018, the net debt impact of the Appendro acquisition is included in the in the balance sheet, but the P and L impact is not included. So therefore, usually do that kind of pro form a for that.
And for the dividend payout ratio, even though that that we, only paid half of the, initially sort of, stated, dividend during This year, we have still paid that more than 30% of the, of the net profit. At the time of the IPO, we also claimed to be industry leading in margins And, we have kept that. So basically, you can see the Nordic peer group companies in here. And even so even though that we made a that lower margin our tender acquisition, and integrated that up to 2019, we are still the most profitable a company within our industry. The wide crawling while integrating, we haven't been able to keep our profitability.
And that's, like we have said, also our strategic target going forward. So our strategic target is to be the profitability leader in the Nordic region in private healthcare services. And how we all then are going to achieve that you have heard today that that our plan is to have that smartest platform in the industry. And through that, we are able to grow share. By improving conversion like you heard Nicky explained, by increasing profit per visit, increasing capacity, increasing the supply and demand, improving the supply and demand balance, and increasing the number of visits.
And I will still open the sort of the logic of those. Eva explained to you that, that our other sort of target is to be customer's health partner true that we are able to grow market and and the share of what. So for basically targeting new markets, new services, etcetera, etcetera, and higher engagement and loyalty within our customer base. We will also continue to do M and A And I'll open the logic with that. We have sort of categorized our target entities into 3 categories, which I'll open you shortly.
And the key enabler from the operational perspective is this operating leverage model that we are having within our sort of operation, which, which, we already touched upon, earlier. And that's why why we haven't actually separated that what is the impact of the smartest platform or customers health partner for the top line or the profitability because of the operating leverage which will through which it will have an impact on both of those. And the logic for that is that that, we have to sort of show it up, so that then it works. Yeah. Exactly.
The operating leverage, like like Will at all, it's, it's, it a crucial thing to us and it's continued to be a key driver for the profitability also in the future. On the left hand side, you can see sort of the illustration, that we have still capacity when it comes to the network. And obviously, we capacity when it comes to the digital health services. So while back, when we when I joined the company and so on later, that we sort of realized that by doing a couple of handful of key acquisitions, we are able to sort of achieve a tipping point, so to speak, so that every acquisition or every quote seems that are very synergistic. So we were able to build a physical platform, which we are having today And that's why it's all great model, and and it's it's actually quite difficult to copy.
If you think about that nowadays, I think it was back at 2018 when 75 percent of Fins live within 15 minutes of our clinic Today, it has to be even more, but that was 2018 number. If like Eva told you, we have 1,000,000 online port portal users and, and over 200 people that are using our, mobile app that is the sort of the platform from the physical KPI perspective resource to speak, which is quite difficult to copy, I would say. And when you have that, that, that, that, white physical network. And when you have centralized all those functions that we have done, during the years, the incremental visitor for that physical network comes with very high nice margins. And that, that every sort visit of that, or if you visit our or any of our healthcare clinics or hospitals, there are very little back office work at system in those places.
Everything is centralized and automized after that, most of that. And that is all backed by our central support functions. It's our key enablers for that operating leverage. So it's not just admin, it's not just bookkeeping, invoicing, marketing, etcetera, etcetera. It's procurement and it's that building that digital platform continuously and it's that M and A, which is crucial part of that existence.
And the same sort of logic actually applies when when today we already have discussed about the digital health services, a petri told that we have these pre booked, video appointments. The operational logic with those is exactly the same as with the physical appointment. Because quite typically, when you go quote of, time booking, and then you can choose that whether you would like to take a physical meeting or video meeting. What it means in practice nowadays is that the doctor is sitting his or her appointment rule. So basically, the pricing is the same.
The doctor sitting in the same places, but he only takes or she only takes the video visits. So to operate on our operating leverage, and that's exactly the same with the with the physical, receipt. When it comes to those online video appointments or online chats, or those subscription based, services or, or, or fixed fee services. Of course, the operating leverage for those services is even better because those chats and online visits Those are it's basically irrelevant in which location you're sitting. You can even sit in, as a doctor, you can even do your golf courses in Marbella and and have a doctor visit from there.
So basically, you don't need a physical facilities to do those cats. Hopefully, there's no one in Marbella taking those, but basic interior at least you can choose to do so. And that's why we believe that it will further enhance the profitability in this sort of grows. And when you take a look at the cost structure for our business, the Tier here, the 2019 numbers in which So roughly 40% of the expenses are either fixed or so called semi fixed expenses. So it means that while having The more traffic like we have heard today, those typically scale quite nicely.
So of course, when you have a further crowd, you need more people to serve. And if you have even more crowd, you need more facilities or marketing or whatever admin expenses. So so that's why why sort of a key driver, for the profitability improvement is still this operating leverage and how how the logic works in all these different kind of also future pricing models. So next, when it comes to those M and As, like Wheeler said, we have done that 200 acquisitions, roughly 100 during my time, since 2012. And, and like we'll already mention, the sort of the typical health care clinic market is already quite consolidated, of course, there's always existing targets.
There's a dynamic market. There's new small, clinics popping up every year. Basically and there's always room to grow in that sense, but what we have done is we have targeted sort of grow through these 3 different categories of the target entities. We are strengthening our scalable capabilities. Here is one example that you those that followed our previous quarterly report presentation, we, we, that there was Evolva's CEO presenting there.
That's one of the examples Those are typically IT related, sort of, target entities, which we are able to sort of acquire and bolt on to our existing infrastructure and therefore, get the scalability to, to, to, sort of a true to network and true to digital footprint as well. And obviously, total typically all, internationally scalable and made for international, not typically for the Finnish market, to start with. The second sort of example for that is that even though that was not the acquisition, this week, we made a sort of service contract with your Gaia, which is sort of serving sort of online, it's a sort of online yoga studio, which is, which is one of the example, but which was also mentioned in Eva's presentation. So we are also partnering with those scalable, sort of, platform that we are able to scale within within our platform. So you don't always need to acquire those.
You can also partner with those and have still quite attractive sort of earnings models because IT and M Digital World enables that. Or you're able to track it, you're a bit of pen and paper to sort of follow the money transactions anymore. We will, we still see, like Willa mentioned, we still see, grow with the opportunities in those adjacent categories in many of that I mentioned here, Dental, Fusio, mental health, our market share is still quite low. In Finland, less than 20% always. And, in many cases, also less than 10% or even less than 5%.
So there's plenty of room to grow in those segments. Those through acquisitions and through other sort of activities like like you have heard today. And we see that there is opportunities in certain specialties growth in new services, and those sort of initial type of specialized medical fields and expanding therefore to the new markets as well. And why we continue to do this, is that we have, really sort of excellent track record when it comes to the M and A. So, even though since the IPO, we have been able to create a quite significant amount of value through those acquisitions so that if you these are these example includes the 5 largest acquisition post the IPO.
It includes Diacor, Thervos Palavalut at Tendo Healthcare, Pori La Caritallo and 2 smaller acquisitions done during the last year, 2 years ago and to Acunto. The preclinical of those acquisition has been tapped directly. The post unit has been 6. Our usual, or, or, or, or online and, and, you are a better expert at our valuation. So, usually, then you can do the math at how much we have been able to create value through those, those acquisitions.
And we have remained to speak to be quite conservative when it comes to those business cases. So we have been able to exceed 9%, our projected cost analysis in those, those, healthcare acquisitions. So So that is the reason why we continue to do so. And the key enabler for that is that, like I mentioned, back Like 5 years ago, we were able to achieve that tipping point in the market. So that basically all acquisitions that we do our our Trunastic Cystic nowadays.
And then when it comes to the SmartAss platform in the Industrial And Customers Health Partner, Nicky went through those those examples of of of, these initiatives like, as an example, the Tiger conversion, if you have 2% to 3%, processing improvement in there, or if you would have more visits pipeda sort of care compliance, you will have a, have a, that, 13000000 to 100000000 revenue impact, but just by having a few biggest sort of ICD codes and, and, episodes. So so these are more, so to speak, process improvements in which historic, historically, we have been quite good at And that's why we believe that we are able to sort of also execute this kind of improvements also in the future. Then on data side, presentation, you saw, saw that as an example, if you are able to get the new customers with those sort of low barrier to entry or low entry, service types even though that they would spend significantly less than the existing customers, it will, of course, have a big impact for the total revenue as well as if we are able to sort of increase the share of wallet by having a sort of, incremental visits to within the existing customers.
But I think the key takeaway on that is that it's not about it's not just about everybody can do the math at least the If the well-being is a 10% of the total revenue roughly speaking and if that grows 10% or 20% it contributes 1% or 2% for the total growth. It's not the rocket science. But what is the rocket science part is that how that build loyalty and engagement with that individual private customer. And that's the sort of I think that the much more important thing. So basically when you have any other, health care, I need which we have already discussed earlier today, you don't have to call to that auto operators healthcare operators, service providers, web pages or online booking system, but you can get that service from from our existing facilities, either through, digital services or through the physical services.
And that's the logic with that And what is the sort of why we believe I said you that I will mention that why we believe that we're able to sort of achieve still that 12% to 13% margin. And the reason and the logic for that is that if you take a look at this and you have you have those lights and if you look at take a look at those those examples that, that, that, through which we are targeting that growth, those are coming most mostly those are coming within our existing facilities. So that's that's so in those incremental visits, we are able to sort of gain the benefit through from that operating leverage that we are having. So most of those, most of these are incremental visitors within the existing facilities and therefore have high margin and high operating leverage in that sense. And that's the sort of brilliance of office model.
10 From the financing perspective, you probably think that, that, that, what what, how to sort of finance all these fancy investments and, and, M and As and growing dividend and everything. So the cash flow profile, you can see on the left hand side. So obviously, in this kind of business, the cash flow profile is quite stable. One of the key enablers that is like like Willow already mentioned earlier is that we operate in the rental facilities. So basically when we nowadays, when we renew our rental contracts, we typically do it 4 to 5 years or maximum 10 years.
That applies to bigger units and bigger hospitals. But for the smaller units, we actually, most of those nowadays are valid until further notice, meaning that those have everything between 3 to 12 months notice period. So that is sort of having it's a it's a very well managed sort of portfolio, we have a, and now I have a team to do that so that, so that it's a continuous sort of thinking through how to balance the risk and the opportunity and how we are able to add up the transformation should that happen soon so that we are not sort of committed too long to certain rental facilities, but it should also mention that, that, up until the COVID nineteen situation, revenue in, within our existing, sort of facilities has continuously grown. So, so, so, so basically, We don't have any sort of we don't we haven't closed any units. There's no need to do that because we don't have any loss making units.
And the reason for that is that exactly the logic that I explained to you earlier when you set at a certain scale and you centralize all the functions, there's only customer serving people with the unit, and that's why it's very low costs to have incremental units and incremental, sort of network, therefore. Actually, that the, the fun fact might, if you want to call it that way, that some of our best margin units are located in very remote areas because basically what you need in very small village or city, you only need a doctor and a busy. And the rent talk value of the rent talk contract is really insignificant. And that then when you have this kind of stable cash flow profile, then we are able to sort of inter future allocate the capital quite nicely between, we believe, between dividends, investments for growth and to sort of execute still. Still M and A.
But if you take still one step further on that cash flow, that how it has developed over recent years. From the CapEx perspective, you can see that actually CapEx relative to revenue has remained rather stable, all the time since the since the IPO. So it has been that kiver more or less, 4% of the revenue. But what has changed since the IPO? Like we said already, back after this is that investments in those intangible assets.
It was 4 point something at the IPO. It was 5,000,000 at the end of 2017, it's now it's has been now at EUR 18,000,000. So it has been more than threefolded. So we have continuously invested on that digital platform from the cash flow perspective. The or the balance sheet perspective, the impact you can see here.
So of course, it will have its costs and CapEx, therefore. But on the other hand, even though that we have been increased our physical network, quite considerably from 2017 up to that 300 unit, which is nowadays, the the investments in machinery and equipments and improvement to the premises has remained more or less the same level. So what has increased is the investment in tangible assets and rest has remained rather stable. And And thinking that to the future, I think the historical development is also quite a good proxy for the future. So basically, we have continuously repeated that we continue to invest in our digital platform and there is everything is planned, based on sort of, how to serve it in the future digitally.
And that's why why it will, sort of, continue to to have impact for the intangible asset investments as well in the future. Then from the balance sheet side, in our latest interim report, our, our leverage ratio was still below even though that the COVID-nineteen is impacted as positive below that financial target. It was the 3.4 times EBITDA. As a reminder, and at the end of last year, it was the 3.1. So as a reminder, we are in a in a normal situation, we are in a very stable industry, HEPL service industry is very stable, and that's why, as an example, Our biggest competitor here in Finland, Mailliner, at the end of 2019, their leverage ratio was between 7% 8%.
Depending on the definition. So more than drop top double our our leverage ratio and there as our absolute level of the of the EBITDA is pretty much the same that, that was the size, it's sort of similar size of our company and the leverage ratio is between 7% and 8%. So therefore, I would argue that we have adequate amount of debt capacity, if there is sort of possibilities that we would need to do sort of larger move or something. And that is not the, not the case, and that is not the problem. Finally, if we take a look at the sort of the working capital development, I think the one of the one of the sort of the highlights of this industry is that we have been continuously able to sort of decline the working capital, sort of level of our operations.
And remember that during that period, we have done 2 largest acquisitions and integrated those that has ever done in the history of Finnish Healthcare. And every party that has done larger acquisitions and and trying to integrate those. Understands that like like Ville mentioned, there's a lot of hassle and and and and the puzzle in your pack is when you try to integrate, sort of sizable operations that are operating in different many different systems, many different back office systems. But each buyer of that, we have been able to continuously improve the margins continuously improve the EBITDA and continuously improve our working capital. It's our course, it's a dozens and even 100 of small initiatives that you have to do all the time continuously, but, when having a sort of keeps timing on your and excellent team.
You're able to do it even, at the time of sizable integration. So netnet conclude my section and, and, and that before, sort of Q And A, I think the 4 key takeovers is that that since the IPO, we have more or less delivered our financial targets. We have been able to crawl. Remember that the growth is is, close to the 3% an hour quote, since the IPO was that, say, 7% to 9% depending on the definition, at least three times faster than the market growth. And that's one of the reasons why we have now are now saying that our growth target is not committed to addressable health care market growth, but it's more steered towards overall economic development and, and, consumer services and, and business services market, as our business, as you have heard today, is developing more towards that.
We see further opportunities for growth. By having more visits and higher serve wallet, through this increased, sort of, super light that that, Nikki explained to you earlier, through the health care professionals through having new services and new markets, like like, Eeva told you earlier today, and that is supported by our strong excellence in M and A. And, and, therefore, we believe that they're able to achieve that. We also believe that there's strong, further sort of, improvement potential when it comes to this operating leverage through those digitalized and personalized services, meaning those new pricing models, meaning that it's It's, the bolt sort of the service provider and the customer can be remote, actually, not within our facilities. We believe that we are able to improve the conversion like, like, like, Nicky explained here, we have a sort of already projects on going on that.
And, and while Nicky doing it, I truly believe that we are able to also execute it, And we are able to optimize the supply and demand. And, and, like you have seen, we have now invested in pricing intelligence and building those competencies. And therefore, we believe that we are able to be a leader on that area as well. And all this is supported by our predictable cash flow, those efficient processes on which we have worked already or decayed, I would say, quite modest CapEx requirements going forward as well about and this cash flow obviously supports then, then our strategy implementation the working capital continues. So, that concludes my section and I think have blendy of time to have a wonderful Q And A.
Yes. We have plenty of time for for Q And A. Is there any questions from the room to Panu, go ahead.
Yes. It's Panu Alaik from Danske Bank. I'd like to ask about your view on market growth. So you highlight that it's not your growth is not dependent on that that you have your own actions to drive that, but how do you see underlying market growth for the corporate and private segment for the, like, maybe for the short term a year and and maybe for a 3 year period. And and maybe just to elaborate my question, if you think that everyone in Finland already has or all the employees have like occupational health care.
So I guess that the underlying growth would require it it's it's higher spend by the employee by the company, so they need to decide to spend more. So how is that proceeding with the with the COVID nineteen? Impacting companies? And have you seen that the companies would kind of cut spending to save costs?
It's, long, long question, and, and, and, I'll try to sort of cover it, but started from the, from the market, If you take a really sort of long term view for the market, in Finland, as I think in many other countries, health care spend has always grown a bit above the overall GDP growth. And I don't actually see based on any political initiatives or any other sort of scenario, why that would change in the long run? Of course, I think it's quite obvious that during this year, I think it might even be that we are seeing First, I actually saw one headline, which was related to that. We are seeing the first a decline in the healthcare spend since the independence of Finland. So 100 and 2 years, growth and now we are having a 1st year of declining spending in health care overall.
So but, then after this year, I think you have a valid point on that most of Finland, most of Finnish people are already covered by, by occupational health care agreement. And, and, most of things are already sort of using some kind of, private health care services as well. But, but, if we take just that traditional sort of health care markets, there's still quite a bit actually, which is provided by the public party, even though that is not sort of, if they compete with the private or it's not legally valid, that they have to all sources. So that from the technical perspective, there's a still outsourcing potential. Other sort of outsourcing potential is that there's still some some corporates that are still providing services themselves.
So that Both of these has been continued strength that both the municipalities will continue to outsource their occupational health care and the corporates will outsource their occupational health care. But yes, you're right on that, that that in a time like this, when there is a sort of every company tries to limit their costs, Like we have said earlier, that the companies are sort of the picture with the corporate segment is polarizing. So there's There's a corporates that are having a big, huge problems that try to cut all the costs in a short term that they are able to do. But on the other hand, There's lots of companies that, that are seeing, puddl next when it comes to the supply of the, of the, of the, of the trained workforce. And for those companies, it starts to sort of the incremental services that they are able to provide their employees starts to be sort of more, benefit type of, thing to the employees.
So it's a, it's a really sort of mix picture in the market at the moment. And that's why that's the sort of also the reasoning for our strategy. So that we are not in our strategy where we like like you have seen today, we're not focusing on that we that sort of the growth initiatives for the corporate segment. The growth initiatives for the private and the public segment. So so that's the reason for what that why it's a It's based on sort of the building up, sort of the smartest platform and the health care partner, not based on the customers.
And the growth piece like Ava already saw explained earlier that especially when it comes to that healthcare partner, the more growth opportunities obviously lies within the private segment and the private customers. Because in that segment, the usage of those is still really low. It's still like Nicky explained to you earlier that if you're still like like 10 years ago, most of people still behave like 10 years ago. So if you are sick, you go to the doctor, you go to the lab imaging surgery. That's it.
And there's we there, that's that's where we see a lot of opportunities in the future.
Let me
add just one more more detail to that, that, our traditional, corporates segment, which you are referring to. Business area is, more prone to larger organizers and industrial organizers, etcetera. And even within our current pool of corporates, we have room to grow in his smaller segment. Midsize and smaller companies. What it requires from us from our traditional corporate model is what actually Nora went through at least a little bit, ability to package that make it easy to easy to buy a price at properly.
But there we can grow even inside this current market?
Yes. Exactly. It's, yeah, it has been too difficult to do Occupational Healthcare contract. Now there's much easier.
Did you have a question in between?
A question on the if I call it current trading, you didn't provide a July sales already earlier, so that that we have. And then listening to you, now it sounds as always have been semi normal, but correct me if I'm wrong. But I'm also interested now when you talk about sort of people, again, daring to visit the clinics and this type of elements, is the occupational health care also coming back to if I call it more normal levels? Or is it now fair that we should assume that to be depressed for the coming months and maybe throughout this? The full year?
Yes, just as a reminder, those that don't remember, we published the July numbers which were so that the corporate segment was still sort of, below last year by 3% and the private segment was up by by 9%. So like we have said, since then that that, if the society remains open like it has been, we are most likely seeing positive development on not in that sense, nothing has changed. And we already sort of gave you a quite good proxy. So it's a very from which you can take a look at how, how, the business develops is that credit card data, which is a quite nice correlation, actually, that, how to finish our spending credit card to health care purchase is. The second is is that if you take a look at the, temporary layer of people, and unemployed people, all the employed workforce, those are also relevant KPIs for your Personal Healthcare.
So if we take a look at the, employed people, that's roughly, if I recall it correctly, 80,000 below last year's number. And if you take a look at the temporary rate of people, at the before the COVID-nineteen situation started, these are Finnish to a dialing k and a minister of whatever that is in English work and, and I don't know, ministry, something ministry. Before the COVID-nineteen has started, the temporary light of people level was $20,000 something. It increased up until $170,000, I think that's beginning of May. And now it has declined down to $62,000 to $62,000.
So it's still not yet normal, but it's it has quite rapidly decline. And what it means in our business that like we have said, if you take a look at the occupational health care business, it starts with the with the health care plan, with the corporate, then you have, sort of, top place assessments, and then you have, typically have these health checkups. That's the preventive piece of, of and that's the legal required piece. And now when there's less people sort of temporary laid off and people are, sort of more work in their offices, even though that still be people who work remotely, they now sort of take care of their legally required, sort of services. When it then comes to the sicknesses, I think the same sort of trend that, that, the overall trend in Finland risk is that, of course, Petri can also elaborate on that if you wish, but if people are not moving and people are not getting sick, they're not less sort of acute, sort of acute illnesses in that sense, but any other than those sort of life continues are quite normal.
Okay. And if I may, on the credit card data, you now referred to the data published by certain banks who have. Okay. And then I think not necessarily everyone who does have access to that. So how does it look for August?
For the August, I think at the beginning of the August, it was, well above beginning of this year, it, it's sort of relative to, to, January. And in August, it was above the January level. So it has gone up. Last couple of weeks has had as remained rather stable even slightly declined, but, but, should also take into account that as an example in our business and people close to those and same applies to our competitors and all private clinics. So if you go to those driving COVID test as an example, you don't pay with credit cards, typically, you get invoice to the home.
So that, as an example, service cannot be seen in that area. So that's a bit sort of misguided. But anyway, in August, it has developed positively and remain further stable.
Okay. So August was above.
Above channel.
January in this date?
Yes.
Okay. Cool. Thanks.
Thanks. I think we'll take some questions from the webcast in this point. First question from Alex Gibson, Morgan Stanley. When do you start negotiating 20, 21 contracts for your corporate business? And what do you expect the for pricing and contracted volume growth in light of COVID-nineteen pressures on the corporates.
Net net do you expect growth in the corporate business in 2021 over 2019 levels or are you expecting to see rebalance in this segment?
The price list for the corporate clients is set sent, nora is building it, and it's, it will be sent, I think at the end of October or at the beginning of October in the October in any way. So after that That's what that's the annual price list that will present to corporate clients. For the corporate segment, it should also be taken into account. But in a times like these, corporates typically concentrate on something else than the re tendering occupational health care contract. So it's a bit different kind of process this year than typically.
But when it comes to the next year numbers, obviously, we don't disclose any sort of forecast for for the next year development, but, as I said earlier, we are such a big company already when it comes to the Finnish employed workforce that, that, development in a short term development of the temporary land of people and employed workforce is quite good proxy also for, in a short term, also for our corporate. Segment development. Thanks.
And then next question from Savi Zargamias Nordea. How do you think, competitive landscape landscape and pricing environment towards both customers and doctors will evolve if we assume that the Mehil Anen, acquisition will close.
Well, may, maybe I will refer to my earlier comment, regarding tervestell's growth. Tervestell has been able to, triple the market growth and big part of the reasoning behind that one is market consolidation. So market consolidation has been a positive thing for the rest of our, of course, the rest of us has been active part of the consolidation, but there are many, many sort of, things that point to the same direction, especially when we come to this more digital and hybrid age, bigger players will get more than the fair share because we are the only ones who can really invest in and innovate and develop. We feel that we are leading that, that back. And, Again, our sense is, that consolidation still in the Finnish marketplace is rational.
This is a smallish market and consolidation in the history has been a positive thing for Theravesto.
Thanks. And then another question from Nordea. This time from Paolo Your profitability has improved gradually over the years and almost reached the EBITDA margin of 12% in 2018. Why didn't we set the probability target higher for the future taking into account the existing potential in operating leverage and the other operational excellence initiatives that we outlined today.
Last year, how we saw it, it slightly declined because of the diluting impact of the attendal acquisition. And obviously, this year, you don't have to be an analyst to sort of understand that properly this year, it would be hard to achieve that kind of target and, and, for the sort of, would like to be to achieve and also, try to exceed, expectations and our financial targets into future but just to not over promise anything.
And maybe it's good to, remember that we are ballast between basically three things. Here we are balancing between growth, profitability. And then what we have been discussing a lot today is, building scalable platform for the future. And that's, very, very important going forward because then that opens up new opportunities in the coming years.
Thanks. Do we have any other questions from the room? Yes.
Ersteem on Carnegie. In terms of acquisitions. So how do you see currently the outlook for smaller and larger deals?
Large share deals obviously are always quite sporadic. So you can't sort of forecast those. So it's a smallish market like like real estate. So basically everybody knows everybody and Pheasant sort of I would say almost continuous debate on any sizable maneuvers, but when it comes smaller acquisitions. Of course, the COVID 19 situation frees most of the transactions during the spring.
But now we are seeing more activity when it comes to those smaller entities. There's some small entities that, having liquidity problem and therefore, it's a might be a trigger for them to sell the company. And on the other hand, some of those processes, which were postponed because of the COVID nineteen situation have now sort of restarted, post summer. So So VCE actually, it's a quite active market, but it's actually quite interesting to see how the valuations will move now, sort of after the COVID accurate situation in the future, that is that still remains to be seen because test quite little M and A so far executed after the summer, summer and summer break. So It's interesting to see lots of activities, but we need to have a buyer and a seller.
And outside Finland, can you comment anything about your target markets as you aim to be profitability leader in the Nordic Nordic countries. So, so it's kind of, for example, Sweden, natural step for you to expand?
At least in my books, nothing has basically changed. So like we have said already earlier, we have already many years, followed our neighboring markets and development in the, and that's been following transactions in in neighboring markets closely. And, and obviously, we continue to do so, but like Vila mentioned, it had, of course, has to be value adding and, attractive target?
Yes. Looking at our agenda, when it comes to M and A and then building this scalable platform going forward, you have mentioned, of course, we are very, very well aware of what's happening outside Finland as well. But, needs to be stated, but that we are not in any hurry. We don't rush. We don't push any sort of transactional stream, outside Finland, but we are building a scalable platform which is independent, mostly independent of the system.
And if, opportunity, which is, value creating from shareholder value point of view. Also I feel that, of course, we are interested.
And, just to add on that, and like I mentioned already earlier today, it's good to note and remember always that that, in a digital world, the national borders are pretty much lower compared to physical world. I just learned a few days back that actually, out of those remote visits that that we saw you today from, from Petropresentation, etcetera, there's several percentage of those that are coming from, from out side Finland, actually. So people are moving. And, and, of course, we serve only in Finnish nowadays So those have to be finished clients. But anyway, it tells a story that that it's a in a digital world, there's no sort of national borders.
Thanks. I think that's a good bridge to closing words by V11.
All right. Thank you, Ilkka. And, and thank you for Terreva's Stella team. I think I said early, early or in the beginning that I'm very proud to be here today. And of course, even prouder after listening to Tim's presentation, presentations, I think that it was a good demonstration of the rainbow ideas, innovation capabilities that we do have inside, inside the tent.
And also, of the fact that we are not only putting fancy headlines to, to, fancy topics. We do have plans. We do have concrete initiatives. We do have, we do have projects already ongoing, and we have started to deliver. Today, it has been a lot talk about things like, platform, digital capabilities, apps, engine room, processes, connectivity, etcetera, etcetera.
In a way, technology driven issues, a little bit sort of engineer type of things, as Eva mentioned, we are conquering this world. But we need to, bear in mind that this is still now and interviewed, sir, people to people business. And, we do have a a great track record we do have financial capability to, deliver and take basically any initiative in the agenda. We have great agenda We have great plans, and we have a very, very strong team committed to dealing. We have, updated our strategy and there, which is not mentioned today is, is, actually the values that we updated So, and, maybe it's, with sort of, visiting those, those as well.
There, we are not talking about, technology as, as a primary driver for this thermostat. I have now, as I said, been with Terverse Toses, December. I found a company which is, very, very unique combination of, value driven people and target driven people. And, we wanted to stay there very, very clearly in our value so that, even in the future, although we are building a scalable platform with contents a lot of technology new processes, human being is going to be interested. We need to understand all in all of our touch points.
This is a very sense the business that we are dealing with. We will, be, even though we are expanding our portfolio, we will be, steered by medical science always, Science hard data will be the guideline, even though there would be a business opportunities outside this fair will not call there. So, expanded portfolio does not mean that we would step aside of this box, basically. And we, are for common good, even though, and especially because of, we are driving for industry leading margins and high growth. That's a just a demonstration of the fact that we are able to create value for our be it corporate, paid private or paid public customers.
Asset, we have, very solid plan, for future, future coming years. In Finnish terms, the team has, skis pointing the same direction. So we have started to deliver, and our team is team is in place, and it's highly, highly competent. The headlines, for our strategy implementation, as you have heard many, many times are, smartest platform and health partner. And I truly believe in this, areas and these improvements.
This industry is about to, go through biggest transformation, in, in its history. And, there's huge potential in, in, industrializing and commercializing this one properly, keeping in mind, our value base. I think, it's good to, have a sort of a mood piece here in between. So, maybe if you, if you may, let's look at some some videos or one video.
All right. The
the
Thank you.
I think that video captures the essence of our value base, which I shortly discussed earlier, but we will not repeat it anyways. Final, slide and final conclusion. This is, as I said in the beginning, this is a not COVID-nineteen seminar, but this was the starting point for today. Important achievement for the organization. I want to use this opportunity as well to thank Theravastava people for tackling, first two phases of COVID-nineteen crisis in world class manner.
And we have basically past 2 of these getting to this this web webcast. Then, our case, in, partly repeated in the, phrases and concepts that we have been using throughout the day, even though COVID nineteen is hitting, this industry, has been hitting and continues to hit this industry, to certain extent, the underlying, growth drivers for health care as an industry in general, they are really, really strong. Especially when we are expanding the concept of, of health care to health care and well-being. Tervestalo is a industry leading provider. In, in this market, Finland and Nordics, very important, which is, sort of, one manifestation of our value base as well is that we are preferred, place to work for healthcare professionals.
We have been that 7 consecutive years. And even though Nicky is, able to optimize the engine room and availability, we will still compete in a labor market for the top notch professionals and best talent. And that's, one thing that, that gives us competitive edge also in the future. We have been talking about platform model And, for me, as as new CEO, understanding this business and understanding this, this, company, this has come as sort of a nice surprise that actually, hey, these people, they have invented asset light, platform model, which can then be a further perfected using digital tools, better, better processes and benchmarking other industry industries when it comes to commercial models. As said many times today, we have, further growth and profit, potential, based on our strategy.
Which, we have, we have given you a lot of details today. And, I am sure, the, It's, it has been interesting. It has been trustworthy. We can dig even deeper in any of the initiatives that we have discussed today. But as I said before, we have a solid, a great plan, and, we have a team to deliver.
And this is, now, final words from a thermostat. Thank you, Get better.