Good morning everybody, welcome to Terveystalo's half year results webcast and call. As usual, our CEO, Ville Iho, and our CFO, Ilkka Laurila, will present the results of today, we'll follow that with a Q&A. We also have a third speaker today, Mr. Simo Taimela, from one of our subsidiaries, Evalua, who will talk a little bit more about the capabilities that we have in predictive analytics and so forth. As usual, we'll take questions from the phone lines and through the webcast after the presentations, you can send them out from the link as well. Without further ado, I will give the speech over to Ville.
Thank you, Kati. Good morning from my behalf. Let's dive directly into main headlines of Q2. It's no surprise, of course, for anybody that.
As I said to our personnel just a couple of minutes ago when we had a brief, this COVID crisis is like having a boxing fight where you don't know how many rounds do you need to fight. We have fought first round. We don't know how many there will be. As per today I can say that this quarter two has been a defensive win for Terveystalo from many points of view. We see the demand is recovering. Of course, fall is very hazy. It's very difficult to predict where the demand for different services will go. Today of course we are picking up in demand. We have been successful in mitigating the crisis, I would say from operational point of view, from medical point of view, from a financial point of view, and also from a customer service point of view.
One thing that every Terveystalo employee can be proud of is the fact that we have been beating our employee satisfaction records every month, basically going into the crisis. Now we are over 80 with NPS for the appointments, which is a record high level. Trust from our customers has been strengthening throughout the crisis. I think that is a very clear sign of the capabilities of Terveystalo organization. Coming to the fall, I said already that demand has been picking up in July. We gave some detailed numbers on that one. We need to be flexible. Flexibility has been the key for our managing the crisis. It continues to be the key for managing fall as well.
There will be swings up and down, and we need to be very agile in matching demand and supply and also providing right type of services through right channels for all of our customer groups. Some details from Q2 and now also some sneak peeks from H2 and beginning of H2. Revenue was obviously heavily impacted by COVID-19 crisis. Almost 20% down for corporate customers during Q2, 24% down for private customers for Q2, and also some impact in our public customers namely through lower demand for staffing services and then also some difficulties in supply for staffing services due to some restrictions for movement of doctors from Estonia especially. The H2 beginning and the numbers describing the recovery are of course very interesting. What we came out already with are the detailed numbers for corporate customers demand development and also private customers demand development.
Revenue from corporate customers in July almost flat year-on-year, private customers are picking up quite nicely, 9% up compared to last year's period. You need to bear in mind, of course, that July is the slowest season for our services, you shouldn't make too direct conclusions from this one. We have all the time said that decisive period for our services and how the recovery will continue is going to be mid-August. These are the critical weeks, we'll see how the fall will develop. As said, we are prepared for any scenario. We remain flexible, I think the Q2 result and performance by the company is a clear sign that there's a capability inside the organization to tackle any scenario, any situation. All in all, revenues are down to EUR 109 million. Results I already explained, the drivers for that one.
Obviously, Ilkka will give some more detail and dive deeper into these numbers. Going forward, as I already said, H2 extremely hazy, obviously. We are right now picking up nicely on demand, but COVID-19 has been full of surprises. Very difficult to predict. The mobility of people in our different customer groups will be the key. If the mobility will be there, people are highly aware of their health. They are sensitive in taking tests, et cetera. Of course, that's going to be a positive scenario for us. Of course, any harsh restrictions or lockdowns again will then impact negatively on our results going forward. As said, we are prepared for any scenario. We started the fall planning with the four different scenarios. We picked one as a base scenario, and our targets are based on that one, but we remain flexible.
From a result point of view, on EBITDA level, we reached almost EUR 9 million, which I think is a good achievement by the organization. As I said, this can be called a defensive victory. We were successful in matching supply and demand quite nicely. We were able to come up with new services for corporate and private customers in testing arena, for example. We were able to direct demand to new channels, digital channels, and we were heavy on cost mitigation. Through those actions and very active crisis management, the result is, in these circumstances, at least satisfactory. The other positive thing, of course, has been our cash situation and cash flow through named actions and also some detailed cash flow mitigation actions have been strong throughout the period. As I said, name of the game has been flexibility.
Flexibility in demand supply management, but also in matching our services with the evolving customer needs from corporate customers, from public customers, from private customers. We have been very active in establishing new type of services for testing, tracking, and risk assessment. We are helping our customers to mitigate through this crisis also during fall. We are also preparing for new services for the fall. I would name as one of the most important the Quick Test, which is going to be a very effective tool for managing COVID-19 situation in different type of our customer groups. As we promised, even though we were in the middle of the crisis, we updated our vision, mission, and strategy and also strategic targets. If you want to sort of describe in a nutshell what we are aiming at in this industry, the starting point for healthcare industry is fairly immature.
We are well underway in industrializing and commercializing this industry. Our key targets, key themes throughout the strategy period will be to build the smartest service model for the industry and be very close to the end customer, be customer's health partner. This requires lot of internal intel system intelligence, and we thought that it would be very refreshing for the audience to hear a sneak peek on one of the capabilities that we have been developing. It's only one, but it's one of many and a very interesting one. Mr. Simo Taimela from Evalua Analytics company, which we acquired last fall, will give a brief how with analytics, data, and science you can predict and support our strategy and our customers going forward. With that, over to Simo.
Okay. Good morning, ladies and gentlemen. Thank you, Ville. Yes, my name is Simo Taimela, and I'm the founder and CEO of the Evalua company. As Ville introduced, a brief introduction to Evalua and what we do, where we come from. Evalua is part of, as Ville said, out of the Terveystalo group since November last year. We have specialized in health risk appraisals and related services, mostly to corporate clients. The company was established already 2003, and we started first with offering our services to internationally operating large corporations like Nokia, Kone, ABB, Wärtsilä, and the like. Later on to insurance companies and over the past, I would say, 10 years to health service providers, including Terveystalo already from 2012 onwards, I think. We have a presence in Finland and the Netherlands. There is a subsidiary, Evalua Netherlands, in the Netherlands.
The company is based on a very solid scientific background or scientific foundation, a research network. Content-wise, we have been developing our services primarily by four people mentioned here. Myself, I have an academic background. I'm an adjunct professor of epidemiology at the University of Helsinki. I'm still working part-time for the university. Medical doctor, originally. Willem van Mechelen, Allard van der Beek, and Han Anema are professors at the University of Amsterdam. They have a very broad experience and science background in the field, what we do. The problem what we are trying to solve, what is that? Many companies have realized that taking good care of employees is a means to secure optimal labor productivity, which largely determines profitability in services and expert services, especially.
Certain operative means for that include identification of individuals with care needs, especially of those individuals with work disability risk factors, and intervening the problems accordingly. Another one includes identification of the individuals who may have mostly lifestyle-related issues that hamper their vitality, their wellbeing at work, and therefore influences their work productivity. A third mean could include identification of work communities, where issues with lifestyle or work-related problems and work disability risk factors are more common than elsewhere, and intervening accordingly. Our solution, what we offer, includes the Sante Q health risk appraisal. We have been developing the contents already for 17, 18 years, and I think we have found a reasonable package.
Not only limited to the questionnaire, we also have incorporated a personal feedback so that each and every respondent receive an immediate feedback after responding about what are the findings, what are the meaning of each individual finding or topic, and what can I do about it. What are the means that I can do, and when should I seek help for the issues that have been pointed out? In other words, we can build an action plan guiding towards personalized interventions. All this is operated through a versatile IT platform, what we call My Health and Work Ability platform, that enables operation of questionnaires in large volumes. It's highly scalable. Over the course of the years, there has been an accumulation of a vast database.
We have been doing quite a bit of research and analytics about the findings, and we do have a benchmarking database based on which we can provide a group level qualitative information and feedback to the companies on what level they are as compared to where they should be and what are the issues that they should focus on a company level or a business level or department level or so on. What is the predictive ability of the questionnaire? We have been studying that quite extensively, and the most recent scientific papers have been published in less than one year in international journals. In a nutshell, we put together the data of 22,000 people's responses to the questionnaire, their sickness absence records, and permanent disability benefit records. This was done in collaboration with the University of Tampere in Finland.
The results quite clearly indicate that the subgroup that we can identify as the work disability risk factor group, in which belongs about one-quarter of the respondents on the average, as compared to the reference group with no findings or lifestyle issues only. Sickness absence days are fourfold within this work disability risk factor subgroup. If the individuals have two or more simultaneous work disability risk factors, they have over tenfold risk of ending up on a permanent disability benefit over the course of six years. The predictive capability of the questionnaire is rather good. We have done, for example, a randomized control trial on the early intervention model versus the traditional or care as usual, habit occupational health services.
In this randomly allocated two groups, the targeted intervention, which was based on the findings of the Sante Q, the group had 35% less sickness absence days over the course of following 12 months. The benefit per individual per year was about 11 days per year. Surprisingly, also the savings in healthcare costs were noted. The early intervention reduced the future healthcare utilization more than it temporarily increased it. There is a double benefit both on the healthcare cost and sickness absence days. We have also published a paper, actually Jos Verbeek has published a paper, I was involved, where we compared the cost benefit either using the Finnish costing parameters or the Dutch costing parameters, and the cost benefit ratio was very high. The investment point estimate was in around EUR 30 per saving per one sickness absence day.
With the Finnish costing parameters, the return on investment would be more than tenfold. The current solution for the problem that I described earlier includes the idea that for those with work disability risk factors, we perform the Sante Q targeted health checkup, coordination of the interventions by the occupational physicians, and we expect reduction of sickness absence and future healthcare utilization. For those with lifestyle issues or wellbeing issues, we can also follow the idea of targeted health checkups and perhaps a lifestyle coaching. On an aggregate level or group level, we provide group reports and support the management decisions about what to do with developing the HR management in the company. Future opportunities may include horizontal expansion, new clients, new client segments, and the like.
Vertically we may think of, and we are actually working with additional surveys, for example, occupational hazards, digging deeper on occupational wellbeing, also designing more effective or new effective interventions, and the like. As a summary, we aim at improving vitality, wellbeing, health, and work ability of employees in order to improve the labor productivity and improve the competitive advantage of our client companies by the means of, first of all, pleasant, versatile questionnaire, guiding individuals to correct interventions, and making it possible to build a seamless coordination of the services within occupational health services, health advisors. Also it's possible to build an entire e-health ecosystem around the services in the future. There is a strong scientific proof of the predictive value effectiveness and cost-effectiveness on this model of operation. Thank you.
Thank you, Simo. Good morning on my behalf as well. From the financial perspective, that was one of the examples that we do in our preventive services and which are having a strong sort of scientific and clinical background and like we have communicated earlier, I think we are quite forerunner in that arena and as a Terveystalo and also as a country, and we believe that is a fact also in the international context. Few words regarding the financial performance in the Q2 at Terveystalo starting from the sales and profitability development. As Ville already told, of course, the profitability in absolute and in relative terms declined as the revenue declined during the Q2 if we compare to year-before numbers.
The biggest reasoning of course was the decline in the revenue, but also as a result of changes in the sales mix, meaning that as we have said, as the infections declined and the sort of the services for the lifestyle diseases declined as well as the preventive services declined. Those services typically include at least some proportion of diagnostic services. Therefore, relatively speaking, diagnostic services declined in the Q2 a bit more than the appointment services, which had a negative impact on the profitability as well. The third thing, obviously, is on top of the protective gearings. Its cost increased as well, is the fact that we have continued digitalization of our operations, which will have an increasing impact for the cost structure as well. From the cost structure-wise, the numbers can be seen here.
Basically, what happened is that even though that the top line declined at 19%, the purchase of the materials increased at 20%, and the reason for that is the obvious, it's the protective gear that we acquired. Secondly, the employee benefit expenses declined as a result of those temporary layoffs that we had during the Q2. Thirdly, as I said, the IT expenses continue to increase even though that we have, of course, mitigating actions. As we transferred our operations rapidly to work more in a remote mode, that had a sort of, let's put it that way, non-recurring type of increase in the IT expenses. Of course, as we continue to digitalize our operations, that will have a continuous impact for the IT expenses trend-wise as well.
The cost-mitigating actions in addition to employee benefit expenses can be seen in other operating expenses, which includes different kind of administrative marketing, et cetera, et cetera, expenses, and that declined with approximately that 35% and has declined during this year that 15% in total. That shows the capabilities that we have to sort of cut the cost in a short term if needed. From the balance sheet-wise, we increased or made an additional financing agreement of EUR 40 million during the Q2. The result of that is that we have now cash and cash equivalent assets is that EUR 90 million, and on top of that, we have some EUR 40 million of undrawn loan facilities. In that sense, we can argue that from the financial perspective or the liquidity perspective, we are in a very strong position at the moment.
Our net debt also has declined, the net debt, the adjusted EBITDA leverage ratio is still below the target and well below the last year's number, which was that 4.1. From the operational efficiency and the cash flow-wise, we have been able to sort of control the working capital as well quite effectively. You can see that the trade and other receivables have declined. That the one reason, of course, is that the top line declined, but we have also sort of improved our debt collection and invoicing sort of functions and operations, and we have had positive impact to the cash flow from that as well. On the other hand, you can see the trade and other payables have increased. There's several reasons for that as well, and a lot of activities behind that.
One reason is that the pension expenses, like in other Finnish companies, we are able to sort of postpone the payments to the third and Q4. The second element is that we have negotiated longer payment terms with some of the suppliers as well as some of the tenants as well. The net result of these activities has been that the net working capital has improved as shown here. Sort of third thing related to cash flow is that, like we said, we have sort of freezed and reconsidered some of the investing activities during the Q2. The result you can see here, so that the investments related to digitalization and IT continued on a high level, EUR 18 million as an LTM number. For investments for the machinery and equipment declined quite considerably.
One reason for that is that during the comparison period, we had two MRI machine acquisitions at the time. The second reason is that we have postponed some of the non-necessary investing activities just to secure the cash flow and the liquidity position. Our sort of capabilities from the cash flow-wise, you can see from the numbers as well, so that if the EBITDA in the Q2 declined at EUR 17 million, roughly speaking. The cash flow after the investing activities only declined at roughly EUR 7 million. That shows that in this kind of situation, we are able to manage the cash flow quite nicely as well.
Finally, I think as communicated already earlier, we will have a Capital Markets Day on 2 September this year. You will hear more with regards to our operated strategy, and looking forward to see some of you probably, hopefully, during that meeting and at least hear you during that Capital Markets Day. I think that we have time for Q&A.
Thanks, Ilkka. I think that we have a couple of questions already on the line from the phone lines.
Thank you. If you wish to ask a question, you may do so by pressing zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Again, it's zero one on your telephone keypad if you wish to ask a question. Our first question comes from Alex Gibson, Morgan Stanley. The floor is now open to you.
Great. Thanks for taking the question, good morning. My first one is on the sales development that you've seen in July. Can you talk about the seasonality of the quarter and how that's impacted the July level, and what you expect for the rest of Q3 with the balance of pent-up demand, the holidays that you expect to come through, and the availability of physicians? That's my first question. Thanks.
Well, in Finland, the July is the quietest month of the year. School starts this year, I think it's the 12 August, and a lot of parents and people are coming back to offices in the middle of the August. Therefore, the July is the slowest month and that's why Ville already said that the predictability of the July numbers is a bit hazy and weak still, but that's the only fact that we have at the moment. Of course, the swings will be quite high, obviously, during the Q3, and the development remains to be seen. The July is the slowest month, clearly. It starts then gradually increase towards September and October and November, which are the highest sales months during the second half of the year.
I guess on that point, you talk about your developments in July so far. Is the expectation that you won't see as strong a recovery in August and September from here on out, just because July is usually seasonally weak, so you're getting more people coming in because of the pent-up demand argument? Just trying to think, like is the July, should we be expecting a slowdown on a relative growth basis in August and September?
Yeah. In a normal year, it would be a much easier to give more flavor on that. This year, I would say that the only fact that we know is the July number, and it's really difficult to predict at the time. It really depends on how the consumers behave and how corporates are behaving and what will happen with the unemployment, et cetera. There's a lot of uncertainties in a short term, especially, and that's why it's really difficult to say anything firm with regarding to August and September.
Just to add on that one, you need to be, as Ilkka said, very cautious to draw conclusions from July. We have said, during Q2 that decisive period for the recovery for us will be mid-August and onwards. These are very interesting weeks for us. Obviously, as to your question around pent-up demand, we can clearly see that there is pent-up demand. We can see that one in some of the services and bookings. Still, even with that one, you need to be cautious because we are still in COVID-19 period, and very difficult to predict the impact on that one.
Okay, great. My second question is just on the sustainability of the layoffs and the cost savings that you've seen. Clearly through the crisis, it might have been easier, more understandable to cut out costs. As things do return to normal, how do you expect your costs to evolve over the next quarter? How do you balance kind of the return in demand with your more fixed cost employee base?
Well, if I may comment on that one, the Finnish unpaid leave or furlough system is highly flexible, and that's one of the benefits in the Finnish system. From that point of view, we are agile. We are very flexible in matching demand and supply, as I said earlier. Right now, when the demand is picking up, of course, the layoffs are at the minimum level. We have preparedness for increasing the layoffs if the demand would be lower than expected. I don't see any difference between Q2 and Q3, for example, from this point of view. We will act according to demand, and we are highly flexible in doing so.
Okay. Great. My last question is just on M&A opportunities and just interested to hear if you've seen an increase in any stressed assets out there that have potentially been approaching you to be acquired or to partnership in any way. If that is the case, do you think you have enough allowance in your leverage levels to push any of that M&A opportunity through? Thanks.
To answer the latter part of the question, yes, we think that we have flexibility to move if needed. With regards to M&A market, we can see in small companies, we can see some activities that some small companies are running out of cash and have difficulties when it comes to the liquidity, and therefore, that might end up in some kind of M&A situations. In a more mid to larger size, we don't see that kind of distressed activity raising at the moment.
Okay, great.
Thank you. Our next question comes from Panu Laitinmäki from Danske Bank. The floor is now open to you.
Yes. Thank you. I have two questions. Firstly, can you talk about this topic of queues or backlog being created in the public sector and the impact to your business? Have you done any contracts to help the public sector with this? What is your view how this will develop? Have you seen any kind of spillover demand from public to private if people kind of get tired of waiting for a cataract surgery, for example, and then decide to pay you to do it?
Okay. Well, first of all, from the sort of medical disease category that we have been looking at, we could see during Q2 that certain disease types were slowing down more than the rest. For those ones, one of the groups were sort of lifestyle-related diseases which typically are long-term issues. We could clearly see that there's a pent-up demand building up. It's the case, for example, dental services. From public discussion, you can of course see and read and hear that on the public side, you have been building even more that pent-up demand. From our bookings, we can see that on private side, people are coming back with the longer-term diseases. When it comes to public, yes, there have been throughout Q2 already some activities with the public sector. In larger scale, it's not yet materialized. At certain point, it needs to materialize.
There's no other way to solve the situation and solve the queuing situation and problem on the public side. In larger scale, the sort of wave of public sector demand has not yet arrived.
Just to comment on that. I agree. Basically we see some signs, but the materiality of those activities is still quite low.
If it materialize, do you think it will be like a second half issue or second half thing for this year, or would it kind of happen next year?
Well, spillover impact, obviously this year and this half. Public side solutions, those depend on political decisions partly. Part of the decisions, of course, are local for municipalities, and those could materialize in Q4, I would say at this stage.
All right. Thank you. My second question was on costs. Basically, do you see potential for more structural changes after these changes in your business? I mean that the remote services have grown quite a bit. Do you, for example, see potential to close some units and do that kind of changes to your kind of network of offices.
Well, the balance between different channels will change due to this crisis, and we of course can see clear signs on that one. From Terveystalo point of view, one needs to state that we believe going forward in omnichannel environments also, we need to have a brick-and-mortar network, a very strong one. At the same time, we need to be able to couple services through different channels for individual customers. During the crisis, we have already closed some units temporarily. We have been reacting to lower demand based on that one. At the same time, we have been increasing services through digital channels. We are already in a way, in that shift, but there's no, at this stage, any sort of a large-scale plan to reset our network based on the new situation. It's too early to make that call.
In the long run, as to your question, of course, the balance between the channels will shift, and we will then adjust accordingly.
It's good to remember that we do our sort of result with the integrated care chains, and those remote visits and digital services typically relate to appointments. Basically, there is only one sort of the, if you want to call it that, it's the first contact with the customer, and then it sort of refer the link to other services within our organization and operations. That's why it will not have that significant impact in the short term. It might be quite the sort of opposite because it lowers the sort of the barrier to entry to our services because it's easier to contact medical services through digital services. The integrated care chain is always good to remember when considering these kind of issues.
Any other questions from the phone lines?
Thank you. Our next question comes from Iiris Theman, Carnegie. The floor is now open to you.
Hello, this is Iiris Theman from Carnegie. I have three questions. Firstly, still on the cost side and your investment side. As the demand has started to pick up, so have you started to increase your other costs or investments? Secondly, how do you expect your sales mix to develop in the second half of this year? Third, my third question is related to the government's Sote reform proposal. It indicates that there could be cancellations of some municipality outsourcing contracts. I guess, or I remember that you had some 10 full outsourcing contracts in place. Is there a risk that some of these contracts could be canceled? Thank you.
Maybe I can answer the first question regarding the costs activities. Far, everybody has just returned from the holiday, so we haven't yet made any sort of decisive movements regarding the cost activities. We continue with the same pace as earlier. As Ville said, we watch closely the activity level and how it develops and adjust our cost structure also to that activity level and try to keep our organization and cost structure as agile as possible in this kind of situation.
Yeah, that especially relates to investments linked to implementing our new strategy. Of course, on operational side, we are running very tight ship and we are keeping costs in very tight control. At the same time, of course, we are building a roadmap for our strategy implementation, and that will include investments in digital and system intelligence, as I pointed out earlier. As Ilkka said, we have not mapped out that investment program for the fall or even next year. The next question was around the sales mix. If you Ilkka want to comment on that one, but indication from July recovery is that sales mix will normalize. Again, swings are possible. They are even likely.
Yeah. Precisely. In July, the sales mix has sort of normalized, so to speak. Like I said, we have seen increase in demand for the specialty care doctors services especially, and that typically include diagnostic services as well. Therefore, the sort of the sales mix has more or less normalized during the July. The infections have also increased during the July. Luckily, those have been the rhinovirus-related sort of normal flu, not the coronavirus.
Testing activity, of course, has increased quite a bit in the first weeks of the fall. The last question was around the Sote reform. Yes, we do have a couple of outsourcing deals out there according to our assessment. They are not at risk. On the other hand, their significance to our business, especially on result level, is very low. Terveystalo has never sort of been a Sote company, as we have never sort of sold the story based on any Sote scenario. We have the capabilities to serve all of our customers and help Finland in large scale to decrease the healthcare cost and improve the quality if decision-makers so wish, but our strategy is not based on any individual scenario.
Thank you.
Just as a reminder, if you do wish to ask an audio question, you may do so by pressing zero one on your telephone keypad. There appears to be no further questions. I'll hand back to the speakers for any other remarks.
Thank you. We have some follow-up questions from the webcast. First of all, from Anssi Raussi, OP Markets. Could you describe the potential outsourcing pipeline and market in Finland? For example, Municipality of Puolanka said yesterday that they are considering outsourcing.
Well, all in all, outsourcing market, regardless of the Sote talk and discussion, is quite active in Finland. It hasn't been this active during my time as it is right now. There are activities and there are initiatives out there, and of course, we are interested in those.
No major changes in the market after the government's Sote?
No. These initiatives and outsourcing packages that we are seeing in the market right now, of course, they have been pushed by local municipalities. They are doing their independent decisions. I think they are doing wise decisions right now and are looking for solutions for the high cost and low availability where we can help.
Thanks. We have a question from Jutta Rahikainen, SEB. Two questions on the corporate customers. How was corporate customers' sales in May, June, and trending up during the Q2, or was it a big jump towards normal in July specifically? Secondly, do you think corporates will continue to invest in well-being and predictive care also in H2 should most of the office people continue to work remotely from their homes? Will the distance working automatically mean lower corporate customers' revenues for us?
I can take that one.
Starting from May, June. I think the sort of the pattern was quite similar with both private and corporate customers. We saw sort of the gradual increase since April, when the society opened as well. July specifically, with regards to corporate sales, obviously, when most of Finland is on holiday, it's a bit weird month for the corporate segment customers specifically. In there, we already like in May, June, we saw that the one that is actually sort of the below the normal level are those legally required and preventive services, meaning health checkups, et cetera, which is also part of the diagnostic services typically. That has been, relatively speaking, on a lower level that the sort of the normal, let's say, sickness care for the occupational healthcare customers because that's typically if you are sick, you take care of that issue.
For those preventive activities, you are able to postpone it within the year from the spring to the autumn, and that's most likely what we have seen. In that sense, because it has to be taken care within certain sort of calendar year, most likely we can see increased activity during the second half of the year when it comes to the legally required preventive occupational healthcare services. It was a long question. Was there other sort of parts that I didn't answer?
Long question and about whether if people continue to work remotely from their home, should that have an impact on the corporate sales going forward?
That's the tricky piece, I would say. Of course, if like in the Q2, if we can see lower numbers of the infections, if people are not contacting each other, overall, all kind of infections, be it any kind of respiratory or other eye infections or anything like that, of course, it will have impact for the acute care-related sales for the corporate and for the private customers. On the other hand, even though that you are staying at home, if you are having sort of health checkups or et cetera, if you are having any kind of activity planning with the corporates or workplace assessments or anything like that activity should continue even though that you are working remotely.
The third element is then the sort of the non-acute care, and there I think the sort of the behavior with the private individual and the corporate end user customer is quite similar. You can sort of postpone certain non-acute care activities for the certain times, but there's always a sort of limit that how long you're willing to sort of postpone your cataract surgeries or with your knee problems. That's why it's so difficult to predict the demand for the second half of the year, that like we have said, most likely there's a pent-up demand for those non-acute services, but the quantity and the amount of that's the big question mark. This related to sort of restrictions regarding the movement on society, of course.
If people are remaining at home, they can live with that knee problem or with that cataract still a few months. Net, eventually it has to be taken care of in the Q3, Q4, Q1 of 2021 or later. It will not pass away.
Yes, maybe to add on that one. As I said earlier, and also as Ilkka said, mobility of different customers, be it corporate or private customer, that's one of the key for the demand for the fall, as well as it was for Q2. We saw demand picking up as restrictions were lifted and people started to move and live more normal life. If there's no movement, if people are staying home, as Ilkka said, of course, the demand will be lower. What we can see right now, which is maybe one sort of example is that obviously when companies are normalizing their business and way of doing office work, for example, the testing activity is increasing fast because companies and individual people are very sensitive on their health.
Of course, with any even small symptoms, you will not go to the work and that sort of feeds into testing activity.
That's part of, as we said, that one of the sort of the biggest impact that we had during the Q2 was that infections, where we saw sort of very significant decline because all kind of infections declined, of course, because people were not contacting each other. Now when people have started to move, they have some kind of infection. Be it then flu, be it eye infection, be it other ear, nose, throat-related infection or stomach infection. Of course, they are now sort of very eager to come to check whether that is a sort of normal infection or more severe sort of infection, meaning corona.
Thanks. We're almost running out of time, but I have a couple of more questions from the webcast, one from James Vane-Tempest from Jefferies. We mentioned that the next weeks are critical as people return from holidays and there's pent-up demand. What's our perception of the consumer at the moment? Do we have a sense that people are wanting to have treatment, or are they delaying non-essential treatments until they have more visibility around the COVID situation?
Now we are talking about psychology and consumer behavior based on that one. Right now, as you can see in Helsinki or in Turku or basically anywhere in Finland, people are much more relaxed and people are not afraid of coming out. People are not afraid of moving about. As I said just a minute ago, that feeds into testing activity and later to rest of the services. Right now, the mood is very different from spring. This is COVID-19 and things can change and if the epidemic situation drastically worsens in Finland.
Thanks. I think we are now on time. Thank you everybody for taking part and listening on lines, and we wish you a good rest of the day.
Thank you.