Terveystalo Oyj (TTALO) Earnings Call Transcript & Summary

Welcome to this Terveystalo's first ever Capital Markets Day. My name is Kati Kaksonen. I'm in charge of investor relations and sustainability here at Terveystalo. It is my great pleasure to introduce our speakers today. First of all, Mr. Ville Iho, our CEO, who I've had the pleasure of knowing already over a decade. Ville has a long experience from transportation and aviation industries and especially transformation projects and development in that area. And then we have Ms. Eeva Nyberg-Oksanen, who's -- if you have any special questions related to applied mathematics or queuing theory, she's your person to go to. She has a PhD in that area. And Eeva is our Director of Strategy and PMO. And she's also been instrumental in ramping up our testing capability in COVID-19 as that was also her previous role just a day ago. So Eeva is a multitasker here at Terveystalo. Then we have Mr. Petri Bono, our Chief Medical Officer. Petri joined Terveystalo in 2019, and he has a long experience from medical leadership roles and also from clinical research. Following after that, we have Mr. Niki Kotilainen, who's already a long-term Terveystalo person already before joining the company in 2015. He's been working with Terveystalo case in an advisory role when he was working at Boston Consulting Group and advising on strategy on when Bridgepoint was selling the company to EQT back in the days. Then we have my old and new colleague, Nora Härme, 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 aviation and management consult. And then finally, we have Mr. Ilkka Laurila, who most of you already know since the IPO at least. He is a long-timer here at Terveystalo, joined the company already in 2012, and then even before joining the company and in his current capacity, he worked with a Terveystalo case in an advisory role back at the EU. We have really a fascinating program for you today, in my humble opinion, of course. We'll be talking about a lot how we see the COVID-19 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 how these initiatives that Niki, Nora and Eeva, 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 Ville.

Excellent. Thank you, Kati. Good day from my behalf. Kati introduced me shortly already. But for those of you who don't know me, who have not met me, Ville Iho is the name, CEO since last December in Terveystalo, extremely proud and happy to be here today presenting our great agenda with the best brains, I will say, in this industry, at least in Finland. This -- as Kati 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 in the implementation phase which we are talking about. So please challenge us and challenge our experts whenever you come up with a question. Kati mentioned already that we are going to talk about COVID-19. This is not COVID-19 presentation as such. We are talking about Terveystalo 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, first phase, and then present a little bit of a trading update and then how we see the future, 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 one of the slogans that we have used during this crisis and 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 Terveystalo thus far in 2 different -- very different phases. So early on, of course, in this crisis, Finland was basically closing down. We had a lockdown in place during April. Then the challenge for us was basically threefold, scaled down with a very, very hard demand-supply management services where the demand declined then shift very promptly to digital channels and then scaled down the cost. And this first phase of corona crisis, I would say, that test, Terveystalo 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 one in our Q2 numbers, and that was sort of a 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 -- and that was the first phase. Second phase is the one that we are leaving right now. That's sort of post mid-summer season. Finland, as we all know, is again mobile. People are moving about. People are not anymore afraid of coming to appointments, so taking care of their health care needs. At the same time, we have seen this surge of COVID-19 test for obvious reason. 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, but we played with scenarios. We basically played with 4 different scenarios before H2 and then selected 1 as our base scenario. So for sure, we have a scenario how base -- or 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 a 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 that it's a quite good proxy for our recovery. So there you have quite good information where the underlying business is. As to H2 in general and underlying business in our corporate, private and public businesses, we can say that we are at our plan. We are at our scenario. Then on top of that one, of course, it has been surprise, at least for many, that 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 testing volumes in our open data. We are openly reporting testing volumes. And then, again, of course, the testing consumer prices are available, of course, they are out there in the open. So of course, you can do your own math and estimate what is this additional tailwind doing for the business. Later in the presentation, Mr. Petri Bono, who knows COVID-19 better than anybody, will give some more light on sort of medical side of COVID-19 and how we see that scenario building up. 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've sort of described a couple of things, a couple of angles and few data points how we can then estimate the business recovery during H2. At least equally important is the longer-term impact of COVID-19 on our business, on health care in general even globally. And in a way, this is self-evident, but it's nice to have some proof points and some sort of data points. What is the take by the consumers and also by the professionals on health care in the future and impact of COVID-19? There are many things, many trends that get accelerated by COVID-19. People are more aware of their health. They are interested in finding out data around their own health and different diseases. Overall, well-being becomes more and more interesting and important for 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-19 crisis, this is suddenly the most important thing that's around globally. So this is sort of a catalyst for transformation in this business to start with. There are some other aspects to COVID-19. We can see in this crisis situation, of course, that mental health becomes more important as one medical area and then different type of gadgets and personal data becomes also interesting. At least I have heard many stories around, for example, [ ordering or whatever. Polar ] data was the first sign that now there's something wrong that -- and at the end of the day, it was COVID-19. The medical science sort of around that one, maybe Petri 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 the data, and data presents an opportunity for this industry going forward. So I said that the attitude to health care is changing. Most self-evident area 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 stage basically is, is that people on 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. So they are willing to test this one, how this actually works. And if you compare 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 Terveystalo point of view is where do we stand in this transformation? Are we behind? Are we ahead? And it's quite nice actually to present some quite impressive data points around Terveystalo digital health. Many of you have heard about Teladoc and recent merger between Teladoc and Livongo. It's sort of a rock star of digital health with valuation around EUR 17 billion. 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 Terveystalo digital visit per capita in Finland, we are the bigger one by far. So actually, we 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 ready. 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 million digital visits, but we will land between 500,000 and 1 million, somewhere in there so it's a -- the development is really, really speedy. We want to push this one. Terveystalo started its digital health organization as a separate entity some 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 with a fast react. And 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, Terveystalo is not concentrating on only one slice of the care chain or service chain. Our take on this one is, as 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 then ability to operate that platform so that the delivery is seamless. And that is our DNA, and that is our way forward as well. So that was a very short commentary on COVID-19's impact on Terveystalo, short-term sort of history, present and then a short commentary on the transformation that this crisis presents to this health care business. I think it's highly valuable to dive slightly deeper into this area. As I said, this is not COVID-19 seminar as such. But since we do have the expertise, we feel that we are leading the pack in the response to this crisis. We thought that Petri Bono, our Chief Medical Officer, will give a -- more details on how he sees and how we see a crisis from medical point of view. And then you'll get even more details, more insights and can ask more detailed questions as well. Petri, please.

Thank you, Ville, and good afternoon, everyone. My name is Petri Bono, and I'm the Chief Medical Officer at Terveystalo. I've been in this position for 1.5 years. And before that, I've been trained at Helsinki University Hospital, first 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-19 pandemic. So -- and based on that experience, so I will comment how we've been doing with the transformation test. And I think I'm really proud to tell you today about the ramp-up and how we have 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 Terveystalo. And of course, in that, I will also focus on the added value [ that we ] provide for our customers if they are following the way Terveystalo is taking care of them. So during the COVID pandemic, we have performed more than 70,000 COVID tests at Terveystalo. At the moment, we do something between 2,000 or 2,500 tests per day, meaning that if we do in Finland 10,000 to 13,000 tests a day -- so a large number of all the tests performed in Finland is actually done by Terveystalo. 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 have actually done both tests with the classical gold standard, the PCR test. 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 they were the quiet 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 Helsinki and capital area. We publish 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 0.2% to 0.3% 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 onset of sample taken to the answer, to the patient. So it's been 1.5 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 1.5 days, it's the speed for the whole country. So it's sure that if a sample is 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-19 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 1,000 tests that are positive in the tests. But in some parts of Europe, actually, it may be different. You can see on the left side that -- the number of positive cases after 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 that -- actually will be the future of COVID-19. This is a figure taken from one article published in U.S. 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 peak coming later. I think we are experiencing the largest and first 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 Terveystalo, 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 through 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 taken 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, newer tests -- test modalities that can be directly used by the consumer may also become available. This is -- on the right side, FDA has announced a half green light to a new kind of test by Abbott that will test directly from the saliva this -- the presence of COVID-19 virus. 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 professionals describes these tests and also what the results 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 panel, and that -- this is something that we've been proud of 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 months now. And at the moment, on a weaker level, we are something between 15,000 to 20,000 digital appointments per week, which may then end up something between 0.5 million to 1 million visits in 2020, as Ville mentioned. Last year, of all doctors' appointments in -- at Terveystalo, 3.5% were done via digital visits. And this year, we will probably land up something around 15%. And it's not just chat. It's also video appointments. It's video appointments without reservation, so that is online video appointment. And finally, it -- we have also launched, at the end of last year, also so-called assisted video appointment, which means that the patient can be, with a nurse, 200 kilometers away from the doctor. And doctor can also take -- lungs, heart, look at the mouth and ear and make a clinical diagnosis very well with our new tools that we are using at digital appointments. And of course, this has also resulted at our app Oma Terveys that you saw already a figure in Ville'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 a 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 with the Oma Terveys 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 operations, if we go beyond COVID-19. So Terveystalo has been showing the wave -- showing the way in Nordic countries how to do world-class quality work. On the right side, 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 or 5 years ago about a 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 Terveystalo, 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 edition 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 than -- that's actually provided to most health care providers via a nonprofit organization called ICHOM, which is international consortium for health outcome measurement. So our quality book includes most of the aspects that ICHOM recognizes being high-quality work. And we are really proud about that. That means that all our professionals, including 5,800 MDs, they follow the quality standards that we want them to follow. We think -- when we talk about quality at Terveystalo. 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 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 then openly. We go through the errors so that we can learn them. We have an open culture for reporting and going through the errors at Terveystalo. 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 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 outcomes, patient-experienced outcomes, which is the grounding for the ICHOM standards that are followed by all major health care 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 Terveystalo. And of course, we measure also the improved clinician'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 [indiscernible]. The basis of our AI framework [ is the ] electrical medical records that we have at Terveystalo. We have data from over 4 million Finns in our database. We perform over 3.5 million visits by doctors a year. And we've been able to develop algorithms based from our database of those over 4 million Finns, so that we can read out that in an easy format for the professional. So that we can recognize a person, for example, 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 worried nowadays, especially when it comes to working age, younger people, some between 20 to 40 years. We also use a lot of questionnaires that our customers are answering in the system via Oma Terveys and all that's pooled together with these algorithms to make a good readout. Oma Terveys 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 Terveys, 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 appointments at the moment. It means also that customers having all the health information in his mobile app, carrying it everywhere. Results from, for example, mammogram screens, they can all be found from Oma Terveys. 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 paths. So this is something that is actually quite difficult to treat and where it's crucial that the patient who is having a 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 a professional true so-called Mielen chat and -- or mental health chat. And then if it's recognized that further help is needed, very easy access help called Mielen sparri can be implemented. And this has 2 examples from 2 different companies, the other one with 2,000, the other one with 4,000 employees. So we can reduce in the first company 12.5% sick leave days and in the second company about 30% of sick leave days when our way of handling mental care is installed 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 going through this and having brief psychotherapy periods also there. So they really feel better after this kind of program. Then last slide before conclusions. What about the risk factors for cerebrovascular diseases, risk factors for diabetes? And our Oma Suunnitelman, this whole 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 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 one year before the onset of making the first own 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 are reduced, the levels, about -- among 70% of all the customers, meaning that the benefit that will end up in 15 or 20 years is likely to be received from the Oma Suunnitelman and meaning that 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 fair enough to say that, for all health care providers, COVID-19 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 need to recognize that this will be the new normal, that we need to have some tests but we need to take care of other diseases. We cannot leave them out. In Finland, about 335 patients have died due to COVID. And last year, just to compare, 800 died due to suicide, 13,000 died due to cancer, 18,000 died due to cerebrovascular diseases. So we need to take care of these other diseases, too, at the same time. It's clear that COVID-19 has permanently changed the way [ that customers ] [indiscernible]. [ They are more familiar ] using digital tools to get access to health care professional, and actually, health care 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 professional's appointment. And finally, I think during the COVID pandemic, we've shown that Terveystalo's company has the capability, and we have the platform as well as ability to rapidly change our operations and solve the bottlenecks of 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. [Operator Instructions] Do we have any questions for either Petri or Ville from the room at the moment?

While we are thinking about sort of hard questions, which I challenged you to do earlier on, maybe just to further comment on Petri'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 these new type of hybrid services. So the traditional way of being passive, putting responsibility of sort of organizing your own health paths to customers and queuing [ from a stage ], that's, I will 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 Terveystalo's DNA.

It's Panu Laitinmäki from Danske Bank. I have 2 questions related to COVID-19, 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 continue? Is it like a one-off for this year? Or will it be 2 to 3 years, as you said, with COVID-19?

Well, traditionally, as you know, we don't comment the individual services [indiscernible] [ service chain. Of course ], this is -- you can see the volumes, you can see the price points, and we can say that it's profitable, but it's also very complicated process in very 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 also 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-19 and forecasting the pandemic, everybody has been wrong. So agility is the key. And that was the fact that Petri was also talking about, you need to have the ability, you need to have the palette of different services, different tests. From a medical point of view, Petri told -- and of course, he is my best source of information, he told that he believes that a bad turn of the pandemic is such that there's a -- one big first wave. And then there's continuous chain of smaller waves. That kind of scenario, we are fully prepared for, and in that kind of scenario, as Petri told, 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. I also wanted to ask about the public sector [ peers ] being created in this situation. So we can read almost on a daily basis from the Finnish press that there is a kind of big backlog of services being created, and they will need private companies' help to clear that. So can you comment on that what have you seen, what are your expectations? What kind of an opportunity will this be for the companies and you?

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 [indiscernible] deals with the public [ sector have been ] fairly sporadic [indiscernible] short term. So there's a constant [indiscernible] and public sector and there's a phone ringing with Eeva and Petri. And every week, if not every day, somebody calls and wants to have tests. But thus far, there has not been a sort of proper large quota-based deal where public sector actually committed to the full-service chain and a proper quota so that we can truly ramp up. But I can say that there are discussions ongoing. And as you said, we also feel that the best way to tackle this one, the best way to open bottlenecks is to use our agility, our capabilities to help Finnish society.

So Jutta Rahikainen from SEB Equity Research. I have 2 questions on the digitalization. And the first one is that now that it's growing, and it's really nice in quality, actually, now 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 omni or multichannel type of thing will carry you through for years and 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 a hybrid model, and there are things that will need to be delivered physically for eternity, basically. You cannot take [ part ] sample, for example, through digital or anything like that. And then the deeper you go to an issue, the more specialized professional you have. Typically, you need to have face-to-face communication during the chain of these services. So we strongly believe in hybrid model. And what I stated earlier 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 a clear part and clear pattern how that's going to be. Well, it's going to be hybrid. It's going to be more balanced between these 2 types of delivery. But as I said, physical is not going to go anywhere. Good thing about Terveystalo network is that it's -- we have not sort of a asset-heavy company. We are asset light. The facilities that we are using typically are rented and terms are typically quite flexible from our point of view. And we are actively looking at demand-supply balance to -- from a digital point of view and a physical point of view and, of course, more than willing to develop our network further. And even more important question is -- maybe this is preemptive, maybe you're about to ask this one. But of course, everybody is interested in profitability comparison between digital and physical. And again, I will refer to integrated care chains. That is our business. And we are not afraid of this productivity boost by digital. Proper combination in full care chains product -- proper products placed to the marketplace and then for customers. And intelligent pricing, for example, intelligent packaging, that's the key for profitability.

Okay. That was not actually my second question. My second question was -- 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. 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?

Yes, we do have [ case. ] Maybe you got -- Petri, if you have any sort of nice examples...

Yes. Maybe I can tell something else then rather than talking about chat or video appointments. So for example, to remote areas, we serve public segment with these assisted video appointments so that the nurse is there sitting in a room together with the patient. And then -- for example, in Hanko at the moment, and then the doctor is sitting in the office room in Örö and taking care of the patient there. And this kind of services. So there's certainly larger demand also in the future. We have tools that actually, as a clinician, 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 technics anymore. It's about the attitudes and how to use them as well as this -- as well as possible.

Maybe just to continue shortly, that there's a high demand for that [ type of ] services, obviously, because in many cases it is [ a no-brainer ]. It's very difficult to a doctor from Helsinki to move to, let's say, let's call it, Savukoski or whatever. But through digital and with this kind of assisted model, you can do it easily. Maybe the inertia on the public side is more on sort of local politics because there's still some romance in there so that you need to have that -- your own doctor in your own community, which is nice. And of course, doctors, family, et cetera, et cetera. And that's sort of a -- that's something that we can see in bids and, in a way, public organizations' 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 running a bit behind, but that's fine.

Yes. So Iiris Theman 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, weakness is potential, and its potential for this industry and not for Terveystalo. 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, traditionally, it's still sort of a 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 -- and we need to remember when it comes to specialty care. So patients are really used, in those cases, to go to a traditional doctor’s 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, dermatologists via an e-visit. So it's certainly something that is difficult to have, for example, in every small location in Finland a dermatologist, but with e-tools, so -- we can provide that.

[ I think ] we'll move ahead with the agenda, and then we'll take questions after Ville's next presentation then.

Okay. If I may, Kati, continue straight away. All right. Let's move on to the next phase [ in the ] presentation and also next phase in Terveystalo's story. We are talking -- we have been talking about integrated care chains and integrated platform model, and that's something that we will going -- we are going to repeat throughout the day. But first, there are maybe -- especially over this webcast, there are people who don't know Terveystalo that well. So very shortly, the history of Terveystalo and structure of Terveystalo. Terveystalo today is a leading platform for health care and well-being services in the Nordics with over EUR 1 billion revenue last year and industry-leading EBITA margin. We do have vastest network when it comes to physical but also best access to digital in this marketplace. We have a balanced split between 3 different revenue streams and 3 different payer groups, largest business still being our 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 Petri as well, is that we are dealing with integrated care chains. That's important to understand, especially outside Finland where this is not the tradition. Finnish health care system has basically educated us to do so. In Finnish health care system, private-pay "out of the pocket" market and also corporate market, they are overpresented. And on the other hand, public pay private provision is underpresented. And this has led to a model where sort of we are truly following customer needs, truly following customer's wallet as well and, in a dynamic manner, delivering full-service packages to different customers. And this is in our DNA. This is important to understand. And this is also best way to get industry-leading margins and protect them going forward. Terveystalo is actually a platform. It's fairly fashionable to talk about platforms. But when thinking about Finnish health care system, Terveystalo's position in Finland, we have been a platform for a long time. It used to be physical. 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 first customer groups, they have led the development where we are today. So this truly is integrated platform with ability to mix and match between customer types, different services and deliver needed service in seamless manner. Terveystalo history. In short, again, for those who don't know, this is very, very nice story, really a classic. Started modestly as many of the other unicorns also. First, gained scale. That was the first phase. Terveystalo's conducted some 200 acquisitions over the years, early on started to centralize functions and hence improve the synergies between different entities. So the ability to integrate new entities to this mother ship was improved over time. Then third phase, automate and digitalize, which, as I mentioned earlier, has been going on for quite many years, Terveystalo has been front-runner in that field in Finland. And Finland is a leading country in many aspects when it comes to delivering this type of health care service. And latest phase, so to speak, is personalize. There we start touching upon truly sort of a commercialized world in positive sense, so that we are able to really deliver individual service for different customer segments and even individual customers. And there, we do have a lot of focus currently. Growth story in numbers. Terveystalo growth has been, since 2014, 17% annually and obviously beating the market growth by far. Equally important is that it has been profitable growth all the time. So EBITA 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% overall growth during these years, out of which 5.6% is organic. And even comparing this 5.6% to total market growth annually 2.1%, 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 will change going forward. So the further the market consolidates, the bigger ones who are better prepared, for example, this digital transformation, get a bigger share of the pie going forward. Obviously, we have not only integrated and acquired companies. With those integrations, of course, it's worth noting that 200 acquisitions over this time period, it's something like 1 in 1 month, basically. That's a fairly high rate. So some very good thing that inside, under the hood, it's a mess, but quite the contrary, Terveystalo has been able to invest in capabilities and develop its operations and commercial front at the same time with a speedy manner. So as Petri pointed out, one example from that one is our customer satisfaction. At the moment, it's a record-high 83 for our appointments. For our surgeries, for example, it's way higher. But this is the most important and relevant customer experience metrics that we are using. So that's developing very, very nicely. Then at the same time, we have been able to provide world-leading access to care, as Petri explained. During H2 -- H1, the average waiting time for getting to a practitioner was 7 seconds, 24/7, so not too bad. So 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 industry-leading margins? There are 2 very important aspects: one, very traditional, which is a high operating leverage. New customers with the growth typically for Terveystalo come in with a very nice, 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 and cross-sell. Then we do have more than 4 million individuals in our patient records. So -- not everything but very close to that landmark. And that's still quite underutilized resource in our commercial operations. So Eeva 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 proper at this stage. When we are talking about Terveystalo platform and traditional Terveystalo DNA, we are talking about sort of a part of Terveystalo which is built for fee-for-service private and corporate business and public service sales. It's operation and network is integrated entity, and we are providing services for these different customer groups from the same integrated network, be it digital or physical. Then on top of that one, we have to add on businesses under our portfolio, namely public outsourcings, which have been thoroughly discussed in Finland lately; and then staffing business. In revenue numbers, Terveystalo platform, as we call it, is EUR 800 million; and staffing, EUR 100 million roughly. And outsourcing is EUR 100 million roughly. And this is important distinction to understand because when we are talking about our strategy, when we are talking about capabilities, when we are talking about future of health care, Terveystalo platform is where all the innovation is happening because 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 insurance company, 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 organization. When we are talking about public outsourcings, just a couple of minutes ago, we discussed the public organization and public sites need, for example, for remote services. The need is there, but it's, of course, a slower-moving world. Another important aspect and takeaway from this one is that our strategy has always been focused on Terveystalo platform. We have not speculated on any SOTE model, social and health care reform in Finland, even though the, as I said earlier, public-pay private provision is underutilized in this market. So there's nice upside there. And at 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 given, any specific model. When it comes to volumes and if you try to model, for example, outsourcing-related questions to Terveystalo, outsourcing represent, as I said, roughly EUR 100 million 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 a margin point of view, way, way lower than this 10% that you can see on the revenue. But still, a nice add-on value-adding part of our business. And if this then grows in the future based on any new SOTE reform, we are ready. We are willing to use our capabilities there, and we can scale up fast. So that's -- I think that's often discussed topic with Terveystalo and Finnish health care system. I think it's important to note and understand. Maybe still commenting on that one even though this is -- we are talking about strategy. Public side do bottlenecks. We -- everybody here knows that one. There has been a lot of thinking around how to solve those. And every time, the answer is the same: use more private services. And even though we don't speculate the SOTE reform or SOTE model, we can agree that the only way to really solve this issue is to use, for example, Terveystalo more going forward. For Terveystalo platform, in our strategy, we have seen nice growth pattern during the last couple of years. Future sources of growth are still market and share growth; even more importantly, growth in share of wallet, which especially Eeva will discuss in more detail going forward; and then still continued M&A. Right now, of course, it's quite difficult to put any estimate on market recovery and volumes, for example, next year -- following year, but underlying trends supporting health care and demand for health care services, as we have discussed, are there, and they are becoming even stronger as we are passing this crisis. Other aspect is that, as I told already, we have been able to triple the overall market growth over past years. And as I said, the 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 growth is, of course, our capacity. We are talking about limited resources, namely professionals. And we have great recipes and tools to tackle that challenge going forward. And Niki Kotilainen, actually, will discuss those in his presentation. Growth in share of wallet. This is, as I said, underutilized area in health care, underutilized data and underutilized packaging of services [indiscernible] and [indiscernible]. Continued M&A. There are, of course, a diminishing number of targets in Finnish health care sector when it comes to our core services. But there's quite many opportunities when it comes to adjacencies in more well-being leaning sectors like mental health and physiotherapy, just to name a few. So that's going to be still in -- on our agenda. And as explained before, we do have a great machine to conduct these acquisitions and integrate them into the Terveystalo platform. The next phase. We all, I guess, read different descriptions of megatrends. But when thinking about Terveystalo and future of health care, it's, I think, proper to stay for a while with the megatrends that we have described here. Digital, we have discussed already, but what it means at the same time when processes and services become more digital is that the requirement from the customers, they get higher. Services in this industry are not only compared with the services within same industry by [ other ] player. Our digital services will be compared with, you name it, Amazon or whatever. So speed of development and innovation needs to be faster than before. Then empowered consumer. I talked earlier about the traditional handicraft-driven model where health care provider is passive and consumer is busy trying to find the right professional and right service. That's soon going to be long gone. We need to have analytics data to fast detect what is the best first service for a certain customer and then really effectively lead him or her through the care chain. Distrustful 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 doctors' 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 themselves as one sort of united -- unified human being and there's one health and well-being. And ability to mix and match right services for individual from these 2 baskets will be very important. People are going to live longer, so certain disease types will increase in numbers. And continuous relationship between health care provider and patient or customer becomes a trend and sort of a new normal. Depleting resources. As I said, we are now -- we have seen, with the COVID-19 crisis, decreasing 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 health care services. So coming back to the Terveystalo platform model, how that relates to the megatrends and how that relates to our new phase 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 very nice thing that it's already in our DNA. But what needs to happen also with Terveystalo 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 be a provider for your customers and also increase your revenue. Under the hood inside this box of -- inside this platform, we, as any provider, will need more intelligence, more integration, better processes, hybrid models between physical and digital and better customer steering, better ability to match demand and supply and also pricing intelligence, commercial intelligence. And actually, these are the 2 elements that are visible in our updated strategy. The wording that we are using for the strategy is -- first of all, when I mentioned this looking under the hood and adding intelligence, we can call it engine room, for example. There our wording is Terveystalo will become smartest platform in the industry. And as said, Niki Kotilainen will discuss this area in detail. This is not headlines, as I said initially, we have robust plans in place already under implementation, first sort of good examples already delivered. Then a customer's health path -- health partner, which 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 relationship anymore just waiting that somebody pops up. We need to have active dialogue. We need to have proper segmentation in place, we need proper packaging of the services, and we need to be able to present these services in proper commercial manner. Selective M&A, as discussed before, more on the health and -- more on the well-being side going forward in this marketplace. But there are 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 underneath. We do have talented colleagues here who will discuss each and every topic in more detail from operational and commercial point of view and customer engagement point of view. At this stage, I will conclude my session with some takeaways. So Terveystalo as a health care provider and company today. First of all, extremely good track record in generating growth and profitability, 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 different customer groups. Then updated strategy will basically leverage our capabilities but will take Terveystalo 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.

[indiscernible] mic on, yes. Maybe we'll stop here for a moment for one question from the webcast -- or actually 3 interrelated questions from Alex 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 it abroad and addressing a more global patient basis? And secondly, it's our capacity to bring the ground health care services, I assume he means. The network that we have here locally is a limiting factor to go abroad. Could we instead license the technology and/or partner with the local health care providers? Or is it integratable to other service providers' platforms?

Okay. So digital 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 market specific as such, 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 with the growth forecast and matching those. We are building a truly scalable platform. Then licensing, the...

Yes. 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 will say that that's, for sure, a possibility. And Terveystalo has been active with M&A for years. And Terveystalo 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 Terveystalo.

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 Panu Laitinmäki from Danske. I have a question on this strategy and related to public sector exposure. You highlighted that the strategies based on your platform and the public side is a bit of an add-on. And less than 2 years ago, you did a sizable acquisition of Attendo health care operations. So has this kind of view on the public sector changed? Is it related to the SOTE reform? Or how should we think about that, that you made a big bet on the market and now it seems that you are not really kind of focusing on it that much?

Maybe it's sort of an understatement 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 the 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 mother ship 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 SOTE model. We believe that we are building a robust and scalable platform which is applicable for different customer segments going forward regardless of what politicians decide.

Iiris, go ahead.

Yes, Iiris Theman from Carnegie. Just regarding your 5% long-term sales target, does that include acquisitions, or do you see that the Finnish health care market would provide you 5% growth organically?

Yes, our updated targets for the strategy period stayed 5% as growth target, including basically everything. So Ilkka will touch upon that one in more detail and also levers 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 -- sorry, please, Anssi, go ahead.

Hi. It's Anssi Raussi from OP Markets. As you talk about the M&A and your core business and well-being business, do you see any differences in profitability between these 2 businesses? Or are they at the same level? Or how would you describe them?

Well, when you think about M&A logic and these new adjacencies, the same sort of virtues apply. So that has high operating leverage, and we can bolt these new type of services into the same platform. So from M&A perspective, it's no different than the core services. And then if you think about services and as such and their margins, I said earlier, we have not disclosed any margins or pieces of this pie and their margin. Again, I will refer back to 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 industry with Nora and Niki.

Yes. So now it's time to get really excited because now we have young and fresh brains even though with a lot of experience from relevant industries coming up with fresh solutions.

Thank you, Ville. Hopefully, we can live up for the expectations.

I'm sure.

Hey, it's very nice to be here. My name is Niki Kotilainen. I'm the Director of Operations. And with me, I've Nora Härme, who 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 Kati already mentioned, my journey with Terveystalo started 8 years ago, 2012, when I was working at the Boston Consulting Group. We were helping Terveystalo at the time to update their strategy. And as the end result of that kind of project, Bridgepoint sold Terveystalo to EQT. Then after a couple of years of consulting after that, I joined Terveystalo in 2015 as 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 Terveystalo and currently operating as Director of Operations. So basically, what I'm going to say today is more from the perspective of the machine room or operating engine, as Ville referred earlier. So starting from the conclusions or takeaways from this presentation. You already heard many times about how Terveystalo is the kind of industry leading in terms of operative efficiency. And of course, we want to keep that going forward. But what I want to mention about the efficiency is also what Petri mentioned basically, so efficiency is not -- it's not only profit. 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 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 changes. So basically, Ville went through a bunch of megatrends. On this slide, we can see 3 that are selected from the operational perspective. So when I started to work with Terveystalo 8 years ago, to simplify, just to make a point, how that company and other private health care companies in this industry in Finland worked was basically waiting for patient to get sick and then helping him or her and then with fee-for-service model building 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 models. There are definitely new types of -- 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 to support our growth, but it's also who should go to whom with which condition. And thirdly, as also Ville mentioned, there is increased demand for digital services. And the benchmark is not companies in our industry. The benchmarks are somewhere else. I bet many of you guys have smart watch, not necessarily right now but at your home, where you can track sleep or you can track how many steps you take. That's health data as well. So the benchmark on how convenient it is, what kind of recommendations you get from your devices in terms of your health, that barrier -- or that bar is actually 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 a title level, it's easy, of course, 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, and regardless of time, place, channel and from the beginning, meaning the first touch point, to the end of 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 different world where basically our industry assumed that the customer is a health care professional. Meaning that if you have a stomachache, we assumed that you know whether you need to book a 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, we and others, we have the 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 just told digitally, you should go to nutritionist, and you can actually take the first [ contact ] via an online channel. And after that appointment, there is a Oma Terveys 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 to be -- as Ville said, to integrate this care path in a better way that is more customer -- kind of convenient -- more convenient for the customer and improve the customer experience as well. Now as a Director of Operations, the key question is, okay, how to do this in a scalable way. So personalizing the care -- okay, no. There's a time lag with this. So our solution is the so-called smartest platform. And the objective is to offer that personalized service, regardless of time and place and channel, in a way that optimizes also our business at the same time. So let me walk you through the slide once again. Let's start from the right-hand side. You can see funnel. Maybe many of you have seen this already, a typical funnel of a private provider in Finland, in health care industry, basically starting from the physician appointment and then moving onwards to laboratory 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 4 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 physical appointment, maybe doing the physical appointment via digital channels. Then, of course, we will continue on expanding the kind of traditional bottlenecks in terms of when it comes to our supply and add some new kind of features to that as well through new technologies and so on. Thirdly, once you have 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 excellences to kind of follow up on those care guidelines to ensure that you know what happens next and that you actually do the kind of 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 one, two and three, and then Nora will continue on number four. So if I start from the first ones, so the system layers. So basically what we want to do is optimize the customer flow. So if I use a few examples. So basically, when a customer is contacting us, we need to understand the layer one, so to say, is what is your service need and how acute the need is. So using the previous example of stomachache, once again, do you need to go to a doctor? Do you -- or is it actually a 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 need 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: I'm a father of 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 kind of problem that I have? Maybe we find a suitable ER doctor who is willing to take 1-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 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 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 employer doesn't -- your contract doesn't cover the eye doctor, but it does cover the nurse 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 Terveystalo, Monday mornings are typically the most -- busiest times during the week. So let's say you want to go to a doctor before your workday. You want to go at 8:00. 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 intelligent in terms of what kind of service model you have and what kind of contract you have, whether you get the kind of most wanted 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 this kind of revenue management capabilities to better take into consideration the demand and supply on that hour, on that unit, on that speciality with that need, so making it more dynamic in terms 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 of course, there are a couple of aspects. First of all, it's winning and keeping the talented professionals that we have today and what they are in the market. Of course, we were discussing the Attendo 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 talented people to work at Terveystalo. The second kind of 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 third category is then how to ensure the high-quality care and then again the -- kind of that your care chain doesn't break up. So there is the kind of controlled 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 Petri can agree on what I'm going to say here, but care guidelines are something that are not invented by Terveystalo. They are basically nationwide recommendations how you should treat different diseases or diagnosis. Physicians widely recognized those. So what we 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 Petri said, very high medical quality. And I have here [indiscernible] 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 -- if you get diagnosed as type 2 diabetic, for instance, there's a list of things that you need to take care every year, whether they are -- there are, if I remember correctly, 4 to 6 different lab tests annually and 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, if the staffing is the starting point in your career, that basically being part of this kind of center of excellent (sic) [ excellence ] and being the driving force in one of those 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 patient or end user, it's higher quality of care. And for Terveystalo, it's better compliance to those care guidelines, generating medical outcomes and visits as well. We have planned that we start with 6 centers of excellence during this strategy period. We're 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 benefits for the customer but also for profits as well. There are a couple of examples, I'm not going to go through them all, but to give you some kind of idea on how does this influence. So first of all, being more personalized during booking process will definitely improve our conversion. So if we have 10 million contacts to our call center and online booking, improving conversion or booking rate or conversion rate, of course, improves our sales. Or then the example of the centers of excellence, in the quality book, we have stated that -- our objective for the metric that how large share of patients with depression or anxiety will get referral to a short-term psychotherapy, that's one key metric. And Petri was 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 will get a referral to short-term psychotherapy. Our goal is -- stated goal is 10%. So that's twelve-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 it mean if we take 10 most common diagnosis. So you can understand why this is meaningful as well. 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, Niki. So my name is Nora Härme. 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 Terveystalo, 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 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 environmental intensity and global competition. The airlines and also, to some extent, hotels, they've been working with revenue management since the 1970s. And since then, the practice has spread to also other industries, for example, e-commerce. But I say that there's -- when you start thinking about it, health care actually shares many of these same features. We cannot offer yesterday's slot to a customer today. And at times, we also have restricted capacity. Sometimes the -- 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, like Niki was saying that Monday mornings are often 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 Niki's examples about optimizing customer flows is really our interpretation of revenue management. And revenue management and pricing are really 2 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 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 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 3. You 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 a -- like a value proposition that really meets those needs. And in my experience when I've worked with different industries, like airlines and rail operators, for example, it really means that the service design and the pricing people really need to collaborate from an early stage in any, like, 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 of 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 adopted when they sensed 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 website and later also their mobile applications. And examples of flights are really -- they are sadly few and far between at the moment. But here is an -- in this example, we have an airline selling tickets from our Lake Saimaa region to Berlin, and it offers 4 different types of categories or fare types to choose from. The one on the left is the value fare starting at EUR 24.99, and it only comes with one 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 plus is then the most flexible one with, for example, advance seat reservation and fully flexible fare types. 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 fare type that really suits their needs, whether it's a focus on 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 Terveystalo. We also have an existing service offering for our occupational health customers, where we have different kinds of packages. And of course, health care 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 where is the value and 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 this on the right-hand side. The -- from the operational machine perspective, the trick here is that each of these are kind of modular. So if you take the contract Sujuva, we know what it includes. So not all the contracts are different, but they are modular. So it's easier for the kind of operational machine to understand that now there is a customer with this type of contract rather than every contract is a different 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 are working on offering packages with fixed monthly fees, which will 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 in no way a 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 different price points and different services included in the different packages. Then...

Service-level agreements in a way that who gets to a doctor within 48 hours or 24 hours or 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 subscriptions. 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 hassles 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 superfast deliveries for all those -- all the stuff people buy online, plus access to a wide range of digital entertainment ranging from like e-books to music, to movies and also exclusive shopping deals. And all this comes with, 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 like a subscription-based model to increase the loyalty of those customers towards Terveystalo 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 like think about preventive health care 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 priced 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 a customer-level pricing. Because even small changes there can have very positive impacts on both our revenues and profits without really compromising the customer experience at all. 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 Terveystalo 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 hand it over to Niki 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 need to do it in a way that is scalable while personalizing service for the end customer, so being truly increasing our customer experience, and Eeva will soon tell you more about how to become a health partner for you as an end user. But from the operational and service and pricing perspective, this is our focus area as well to maintain the operative margin that we have had earlier. Thank you [ truly ].

Thanks, Niki and Nora. I think it's a really fascinating area of development for Terveystalo and this industry as a whole. Do we have any questions from the room? Jutta, please go ahead.

So Jutta Rahikainen from SEB. A question here on the implementation part and the 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 practitioner point of view, new pricing models actually can be a threat to their either kind of earnings model or the patient volumes they will need? So how does it look from a doctor's point of view, all this now discussed?

If I start from the kind of patient volumes. So kind of the challenge has been that there are some bottlenecks within the health care professionals. So if we are better in steering the right customer to the right professional, they are actually 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 like -- what's terms in English, [Foreign Language]?