Mehiläinen in 2021: international expansion started successfully

- Although the COVID-19 pandemic has not yet been overcome, the economy is back on track. Positive economic development and the delayed care due to COVID-19 pandemic were reflected in strong domestic demand for our services. In addition to the strong growth in Finland and new therapy services, international operations grew in revenue, says Mehiläinen CEO Janne-Olli Järvenpää.

Mehiläinen’s revenue for 2021 increased by 20.3%, amounting to MEUR 1,398.9 (1,162.5). Underlying operating profit before depreciation of intangible assets generated by acquisitions, impairment and items affecting comparability (underlying EBITA) was MEUR 163.6 (134.1), i.e., 11.7% (11.5) of revenue. Profit for the financial year was MEUR 24.9 (0.2). Mehiläinen tripled its total investment from the previous year to MEUR 159.7 (52.8).

During 2021, Mehiläinen expanded to new operating countries. The company launched healthcare services in Estonia, Sweden and Germany through acquisitions. In the new operating countries, the healthcare services market is growing strongly and the share of private service production is significant. Sweden and Germany also have an extensive freedom of choice concerning publicly funded healthcare. However, the markets are fragmented and lagging behind in the utilisation of digitalisation when compared to Finland. This gives Mehiläinen the opportunity to benefit from its expertise in acquisitions and digitalisation. In addition to physical healthcare services production, Mehiläinen also expanded as a provider of digital healthcare software services to a number of other countries. In addition to Europe, agreements were concluded on deliveries in the Middle East and Africa.

Investments in the development of Mehiläinen's service network, service offering and quality of operations continued strong during the year also in Finland. Significant investments were made in the facilities and technology of medical clinics, among other things. The company expanded its services into private and public outpatient rehabilitation services through acquisitions and organic service development. Mehiläinen’s rehabilitation services now cover psychotherapy, occupational therapy, speech therapy and physiotherapy for all customer groups on a nationwide level. Investments were also strongly targeted at software and digital services.

With regard to public social care and healthcare services, a significant milestone during the year was the start of service provision at Harjun terveys oy, a joint venture with Päijät-Häme Joint Authority for Health and Wellbeing. Harjun terveys has built a service model, which offers queueless primary healthcare. Mehiläinen's staffing services and home care services also grew strongly.

During the year, the focus in Mehiläinen’s social care services was on quality development, supervisor training, ensuring the availability of labour and restructuring the price level. The number of customers of Mehiläinen’s residential care services increased and the company met the stricter personnel sizing requirements. However, there is still room for improvement in terms of profitability.

Customer satisfaction and customer retention remained high in all Mehiläinen's services during the year. The Net Promoter Score (NPS) measuring the customer satisfaction related to private healthcare services remained at an excellent 89-point level.

KEY FIGURES

Mehiläinen Konserni Oy Group (EUR million)	2019	2020	2021	Change %
Revenue	1,064.1	1,162.5	1,398.9	20.3%
Underlying EBITDA 1)	202.0	227.6	271.0	19.1%
% of revenue	19.0	19.6	19.4
EBITDA	197.1	218.6	263.9	20.7%
% of revenue	18.5	18.8	18.9
Underlying EBITA 2)	118.8	134.1	163.6	22.0%
% of revenue	11.2	11.5	11.7
EBITA 3)	114.0	125.1	153.3	22.5%
% of revenue	10.7	10.8	11.0
Operating profit	81.8	86.0	113.8	32.3%
% of revenue	7.7	7.4	8.1
Profit for the financial year	0.6	0.2	24.9	(…)
% of revenue	0.1	0.0	1.8
Net cash flow from operating activities	200.7	202.0	243.2	20.4%
Tax footprint 4)	217.6	230.9	301.6	30.6%
Corporation taxes 5)	6.4	14.6	19.4	32.5%
Total investment in acquisitions, tangible and intangible assets	85.4	52.8	159.7	(…)
Average personnel (full-time)	9,077	9,461	11,281	19.2%
Customers’ Net Promoter Score (NPS)	89	89	89	0.0%

(...) Change more than 100%

1) EBITDA before items affecting comparability.
2) Operating profit before the amortisation and impairment of intangible assets arising from acquisitions and
items affecting comparability.
3) Operating profit before the amortisation and impairment of intangible assets arising from acquisitions.
4)Tax footprint including employer’s social insurance contributions. The tax footprint of the private practitioners
5) Operating at Mehiläinen comes on top of Mehiläinen’s own tax footprint. The tax footprint of private practitioners amounts to an estimated MEUR 76.5 (66.8).
6) Corporation taxes for the financial year include all income tax recorded in the results for the financial year as well as the income tax from previous years recorded during this financial year due to income adjustments (does not include deferred taxes).

Please find the Annual Report and Financial Statements on Mehiläinen's website: https://www.mehilainen.fi/en/company-information/mehilainens-year-2021.