Good morning, and welcome to Terveystalo's Q3 2026 results webcast. My name is Siri Markula, and I'm responsible for investor relations and sustainability at Terveystalo.

Today, we will go through our third-quarter results and highlights with our CEO, Ville Iho, and our CFO, Juuso Pajunen. After that, we will provide you with a short update of our Arc strategy execution and our strategic objectives.

You will also meet our new SVP, Oral Health, Ville Pesonen. After the presentations, there will be time for your questions.

Now, let's start with the third-quarter highlights. Over to you, Ville.

Thank you, Siri. Good morning.

Let's dive straight into the highlights of the quarter. We have today plenty of things to cover.

Briefly, the highlights and lowlights of the quarter: obviously, the lowlight of the quarter was muted demand environment, which can be seen in our volume development and hence a decline in revenue, which is roughly 3%— 6%, and that drop-through to our EBIT also. Even though our service delivery and ops has been fighting hard to adjust to muted demand, we can see clearly now the operating leverage working to negative direction for us and EBIT coming down.

We have positives, of course, also during the quarter. We have positive development in our dental services, which we will cover thoroughly today.

We are progressing with our Arc strategy. We are pushing new products into the market.

We are well-positioned for the future as we take the next step in our execution and in our journey. Let's double-click on this muted demand environment.

We have shown this picture with different segments and underlying sort of factors impacting the demand for quite a couple of quarters. Consumer demand was actually showing positive indications earlier, but especially September took a dip down in our demand.

It can be also seen in the consumer confidence, which went down during September after some months of positive trend. Our biggest business suffered from decline in occupational healthcare demand and visits, both in preventive and in healthcare visits.

Demand and market is clearly down. We have made some adjustments to public statistics.

There's some discrepancies in the data, which are showing healthcare appointments in occupational healthcare dipping 10%. Our sort of management adjustment says that it's actually 5%.

Anyways, it is still negative and can be seen in the environment and in our numbers. Then finally, the number of employed people in Finland is stable, no clear uptake just yet, and sort of the meltdown within the current agreements and current customers in occupational healthcare has been visible throughout now a couple of quarters, and that still continued to certain extent.

Of course, with the more positive trends now in the economy, we are expecting this one to start correcting itself and impacting also our numbers positively going forward. Negative demand environment is seen in all of our segments in negative way.

Healthcare Services took a clear dip down, also Portfolio Businesses. Within Portfolio Businesses, of course, we have a good news story with Dental, which we'll discuss today and present our future view on that very important new growth vector for Terveystalo.

Sweden, still very muted demand environment, even though we are winning in market share there. All in all, sort of a disappointing quarter from Terveystalo point of view, but still underlying demand going forward to coming years, next year and '28.

Underlying trends, demography will provide ample amount of demand for our services. We just need to adjust to the new expectations from our customers, be it public, be it corporate, or be it private or insurance customer.

Actually, there's a lot of positives within our development inside Terveystalo. There's one clearly negative that has been taking the numbers down during last couple of quarters, and that's obviously our biggest demand driver, occupational healthcare.

In that area, we have worked hard in renewing our services, in renewing our sales activities, account management activities, and we are making clear progress, especially when it comes to large accounts. There we are growing again with large customers.

There's still a lot of work that we need to do with the SMEs to repackage our services, to make them easier to buy, use and pay for. We are making a turnaround here.

We expect number of connected employees to start growing again during first quarter 2027. Healthcare requires transformation from customer's point of view.

Healthcare services companies only sort of aggressively waiting for patients to pop in for doctor visit is sort of past history. We need to reach to the customer, to look at the actual customer needs, and different ways we can help our patient and customers on the way.

We have been planning with our Arc strategy new packages, new type of services. We have now launched first pilot in continuous care modality, highly digitally driven continuous care service offering under Wellbe brand.

That's the first service that we are providing through that platform is obesity management. It's a pilot phase, but we believe that this type of new services will be answering the developing and increasing customer demands.

We will increase services, this type of services. We will launch the final platform for obesity management during Q4.

In the piloting phase, we are testing, we are making trials for acquiring customers, what type of service design changes we need to do. This is part of the future.

This is part of the Arc strategy execution, which we will make a deep dive later during the presentation. With this one, I will, for the final round actually, give floor to CFO Juuso Pajunen.

Thank you, Ville. Thank you all.

As Ville said, this will be my final quarterly result with Terveystalo, number 16 in total after 4 years with the company. Thank you, all stakeholders, investors, analysts, for watching my face for these releases and obviously in other meetings.

Let's go to the quarter three. All in all, if we look this page, one can be only disappointed.

In each and every KPI, you see the negative sign in front of those ones, and it's absolutely not something that we can be happy with. The market was challenging, and during the quarter, we saw decline throughout the market and within our services in public and private markets.

Occupational health was especially challenged with the less connected employees and a lower visit-per-employee ratio. At the same time, if we look a bit underneath the hood, we were able to reduce the variable costs at the pace of the decline of revenues and protect our profitabilities.

It has been actually a good achievement. In a seasonally low quarter, in any case, the fixed expenses also push through, and the profitability is reduced.

Then on a positive note, we closed Hohde transaction, and we have successfully started the integration, and you will hear a bit more on that one later today. Looking at the whole group, the lower revenues were impacting the profitability despite the efficiency actions we have taken.

Every segment declined. Healthcare Services were pressured by the occupational health; Portfolio Businesses due to outsourcing contracts, but the positive movement in Dental supported the revenues.

Sweden had a slow start after summer, which is visible on both the revenue and EBIT. As said, we were successful on protecting the profitability with defense in the variable costs.

Finally, the adjustment items, they include mainly M&A-related topics on Hohde acquisition, with the biggest item being the transfer taxes within that €4.1 million. Then comes the advisory fees related to process, and everything else is small potatoes in that number.

Looking to Healthcare Services, lower revenue and the changes in sales mix were impacting the profitability. All in all, the market was weak.

Morbidity was below previous years, some 15%. You will see a bit more details on following slide on that one.

The start after summer in occupational health was also quite slow. At the same time, when the visits were on a low level, it's good to note that our sales mix was weaker than usually, which is seen especially in the diagnostics and especially within diagnostics in the laboratories, and that one pushed the column services and sales mix and pricing to being negative during the quarter also.

If we then go on the volume development, that continued to be challenging. The main contributors for the changes in visits remained pretty much the same as in previous quarters.

Morbidity was low during the quarter, 15% down compared to previous year. At the moment, we are having our medical leadership's forecast for the full year points out that in the Q4, morbidity starts to increase, and the total levels during Q4 are above previous year Q4 levels.

We are assuming the peak to happen late November, early December. As you all understand, these forecasts are based on best information today and are subject for volatility.

In occupational health, the story was continued, but the decline is stabilizing. Like Ville has explained, we are progressing especially with the large accounts and now turning our eyes more and more into small accounts.

Out-of-pocket trend that was during summer and immediately after summer positive was broken in September. Even though it's supported by Kela 65, those visits are now also in the comparable numbers from previous years.

All in all, combined consumer and insurance demand was actually stable during the quarter, but the trend that we saw during summer was not continued during September. At the moment, we are evaluating how it goes to Q4.

Portfolio Businesses outsourcing contracts revenue declined, as expected. As you know already, these are nowadays margin-contributing, when we are reducing these or this revenue is reducing, it has an impact on EBIT also.

On a positive note on public sector, we have now seen that especially in staffing services, the volume is growing. However, the price level is inherently lower than a couple of years ago.

Dental is the bright spot. We have both organic growth within the Terveystalo services, and then we have added Hohde to revenues, which has contributed some €5.5 million on total revenues.

As you see, €6.2 million up, €5.5 million of Hohde, you see that we have a healthy organic growth also underneath in the Terveystalo operations. The column other includes divestment of child welfare that was announced earlier this year.

In Sweden, revenues have been pressured by the slow macro and market. The start after summer was slowest, and in consulting world, that one, of course, impacts quite quickly on the revenues.

If we take comparable currencies, EBITDA was actually improving year on year, but on euro notes, it was slightly down both in absolute and then relative terms. Going forward to balance sheet, our cash flow continues to track income statement steadily.

The decline that we see year-on-year basis or LTM basis is pretty much what we have lost on the profitability side. Then from the Q1 tax outpayments from a strong '25 profits.

Net debt to adjusted EBITDA at 2.9, reflecting now the Hohde acquisition, and now we are pretty much within our financial target of 3.0. Going to see the market, the demand environment was challenging in Q3, weaker than we originally expected during the summer.

The change in there is mainly on the consumer market that, as explained, didn't behave post-summer as we were expecting and as all of the trends pointed out. If we then look for the next 12-months picture, it has not materially changed.

We do see that there are positive development expected in the consumer and insurance market, especially in the Dental where we are continuing our solid performance. As said, this was the bright spot for the quarter in any case.

Then Sweden, where we are net positive and capturing market share, we are expecting to little by little improve also from the market perspective. All in all, we are expecting gradual improvement during the next 12 months.

Then going to guidance, you heard our updates from yesterday or most likely have seen that one. We have updated our guidance for 2026.

We expect the full-year 2026 adjusted operating profit to be between €110 and €120 million. January-September was clearly below the levels of previous year, and the demand development has been weak.

Now, within this guidance, we have taken into the weak demand environment post-summer into account, and we are not expecting material improvements in the market conditions for Q4. We are expecting the challenging environment to continue.

The revenue from outsourcing operations in the Portfolio Businesses are expected to be -€25 million for the full year. The guidance includes Hohde, but does not include anything from Silmäasema or any other significant acquisitions.

On the Silmäasema, we are progressing with the close dialogue with the competition authorities. We have communicated during summer closing to take place either this year or Q1 next year.

As the time close by, this year closing gets less and less probable, if I put it that way. Then with these words, I would like to invite our CEO Ville on stage to update you on the strategy.

Thank you, Juuso. As Juuso said, we'll zoom out for a while and take a look at our strategy.

As we have communicated, we decided to postpone our Capital Markets Day from December this year to next spring. By then, we expect to have completed the Silmäasema transaction and to be able to provide you with a clearer view of strategy execution and the long-term value creation potential of that combined business.

Ville, as you take us now through our strategic objectives and progress so far, could you start by reminding us why this was the right time to update our strategy?

Absolutely. Thank you, Siri.

As I said earlier already in the presentation, healthcare services need to transform, and need to reach out to actual customer needs. This has been very conservative industry with very conservative ways of serving customer and patient needs.

The underlying demand—and this is clearly a positive and a strong point—underlying demand continues to grow. There's no question about that one.

People will age. People will want more services for their healthcare and well-being need.

How they consume it, how they buy it, how they compare different services is going to be different, and it needs to be modernized also with the service providers. We have seen this development now for let's say two years, and we have prepared for our strategic pivot.

We have, of course, already clear actions ongoing with our new Arc strategy. Arc basically comes from or stands on three equally strong pillars.

The most important one is customer. As I said, this industry needs to transform to be actually more customer-centric, build services and ways of serving from actual customer needs and reach out to the customer.

That only will enable us to capture the growth, underlying growth, which is evident in the market. Only through technology can we do it in profitable way.

This is the triangle that we will work on with our Arc strategy and with our execution. This is the time to pivot.

We have six specific strategic objectives under Arc strategy umbrella. Number one, as I said, is the core of everything basically: build a truly customer-centric healthcare services company.

Sounds trivial, but looking at the tradition for 2,000 years for this type of services, that is not the case. We have been patient-centric, but that's not enough for future years and decades.

Number three in the middle is grow and diversify. We need to create more diversified ecosystem around customer healthcare and well-being needs and diversify our portfolio.

Of course, we have actions in place for that one, as you have seen with the Hohde acquisition and Silmäasema deal. We need to transform healthcare delivery to make the reach out to the customer in profitable way.

We need to invest in technology, in making the actual services efficient, smooth, easy to use, easy to buy. Number four, make healthcare easy and engaging is really about transforming the current service modalities, which have been, as I said earlier, aggressively waiting for the patient to appear in the appointment room, to clear service packages, clear sellable and buyable service packages, easy to buy, easy to use, easy to compare, easy to track, easy to also check after the fact what really costed what.

Number five, we need to scale continuous digital services, again reach out to the customer. We have launched into the piloting phase during Q3 our Wellbe platform, and we continue now to build on that one.

There are episodic needs, which are reactive, also in the future, which is healthcare tradition to take care of those. There are more and more continuous needs, be it chronic care, be it obesity, be it certain sort of condition or certain time in your life where you need certain type of support.

Finally, number six, which is very much in the core of our classic operation, is reinvented corporate health. There are many, many ways we can support companies and corporates in their journey with workability and well-being management.

We just need to, especially for the smaller customers, to repackage it, make it clearer, make it again easier to buy, easier to understand, easier to use, and easier to check. This is the six clear and concrete targets that we continue working on with Arc strategy.

Presenting clear and concrete examples where we are already making progress: when we are talking about digital platform scaling, making healthcare more efficient, more smooth, we have launched our Ella platform. We continue scaling that one.

We have our 10x initiative where we are basically making our digital appointments 10x more efficient. We have embedded AI to different journey points to customer journey and also professional journey in their workday, and we continue to do that one.

There's loads of potential in healthcare services delivery inside the company and with our customers, with their processes, to make this more efficient. Strategic M&A, again, diversifying and growing the portfolio, that's very clear and loud.

We have made Hohde deal, which is now in the integration phase, gathering steam, going really well, which we will hear in just a minute more about. We have made Silmäasema acquisition, and continue preparing for that one.

All in all, portfolio next year will look more diversified and give more potential to work with more than 2 million customers that we serve in more and more frequent ways. Making healthcare easier and engaging, we have packaged classic services, we have launched Wellbe platform, we are pricing in more transparent way, we are making things easier for the customers to track and follow, and basically also to manage their care and service journey.

Finally, within occupational healthcare, we have basically renewed almost everything during last year, last 1.5 years. The most visible cross-board rollout that customers are seeing today is Leo, modern occupational healthcare platform, which provides more transparency for the customers, more precise risk assessment, and hence more precise and accurate interventions and create value for our customers.

Rollout will continue during H1. All in all, we are making a clear progress already, and ample potential going forward in executing our Arc strategy.

Arc strategy, of course, is related to our financial targets, which we renewed and disclosed in conjunction with Arc strategy disclosure. Again, 10% EPS growth, less than 3.0 or max 3.0 net debt to adjusted EBITDA level, and 50% annual distribution of net results.

With that one, it wasn't final time, you will come once more to the stage. Juuso, please.

Thank you. There always needs to be a comeback.

Very briefly, a reminder for all that in '27, we will update our reporting structure to provide further transparency on how our different segments are doing. We will report Healthcare Services, Oral Health, Public Partnerships, and Sweden as segments starting from January '27, and comparable figures will be provided before we publish Q1 '27 report.

Obviously, it is clear, as stated also upon the acquisition of Silmäasema, that as we get the approvals, Silmäasema will become a segment as itself on our reporting structure. Then let's remind all of ourselves on what we acquired with Hohde Group.

It was announced 23rd of December last year, enterprise value at €88 million, which corresponds fully burdened synergies roughly 8 times EBITDA, now on FAS EBITDA, remember too, also Finnish Accounting Standards. Synergies roughly €4 million within the next couple of years are the expectations.

€56 million, once again, Finnish Accounting Standard revenues, and roughly €6.4 million Finnish Accounting Standard revenues— combined revenues for '25 roughly €108 million then within Terveystalo. We have successfully started the integration, with synergy capture already commenced and progressing.

What we have learned until now is that Hohde is stronger than Terveystalo, especially what comes to supply management. At the same time, Terveystalo is stronger in some processes, such as recall.

We truly see a best of both worlds meeting with this acquisition. Without further ado, let's invite Mr.

Ville Pesonen on stage to explain and give you a deep dive what Oral Health actually is in Terveystalo.

Thank you, Juuso. It's really nice to be here for the first time if Juuso is the last time, it's my first time here.

My name is Ville Pesonen. I'm SVP in Oral Health here in Terveystalo.

My background is that I'm oral maxillofacial surgeon, and experience: I started at Attendo and was director of outsourcing business in dental services in Attendo. After that, practicing in several private dental clinics as an oral surgeon.

Then I founded Hohde Group 12 years ago and worked as a CEO in Hohde Group. About the dental care market: the total market in Finland is approximately €1.3 billion market when we add to these numbers also public sector.

Private dental care market is approximately €700 million per year, and it has been growing steadily 2% per year in former years. Our estimate is that it will grow approximately 5% per year going forward.

Dental care market is stable and well-functioning system, and private sector plays an important role in dental care system in Finland. We know that public sector has long waiting times, and they have been limiting the investments in dental care.

We see a really good opportunity here for the private players. Talking about Terveystalo Oral Health business, our goal is to become a leader in oral health, and the acquisition of Hohde Group supports the development, of course.

Oral health is one of the Terveystalo selected growth areas. Now, with the combined numbers, we have 1,500 dental professionals working with us with high NPS numbers; total 77 sites, from which 63 dental clinics and 14 dental laboratories.

From dental clinics, we offer broad services, almost everything that you can get from a dental clinic, we are offering that. There will be and there are general dentistry, specialist dentistry, and also dental hygienist services.

From laboratory side, our highly skilled experts are working closely in close co-operation with our dentists and dentist customers. We offer also almost everything that dental laboratory can produce: so prostheses, mouthguards, and crowns and bridges, and also specialist dental technicians work to the customers.

That was shortly my presentation, and now we move forward.

Thank you, Ville. Now it's time for a Q&A, and let's start with questions from the phone lines.

Hi. I have several questions.

We'll be taking these one by one. Firstly, starting from connected employees, you lost connected employees on sequential basis in the third quarter, even though I think you were previously assuming that you would be able to grow the base during the second half of the year.

Then you're expecting growth in Q1. First question would be that when you talk about Q1, are you assuming that you would have a growth on year-on-year basis starting Q1?

Basically,

yes. Actually, we updated after the H1 that we have limited expectations on growth what comes to occupational health for second half.

What comes to the gradual growth in Q1, we are meaning that from Q3 2026 to Q4 2026 numbers, we are getting in Q1 2027 to higher numbers compared to what we have in kind of order stock today. That is what we mean by the statement.

Okay. Then on visibility for this Q1 growth, you said that you've been making progress with large customers, have you been winning deals already, it's, in a way, certain that that growth will happen?

If I take that one, it's a combination, as we have discussed earlier, it's combination of already basically done deals and then win rates, counts, the cases that we are now dealing with. We have both.

We have sort of a view forward with the forecasting based on the current win rates, and then we have already done deals.

Okay. Then what were the main reasons why you didn't achieve this sequential growth during the second half of the year?

Twofold basically. We discussed earlier that especially the large accounts were sticky, and even though the sales funnel has been, to say, rich during this year, really the timing of the getting the deals done and also the stickiness of the deal early this year was higher than we expected.

Basically, the growth in large accounts has been pushed forward. We see clearly that that's now starting to happen.

Then we still had churn in SMEs and also losses in the employment levels within our existing customers. That's really really the combination.

Then I would like to remember that from Q2 2026 to Q3 2026, the biggest impact is actually summer employees. There is a seasonal component where it is practically impossible to grow the absolute number from Q2 to Q3.

That one needs to be always remembered when we are talking this figure.

Okay. Then what about Q4?

Are you expecting sequential growth in Q4?

As said in the guidance, we don't put our hopes on Q4 improvements, not on market or not on occupational health.

Okay. Then you are quite negative regarding Q4 as per the new guidance assumptions.

Is this mostly related to occupational health? You're not, in a way, having made progress you previously anticipated?

If I comment and Ville can then contribute further, our Q4 guidance is based on now thinking that Q3 market environment was extremely challenging, and we have continued that market environment for Q4. We are not expecting material improvements in occupational health.

We have also now been modest with our expectations what comes to consumer behavior, and these combined lead to the current Q4 guidance.

Exactly so. Our forecasting routine is such that it just now took into account specifically the September low figures.

Our earlier expectation was that the ramp-up from the summer season to first sort of active season for the healthcare services would be steeper and higher. Now we are basically basing our Q4 forecasts and assumptions on the lower volumes that we got during September.

We are prudent with our forecasting.

What's your assessment that consumer confidence has been improving both in Finland and Sweden, why isn't that, in a way, translating to stronger growth if you think about your business?

I can start, and Juuso can continue. Basically, we see positive development in sort of the most dynamic consumer segment, which is Dental.

There we see growth clearly. For the rest, actually, that was a little bit surprise for us coming from summer to September, that consumer demand was not impacted on the earlier positive development and earlier signs and earlier positive development in consumer confidence, that September is a dip.

It's an anomaly, and then the consumer demand will start again growing more rapidly. As of today, we are prudent and we have taken sort of more negative, slash, realistic view on the rest of the year.

Okay. Then on the full-year cash flow outlook, you're not guiding for it, but if you look at the first three quarters, it's roughly half the level of last year, and also net debt to EBITDA is close to your financial target.

Where do you see yourself at the end of this year before the Silmäasema acquisition?

The cash flow has been tracking very carefully the operating performance. The only deviation is the taxes paid out in Q1 from the strong '25 profits.

That one we would expect to continue, our cash flow will track our operating performance. In Q4, cash flows, you obviously know that we have paid out dividends in October, so that will be a negative component.

Then traditionally, Q4 has been strong what comes to cash inflow, and that is where we are basing our expectations at the moment.

Okay. Then my final question would be on the one-off costs in the third quarter, €4 million.

Can you elaborate these in a bit more detail, and do you expect more still in Q4?

The €4 million in Q3 are materially coming from the Hohde transaction. The biggest component in there is the transfer taxes that were €1.0-something million in total, or roughly €1 million.

Then we have different type of success fees, as you know. This was a structured process where you use advisers.

We had a very very thorough and comprehensive FCCA process. The prices of lawyers.

Material part of that €4 million is related to Hohde transaction.

Thanks. I don't have any further questions.

Thanks. Thanks for the presentation.

I have one question left following the weak actually morbidity what we have seen in '25 and also in '26. It seems that early Q4, the situation has even weakened further.

Is there actually some structural changes in the market or behavior of customers? I'm just trying to figure out, is this some kind of new baseline?

You mentioned that you are expecting higher morbidity year on year in Q4, but it seems that this has been week after week performance on morbidity side. Any comments around this would be good.

If I start and Ville can then complement. The morbidity, the visibility starts to improve at late August, and then you start to have better visibility on forecasts around mid-September.

From that point onwards, our forecast has been fairly accurate. It was very low during August, then slightly improving during September so that the full quarter was roughly 15% down.

Now the start of October, week 41 was on a weaker note; week 42 is relatively less down, and it seems that this is behaving as we forecast. In our forecast, we take into account our own data plus then the Finnish, what is THL in English, our administrator's data, and based on that one, we do.

At the moment, we don't see disconnection between our forecast methodology and the outcomes, which points out that the change in behavior is not material. Obviously, we can't rule out either that one.

Maybe the only thing to add is that when looking at occupational healthcare use frequency, we ourselves, we have been pushing for, for example, self-notification processes for our customers. To certain extent, that can be seen as sort of a resetting the sort of conversion from this upper respiratory conditions to our services.

It is more like resetting the base; it is not a continuous trend.

Okay. Then maybe second question, still on portfolio, outsourcing deals: is there any more, or should we expect now the run rate should be here, or is there still downside on the profitability of this?

Do you have some contracts that are still ending at the Q4?

Basically, our guidance was that €25 million down this year, which means that there's a €5 million reduction still in Q4, compared we were, I think, 19.7 or pretty much 20 down year-to-date at the end of Q3. We have one contract remaining on that one, which is expected to generate revenue also in '27.

Obviously, these are something that may also end depending on how different items are being negotiated.

Okay. Thank you.

That's all from me.

We have some questions from the chat. Some have already been answered, but there's a question about share of lost large customers in occupational health versus SMEs in connected employees.

We have not in detail commented this one, but one can kind of take that roughly two thirds are large customers, roughly one third is SMEs now with this type of a view.

A question about Solo Health. Can you go through your rationale, why was that attractive as staffing market still seems to be declining and prices going down?

If I look on Solo Health, this is always something that we want to be in the public sector. We have been progressing there, and sometimes opportunity meets in the middle.

We would be gaining good services in a pockets that we are not that strong in what comes to staffing and how you slice and dice that market between emergency care, elderly care, and so on. We would be a solid combination with a highly synergistic deal on that one.

Then when the price is right, we are obviously happy to take such moves that would contribute to our shareholder value.

Only thing to add this is that, of course, taking our own view on the market development, past and future, and even reflecting that one, the deal is sound. Then

a question about covenants. Your covenants are based on net debt to EBITDA, among other metrics.

Can you comment what is the threshold, and if it's adjusted or reported EBITDA?

I don't think we have commented publicly or we have published the covenant level, but it is fair to say that we are talking about adjusted EBITDA figures, and we have a very healthy headroom at the moment, remembering that we are trailing below our financial target. We have a healthy headroom upon closing of Silmäasema also, remembering that that is a partly equity, partly debt deal.

We are in a good position in our balance sheet also post-Silmäasema closure.

Then two questions about recent sort of media stories. Which extent has the media attention in occupational healthcare has received lately regarding the lack of transparency, increased customers price tendering, and cutting out services?

If it's in a way twofold: large customers and again SMEs, even though they're a lot of similar or differences inside those pockets, are still two different breeds in a way. With the large customers, they have, of course, competencies in and resources in sort of negotiating and forming the service packages with us.

There we have seen the sort of post-cyclical pressure early on, and we have seen that one in tendering activity, and we have seen that one also in sort of weight on the price within the tenderings. That's sort of still of course existing, but it's smoothing out sort of.

Situation is normalizing in that sense. Then really the discussion has sparked more discussion and also activity within SMEs, and it's both negative and positive for us.

When we think about our sales efforts to SMEs, typically the conversion rates are really high, we are able to sell to new SMEs with high conversion rates. The market is active.

Same, of course, works the other way around so that our existing SME customers are active in tendering. This balance has been negative during first half of the year.

Now with the sort of heightened sales activities, we are actually balancing even that one out. There's still some net churn in SMEs, but we are clearly improving.

Then there's a question about Hohde Group run-rate profitability at the moment in IFRS adjusted EBIT.

Thank you. Basically, we are getting from Hohde what we were expecting for.

We are getting a dental service that is clearly more profitable than our own dental service, and it has progressed during the nine months between signing and closing, according to our expectations. On the IFRS 16, you actually find from the back of our report the bridge where you find that the IFRS 16 debt is roughly €9 million, and then you can assume that the D component is below €2 million.

With those ones, you can get into the adjusted EBIT numbers what comes to Hohde.

Then a question about online eyewear retailers offering prescription glasses. How have you factored this structural pricing pressure into your valuation of Silmäasema ahead of the acquisition, and what impact do you expect it to have on Silmäasema's pricing power and long-term profit margins?

As we have the FCCA process ongoing, we can't comment what happens in Silmäasema at the moment, or we can't comment what we think about their future. What I can say from the deal perspective, when we were making the acquisition, we have done a very thorough due diligence.

Within that due diligence, we have also pressure-tested different type of margin brackets, noting that Silmäasema's EBITDA percentages within optical retail are top-tier margins. Against that, we have pressure-tested different type of expectations also on lower levels, and our valuation can stomach also those ones.

Maybe

to add on that one, reminding everybody of the Silmäasema unique model: it is fully integrated optical eye care service chain, and that's really what's sort of interesting for Terveystalo. Really combine those services and, again, reach out to our customers and also increase the customer base.

A question to Ville: could you still a bit elaborate what are the current unmet needs in your clients that are being covered by this new Arc strategy?

If one sort of pressure-tests that assumption a little bit, we have tested in real life from multiple angles sort of the unmet demand, and almost regardless of the services, if there's at least a tiny part of elective nature in the service, we can stimulate the demand with the proper packaging, transparent pricing, making it easier to buy and use. We have examples from orthopedics, we have examples from eye-care services, we have examples from gynecology services.

Then totally new service modality where there's unmet demand is this type of continuous services. Healthcare services providers are geared for very reactive, high quality, but reactive episodic services where patient comes based on his or her needs and goes away.

This does not suffice for certain quite many medical conditions actually, where you need to have constant dialogue with the care provider in scalable way. There, the answer from our end, this is Wellbe platform and services built on that.

Thank you. This is all for now.

Let's stop with some final words from Juuso and Ville.

Thank you. It has been a very pleasant 4 years with all of you, and thank you for good questions, good interaction during these times, and we'll meet again.

Yes. I want to, of course, welcome Ville to Terveystalo once again.

Great prospects in our new growth vector, Dental, and a lot of energy and ambition there. Then, of course, finally, I want to thank Juuso for 4 years' run, which has been exciting.

I, of course, expect you to post question in AGM as an investor.

That will definitely happen. Tough questions.

Oh,

absolutely.

Thank you. Have a great rest of the day and week.

Thank you.

Thank you.

Thanks.