Pihlajalinna (PIHLIS) Pre-silent presentation summary

Key operational developments

• Opened new clinics in Lempäälä Ideapark and Kouvola city centre at the start of the year.

• Appointed Heikki Tarkkila as Chief Commercial Officer and Management Team member on 1 March.

• Published the 2025 Annual Report with a Sustainability Statement aligned with ESRS standards on 10 March.

• Redeemed EUR 20 million hybrid bond in full on 27 March 2026.

• Transitioned social and healthcare services in Ruovesi and Virrat to the company on 1 April.

Business environment and demand trends

• Economic slowdown and lower morbidity rates have reduced demand for health services; multi-channel service adoption continues.

• Active personnel cost management ongoing amid business transformation.

• New corporate customers added, including a major contract covering 11,000 people, while some existing customers reduced personnel.

• 65+ service offering expanded to 45 locations, serving 15,000–20,000 individuals monthly.

• Public sector demand remains low, with region-specific tenders for specialised care backlog reduction.

Financial outlook and strategy

• Revenue expected to decline by approximately EUR 83 million from 2025 due to expiring outsourcing agreements and divestments.

• 2026 revenue estimated at EUR 570–600 million, down from EUR 652.3 million in 2025.

• Adjusted EBITA projected at 9–10% of revenue, compared to 10% in 2025.

• Focus on organic growth and profitability improvement under a new operating model.

• Demand and economic conditions may impact financial results more than currently anticipated.