Pihlajalinna Oyj — M&A Activity 2015

Dec 14, 2015

Pihlajalinna Oyj: Pihlajalinna acquires Itä-Suomen Lääkärikeskus

Pihlajalinna Oyj: Pihlajalinna acquires Itä-Suomen Lääkärikeskus

Pihlajalinna Oyj Stock Exchange release 14 December 2015, 9.55 EET

Pihlajalinna acquires Itä-Suomen Lääkärikeskus

According to the agreement signed this morning Pihlajalinna Oyj's subsidiary
company Pihlajalinna Terveys Oy has agreed to acquire from current owners over
90 % of all shares of Itä-Suomen Lääkärikeskus Oy. The net debt-free value of
the acquisition target is 6.8 million euros. The transaction price will be paid
fully in cash when the acquisition is completed.

Itä-Suomen Lääkärikeskus Oy is currently in a demerging process and the
acquisition target is the company where the business operations are moved into.
In the demerger the real estate companies and the long term costs such as long
term real estate loans, subsidiary stock and investments will be left out of
the acquisition. The demerger is expected to come into force on January 1st2016
and the acquisition is expected to come into force by the end of the first
quarter of 2016.The acquired company will continue to rent the current
premises. Itä-Suomen Lääkärikeskus Oy's two private clinics in Joensuu and
private clinics in Nurmes and Outokumpu are included in the acquisition. The
current personnel of Itä-Suomen Lääkärikeskus will continue in the service of
Pihlajalinna Group and its branch clinics will become part of Pihlajalinna's
Dextra chain.

The acquisition strengthens Pihlajalinna's growth to become the leading social
and healthcare company in Finland according to its strategy. Itä-Suomen
Lääkärikeskus Oy is the largest and most well-known private healthcare service
provider in Joensuu that offers comprehensive general and specialist
practitioner services, laboratory and diagnostic services as well as
occupational healthcare and private hospital services. The company has 53
healthcare professional and other staff as well as 100 practitioners. In 2014
Itä-Suomen Lääkärikeskus Oy's net sales were 6.5 million euros (total sales
apprx. 11.8 million euros) and operating profit 1.0 million euros. Itä-Suomen
Lääkärikeskus Oy has two private clinics in Joensuu and private clinics in
Nurmes and Outokumpu.

Pihlajalinna CEO Mikko Wirén: I'm very happy that this acquisition is realized.
Our objective is to grow to a national player and now through Itä-Suomen
Lääkärikeskus Oy we will become a significant operator in many locations in
Eastern Finland. Itä-Suomen Lääkärikeskus has operated in Joensuu already 25
years and is known for its high quality and versatile services. This
acquisition brings also more growth to Private clinics and Specialist care
segment revenue.

Itä-Suomen Lääkärikeskus Oy CEO Urho Väätäinen: The domestic Pihlajalinna Group
offers an excellent opportunity to the high quality development of Itä-Suomen
Lääkärikeskus' private clinic operations also in the future. I believe that the
acquisition will guarantee high class private clinic services to our clients in
the locations we operate in.

P&L summary, Itä-Suomen
Lääkärikeskus Oy (FAS)
€'000 FY13A FY14A 1-9/2014* 1-9/2015*

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Gross sales 11 396 11 753 8 567 9 354
Practitioner's share (5 132) (5 210) (3 720) (4 207)
Net sales 6 264 6 543 4 847 5 148
Other operating income 133 113 92 39
Materials and supplies (1 416) (1 589) (1 125) (1 165)
Personnel expenses (2 052) (2 114) (1 675) (1 751)
Other operating expenses (1 331) (1 498) (1 132) (1 218)

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EBITDA 1 598 1 456 1 006 1 053
Depreciation and amortization (275) (466) not available not available

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EBIT 1 323 991 not available not available
Financial income 181 111
Financial expenses (17) (48)
Taxes (366) (212)
Profit for the year 1 121 841
================================================================================
* 1-9/2015 P&L and BS are not comparable due to the
inadequate closing accruals

Balance sheet summary
€'000 31.12.2013 31.12.2014 30.9.2015*

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Intangible assets 1 680 1 595 1 727
Tangible assets 374 329 369
Investments 3 792 5 049 5 530
Non-current assets 5 846 6 972 7 626
Loan receivables 54 54 49
Inventories 343 328 328
Short-term receivables 799 855 592
Short-term investments 405 191 170
Cash and cash equivalents 133 115 48
Total assets 7 579 8 515 8 813
================================================================================

Equity 6 775 7 104 7 514
Long-term loans 27 609 502
Short-term loans 777 802 797
Total equity and liabilities 7 579 8 515 8 813
================================================================================
* 1-9/2015 P&L and BS are not comparable due to the inadequate closing
accruals

Further information:

Mikko Wirén, CEO, Pihlajalinna Oyj, +358 50 322 0927

Urho Väätäinen, CEO, Itä-Suomen Lääkärikeskus Oy, +358 400 276 438

Terhi Kivinen, SVP, Communications, Marketing and IR, Pihlajalinna Oyj, +358 40
848 4001, terhi.kivinen@pihlajalinna.fi

Distribution

Nasdaq OMX Helsinki

Key media

investors.pihlajalinna-konserni.fi