Terveystalo Oyj
OMXH:TTALO
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Hi, good morning and welcome to Terveystalo's 2020 Full Year Results Webcast and Conference call. As usual, our CEO, Ville Iho; and our CFO, Ilkka Laurila, will go through the results with the presentation and will take questions through the phone lines and from the webcast after the presentations. Without further ado, I'll give over to Ville.
Thank you, Kati. Good morning from Helsinki. Happy to go through highlights from our last quarter and also from last financial year. So let's go straight to the main headlines and the numbers from fourth quarter. Our revenue was up with 3.5%. Profitability improved with adjusted EBITDA up by 21.5%, landing at EUR 39.3 million as well as EPS, of course, followed that one. NPS, which we have been reporting regularly, still at a world-class level. We have been improving this one steadily over the last months and also years. eNPS, the employee satisfaction, our people performance or experience is also record high, which is good news going forward. And of course, one big interesting contributing factor to last half's and also quarter's result is number of COVID-19 tests, which landed at 126,000. Looking at that last number, of course, one needs not to sort of downplay or either overplay that figure. One point to remember with that one is that this doesn't come automatically. This requires a lot of work. We have been sort of underlying agility in our COVID operations throughout the years, and this is how it then pays off. Our agility, just a couple of examples of that one, just as a reminder, we were the first private provider to introduce COVID-19 test. And of course, after that, when we have been able to scale that one to our vast network, the vastest network in Finland, and that's, of course, now contributing nicely to our results. But continuing with the COVID operations and agility needed and related, that one, we also were the first private provider to start vaccinations for COVID-19. We were the first one to vaccinate with the Pfizer vaccination. We were the first private provider to vaccinate with Moderna vaccination and also first private provider now very recently to start the AstraZeneca vaccinations as private provider. It just goes to show that this agility remains a key, and we can then tap into that one and scale these new services, COVID-related services through our very, very strong network. Looking at our businesses, both corporate and private businesses grew nicely during last quarter. Slight decline in overall numbers for public, but that was sort of forecasted already before because of a couple of ending or ended outsourcing contracts but also in public business, actually, the activity was very high. The service sales was high and grew nicely. Staffing business, stable. Demand is very, very high there, but we were able to sort of get back to the normal levels with the staffing business. Maybe shortly commenting on our public business because it's obviously very interesting related to SOTE. I think very positive outcome from this COVID-19 crisis has been the fact that now public side and private side are cooperating, I would say, seamlessly. So barrier to do contracts and barrier to cooperate is lower than it has basically ever been, and that's a very good foundation, strong foundation for that business to grow also in the future regardless of what happens with the SOTE reform. There's always going to be demand, which is growing, and demand will always find supply. And now I would say that atmosphere is very positive, that cooperation going forward. A couple of other highlights. Insurance company sales was developing nicely, well-being services also grew nicely. And of course, digital sales, which I will reiterate in a later stage. Looking at the full year numbers. It's a little bit shame that we just didn't catch up last year's figures. We were not able to quite fill the gap, which was, in a way, ducked during second quarter. But as said, second half and last quarter, we had a very nice run and very, very strong quarters. And now starting off the year, we can continue from that run rate basis. Some key indicators from our strength. Looking at some operational figures, visits, although the revenue was slightly down during last year, visits grew nicely. Visits to physicians grew also. Digital, of course, skyrocketed early on in the crisis, and we have been able to maintain that level. NPS, up very, very, very strongly. eNPS up and our new quality index, which is blend of different medical indexes is way over our sort of threshold level. As I said, we start this year -- we have started this year from a position of strength. We -- our customer base has increased, and our network has, in a way, demonstrated its strength. We continue from that base and pickup in demand. We will continue investing in our platform. We have been talking about platform model for this last half. Just to remind you that platform model, light asset model, data-driven, health care paths are in Terveystalo DNA. And it's a very nice place to continue investing in the digital models, investing into hybrid models and investing in data-driven models. There's a lot of fuss around digital and hybrid and remote, and of course, it's a big contributor to future health care. This is to demonstrate with 2 examples how we see the digital and remote and how it's going to contribute to our business and how we are building our platform to cater for new type of services. This is an example of very short care path. It's a typical infection where you typically are good with one appointment, maybe some labs, and then you take it from there. With that one, typically, you are talking about chat appointments. And when talking about digital transformation, that's a typical reference. So people typically prefer to these very simple care paths and appointment types. And that's fine and good. We are doing that one. Our chat volumes are -- they have skyrocketed, and we can now with very fast, convenient way for the customers cater for their needs through digital channels. But going forward, in our model, even more important is that we will transform more or longer care paths, more demanding care paths due to hybrid models. And there, we are sort of putting steroids into this development with the introduction of these Fokus units. We are introducing those in 3 different medical disciplines. And there, this is sort of orthopedics examples where you typically would think about surgeries and such very sort of heavy medical services. But even with that one, this is a knee injury example, even with that one, bulk of the services, bulk of the delivery, bulk of the touch points can be delivered through digital channels. And this is very important. This also allows us to sort of tap into full network strength. We can reach each and every professional through digital channels. We can benefit our customers with the full knowledge of our network and experts and professionals early on. So we are not tied into one location to one expert whenever we are taking care of individual customers' need. We are rolling this model out. We are increasing the digital side of these care paths. And whenever this is convenient for customers, whenever this is convenient for professionals, whenever it increases productivity, we are for digital. These Fokus units, which I mentioned, they have now been introduced in 3 different medical disciplines, which I already mentioned. And those are the first ones to go: Well-being, musculoskeletal and abdominal diseases. And there's more to follow. This is sort of modern way to organize even demand in health care. It's network driven. It's a multi-disciplined approach targeting at true customer needs. It's transformational transition from local expert-driven model to network-wide best practices model and from a physical to -- from physical to hybrid or digital. And we see a lot of growth potential in rolling this type of model out. We are, of course, targeting disciplines where we, all in all, see growth potential in Finland. Outlook. Based on what we have seen and what we have heard, as I said, we are starting this year from a position of strength. We have been talking about agility. We have been talking about different scenarios, basically 3 different scenarios throughout the year. We have a -- we had a lockdown scenario. Now we have been living this middle scenario, which is live with COVID scenario, and then there's a normal growth scenario. We are still in this intermediate scenario, live with COVID, but as such, we have been able to demonstrate through our last half, we are comfortable in operating in this environment. Of course, everybody wishes that COVID-19 crisis will pass soon with the vaccinations. But for the first half, of course, our expectation is that the scenario is what it has been for the last 6 months, no major changes there. But as we have shown, we are fine with that one. We have ability, and we have agility to optimize our business with that environment as well. With that one, I will hand over to Ilkka with the details and key takeaways from our financial performance.
Thank you, Ville. Good morning on my behalf as well. And as usual, then we will go through some financial numbers and the latest development and the development of the 2020 as well. Starting from the -- our achievement versus our financial targets. For the top line, our target, updated target in the -- since the Capital Markets Day has been that we are targeting at least 5% revenue growth. The last year result at the end of the whole sort of pandemic year was at minus 4%. Our profitability target is to achieve 12% to 13% in adjusted EBITDA level. You can see that 2018, we were already almost achieving that and 2019 included that diluting impact from the Attendo acquisition and the sort of the lower margin level of that business. Now obviously, when we have roughly that 80% of our volume is fee-for-service, so called retail type of health care, it means that the operating leverage typically works in both ways so that especially in the second quarter when we had a lockdown also here in Finland and faced a drastic sort of close down of the operation that obviously declined the profitability quite considerably for the full year as well. And on the other hand, if the growth sort of -- if we are able to grow, the operating leverage obviously works on that way as well. Third target is to have that net debt to adjusted EBITDA below 3.5x. And the current level at the moment is 3x. So we are well below our financial target, and we will take a bit closer look on that at how we have been able to sort of achieve and improve that development as well. Our target is to distribute a minimum 40% of the earnings as in dividends. And now we are -- our Board is proposing to the AGM that EUR 0.26 dividend payment in 2 payments, which then compare -- is about that 72% of the net earnings. But if we can take a bit closer look on then the quarterly development, you can actually see on the left-hand side that already last 2 quarters and especially last quarter, like Ville already explained, we were able to grow in basically all relevant KPIs in revenue, absolute profitability and relative profitability as well as you can see. And on the right-hand side, you can see that we -- in Q3 and Q4, we also achieved our sort of financial target profitability level, achieving now that 14% EBITDA margin compared to 12% year ago and 13.7% before the Attendo acquisition back at 2018. So now we are already in a better level than the Attendo -- before the Attendo acquisition back at 2018. And obviously, it's easy to see here that the second quarter how exceptional that was in our case and what kind of sort of profitability and top line development we faced at the time and therefore sort of the negative operating leverage on that end as well. But then if you take a look to sort of couple of underlying trends that we have sort of communicated continuously, in this slide, you can see that even though that top line development has been, let's say, during the last 2 quarters at low single digit, the well-being sales has continuously, you could say, grown with the exception of that second quarter of last year. If you would do those arrows also for the years between other quarters from '18 to '19, the same trend has continued. So it has been almost every quarter has grown with double-digit numbers and therefore outgrown the rest of the business. And now the revenue of that sales is if you take a corporate and private business in total, it's roughly or a bit more than 10% already of that business. Secondly, we have communicated those digital visits and the trend line, you can see there, it's quite obvious that it has grown quite rapidly during the last year and especially since the COVID hit the market. And that also links to the P&L structure and some variations there. So if the top line in the last quarter was growing, the 3.5%, the external services were declining that 0.8%. And the reasoning for that is that as the sales mix has changed, so that we are now selling more diagnostics compared to appointments, that has had an impact for the external services and therefore for the private practitioner payments. On the other hand, we have also communicated that we are heavily investing in digitalization, and we can take a look at that number as well later on. And as we all went to remote mode during the second quarter and started to work remotely, that increased infrastructure expenses for the IT as well. We have launched new digital services, and the maintenance impact of that -- those services can be seen in the P&L structure. And therefore, the IT expenses has grown to almost 80%. Maybe one more thing to highlight is that, obviously, the PPE procurement has had a significant impact for the purchase of the material expenses and most likely continue to be so also at least during the following months before we get the vaccinations. From the balance sheet perspective, we are in a quite strong position, especially if you take a look at the financial indebtedness, excluding IFRS 16 impact, we are in that 2.8x EBITDA on our leverage ratio. And our financial liabilities is that close to EUR 326 million excluding IFRS 16. The leverage ratio has developed so that during the last quarter it has, like I said already come down to 3x EBITDA from that 3.4x EBITDA. And one of the main reasons or one reason for that is that we have been continuously able to improve our working capital efficiency, as can be seen on the right-hand side. And also in this slide, so that our DSO has improved from that 32 days a year ago to 30.5 during the last quarter. And our DPO has increased from 50.6 to 53.4 days during the last quarter. So that has obviously had a positive impact to our cash flow development. Still on the cash flow, our CapEx development, when we listed the company back at 2017, I still remember when the blue column there was roughly EUR 4 million or EUR 5 million, now it's that roughly EUR 20 million. So that tells a story that how much we have invested in tangible assets, meaning digitalization and other IT development and IT infrastructure development of our business. And as you can see from the trend from EUR 18 million, EUR 17 million to EUR 20 million, it continues to be so also in the near future, most likely. Roughly a year ago, a bit more than a year ago, we made a refinancing with -- of that roughly EUR 400 million financial package. That included sustainability targets -- 3 sustainability targets. This was the first year that we measured. Again, we were measured against those targets. We were able to achieve all criteria for those targets and therefore have a also slightly positive impact for the financial expenses going forward by achieving those targets. Financial calendar and AGM in '21. Annual report will be published during the next week and the Q1 and the rest of the reportings, you can see on this slide. And then I think that we have time for the Q&A.
Thanks, Ilkka. Do we have any questions from the phone lines?
[Operator Instructions] And the first line comes from Alex Gibson from Morgan Stanley.
I have 3 in it. It probably makes sense to go one by one. My first question is, so stripping out the COVID testing from your corporate business, it looks like it's declined around maybe 12% even in the quarter and 10% for the full year. Can you give us a bit of an indication of what amount of this lost services in 2020 could be shifted into 2021 from maybe pent-up demand or a delay of servicing? Or do you think that there's just unlikely to see any pent-up demand coming back in 2021? That's my first question.
Do you want to take it?
Yes. If I start commenting on that and Ville can then continue, if needed. If you split the corporate business into separate business, there's preventive business and then there is sickness care. For the preventive business, we have said that it has almost at the year-end achieved the normal level. And therefore, in that business, we don't expect to have any major pent-up demand for this year. Even though that some of the health checkups and, et cetera, was not carried out during the last year, the impact of that is going to be, let's say, rather mild for this year. Then on the other hand, the sickness care has gone down during the -- obviously, because all kind of infections have come down like we have said. And the pent-up demand related to that is obviously pretty much linked to normalization of the society. So you can find -- you are able to find many funny details in -- if you are digging out the ICD codes. But just as an example, ear infections are currently down by, say, 72% versus last year. Lung fever is down by 78% versus the last year. So that tells a story that all kind of infections are significantly down versus the normal behavior and normal working life in that sense as well. So therefore, the pent-up, so called pent-up demand is mostly related, I would say, in a normalization of the working life as well. So as we get people vaccinated and we will come back to the offices and working places, then we most likely will see the normalization of the corporate business as well.
Yes. The only one that I would actually add is that there's basically, as Ilkka said, there's 2 layers. But the second layer, sickness care, can be even divided into 2. So there is, let's call them short care paths, for example, infection-related appointments, et cetera, which are down radically due to the fact that people are not -- basically they are not -- they are socially distancing, et cetera, et cetera. But then you do have this trend -- positive trend from our side, positive trend in longer care paths. We can use, for example, mental health, as an example. And there, you can see -- you can see positive trend and then you can see -- you can easily say that there's also some pent-up demand in there.
Yes. That's true.
Okay. That's very helpful. And just quickly clarification on that. Are you saying, are those -- both the preventative and sickness, are you adjusting for the COVID, right? They don't include the COVID revenues where you're saying preventative care is back to normal levels and sickness declining, that's excluding COVID? And then secondly, if you can, it would be great if you just give us an approximate split of how much is each business of corporate?
Yes. We were describing the underlying development, excluding COVID-19-related services. And the split, if you meant, what is the split between the preventive and the sickness, it's typically historically been quite close to half and half, obviously, has a variation between the customer groups and between the time periods. But historically, it's been roughly 50-50.
Okay. That's great. And then my second question is just on the EBITDA margin. You've seen a nice improvement in Q3, Q4, I think, probably due to the COVID testing. But what do you expect for 2021? Should we think that this is going to go back to 2019 levels? Or are there other things that have changed in your cost base that I think maybe once we get out of the pandemic, we should be thinking your margins are structurally higher?
It's obviously really difficult to estimate at this stage because it's really -- no one really knows that when we are able to get out of the pandemic and when we all get vaccinated. But like we have said historically or during the earlier quarters, we haven't yet done any material changes to overall underlying cost structure as such. The underlying trends we have described, it's the digitalization, it's the well -- increased demand for the well-being services, et cetera, et cetera. But for the cost structure, as such, we haven't done any dramatic changes during the COVID-19 pandemic.
Yes. I would basically split this 1 into 2. So of course, this COVID or middle scenario, which I described earlier in the presentation, this is where we have now demonstrated that we are able to navigate nicely there and the margins are quite nice as well. For the normalization, we still have the financial targets intact. So basically, that's what we are targeting at, and we have not changed the financial target for the margins.
And this one might be difficult to do, but do you have an EBITDA margin if you excluded COVID-19 testing? Could you do -- could you provide that?
No, we -- that we haven't communicated.
Can you work it out? Or is it just 2 mixed services?
We haven't. And basically, it's -- it includes a lot of allocations and so it's really relates to the definition, and that's why we haven't started to communicate it at all. It's because we provide integrated care chains and just to setting EBITDA for separate one service is a bit artificial.
Yes. Makes sense. And then last one is just could you give a bit more detail on the impact of the new health care reforms that are being proposed and how their impact to your services in both private and public sector in which ways?
Maybe I will start. So as I said earlier in the presentation, the public market, regardless of the SOTE discussion in Finland, is very, very active and ability to cooperate over the fence between this to a way of delivering health care is lower than it has been, which is very positive for future of our public business. SOTE reform itself, we have, of course, analyzed that one. If it -- maybe the chances are 50-50, if it's now going to materialize. But the impact of that SOTE reform in our business is, I would say, it's not material. Be it or -- will it come or not the public business future, I would say, looks quite promising.
Okay. But there's nothing specific that's -- whether the way things are being paid for or how they're going to allocate budgets that you think will impact your business?
Well, yes, of course, you can speculate how the things will turn. The demand is there, as we have said many, many times, and demand is actually growing. There's a lot of pent-up demand building on public side. That's, in a way, can, to a certain extent, already be seen on private side so that people are opting out from the queues to private services. And I don't see any drastic change happening. Even if SOTE comes, the fundamentals of the structure and public's ability to provide services will not change dramatically.
Maybe to sort of still highlighting the -- its level of importance to us, so far, I would say that we haven't done any preparation for the coming social and health care reform. And that explains also the -- its importance to us at the moment.
Next question comes from the line of Sami Sarkamies from Nordea Markets.
I have 3 questions. Starting from the private trends in the fourth quarter, you did have 5% growth after 9% in the third quarter. Can you help us to understand why the growth rate was lower? So was it the case of third quarter benefiting from pent-up demand or was kind of the flu season milder in Q4?
Yes. I would say there's several different levers for that development. One is exactly like you mentioned that in Q3 we faced some pent-up demand, clearly, especially in dental and in specialty care in private business. On the other hand, in Q4, which is typically quite strong period for different kind of infections and it's a high flu season typically, like said, now all kind of infections were in a very, very extremely low level. So that had a impact for the Q4 development. And also, I would say, the overall underlying demand is, in Q4, especially in December when that sort of the number of the COVID incidents started to increase, again, it slightly went down. So the private business as such, like we have said, it reacts really quickly to COVID-19 situation development. So that in a local, if you have a bad local situation in some of the cities, you can clearly see that the demand is declining for that in that city for the certain period. And on the other hand, when the situation easing or evens out and starts to stabilize, you can see the pent-up demand coming back and demand increasing in that city. So it's -- the private -- fluctuation in private business continues to be, I would say, as long as we have the situation, it continues to be. The swings are going to be higher than -- bigger than in a corporate or in a public segment. It reacts certainly much faster than corporate and public business.
That's very helpful. Then moving on to the public segment. Can you remind us on the revenue headwind from ending outsourcing contracts impacting this year? And do you expect to be able to offset some of this with new contracts?
Yes, we have said that during this year, the outsourcing, we are estimating that at least during the following 6 months, the revenue will decline as there is some ending outsourcing contracts. But on the other hand, there's a tender pipeline ongoing. And obviously, we don't know what will happen with those tenders. So if we are successful in those tenders, we can most likely then see impact of those incoming contracts during the second half of the year. But during the first half of the year, we have said that it will decline, but we have also said that it will not decline significantly, like we said, during 2020.
Okay. And then finally, on the COVID-19 vaccination programs that have started, could you elaborate on the potential business opportunity for Terveystalo in case you will end up vaccinating your corporate health care customers? How much could you get paid per patient? And who will be actually paying this?
Well, the vaccination rollout for the -- or mass vaccination rollout is still highly speculative at this stage. The negotiations and designing the logistics, et cetera, is ongoing. But of course, there's potential since there's a high push for using occupational health for delivery of working population. And then you can estimate the potential from the contracted customers. But there's a caveat of this logistics being still unclear and who is leading the operation. Right now, the system is such that municipalities, they are governing the logistics and rollout. And of course, then it becomes quite scattered picture. There are tens of different ways how to do it, and hence even based on that one, it's difficult to give a precise estimate. Price point for vaccination is also something that will develop over time. There's a certain compensation that's being anticipated for this one, but most probably, that's going to be topped with some of our own -- it's got a big combination of compensation and then our margin.
Okay. But I mean, can you give us a ballpark range on how much that could be in total per patient?
I would say that it's too early to say that one. But of course, we will not vaccinate with negative margins.
Our next question comes from the line of Panu Laitinmäki from Danske Bank.
I only have one question left, and it's about the public sector business. When I read the report and listen to your comments, it seems that there is clearly a more positive tone about the kind of outlook than previously. So can you still kind of clarify where is this coming from? And what in practice does it mean for you? Are you referring to these tenders that you mentioned that could kind of support the second half outsourcing business? Or is the service sales to clarify the queues created by COVID-19? And also related to that, what is your capacity to provide services if there will be like a large-scale demand from the public sector?
Maybe I will start and then Ilkka will continue. First of all, in our new structure, which basically started from start of the year, there's some -- in my thinking and how I lead the company, public business has more independence in creating their own business plan and strategy. And we can clearly see that as a potential growth business going forward. As a practical examples of that, they have already been mentioned here. But as Ilkka said earlier, the pipeline for new outsourcings is actually strong. Right now, the outsourcing cases, there's a variety of them, they can be a lot so small, but the pipeline is getting stronger. The other practical thing that I mentioned already is the fact that really, when you look at how public procurement is done, who is calling the shots, who is organizing that one, it's a regional game. And with these regional entities, the cooperation capability and willingness is higher than I have seen ever due to this COVID crisis and our strong cooperation with the public sector on that one. So these funnels to do business are open, and pipeline is there. The third element, obviously, is that the demand, as we have said many times, it will not go away. So the reform will not solve basically anything. The system is going to be roughly the same and whenever there’s demand, supply will meet the demand at the end of the day. As to capacity, we do have capacity in our network to increase service sales. And of course, staffing business is -- that's a capacity restricted business. Demand is always there. I think our foothold there is strong. And again, we can further increase the supply and outsourcings, then the capacity is basically limitless because then we are taking the resources from public side over.
If I still continue on that, so basically, what it means that in outsourcings, what we have said that there's a tender pipeline. At least we are aiming to win some of those cases. Staffing business as such, it's a supply game, like Ville said. So the demand is huge. But if we are able to build a supply, then we are successful. Then the third business, the service sales and the occupational health care. Occupational health services, you saw that it was growing close to 40% during the last quarter. That was mainly related to some, let's say, COVID-related services, sample taking and that kind of services and new occupational health care contracts for the municipalities. And that's something that we've been waiting, I would say, to have that cooperation with public sector quite along during the pandemic, and now we are seeing the first signs. That's probably a reason for that positive tonality. On the other hand, to put things on perspective, as you can see, this service sales and the occupational health care sales, the volume is EUR 22 million. Compared to that, our well-being sales, it's in the same ballpark. So the significance of that is not that huge, even though that we think it -- we see it quite positively at least at the moment. When it comes to capacity, it's good to note that outsourcing and staffing business are not operated within our network. And therefore, it's not so much on a capacity issue. Service sales, obviously, and occupational health care services so is produced within our network and is tied to our capacity. But there is capacity, existing capacity, like Ville said, because overall, underlying demand, obviously, is not that huge at the moment.
It was a very good answer, but I still have a follow-up, if I may. About the tender pipeline of outsourcings, can you kind of describe what kind of outsources are there? Is it like more primary health care in the municipalities? Or is it something like specialized health care with the hospital testings or what are those?
So the primary health care outsourcings, that's the -- what we can see as the strongest in the pipeline.
[Operator Instructions] And if there are no more questions registered, I hand back to our speakers.
Thank you. We have 3 more questions from the webcast. First, from Jefferies, James Vane-Tempest. Given the success with Oma Terveys app, what is the potential to export this IP to other countries and further monetize your digital investments by helping other providers with digital services, who may not be as advanced as Terveystalo is currently?
That's a great question. Thus far we have been, in a way, thinking about our digital platform as -- with a combination with physical services, and we are talking about hybrid models. We have, in a way, done 1 or 2 test cases where we have analyzed certain new markets and what's the fit between our digital offering and that specific market. And certainly, there's a potential. But we have not -- we -- as of today, we don't have plans to roll out digital offering as independent business to some other markets. We are still looking at that being hybrid, and that relates also to markets outside Finland. But the Oma Terveys app and digital platform is a huge enabler for scalability of our business model.
Thanks. Then another question from Anssi Raussi, OP Markets. Could you go through the planned expirees of outsourcing contracts and the financial impact of these contracts in '21 versus '20?
We actually made a decision not to publish separate outsourcing contracts and municipalities of those that we have anymore, and that's why we are only providing the overall guideline to top line development and said that it will decline. Like said, there's pending contracts, but it's a continuous -- it's a portfolio of agreements. And obviously, some will start and some will end, but we will stick into that business.
Then one more question. Can you provide some color on cost pressures, if any, particularly regarding personnel if there's inflation pressure?
When it comes to the personnel expenses, it's good to note that starting from Jan this year, we are not anymore in Finland have this pension premium discount which had an impact of EUR 500,000 per month during the last 3 quarters, if I recall it correctly. So that has ended in January 2021. Secondly, I think that there's a already agreed salary increases for the personnel, which is, I think it's close to 2% for this year. And that's the number for the personnel expenses or the salary increase there and the pressure. For the doctors, we don't see any specific pressure to increase their payments or salaries.
Yes. All in all, quite a stable situation. So normal collective agreement increases, but no other inflatory pressures.
For the rest of the cost structure, like said, obviously, the protective gearing expenses will continue to be on a high level as long as this pandemic will continue. And we continue using those. Then like also said before, the IT expenses will continue increase. As we have invested on that, that will have -- as you invest EUR 1, it will have some, say, EUR 0.20 impact for the -- to operate and maintain that CapEx item. And therefore, it will continue to increase the operating expenses of the IT-related services and the infrastructure.
Great. No further questions from the webcast or phone lines, I assume. So thank you, everybody, for your time, and have a good day.
Thank you.
Thank you.