Mehiläinen does not avoid taxes

On 10 August 2012, the Keskisuomalainen newspaper titled an article concerning Mehiläinen's financial statements “Mehiläinen välttelee yhä veroja” (Mehiläinen is still avoiding taxes). This is not true. On the contrary, in the eight-month long financial period which ended on 31 December 2011, Mehiläinen already paid relatively more corporate taxes than during the financial year discussed in the article, extending from 1 May 2010 to 30 April 2011.

In addition, Mehiläinen intends to pay more corporate taxes during the current financial year, from 1 January to 31 December 2012. The owners of Mehiläinen made significant changes to the financial structure of the Group in spring 2012. The owners of Ambea, Mehiläinen's parent company, followed very closely the discussion concerning the corporate tax paid by Mehiläinen in the financial year extending from 1 May 2010 to 30 April 2011.

The owners of Mehiläinen wanted to respond to the reactions caused by the complex organisational and financial structure and substantial loan. The Group's internal loans were transformed into so-called ‘owners' equity’ in spring 2012. This means a reduction in parent companies’ interest costs, and therefore in the need for Mehiläinen's group contribution. Assuming that Mehiläinen's business operations develop as planned, the corporate taxes will also increase during the current financial period. It should be noted that Mehiläinen has always conducted its business – and will continue to do so – in accordance with Finnish laws and regulations.

The tax rate in the article published in the Keskisuomalainen newspaper on 10 August 2012 is also incorrect. The taxes paid by companies are not counted and cannot be compared as percentages of a certain business profit, but instead must be counted and compared after deducting all expenses, such as interest charges and incidental expenses, from the profit.

At Mehiläinen we are very disappointed in Keskisuomalainen's misleading headline and selective choice of subject matters. For example, the investments Mehiläinen has made in Finland, assets used to expand operations, and the increasing number of personnel the company employs are not mentioned in the article at all.

We are happy to provide you with additional information.

For more information, please contact: Matti Bergendahl, CEO, Mehiläinen Oy, tel. +358 40 833 5461

Mehiläinen Group is the best-known and most highly valued private provider of health care and social services in Finland. Mehiläinen’s nation-wide service network offers versatile social and health services for private, corporate and municipal customers. Established in 1909, Mehiläinen has approximately 2,500 employees and 2,500 practitioners. In 2011 (the financial period from 1 May to 31 December 2011), the turnover of the Mehiläinen Group was EUR 158 million. Mehiläinen belongs to the Nordic Ambea Group, which is one of Europe’s largest providers of health and nursing services.

Published 10.8.2012