Eezy Oyj · OMXHEX:EEZY
Eezy Oyj — Q4 2021 Earnings Presentation
30 slides from Eezy Oyj's earnings presentation, Feb 17, 2022
Slide 1: Financial statements bulletin Q4/2021
Financial statements bulletin Q4/2021 Sami Asikainen 1 17.2.2022 Eezy Oyj 2022
Slide 2: Successes in Q4
Successes in Q4 • Our revenue increased by 39%, with growth on a broad scale, almost all of which was organic. • Our operating profit increased by an impressive 116%. • Our strong growth of 82% in professional services also improved our profitability. • Strategic company acquisitions, Triton and Val
Slide 3: Great growth in profit
Great growth in profit Q4/2021 Q4/2020 Revenue 60,5 M€ 43,4 M€ +39 % EBITDA 5,3 M€ 3,4 M€ +55 % EBITDA-margin 8,7 % 7,8 % EBIT 3,2 M€ 1,5 M€ +116 % EBIT-margin 5,2 % 3,4 % 3 17.2.2022 Eezy Oyj 2022
Slide 4: Drivers of our profitability development
Drivers of our profitability development Growth and scale The role of increasing the The industrial sectors of Synergies and continuous benefits share of staff leasing as well as our improvement of our high-margin services franchise chains and efficiency specialised sectors brought about permanent p
Slide 5: Growth speed increased
Revenue Q4/2019-Q4/2021, M€ 70 Growth speed increased 60 50 40 30 M€ 2021 2020 Change 20 10 Revenue 203,3 190,6 7% 0 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 EBITDA 19,5 13,5 44% EBITDA-margin 9,6 % 7,1 % EBIT Q4/2019-Q4/2021, M€ 5 EBIT 11,8 5,6 112% 4 3 EBIT-margin 5,8 % 2,9 % 2 A divi
Slide 6: Eezy's pace will grow the entire staffing services sector
Eezy’s pace will grow the entire staffing services sector • Between November 2020 and November 2021, the revenue growth of the staffing services sector was 24%, and the revenue growth of the personnel leasing industry was 26%. • The growth in recruitment services was considerable throughout 2021. •
Slide 7: The strong growth of our staffing service continued
The strong growth of our staffing service continued Revenue Q4 Franchise fees Q4 51,5 M€ 2,0 M€ Change Change +37 % +20 % Revenue 1-12/2021 Franchise fees 1-12 178,1 M€ 7,1 M€ Change Change +3 % +16 % 7 17.2.2022 Eezy Oyj 2022
Slide 8: Growth on a broad scale
Growth on a broad scale • Industry, construction and logistics: Growth continued strong. Labour shortages and the import restrictions on foreign labour caused by COVID-19 still hindered growth. • In Q4, the revenue of the horeca sector grew from the previous year but still lagged well behind the lev
Slide 9: Light entrepreneurs
Light entrepreneurs Revenue Q4 Change 0.7 M€ -5% Revenue 1–12 Change 2.5 M€ -8% • Invoicing volumes of light entrepreneur services grew by 6% in Q4. • We have not been heavily involved in the price competition in the sector. Instead, we have focused on improving the quality and profitability of the
Slide 10: Professional services
Professional services Revenue Q4 Change 6.3 M€ +82% Revenue 1–12 Change 15.7 M€ +87% • A very good final year in consulting, business coaching, surveys, recruitment and headhunting contributed to the strong growth in 2021. • For the first time, the share of high-margin services exceeded 10% of the G
Slide 11: Great year 2021 despite the restrictions
Great year 2021 despite the restrictions • The pandemic has been handled exceptionally well, and we are now an even stronger company than before. • Growth accelerated towards the end of 2021 and doubled as a result. • The diversification of our service range proceeded as planned towards high-margin
Slide 12: Financial information Q4/2021
Financial information Q4/2021 12 17.2.2022 Eezy Oyj 2022
Slide 13: Key figures
Revenue Q4/2019-Q4/2021, M€ 70 Key figures 60 50 40 30 10–12/ 10–12/ Million euro 2021 2020 Change 2021 2020 Change 20 Revenue 60,5 43,4 39% 203,3 190,6 7% 10 0 EBITDA 5,3 3,4 55% 19,5 13,5 44% Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 EBITDA % 8,7 % 7,8 % 9,6 % 7,1 % EBIT Q4/2019-Q4/202
Slide 14: Income statement
Income statement EUR thousand 10-12/2021 10-12/2020 2021 2020 • Largest items in the other Revenue 60 455 43 421 203 328 190 637 operating income are the change in the VAT treatment of Other operating income 93 151 3 070 1 330 light entrepreneurs in Q1 and Share of result of equity accounted the Cor
Slide 15: Quarterly development 2019-2021
Quartely development 2019-2021 • Q4 revenue almost reached the pre-Corona Q4/2019 • Each quarter in 2021 had better EBIT-% than the corresponding quarter in 2020 • Year 2021 was good for other business areas, but Corona still burdened the Horeca business • Significant factors contributing to earning
Slide 16: Quarterly development 2019-2021
Quarterly development 2019-2021 • EBITDA has been clearly positive even during the Covid period • Depreciation is approx. 8 M€ annually • Approximate split of the 8 M€ depreciation: • 2 M€ lease costs (offices etc.) • 2 M€ normal depreciation (IT etc..) • 4 M€ acquisition related amortization (like
Slide 17: Balance sheet
Balance sheet EUR thousand 31.12.2021 31.12.2020 ASSETS Goodwill 134 054 127 938 Intangible assets 28 314 29 731 Goodwill and intangible assets totalled Tangible assets 5 095 6 984 approximately EUR 162 million Long-term receivables and investments 1 593 2 187 Non-current assets 169 056 166 841 Curr
Slide 18: Corona effects in 2020-2021
Corona effects in 2020-2021 • In spring 2020 we prepared for more severe economic conditions by increasing liquidity • Cash reserves and short-term liabilities increased in Q2/2020 • Business contracted until summer 2021, after which the business growth has also materialised as balance sheet growth
Slide 19: Balance sheet – key figures
Balance sheet – key figures 12/2021 12/2020 Net debt 48 702 42 424 Net debt excluding IFRS 16 44 200 36 440 Net debt/Adjusted EBITDA 2,4 x 3,1 x Gearing, per cent 44,6 % 40,9 % Equity ratio, per cent 52,8 % 50,6 % Equity per share 4,36 4,17 EUR 10 million overdraft limit unused on 31 December 2021.
Slide 20: Largest shareholders
Largest shareholders 31.12.2021 Shareholder Shares % 1. Sentica Buyout V Ky 6 105 458 24,38 2. NoHo Partners Oyj 5 864 745 23,42 3. Meissa-Capital Oy 3 223 071 12,87 4. Evli Suomi Pienyhtiöt Fund 1 121 699 4,48 5. Op-Suomi Mikroyhtiöt Fund 572 757 2,29 6. S-Bank Fenno Equity Fund 421 062 1,68 7. Asi
Slide 21: Annual General Meeting
Annual General Meeting • The Annual General Meeting is planned to be held on 12.4.2022 without physical participation • Invitation to the meeting will be published later • The Board’s dividend proposal is 0,15 eur/share: • 0,10 eur in April • 0,05 eur in October 21 17.2.2022 Eezy Oyj 2022
Slide 22: Dividend proposal
Dividend proposal Eur 0,40 0,38 Dividend policy 0,35 0,316* 0,31 Eezy aims to distribute a dividend 0,30 amounting to 30–50% of its annual net result. 0,25 0,25 0,236 0,20 0,15 0,15 0,15 0,1 0,11 0,10 0,08 0,05 0,00 2018 2019 2020 2021 Earnings per share, eur Dividend, eur per share *Includes an add
Slide 23: The drivers of our profitability development
The drivers of our profitability development Growth and Increasing the share of Development of staffing Increased automation of benefits from the higher-margin pricing models processes economies of scale services 1.X × hourly price ✓ Automation ❒ of the employees’ routine tasks XX% of the hourly pri
Slide 24: Towards a strong 2022
Towards a strong 2022 24 17.2.2022 Eezy Oyj 2022
Slide 25: Outlook for 2022
Outlook for 2022 Eezy expects revenue to grow and EBIT-% to increase during 2022. The guidance will be made more precise during the year. 25 17.2.2022 Eezy Oyj 2022
Slide 26: Revenue 400M€, 40M€ EBIT
‘OR INDIVIDUALS Employment Career services Training Integration Well-being OUR MISSION We create success OUR VISION ‘The most prominent innovator of working life /The focus is always on the success of the individual Finland’s most sought-after, pool of talent Revenue 400M€, 40M€ EBIT AND COMMUNITIES
Slide 27: The drivers of Eezy's growth
The drivers of Eezy’s growth Acquisitions Revenue New Organic services EUR Recovery from the growth 400 pandemic million Revenue EUR 203 million 2021 2025 approx. EUR 100 million approx. EUR 100 million 27
Slide 28: The path towards 10% EBIT margin
The path towards 10% EBIT margin COVID-19 pandemic, drastic decrease in volumes and large The pandemic still has an VMP merged with Smile impact on revenue, positive Scaling of business operations, write-downs. non-recurring items improve higher-margin services EBIT margin 4.7% The merger generated
Slide 29: Growth investments are financed with the strong cash flow
Growth investments are financed with the strong cash flow in the strategy period Dividends of Loan 30–50% repayment of the result (EUR 16 million / 4 yrs) Investments in digitalisation and new services (EUR 8–10 million) Acquisitions (EUR 30–40 million) 9 December 29 Capital Markets Day 2021
Slide 30: We are Eezy
We are Eezy Vision Values Mission To Courage We create success become Finland’s Professionality for individuals most significant ope Positivity rator in working life. 30 17.2.2022 Eezy Oyj 2022