Talenom Oyj · OMXHEX:TNOM
Talenom Oyj — Q1 2024 Earnings Presentation
19 slides from Talenom Oyj's earnings presentation, Apr 18, 2024
Slide 1: Business Review Q1 2024
Business Review Q1 2024 CEO Otto-Pekka Huhtala and CFO Matti Eilonen Talenom Plc 18 April 2024
Slide 2: Content
Content • Review period • Strategy progress • Financial development • Outlook and guidance
Slide 3: EBITDA improved by 13.4% and strategy implementation progressed
EBITDA improved by 13.4% and strategy implementation progressed Growth slowed down in a Profitability increased due to efficiency Focus shifting to organic growth challenging market situation improvement measures in Finland Net sales January-March (EUR million) EBITDA January-March (EUR million) Inv
Slide 4: Strategy progress
TALENOM Strategy progress
Slide 5: The European accounting firm market and its development
The European accounting firm market and its development • Market size is around EUR 100 billion, of which Finland represents 1%. • The digitalization is accelerated by many structural changes: • Labour shortages together with increasing regulation forces us to seek more effective practices. • The in
Slide 6: Unbeatable accounting and banking services for SMEs
Vision Unbeatable accounting and banking services for SMEs
Slide 7: A proven strategy and strong track-record
A proven strategy and strong track-record 140 25% 120 20% 100 15% 80 10% 60 5% 40 0% 20 -5% 0 -10% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Net sales, EUR million EBIT % (comparable) 2000 2016 2021 − − − 2015 2020 2025 Building digital capabilities and The impact of the digitalisa
Slide 8: Internationalisation progressing as planned
Internationalisation progressing as planned Net sales distribution 1‒3/2022 Net sales distribution 1‒3/2023 Net sales distribution 1‒3/2024 1% 4% 11% 16% 21% 20% 69% 83% 75% Finland Sweden Other countries Finland Sweden Other countries Finland Sweden Other countries
Slide 9: Strategy progress 1–3/2024
Strategy progress 1–3/2024 01. Improving operational efficiency • Profitability was improved by the efficiency measures launched in 2023 in Finland. • In Sweden, we were able to migrate customers to our own platform in line with our targets. 02. Platform roll-out in Sweden • Our goal is to migrate a
Slide 10: Financial development
TALENOM Financial development
Slide 11: Net sales growth slowed down
Net sales growth slowed down Net sales January-March (EUR million) +9% • The net sales growth was mainly due to acquisitions in 40 Spain. • The economic downturn in Finland and Sweden has 34 30 significantly slowed organic growth. 31 25 20 20 17 10 0 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024
Slide 12: Profitability turned into growth
Profitability turned into growth EBITDA development January-March Operating profit development January-March 10 35.4% 35.2% 40% 6 30% 9.5 8 8.9 8.4 27.9% 30% 21.7% 4.9 4 4.4 19.3% 20% 6 7.2 26.7% 3.9 20% 3.5 4 2 10% 11.0% 10% 11.3% 2 0 0% 0 0% Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2021 Q1 2022 Q1 2023
Slide 13: Business development in Finland
Business development in Finland Net sales development January-March, meur EBITDA development January-March +0.1% 10 50% 25 39.4% 40.0% 9.3 23.4 23.4 8 40% 20 8.4 39.7% 21.0 8.2 35.0% 18.0 6 7.1 30% 15 10 4 20% 5 2 10% 0 0 0% Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2021 Q1 2022 Q1 2023 Q1 2024 EBITDA Finl
Slide 14: Business development in Sweden
Business development in Sweden Net sales development January-March, meur EBITDA development January-March +3.4% 8 1 13.6% 15% 12.6% 7.0 0,8 6 6.7 0.8 10% 0,6 4 4.5% 4.0 0,4 0.5 5% 2 0,2 2.3 0.1 -0.3% 0% 0 0 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2021 Q1 2022 Q1 2023 Q1 2024 -0,2 -0.02 -5% EBITDA Sweden,
Slide 15: With automation Sweden's EBITDA is expected to rise to the Finnish level
With automation Sweden's EBITDA is expected to rise to the Finnish level 50% • Our strong software expertise has enabled a highly efficient and automated accounting process in Finland. 40% • The difference between the EBITDA in Finland and Sweden is explained especially by the difference in the degr
Slide 16: Business development in other countries
Business development in other countries Net sales development January-March, meur EBITDA development January-March +205.6% Q1 2022 Q1 2023 Q1 2024 4 0 0% -0.06 -0.06 3.7 -0,1 -1.6% 3 -10% -0,2 2 -20% -0,3 -23.8% 1 1.2 -0.4 -30% -0,4 0.3 -31.3% 0 -0,5 -40% Q1 2022 Q1 2023 Q1 2024 EBITDA other countri
Slide 17: Outlook and guidance
TALENOM Outlook and guidance
Slide 18: Outlook and guidance for 2024 unchanged
Outlook and guidance for 2024 unchanged Guidance • Net sales about EUR 130–140 million • EBITDA about EUR 34–40 million • Operating profit about EUR 14–17million Background for the guidance Talenom expects the accounting services market to grow in all of the company's operating countries in 2024 and
Slide 19: Thank you
Otto-Pekka Huhtala CEO +358 40 703 8554 otto-pekka.huhtala@talenom.fi Matti Eilonen CFO Thank you +358 40 753 4335 matti.eilonen@talenom.fi