Talenom Oyj · OMXHEX:TNOM
Talenom Oyj — Q3 2022 Earnings Presentation
22 slides from Talenom Oyj's earnings presentation, Oct 25, 2022
Slide 1: Talenom Plc January–September 2022 Business Review & Strategy Review
Talenom Plc January–September 2022 Business Review & Strategy Review CEO Otto-Pekka Huhtala and CFO Matti Eilonen 25 October 2022
Slide 2: Presentation Content
PRESENTATION CONTENT • REVIEW PERIOD HIGHLIGHTS • STRATEGY PROGRESS DURING THE REVIEW PERIOD • GROUP FINANCIAL DEVELOPMENT • COUNTRY-SPECIFIC FINANCIAL DEVELOPMENT • OUTLOOK • MID-TERM FINANCIAL TARGETS
Slide 3: Review Period Highlights
REVIEW PERIOD HIGHLIGHTS STRONG GROWTH IN NET SALES HIGH EBIT MARGIN GUIDANCE FOR 2022 UNCHANGED JANUARY-SEPTEMBER: JANUARY-SEPTEMBER: NET SALES EUR 100-110 MILLION 76 Meur (61 Meur) 13 Meur (12 Meur) OPERATING PROFIT EUR 15-18 MILLION +24% (+25%) 17% (20%) AS % OF NET SALES
Slide 4: Strategy progress 1–9/2022
Strategy progress 1–9/2022 • 1/3 growth organic, 2/3 from acquisitions ORGANIC GROWTH AND GROWTH THROUGH • Organic growth is driven by increased customer volumes and growth in sales of value-added services in Finland ACQUISITIONS • Four acquisitions in Q3 and 13 in January-September 2022 in Finland
Slide 5: Net Sales Growth continued
NET SALES GROWTH continued Net sales in January-September (EUR million) Net sales in July-September (EUR million) +24.1% +21.7% 80 75.8 25 23.6 61.1 19.4 20 60 48.7 14.8 43.0 15 13.5 40 10 20 5 0 0 1–9/2019 1–9/2020 1–9/2021 1–9/2022 7–9/2019 7–9/2020 7–9/2021 7–9/2022 • 1/3 of growth organic, 2/3 f
Slide 6: Growth investments had a pressure on margins
GROWTH INVESTMENTS HAD A PRESSURE ON MARGINS EBITDA development 1-9/2022 EBITDA development 7-9/2022 30 34.5% 40% 8 7.3 40% • Relative profitability was depressed 33.6% 6.7 by lower profitability of the acquired 20 25.4 30% 6 34.5% 30.8% 30% businesses compared to other units, 21.1 20% 4 20% integra
Slide 7: Business development in Finland
Business development in Finland Net sales development 1-9/2022 Net sales development 7-9/2022 EUR million +15.1% EUR million +12.3% 80 20 18.8 • Growth in net sales 2/3 organic, 1/3 61.2 16.8 from acquisitions 60 53.1 15 • Organic growth was driven by increased 40 customer volumes and sales of value
Slide 8: Business development in Sweden
BUSINESS DEVELOPMENT IN SWEDEN Net sales development 1-9/2022 Net sales development 7-9/2022 EUR million + 75.5% EUR million +75.4% 15 13.6 • Strong growth continued 6 • Net sales growth came mainly from 4.3 acquisitions 10 4 7.8 2.5 5 2 0 0 1–9/2021 1–9/2022 7–9/2021 7–9/2022 EBITDA development 1-9
Slide 9: Outlook and guidance for 2022 unchanged
OUTLOOK AND GUIDANCE FOR 2022 UNCHANGED (PUBLISHED 16 DECEMBER 2021) Talenom expects 2022 net sales to be EUR 100-110 million and operating profit (EBIT) to be EUR 15-18 million. NET SALES OPERATING PROFIT EUR million 100–110 EUR million 15–18 83 14.8 65 12.9 58 10.4 49 8.5 41 4.8 2017 2018 2019 202
Slide 10: Medium-term financial targets
Medium-term financial targets STRONGER FOCUS ON ACCELERATING GROWTH
Slide 11: A solid foundation to build on
A solid foundation to build on Development of the Finnish accounting Development of Talenom’s net sales, Development of Talenom’s operating firm market, EUR million EUR million profit, EUR million 1400 100 16 25% 1200 14 80 20% 1000 12 10 800 60 15% 8 600 40 6 10% 400 4 20 5% 200 2 0 0 0 0% 2016 201
Slide 12: A proven strategy and strong track-record
A proven strategy and strong track-record EUR million 100 25% 20% 80 15% 60 10% 40 5% 0% 20 -5% 0 -10% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Revenue EBIT-% 2000 2016 2021 − − − 2015 2020 2025 BUILDING DIGITAL CAPABILITIES AND THE IMPACT OF THE DIGITALISATION DUPLICATING THE PROVEN C
Slide 13: Medium-term financial targets
Medium-term financial targets Medium-term (2023–2025) financial 2023 targets − 2025 ANNUAL NET SALES GROWTH OVER 30% Accelerating international growth 2022 • Leveraging the digital transformation in ANNUAL EBITDA GROWTH OVER 15% Europe • Duplicating the proven digitalisation INCREASING EBIT IN EUROS
Slide 14: We will continue to execute our current strategy with increased focus on growth
We will continue to execute our current strategy with increased focus on growth UNBEATABLE ACCOUNTING AND BANKING SERVICES FOR SMES
Slide 15: Digitalisation phases of Talenom's operations
Digitalisation phases of Talenom’s operations 1. Customer interfaces The client starts using Software as as Service • Makes life easier, saves time • Standardises workflow and material deliveries to accounting office • Enables the utilisation of structured information, such as e-invoice 2. Automatio
Slide 16: Key drivers to accelerate growth
KEY DRIVERS TO ACCELERATE GROWTH 1 2 3 LEGISLATION AND MARKET TRENDS CUSTOMER BEHAVIOR IS CHANGING DIGITALISATION IS HAPPENING BOOST DIGITALIsATION (PSD2, E- TOWARDS DIGITAL PLATFORMS NOW: CHOICES BETWEEN INVOICE, E-RECEIPT, EU’S GREEN PLATFORMS ARE BEING MADE AND TRANSITION) THE BARRIER TO SWITCH I
Slide 17: Digitalisation provides growth opportunities in the SME segment
Digitalisation provides growth opportunities in the SME segment 15,717,000 16 000 000 • The micro and small segment is served by 14 000 000 individual consultants and small accounting firms. 12 000 000 10 000 000 • Regional markets are characterised by traditional working processes. 8 000 000 Not us
Slide 18: Phases of internationalisation
Phases of internationalisation PHASE 4. OWN TECHNOLOGY AND SERVICE ADAPTING (3-5 YEARS) • service as a service PHASE 3. • own technology in vital processes • strong growth and profitability GROWTH AND DEVELOPMENT (1-2 YEARS) PHASE 2. • growing the sales organisation • acquisitions • continuous devel
Slide 19: Recap
Recap WE HAVE SUCCEEDED IN THE FINNISH 1 DIGITALISATION JOURNEY DIGITALISATION IS HAPPENING RIGHT NOW IN 2 EUROPE AND THAT’S WHY WE ARE ACCELERATING GROWTH WE WANT TO DUPLICATE THE FINNISH SUCCESS 3 IN OTHER EUROPEAN COUNTRIES
Slide 20: New Talenom app: example of digital accounting
NEW TALENOM APP: EXAMPLE OF DIGITAL ACCOUNTING https://www.talenom.fi/uudistettu-talenom-mobiilisovellus/
Slide 21: Q&A
Q&A OTTO-PEKKA HUHTALA CEO +358 40 703 8554 otto-pekka.huhtala@talenom.fi MATTI EILONEN CFO +358 40 753 4335 matti.eilonen@talenom.fi
Slide 22: Disclaimer
DISCLAIMER Certain statements in this presentation contain declarations on the future and are based on the company's and management's views at the time of their issue. They therefore involve risks and uncertainties. Future development may also change if there are significant changes in the general e