Eezy Oyj · OMXHEX:EEZY
Eezy Oyj — Q3 2022 Earnings Presentation
21 slides from Eezy Oyj's earnings presentation, Nov 8, 2022
Slide 1: Interim report 1-9/22
Interim report 1-9/22 Sami Asikainen 1 8 November, 2022 Eezy Plc 2022
Slide 2: Our social significance is growing
Our social significance is growing 5600 participants in employment and rehabilitation training 36 000 28 000 invoiced works salaried employees by light entrepreneurs 11 500 participated in student coaching 95 % courses 530 of staffing employees organization recommend us * development projects 2400 p
Slide 3: Revenue grew by 16%
Revenue grew by 16% • Growth continued, yet it slowed down because of weakening in general economic situation, mainly on the industrial and construction sectors. • Sickness absences were still on a higher level than before. Effects on profitability have been reduced via pricing. • Professional servi
Slide 4: Growth continued – room for profit improvement
Growth continued – room for profit improvement Q3/2022 Q3/2021 1-9/2022 Revenue 67,3 M€ 58,3 M€ 185,4 M€ EBITDA 6,8 M€ 6,5 M€ 13,6 M€ EBITDA-margin 10,1 % 11,1 % 7,3 % EBIT 4,7 M€ 4,7 M€ 7,3 M€ EBIT-margin 7,0 % 8,0 % 3,9 % 4 8 November, 2022 Eezy Plc 2022
Slide 5: Our strengths: a wide client base and business sector coverage
Our strengths: a wide client base and business sector coverage Staffing Franchise- Staffing Franchise- fees fees Q3/2022 Q3/2022 1-9/2022 1-9/2022 59,8 M€ 1,6 M€ 160,5 M€ 4,9 M€ Change Change Change Change +13 % -18 % +27 % -2 % • Staffing service market according to The Private Employment Agencies
Slide 6: Working life services grows in line with strategy
Working life services grows in line with strategy Q3/2022 1-9/2022 Professional Light Professional Light services entrepreneurs services entrepreneurs 5,2 M€ 0,7 M€ 18,1 M€ 1,8 M€ +84 % +3 % +92 % +4 % • Eezy Flow has made a huge growth leap. The growth and profit potential is high. • Eezy light ent
Slide 7: Operational profitability develops to right direction
Operational profitability develops to right direction Own actions have increase profit by approx. 3.7 M€: • Revenue growth impact approx. +1.8 M€ • Impact from service mix and pricing approx. +1.9 M€ Impact from high sick leave costs in 1-9/2022: • Difference in sick-levave impact 5,9 approx. -2.3 M
Slide 8: Economic outlook has shifted our focus to profitability
Economic outlook has shifted our focus to profitability • Aim to acchieve one million euros savings Fixed costs on annual basis through cost saving actions • The impact from sick leaves and inflation is Gross margin offset by price increases and new pricing models • Organization renewed for 2023 Eff
Slide 9: Financial information Q3/2022
Financial information Q3/2022 9 8.11.2022 Eezy Oyj 2022
Slide 10: Key figures
Revenue Q1/2020-Q3/2022, M€ Key figures 80 70 60 50 7–9/ 7–9/ 1–9/ 1–9/ 40 Million euro 2022 2021 Change 2022 2021 Change 2021 30 20 Revenue 67.3 58.3 16% 185.4 142.9 30% 203.3 10 0 EBITDA 6.8 6.5 5% 13.6 14.2 -4% 19.5 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 EBITDA % 10.1 %
Slide 11: Income statement
Income statement EUR thousand 7-9/2022 7-9/2021 1-9/2022 1-9/2021 2021 Revenue 67 309 58 275 185 362 142 873 203 328 • Exceptionally high sick-leaves impact on profit, total in 1-9/22 Other operating income 75 51 265 2 977 3 070 approx. -4.4 M€ (-2.1 M€) Share of result of equity -8 - -8 - - account
Slide 12: Quarterly development 2019-2022
Quartely development 2019-2022 • Q3/2022 revenue grew 16% compared to Q2/2021 • Q3/2022 negative profit impact from sick-leaves is approx -1.5 million euro. (approx. -0.9 M€ in Q3/21) • Significant factors contributing to earnings development: • VMP-Smile merger in Q3/2019 • Integration work in Q3/2
Slide 13: Cash flow supports growth goals
Cash flow supports growth goals • EBITDA has been clearly positive in each quarter • Cash flow from operations +2.3 M€ in Q3 and +5.3 M€ in Q1-Q3 • Investments into growth (acquisitions, IT investments) have been 8.3 M€ in Q1-Q3 • Depreciation is approx. 8 M€ annually. i.e. approx 2 M€ quarterly • A
Slide 14: Balance sheet
Balance sheet 1000 euro 30.9.2022 30.9.2021 31.12.2021 ASSETS Goodwill 141 654 128 011 134 054 Goodwill and intangible assets totalled Intangible assets 28 662 27 099 28 314 approximately EUR 170 million Tangible assets 5 484 5 175 5 095 Long-term receivables and investments 2 880 2 842 1 593 Non-cu
Slide 15: Balance sheet – key figures
Balance sheet – key figures 9/2022 9/2021 12/2021 Net debt 58 793 45 985 48 702 Net debt excluding IFRS 16 53 796 41 542 44 200 Net debt/Adjusted EBITDA 3,0 x 2,6 x 2,4 x Gearing. per cent 52,9 % 43,0 % 44,6 % Equity ratio. per cent 50,8 % 52,9 % 52,8 % Equity per share 4,43 4,30 4,36 EUR 10 million
Slide 16: Towards the rest of the year
Towards the rest of the year
Slide 17: Weaker economic outlook
Weaker economic outlook • There are several uncertaincies on the market which affect the economic conditions and demand by our customers • Despite uncertain conditions many industries still suffer from labour shortages Eezy expects revenue to grow and EBIT to be 5-6% of revenue in 2022 17 8 November
Slide 18: Our strengths in times of uncertainty
Our strengths in times of uncertainty Vahvuutemme epävarmoina aikoina Customers find Automation, Extensive range Automaatio-, flexible machine learning of sectors and koneoppimis- ja workforce EPÄVARMUUSTEKIJÖITÄ services will and synergy increasingly projects in synergiahankkeita even Työvoiman out
Slide 19: Actions during the rest of the year
Actions during the rest of the year • Focus from growth to profitability • Eezy Shine, the first staffing company specialized in immigrants, opened an office at Itäkeskus • HoReCa is heading towards the Christmas party season without restrictions • Successful Eezy Flow has its’ busiest quarter • A n
Slide 20: Growth strategy 2025 is progressing well
Growth strategy 2025 is progressing well Drivers of revenue growth The path towards 10 % EBIT margin Organic growth Revenue scaling • Growth in total +30 %, mainly organic • The impact of growth is not yet fully reflected COVID-19 recovery in earnings • HoReCa +27 % during Q3 Higher-margin services
Slide 21: 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