Talenom Oyj · OMXHEX:TNOM
Talenom Oyj — Q4 2024 Earnings Presentation
29 slides from Talenom Oyj's earnings presentation, Jan 30, 2025
Slide 1: Financial Statement Release 2024
Financial Statement Release 2024 CEO Otto-Pekka Huhtala and CFO Matti Eilonen Talenom Plc 30 January 2025
Slide 2: Content
Content • Review period • Strategy progress • Financial development • Outlook and guidance
Slide 3: Moderate net sales growth, improving EBITDA and software business separation marked 2024
Moderate net sales growth, improving EBITDA and software business separation marked year 2024 The weak economic cycle and EBITDA improved due to efficiency Strategy was updated in October 2024 the Swedish integration slowed measures in Finland and higher volumes down growth in the Spanish business T
Slide 4: Internationalisation has progressed as planned; focus on Finland, Sweden, Spain and Italy
Internationalisation has progressed as planned. We are focusing our business operations on our current target markets: Finland, Sweden, Spain and Italy Net sales distribution 1‒12/2022 Net sales distribution 1‒12/2023 Net sales distribution 1‒12/2024 2% 7% 12% 19% 21% 19% 72% 69% 79% Finland Sweden
Slide 5: Strategy progress 1–12/2024
Strategy progress 1–12/2024 01. Improving efficiency • We improved the absolute EBITDA by EUR 2.9 million and the relative EBITDA by 1.3 percentage points, but we missed our target mainly due to the economic cycle in Finland and Sweden. • In Sweden, we managed to migrate the remaining targeted 50% o
Slide 6: Strategy progress
TALENOM Strategy progress
Slide 7: Growth. Target state
Target state Growth. We want to focus on our core competencies and promote scalable growth.
Slide 8: Key market trends accelerating growth
Key market trends accelerating growth • 02. 01. Legislation and market 02. Customer behavior is 03. Digitalisation is happening trends are driving changing towards digital now – particularly in Spain digitalization (PSD2, e- platforms. and Italy: choices between invoicing, e-receipts, EU platforms a
Slide 9: The European accounting market and its evolution
The European accounting market and its evolution • Market size is around EUR 100 billion, of which Finland represents ~1%, Sweden ~2%, Spain ~10% and Italy ~10%. • The digitalization is accelerated by many structural changes: • Labour shortages together with increasing regulation forces us to seek m
Slide 10: Updated strategy
Updated strategy A. The core remains unchanged: B1. First change: B2. Second change: Our competitive advantage is We separate the software We focus on our core expertise by based on a comprehensive business into its own company transferring all non-accounting approach, considering the and begin offe
Slide 11: Our values
Updated strategy is focused Ease Most preferred financial on the core expertise management partner Automation “We help entrepreneurs succeed” Our values Courage Care Will Care
Slide 12: Proven strategy and strong historical track record – high investment phase is over
Proven strategy and strong historical track record – high investment phase is over Building digital capabilities Digital transformation's Strong investments in Replicating a proven strategy and platform in Finland impact on performance in internationalisation and and concept on international Finland
Slide 13: Long-term financial targets
Long-term financial targets >20% annual software business net >10% annual service business net sales growth sales growth
Slide 14: Strategic focus areas for 2025
Strategic focus areas for 2025 01. Improving profitability in 02. Leveraging the entry into force of the 03. Building sales channels and Sweden. Spanish e-invoicing directive. developing SaaS capabilities in the software business. Systematic implementation of The mandatory introduction of e- the sof
Slide 15: Finances
TALENOM Finances
Slide 16: Group full-year net sales grew moderately, Q4 revenue declined slightly
The Group's full-year net sales grew moderately, while Q4 revenue declined slightly year-on-year Net sales in January-December (EUR million) Net sales in Q4 (EUR million) +4% 40 -2% 150 122 126 30 100 29.7 29.2 102 26.3 20 83 21.8 50 65 16.5 10 0 0 2020 2021 2022 2023 2024 10-12/2020 10-12/2021 10-1
Slide 17: The Group's EBITDA improved, comparable operating profit at comparison period level
The Group's EBITDA improved, comparable operating profit at the comparison period level EBITDA in January-December Operating profit* in January-December 40 40% 20 20% 17.8% 33.4% 27.5% 31.7% 26.2% 15.0% 34.8 30 32.4 31.9 30% 15 15% 14.8 15.3 27.7 9.1% 9.0% 20 20% 10 11.1 11.4 10% 10 10% 5 5% 0 0% 0
Slide 18: The Group's profitability weakened in the last quarter
The Group's profitability weakened in the last quarter. EBITDA in Q4 Operating profit in Q4 8 40% 3 15% 2.8 7.0 7.0 12.8% 6 30.4% 6.6 30% 6.1 2 10% 2.2 26.4% 23.7% 8.3% 4 20.7% 20% 1.6 1 5.4% 5% 2 10% 0.2% 0.1 0 0% 0 0% 10-12/2021 10-12/2022 10-12/2023 10-12/2024 10-12/2021 10-12/2022 10-12/2023 10-
Slide 19: Net sales development in Finland
Net sales development in Finland Net sales development in January-December Net sales development in Q4 (EUR million) (EUR million) -1.2% -0.7% 25 100 80 87.8 20 86.7 20.8 20.6 81.0 19.8 18.6 71.8 15 60 40 10 20 5 0 0 2021 2022 2023 2024 10-12/2021 10-12/2022 10-12/2023 10-12/2024 • Despite record-hi
Slide 20: EBITDA development in Finland
EBITDA development in Finland EBITDA development in January-December EBITDA development in Q4 40 50% 8 36.0% 36.5% 40% 34.8% 34.7% 38.8% 7.6 37.5% 37.9% 36.1% 7.2 40% 6.9 30 33.7 6 6.7 30% 30.7 31.7 26.9 30% 20 4 20% 20% 10 2 10% 10% 0 0% 0 0% 2021 2022 2023 2024 10–12/2021 10–12/2022 10–12/2023 10–
Slide 21: Net sales development in Sweden
Net sales development in Sweden Net sales development in January-December Net sales development in Q4 (EUR million) (EUR million) -4.7% -14.5% 30 8 25 25.5 24.3 6 20 5.9 5.8 19.4 5.1 15 4 10 10.7 2.9 2 5 0 0 2021 2022 2023 2024 10–12/2021 10–12/2022 10–12/2023 10–12/2024 • Integration challenges hav
Slide 22: EBITDA development in Sweden
EBITDA development in Sweden EBITDA development in January-December EBITDA development in Q4 3 20% 0,5 10% 6.5% 0.4 15% 2 -0.1 2.1 0 0% 10.8% 10% 10–12/2021 10–12/2022 10–12/2023 10–12/2024 1 7.1% -3.9% 0.8 5% -0,5 -10% 0.4 0 1.5% 0% 2021 2022 2023 2024 -17.3% -1.0 -1.0 -1,1 -1 -20% -1 -4.5% -20.2%
Slide 23: Net sales development in other countries
Net sales development in other countries Net sales development in January-December Net sales development in Q4 (EUR million) (EUR million) +79.6% +16.4% 20 4 3.5 15 3 15.3 3.0 10 2 8.5 5 1 0.2 0.7 0.4 1.7 0 0 2021 2022 2023 2024 10–12/2021 10–12/2022 10–12/2023 10–12/2024 • Net sales growth came mai
Slide 24: EBITDA development in other countries
EBITDA development in other countries EBITDA development in January-December EBITDA development in Q4 0,5 10% 0,2 20% -5.6% 0.01 3.2% -8.5% -0.02 0.2% 0.04 0% 0 0% 0 10–12/2021 10–12/2022 10–12/2023 10–12/2024 2021 2022 2023 2024 -14.1% -10.5% -10% -0,2 -20% -0.4% -0.3 -0.3 -0,5 -20% -0,4 -40% -0.5
Slide 25: Investments and depreciations
Investments and depreciations • Investments stemming from new customer contracts amounted to EUR 3.7 million (3.3) in the Investments and depreciations development, EUR million review period. 50 • Investments in software and digital services totalled EUR 15.1 million (14.5). 40 40.9 39.9 38.0 • Acqu
Slide 26: Dividend proposal
Dividend proposal EUR • Earnings per share was EUR 0,13 (0,07). 0,3 0.27 • The Board of Directors proposes that the parent 0.25 company's profit for the financial year EUR 0.22 9,071,090,14 is transferred to the retained 0,2 0.19 0.10-0.20 earnings/loss account. 0.18 0.17 0.18 0.16 0.15 • The Board
Slide 27: Outlook and guidance
TALENOM Outlook and guidance
Slide 28: Outlook and guidance for 2025
Outlook and guidance for 2025 Guidance same as before (published 13 December 2024) • Net sales around EUR 130–140 million • EBITDA around EUR 36-42 million Background for the guidance • Talenom expects demand in the accounting services market to remain stable in all of the company’s operating countr
Slide 29: Thank you
Otto-Pekka Huhtala Toimitusjohtaja +358 40 703 8554 otto-pekka.huhtala@talenom.fi Matti Eilonen Talousjohtaja Thank you +358 40 753 4335 matti.eilonen@talenom.fi