Talenom Oyj · OMXHEX:TNOM
Talenom Oyj — H1 2024 Earnings Presentation
22 slides from Talenom Oyj's earnings presentation, Jul 19, 2024
Slide 1: Half-Year Financial Report 2024
Half-Year Financial Report 2024 CEO Otto-Pekka Huhtala and CFO Matti Eilonen Talenom Plc 19 July 2024
Slide 2: Content
Content • Review period • Strategy progress • Financial development • Outlook and guidance
Slide 3: Our main objective was to improve profitability, which has materialized as planned
Our main objective was to improve profitability, which has materialized as planned Growth slowed down due to Profitability was improved by the The acquisition pace has been lower acquisition activity level efficiency measures in Finland and significantly slowed down and economic downturn higher busi
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 2024 * Net sales, EUR million EBIT % (comparable) 2000 2016 2021 − − − 2015 2020 2025 Building digital capabilities and The impact of the dig
Slide 8: Internationalisation progressing as planned
Internationalisation progressing as planned Net sales distribution 1‒6/2022 Net sales distribution 1‒6/2023 Net sales distribution 1‒6/2024 1% 5% 12% 18% 22% 21% 68% 81% 73% Finland Sweden Other countries Finland Sweden Other countries Finland Sweden Other countries
Slide 9: Strategy progress 1–6/2024
Strategy progress 1–6/2024 01. Improving operational efficiency • Profitability was improved by the efficiency measures launched in 2023 in Finland and higher business volumes in Spain. • Significant integration projects that engaged personnel have been completed. After the completion of other proje
Slide 10: Finances
TALENOM Finances
Slide 11: Growth of Group net sales slowed down due to lower acquisition activity level and economic downturn
Growth of Group net sales slowed down due to lower acquisition activity level and economic downturn Net sales January-June (EUR million) Net sales April-June (EUR million) +6.7% +4.5% 80 40 60 68.0 30 33.9 63.7 32.4 52.2 27.0 40 20 41.7 21.4 33.9 16.5 20 10 0 0 1–6/2020 1–6/2021 1–6/2022 1–6/2023 1–
Slide 12: Group profitability was improved by efficiency measures conducted in Finland
Group profitability was improved by efficiency measures conducted in Finland EBITDA January-June EBITDA April-June 30 34.8% 40% 12 34.4% 40% 34.5% 33.7% 30.3% 29.0% 10 27.3% 27.0% 30% 10.3 30% 20 8 9.3 8.9 19.7 6 7.2 20% 18.2 17.2 20% 10 14.4 4 10% 10% 2 0 0% 0 0% 1–6/2021 1–6/2022 1–6/2023 1–6/2024
Slide 13: Net sales development in Finland
Net sales development in Finland Net sales development January-June (EUR million) Net sales development April-June (EUR million) -1.7% -3.6% 50 25 46.7 45.9 23.3 40 20 22.5 42.4 21.4 36.4 18.4 30 15 20 10 10 5 0 0 1–6/2021 1–6/2022 1–6/2023 1–6/2024 4–6/2021 4–6/2022 4–6/2023 4–6/2024 • General econ
Slide 14: EBITDA development in Finland
EBITDA development in Finland EBITDA development January-June EBITDA development April-June 20 50% 10 50% 40.1% 18.1 40% 8 39.8% 8.8 39.3% 40% 15 38.0% 17.0 16.4 39.5% 8.5 8.2 36.6% 35.2% 35.1% 13.8 30% 6 6.7 30% 10 20% 4 20% 5 10% 2 10% 0 0% 0 0% 1–6/2021 1–6/2022 1–6/2023 1–6/2024 4–6/2021 4–6/202
Slide 15: Net sales development in Sweden
Net sales development in Sweden Net sales development January-June (EUR million) Net sales development April-June (EUR million) +1.4% -1.0% 16 8 14.0 14.2 7.3 7.2 12 6 5.3 8 9.3 4 4 5.3 3.0 2 0 0 1–6/2021 1–6/2022 1–6/2023 1–6/2024 4–6/2021 4–6/2022 4–6/2023 4–6/2024 • The acquisition pace has been
Slide 16: EBITDA development in Sweden
EBITDA development in Sweden EBITDA development January-June EBITDA development April-June 2 13.9% 15% 1 20% 10.8% 15.7% 10.3% 15.7% 15% 0.8 10% 1.4 1.3 1 0,5 0.6 10% 0.5 8.2% 5% 2.9% 6.0% 0.4 0.6 5% 0.4 0 0% 0 0% 1–6/2021 1–6/2022 1–6/2023 1–6/2024 4–6/2021 4–6/2022 4–6/2023 4–6/2024 EBITDA Sweden,
Slide 17: 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 30%
Slide 18: Net sales development in other countries
Net sales development in other countries Net sales development January-June (EUR million) Net sales development April-June (EUR million) +163% +134% 10 5 8 4 4.2 7.8 6 3 4 2 1.8 2 3.0 1 0.5 0.3 0 0 1–6/2022 1–6/2023 1–6/2024 4–6/2022 4–6/2023 4–6/2024 • Net sales growth came mainly from acquisitions
Slide 19: EBITDA development in other countries
EBITDA development in other countries EBITDA development January-June EBITDA development April-June 0,5 10% 0,5 10% 8.9% 4.0% 0.4 5% 0.3 0% 1‒6/2022 1‒6/2023 4‒6/2022 4‒6/2023 0% 0 0 1‒6/2024 -0.05 -0.2 4‒6/2024 -5% -0.1 -10% -10.7% -10% -0,5 -0.6 -0,5 -15% -19.1% -20% -22.1% -20.1% -20% -1 -30% -1
Slide 20: Outlook and guidance
TALENOM Outlook and guidance
Slide 21: Outlook and guidance for 2024
Outlook and guidance for 2024 Guidance unchanged • 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 growth of the accounting services market to slow down in the Nordic countries and continue
Slide 22: 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