Eezy Oyj · OMXHEX:EEZY
Eezy Oyj — Q3 2021 Earnings Presentation
27 slides from Eezy Oyj's earnings presentation, Nov 9, 2021
Slide 1: Interim report Q3/2021
Interim report Q3/2021 Sami Asikainen 1 9 November 2021 Eezy Oyj 2021
Slide 2: Q3 – an excellent result
Q3 – an excellent result • We achieved our best-ever quarterly result. The growth of our operating volume was favourably reflected in our result. • The demand for our services was at an all-time high, although growth was slowed down by the shortage of labour. • Our strategy of getting back to the pa
Slide 3: Eezy's good rate of growth continues
Eezy’s good rate of growth continues Q3/2021 Q3/2020 Revenue 58.3 M€ 53.1 M€ +10% EBIT 4.7 M€ 3.7 M€ 3 9 November 2021 Eezy Plc 2021
Slide 4: Excellent profit performance driven by efficiency, the expansion of the sales mix and steady overall growth
Excellent profit performance driven by efficiency, the expansion of the sales mix and steady overall growth Staff leasing 2.8 M€ Eezy’s growth has outpaced the market even though the HoReCa sector has not returned to Franchise entrepreneurs normal yet. Revenue 10% / 5 M€ 0.2 M€ Entrepreneurs’ chain
Slide 5: Key figures
Revenue Q1/20-Q3/21 Key figures 70 60 50 40 Q3/2021 Q3/2020 1-9/2021 30 20 10 Revenue 58,3 M€ 53,1 M€ 142,9 M€ 0 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 EBITDA 6,5 M€ 5,5 M€ 14,2 M€ EBIT Q1/20-Q3/21 5 EBITDA-margin 11,1 % 10,4 % 10,0 % 4 3 2 EBIT 4,7 M€ 3,7 M€ 8,6 M€ 1 0 -1 Q1/20 Q2/20 Q3/20 Q4/20
Slide 6: Market growth in all of our business segments
Market growth in all of our business segments • August 2021: the staff leasing industry saw year-on-year market growth of +12% (source: Private Employment Agencies’ Association HPL, the 20 largest companies). • Our growth has outpaced the market since April. • Business development is seeing growth a
Slide 7: Staffing
Staffing Revenue Q3 Franchise fees Q3 52,8 M€ 2,0 M€ Change Change +6 % + 12 % Revenue 1-9 Franchise revenue 1-9 126,6 M€ 5,1 M€ Change Change -7 % + 14 % 7 9.11.2021 Eezy Oyj 2021
Slide 8: Staff leasing is growing in spite of the labour shortage
Staff leasing is growing in spite of the labour shortage • Industry, construction and logistics: Strong demand. Growth has still been restricted by labour shortages and COVID-19- related challenges in the import of foreign labour. • Revenue from the HoReCa sector continued to grow year-on-year but w
Slide 9: Professional services
Professional services Revenue Q3 Change 2.8 M€ +176% Revenue Q1– Change Q3 9.4 M€ +90% • Strong growth continues in the recruitment, executive search, training and consulting service businesses. • The companies acquired in Q4/2020 have had the desired impact on operations and profit. • Q4 is the mos
Slide 10: Light entrepreneurs
Light entrepreneurs Revenue Q3 Change 0.6 M€ -4% Revenue Q1– Change Q3 1.8 M€ -10% • Light entrepreneur services also began to recover from the COVID-19 slump: invoicing volume increased by 2% in Q3. 10 9 November 2021 Eezy Plc 2021
Slide 11: Moving forward with new strengths
Moving forward with new strengths We updated our management model. The Group’s new management team: • Sami Asikainen, CEO • Hannu Nyman, CFO • Pasi Papunen, Director, Growth and Renewal • Thomas Hynninen, Director, Work and Talent • Hanna Lehto, Director, People and Culture • Isa Merikallio, Content
Slide 12: Financial information Q3/2021
Financial information Q3/2021 12 10.8.2021 Eezy Oyj 2021
Slide 13: Income statement
Income statement EUR thousand 7-9/2021 7-9/2020 1-9/2021 1-9/2020 2020 • Largest item in the other Revenue 58 275 53 077 142 873 147 216 190 637 operating income in Q1 is the change in the VAT treatment of Other operating income 51 886 2 977 1 179 1 330 light entrepreneurs and in Q2 Share of result
Slide 14: Quarterly development 2019-2021
Quartely development 2019-2021 Significant factors contributing to earnings development: • VMP-Smile merger in Q3/2019 • Integration work in Q3/2019-Q1/2020 temporarily decreased profitability • Integration efficiencies have continued • Covid has strongly affected us since Q2/2020, but effects are g
Slide 15: Quarterly development 2019-2021
Quarterly development 2019-2021 • EBITDA has been clearly positive all the time, even during the whole Covid period • Depreciation is approx. 8 M€ annually • Depreciation clearly increased in Q3/2019 due to the Smile acquisition • Approximate split of the 8 M€ depreciation: • 2 M€ lease costs (offic
Slide 16: Balance sheet
Balance sheet EUR thousand 30.9.2021 30.9.2020 31.12.2020 ASSETS Goodwill 128 011 125 801 127 938 Goodwill and intangible assets totalled Intangible assets 27 099 29 670 29 731 Tangible assets 5 175 5 737 6 984 approximately EUR 155 million Long-term receivables and investments 2 842 3 677 2 187 Non
Slide 17: Balance sheet normalising after Covid
Balance sheet normalising after Covid • We ensured liquidity in spring 2020, which shows as increased cash • Receivables clearly decreased in the Covid period as business contracted, and are now growing along the business 17 9.11.2021 Eezy Oyj 2021
Slide 18: Effects of Covid conditions
Effects of Covid conditions • In spring 2020 we prepared for more severe economic conditions by increasing liquidity • Cash reserves and short-term liabilities increased in Q2/2020 • Business contracted until summer 2021, after which the business growth has also materialised as balance sheet growth
Slide 19: Balance sheet – key figures
Balance sheet – key figures 9/2021 9/2020 12/2020 Net debt 45 985 38 370 42 424 Net debt excluding IFRS 16 41 542 33 775 36 440 Net debt/Adjusted EBITDA 2,6 x 2,6 x 3,1 x Gearing, per cent 43,0 % 37,0 % 40,9 % Equity ratio, per cent 52,9 % 48,5 % 50,6 % Equity per share 4,30 4,17 4,17 EUR 10 million
Slide 20: Largest shareholders
Largest shareholders 30.9.2021 Shareholder Shares % 1. Sentica Buyout V Ky 6 105 458 24,57 2. Noho Partners Oyj 5 914 745 23,80 3. Meissa-Capital Oy 3 223 071 12,97 4. Evli Suomi Pienyhtiöt fund 901 699 3,63 5. OP-Suomi Mikroyhtiöt fund 575 000 2,31 6. Asikainen Sami 414 350 1,67 7. Säästöpankki Pie
Slide 21: Growth continues
Growth continues 21 9.11.2021 Eezy Oyj 2021
Slide 22: We are strengthening our position as a significant driver of renewal in working life
We are strengthening our position as a significant driver of renewal in working life • We are responding to the shortage of labour by enhancing the import of foreign labour: we acquired Triton Henkilöstöpalvelut Oy in October. • On 1 November 2021, we acquired an 80% stake in KK Valmennuskeskus Oy.
Slide 23: The rest of 2021
The rest of 2021 • Strong performance through the remainder of the year is contingent on a successful pre-Christmas season, free of restrictions, in the HoReCa sector. • We expect demand to remain good across all of our services. The shortage of labour will continue to affect the staff leasing busin
Slide 24: Good long-term growth outlook
Good long-term growth outlook Labour Labour shortage Education Digital solutions importing Changing relationship to work Megatrends The most drive growth sought-after A connecting in our markets skilled professionals force Change in the Active population structure Immigrant recruitment The most acti
Slide 25: Eezy's roadmap
400 Eezy’s Company acquisitions M€ roadmap Organic growth New services Recovery from COVID-19 191 M€ Scalability EBIT 3% Digitalisation EBIT 10% Services with high profitability 25 9 November.2021 Eezy Plc 2021
Slide 26: Strong cash flow enables growth investments
Strong cash flow enables growth investments Digital investments (2.1 M€ in 2020) Investments in new services Company acquisitions Loan repayments 4 M€/year Dividend (policy: 30–50% of profit) 26 9 November 2021 Eezy Plc 2021
Slide 27: We are Eezy
We are Eezy Vision Mission We will become Values We create Finland’s most Courage successful work significant Professionalism experiences operator in Positivity working life. 27 9 November 2021 Eezy Plc 2021