Trainers´ House Oyj

Quarterly Report • Jul 18, 2024

TRAINERS' HOUSE GROUP INTERIM REPORT 1 JANUARY – 30 JUNE 2024

January-June 2024 in brief

• • net sales EUR 4.3 million (EUR 4.9 million), change of -12.4 % compared to the corresponding period of the previous year
• operating result EUR 0.2 million (EUR 0.2 million), 5.0 % of net sales (3.5 %)
• cash flow from operations EUR 0.5 million (EUR 0.3 million)
• earnings per share EUR 0.10 (EUR 0.08)

April-June 2024 in brief

• • net sales EUR 2.1 million (EUR 2.2 million), change of -4.9 % compared to the corresponding period of the previous year
• operating result EUR 0.0 million (EUR -0.2 million), 2.3 % of net sales (-10.5 %)
• cash flow from operations EUR 0.3 million (EUR 0.0 million)
• earnings per share EUR 0.02 (EUR -0.11)

Key figures at the end of the second quarter of 2024

• cash and cash equivalents EUR 1.5 million (EUR 1.8 million)
• interest-bearing liabilities of EUR 0.8 million (EUR 0.3 million) and interest-bearing net debt of EUR -0.8 million (EUR -1.5 million).
• equity ratio 63.2 % (64.1 %)

OUTLOOK FOR 2024

The company estimates the operating profit for 2024 to be negative.

CEO ARTO HEIMONEN

Trainers' House was profitable in the first half of the year.

Market conditions remained challenging. However, in June, customer acquisition was successful and better than last year. Cash and cash equivalents continued to strengthen during the second quarter.

Customer satisfaction has remained at a high level. The Net Promoter Score (NPS) given by customers is 80, which is world class (235 responses in the first half of the year). Taking care of customers' concerns and legendary customer intimacy are the cornerstones of Trainers' House.

Healthy cash flow and profitability are the company's most important business goals in 2024 as well.

The purpose of Trainers' House is to help people forward. This is possible by touching people, electrifying management and producing verifiable results.

Thanks to customers, employees, and partners.

More information: Arto Heimonen, CEO, +358 404 123 456 Saku Keskitalo, CFO, +358 404 111 111

FINANCIAL PERFORMANCE

Net sales for the reporting period were EUR 4.3 million (EUR 4.9 million). Operating result was EUR 0.2 million, 5.0 % of net sales (EUR 0.2 million, 3.5 %). The result for the period was EUR 0.2 million, 5.1 % of net sales (EUR 0.2 million, 3.6 %).

The breakdown of the Group's figures (unit thousand euros) is presented in the following table:

(kEUR)	1-6/2024	1-6/2023
Net sales	4 328	4 943
Expenses:
Expenses arising from employee benefits	-2 852	-3 251
Other expenses	-1 080	-1 251
EBITDA	397	441
Depreciation and impairment losses	-182	-266
EBIT	215	175
EBIT, % of net sales	5.0	3.5
Financial income and expenses	-9	2
Result before taxes	206	177
Income taxes	17	2
Result of the period	223	179
Result, % of net sales	5.1	3.6

LONG-TERM OBJECTIVES

The company's long-term goal is profitable growth.

FINANCING, INVESTMENTS AND SOLVENCY

Cash flow and key financing figures (unit million euros)

	1-6/2024	1-6/2023
Cash flow from operations before financial items	0.5	0.3
Cash flow from operations	0.5	0.3
Cash flow from investments	0.0	0.0
Cash flow from financing	-0.1	-0.8
Total cash flow	0.4	-0.5
	6/2024	6/2023
Cash	1.5	1.8
Interest-bearing debt	0.8	0.3
Equity ratio %	63.2	64.1

OPERATIONAL REVIEW

During the review period, the company focused on serving its customers.

In the first half of the year, the company hired over 100 early-career employees in the year-long Trainers' House Growth Academy.

Trainers' House's business is sensitive to economic fluctuations.

The general economic situation internationally and in Finland contains significant risks. The war in Europe, the tense world political situation and the possible expansion of the crisis can cause rapid changes in the operating environment.

Possible world trade restrictions and changes in the world political situation affect the exports of Finnish companies, which is reflected in the demand of the domestic market. The demand in domestic market could diminish due to public cost-cuttings and tax increases. The change in domestic market demand directly affects Trainers' House's business.

Compared to the level of the last decade, the high interest rate has a negative effect on economic activity. Inflation can also accelerate due to, for example, escalation of world political crises.

The constant competition for the best employees affects recruitment and the commitment of key personnel. From the company's point of view, the labor market situation has eased over the past year.

The above-mentioned risks, when realized alone or together, have a significant impact on the company's operations.

The company divides the risk factors affecting business, earnings, and market capitalization into five main categories: market and business risks, personnelrelated risks, technology and information security risks, financial risks, and legal risks.

Trainers' House has sought to hedge against the adverse effects of other risks with comprehensive insurance policies. These include statutory insurance, liability and property insurance and legal expenses insurance. Insurance coverage, insurance values and deductibles are reviewed annually together with the insurance company.

The Management Team reports to the Board on a monthly basis on key business-related risks and, where necessary, risk management measures.

The Group has the reporting systems required for effective business monitoring. Internal control is linked to the company's vision, strategic goals and the business goals set on the basis of them.

The realization of business objectives and the Group's financial development are monitored on a monthly basis through the Group's corporate governance system. As an essential part of the control system, actual data and up-to-date forecasts are reviewed monthly by the Group Management Team. The control system includes, among other things, sales reporting, an income statement, a rolling revenue and profit forecast, and key figures that are important to operations.

Trainers' House is an expert organization. The magnitude of market and business risks is difficult to determine. Typical risks in this area are related to, for example, general economic development, customer distribution, technology choices, the development of competition and the management of personnel costs.

Risks are managed through the planning and regular monitoring of sales, human resources, and operating

expenses, which enables rapid action when circumstances

change. The risks of trade receivables have been taken into account by the recognition of expenses based on the age of the receivables and individual risk analyzes.

The goal of Trainers' House's financial risk management is to secure the availability of equity and debt financing on competitive terms and to reduce the impact of adverse market movements on the company's operations.

Financial risks are divided into four categories, which are liquidity, interest rate risks, currency risks and credit risks. Each risk is monitored separately. Liquidity and interest rate risks are reduced with sufficient cash resources and efficient collection of receivables. Currency risks are low as Trainers' House operates primarily in the euro market. In financial risk management, the focus is on liquidity.

The success of Trainers' House as an expert organization depends on its ability to attract and retain skilled staff. In addition to a competitive salary, personnel risks are managed through incentive schemes and investments in personnel training, career opportunities and general wellbeing.

Technology is a key part of Trainers' House's business. Technology risks include, but are not limited to, supplier risk, risks related to internal systems, challenges posed by technological change, and security risks. Risks are protected against long-term cooperation with technology suppliers, appropriate security systems, staff training and regular security audits.

Trainers' House's legal risks are mainly focused on

the contractual relationship between the company and customers or service providers. At their most typical, they relate to delivery responsibility and the management of intellectual property rights. In order to manage the risks related to contracts and intellectual property rights, the company has internal guidelines for contractual procedures. In the company's view, the contractual risks are not unusual.

At the end of the review period, goodwill and other intangible assets recognized in the balance sheet have been tested in the normal way. The test did not reveal any need for impairment.

The consolidated balance sheet of Trainers' House has goodwill of EUR 2.1 million. The balance sheet value of other intangible assets is EUR 1.0 million. If the Group's profitability does not develop as forecasted or other external factors independent of the Group's operations, such as interest rates, change significantly, it is possible that goodwill and other intangible assets will have to be written off. Recognition of an impairment loss would have no effect on the Group's cash flow.

Due to the project nature of the operations, the order backlog is short, and predictability is therefore challenging.

The description of potential risks is not comprehensive. Trainers' House conducts continuous risk assessment in connection with its operations and strives to hedge against identified risks.

Investors have also been informed about the risks in the company's annual review and on the website at www.trainershouse.fi.

MAJOR RISKS AND UNCERTAINTIES

PERSONNEL

At the end of the review period, the Group had 113 (118) employees. As before, the company reports the number of employees converted to full-time employees.

DECISIONS REACHED AT THE ANNUAL GENERAL MEETING

The annual general meeting of Trainers' House Plc was held on 27 March 2024 in Helsinki.

The annual general meeting confirmed the financial statements and discharged CEO and the members of the Board of Directors from liability for the fiscal year 1 January - 31 December 2023. The annual general meeting also decided to adopt the remuneration policy of the governing bodies.

The annual general meeting decided, in accordance with the board's proposal, that the company does not distribute a dividend from 2023.

Aarne Aktan, Jari Sarasvuo, Jarmo Hyökyvaara, Elma Palsila and Emilia Tauriainen were re-elected as members of the Board of Directors. In the board meeting held after the annual general meeting, the Board of Directors elected Jari Sarasvuo as the chairperson of the board.

The annual general meeting decided that the board member's remuneration shall be EUR 1,500 per month and the chairperson's remuneration will be EUR 3,500 per month.

Grant Thornton Oy was elected as the company's auditor. The remuneration to the auditor is paid according to the auditor's reasonable invoice.

SHARES AND SHARE CAPITAL

The company's share is listed on Nasdaq Helsinki Ltd under the name Trainers' House Plc (TRH1V).

At the end of the reporting period, Trainers' House Plc had 2,147,826 shares and a registered share capital of EUR 880,743.59. The company does not hold any of its own shares. There have been no changes in the share capital during the period.

Share performance and trading

	1-6/2024	1-6/2023
Traded shares, pcs	143 267	149 304
Average number of all company shares, %	6.7	7.0
Traded shares, EUR	435 583	771 581
Highest share quotation	4.88	6.12
Lowest share quotation	2.07	3.96
Closing price	2.24	4.20
Weighted average price	3.04	5.17
Market capitalization	4.8 mil.	9.0 mil.

INCOME STATEMENT IFRS

(kEUR)

	1-6/2024	1-6/2023	1-12/2023
NET SALES	4 328	4 943	8 437
Expenses:
Materials and services	-187	-222	-391
Personnel-related expenses	-2 852	-3 251	-5 691
Depreciation and impairment losses	-182	-266	-531
Other operating expenses	-893	-1 029	-1 925
Total expenses	-4 114	-4 768	-8 538
Operating result	215	175	-101
Financial income and expenses	-9	2	6
Result before taxes	206	177	-95
Income taxes	17	2	4
RESULT OF THE PERIOD	223	179	-91
Result attributable to owners of the parent company	223	179	-91
Earnings per share, EUR	0.10	0.08	-0.04
Earnings per share attributable to owners of the pa rent company, EUR	0.10	0.08	-0.04

SUMMARY OF FINANCIAL STATEMENTS AND NOTES

The report has been prepared in accordance with IAS 34 standard. The report has been prepared in accordance with IFRS standards and interpretations that have been approved for application in the EU and are in force on 1 January 2024.

In this interim report Trainers' House has followed the same accounting policies and calculation methods as in the 2023 annual financial statements.

The figures given in the interim report are unaudited.

BALANCE SHEET IFRS

(kEUR)
ASSETS	6/2024	6/2023	12/2023
Non-current assets
Tangible assets	780	510	961
Goodwill	2 129	2 129	2 129
Other intangible assets	1 013	1 046	1 013
Long-term receivables
Other receivables, long-term	122	155	138
Deferred tax receivables	219	205	202
Total long-term receivables	341	360	341
Total non-current assets	4 263	4 045	4 443
Current assets
Account receivables and other receivables	898	870	783
Cash and cash equivalents	1 533	1 787	1 175
Total current assets	2 431	2 657	1 958
TOTAL ASSETS	6 694	6 702	6 401

(kEUR)
SHAREHOLDERS' EQUITY AND LIABILITIES	6/2024	6/2023	12/2023
Equity attributable to the owners of the parent company
Share capital	881	881	881

Distributable non-restricted equity fund	37	37	37
Retained earnings	3 021	3 111	3 111
Result of the period	223	179	-91
Total shareholders' equity	4 161	4 209	3 939
Long-term liabilities
Deferred tax liabilities	203	208	203
Long-term financial liabilities	491	38	631
Total long-term liabilities	693	246	833
Short-term liabilities
Short-term financial liabilities	277	291	197
Accounts payable and other liabilities	1 562	1 956	1 432
Total short-term liabilities	1 840	2 247	1 629
Total liabilities	2 533	2 493	2 462
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	6 694	6 702	6 401

CASH FLOW STATEMENT IFRS

(kEUR)

	1-6/2024	1-6/2023	1-12/2023
Result of the period	223	179	-91
Adjustments	174	314	570
Changes in working capital	97	-193	-257
Cash flow from operations before financial items and taxes	494	300	222
Financial items and taxes paid	-13	-13	-16
CASH FLOW FROM OPERATIONS	481	287	206
Investments in tangible and intangible assets	-2	5	-12
Repayment of loan receivables	17	26	42
Interests received	5	15	21
CASH FLOW FROM INVESTMENTS	19	46	51
Repayment of lease liabilities	-60	-197	-363
Dividends paid	-82	-597	-966
CASH FLOW FROM FINANCING	-142	-793	-1 329
TOTAL CASH FLOW	358	-460	-1 072
Opening balance of cash and cash equivalents	1 175	2 247	2 247
Closing balance of cash and cash equivalents	1 533	1 787	1 175
CHANGE IN CASH AND CASH EQUIVALENTS	358	-460	-1 072

CHANGE IN SHAREHOLDERS' EQUITY

Equity attributable to owners of the parent company

(kEUR)	Share capital	Distributable non-restricted equity fund	Retained earnings	Total
Equity 1 January 2023	881	37	4 121	5 039
Other comprehensive in-come			179	179
Dividends			-1 009	-1 009
Equity 30 June 2023	881	37	3 291	4 209
Equity 1 January 2024	881	37	3 021	3 939
Other comprehensive income			223	223
Dividends
Equity 30 June 2024	881	37	3 243	4 161

RELATED PARTY TRANSACTIONS

During the period under review, Trainers' House had transactions with Causa Prima Ltd, a company controlled by Jari Sarasvuo, the Chairperson of the Board of Directors, and Pro Vividus Ltd and Anorin Liekki Ltd, which are related to the company.

The following transactions took place with related parties:

(kEUR)	1-6/2024	1-6/2023	1-12/2023
Purchases during the period	188	105	168
Liabilities at the end of the period	57	52	39

PERSONNEL	1-6/2024	1-6/2023	1-12/2023
Average number of personnel	115	125	113
Personnel at the end of the period	113	118	96
COMMITMENTS AND CONTINGENT LIABILITIES	6/2024	6/2023	12/2023
Collaterals and contingent liabilities given for own commitments (kEUR)	120	139	120
OTHER KEY FIGURES	6/2024	6/2023	12/2023
Equity ratio (%)	63.2	64.1	63.5
Shareholders' equity/share (EUR)	1.94	1.96	1.83

Calculation formulas for key figures

Earnings per share =	Result of the period attributable to owners of the parent company
	Average number of shares adjusted for share issue in financial period
Interest-bearing net debt =	Interest-bearing liabilities – cash and cash equivalents
Equity ratio (%) =	Equity x 100

Balance sheet total – advances received

Equity / Share = Equity

Number of shares adjusted for share issue at the end of financial period

Items affecting the calculation of key figures

	6/2024	6/2023	12/2023
Advances received (kEUR)	112	133	198
Interest-bearing liabilities (kEUR)	768	329	828
Average number of shares adjusted for share issue in financial period (unit thousand shares)	2 148	2 148	2 148
Number of shares adjusted for share issue at the end of the financial period (unit thousand shares)	2 148	2 148	2 148

In Helsinki 18 July 2024

TRAINERS' HOUSE PLC

BOARD OF DIRECTORS

Information: Arto Heimonen, CEO, +358 404 123 456 Saku Keskitalo, CFO, +358 404 111 111

DISTRIBUTION Nasdaq Helsinki Main Media www.trainershouse.fi – For investors