Eezy Oyj

Investor Presentation • Nov 5, 2024

Eezy Plc Interim report

Q3/2024

Siina Saksi, CEO Joni Aaltonen, CFO

Eezy Q3/2024

AGENDA

• Eezy Maker of a Good Working Life
• Interim report January September 2024
• Strategy "GoodWork2028" in progress
• Q&A

Eezy as an investment

Eezy operates in a growing market of significant size

• Market size over €3 billion
• The market responds significantly faster than the GDP
• Megatrends in the operating environment boost our business

Eezy has a strong position in the market

The best talent:

• A network of 60.000 satisfied, professional staffed employees throughout Finland

Agile service

• The largest geographical network in Finland
• A superior digital service model for both customers and professionals
• Strong brand, reputation and customer satisfaction
• A responsible employer and partner
• The broadest range of services for working life create value for our wide range of customers

Customer insight:

• A broad customer base in dozens of industries

We aim for a substantial increase in profitability and above-market growth

• Above-market growth in Staffing services
• Doubling the revenue of Professional services
• Significant improvement in profitability
  • Reforming the business model and increasing productivity through technology
  • The economies of scale of revenue growth
  • More profitable and less cyclically volatile service and industry portfolio

Eezy has a broad impact on Finnish working life

TOP 2 in employee surveys

TOP 2 in staffing services TOP 3 in employment services

A maker of good working life

25 000 staffed employees

1 000 projects in leadership and employee experience development

2 600 personnel assessments

1 000 000 respondents in employee surveys 2014-2023

revenue

Chain revenue 308Meur

ca 5 000

Client organisations from dozens of sectors

Strong brand, reputation and customer experience

Source:

experience

Nationally local

offices in different parts of Finland (own + franchises)

Interim report

Q3/2024

Q3/2024 in brief

Actions to improve profitability progressed in a difficult market situation

• Revenue was EUR 44.9 million (EUR 56.0 million; -20%)
• EBITDA was EUR 3.3 million (4.4); 7.4% of revenue (7.9%)
• EBIT was EUR 1.1 million (2.3); 2.5% of revenue (4.1%)
  • One-time costs July-Sept EUR 1.0 million (0,0), Jan-Sept EUR 1.4 million (0.4)
• EPS was EUR 0.02 (0.05) per share
• Weak demand for staffing and recruitment services, especially in manufacturing and construction, continues to contribute to decline in revenue.
• Lower revenue and one-off costs impact on the EBIT level. The measures to improve profitability and transform operations have advanced, and reduced costs and debt levels.

Measures according to the strategy are moving forward with determination

• The aim of the renewal of operating models is to take Eezy to a new level of profitability by creating an operationally efficient, competitive and scalable company.

• Renewal of operating models:

• 1. The implementation of AI-powered technology and a significant reduction of manual processes in Staffing services.
• 1. Outsourcing 30 financial and HR tasks to a partner. Developing finance and HR functions together with our partner, utilising technology and automation.
• 1. More efficient use of office space is progressing. During Q3, more effective use of space in all three main offices has been implemented, negotiations with prospective tenants are ongoing.
• 1. Change negotiations completed during Q3.
• We expect to achieve a permanent cost benefit of EUR 2.8 million from these measures, which will be fully realised during 2025.
  • A savings of around €0.8 million for the remainder of 2024.
  • One-off cost of €0.8 million has been recognised for 2024 for the implementation of the renewal of operating models.

Growth from cross-selling our broad portfolio of services

Staffing services

The market for staffing services is about €3 billion and growing

Eezy already has a strong foothold and potential to grow in new sectors

Market size and growth analyses have been made using market penetration, hours worked in each industry and average hourly prices. Sources: Statistics Finland, The Ministry of Economic Affairs and Employment, Finnish National Agency for Education, Bank of Finland, Euroconstruct, Euromonitor, Statista, Hela.

Notes: 1) Includes doctors, nurses, nursery and pharmacies

Demand is still subdued

• Labour demand remains weak, especially in the industry and construction sectors.
• In Southern Finland, the decline in demand remains smaller.
• Horeca's hour volume has declined as turnover in the sector has fallen and labour availability has been good.
• Retail industry hour volume has slightly declined compared to 2023.
• Good work on supply reliability, customer satisfaction and strategic customer relationships. NPS 59 (September, b2b).
• We employed an average of 2 697 staffed employees between 7-9/2024 (FTE).

Professional services

The market for Professional services is around €500m

Growth potential especially in employer experience development and employment services

Recruitment services and Employment services. The fragmented market and stable market growth, combined with Eezy's relatively small market share, provide an opportunity for growth. Leadership coaching & consulting. Opportunity to further increase market share. Light entrepreneurship. Small market size and fierce price competition limit Eezy's growth potential. Employee surveys. Traditional surveys have a small market size, Eezy has the capacity to develop products that significantly increase the size of the market. Preparatory courses for students (university, university of applied sciences, etc.). Small market size and weak market growth limit Eezy's growth potential. Segment Market size and Eezy market share 2023 Market CAGR 2024-28 Recruitment services Employment services Leadership coaching & consulting Light entrepreneurship Employee surveys Preparatory courses 5% 5% 5% 11% 20% 9% 140-160 130-150 100-110 ~30 20-25 15-20 5% 3% 3% 6% 1-3% 0%

Eezy's market share Other

Eezy Q3/2024

A reasonable achievement in a challenging market

• The poor economic climate has reduced demand, especially for headhunting services and organisational culture design. There is much demand for personal assessments and transition security services.
• Client decisions on research products have been delayed, with the volume of bids still high.
• Light entrepreneur services in slight decline, affected by the downturn of the construction sector and overall market situation.
• Good work with developing service concepts and co-managing customer relationships.

Financial information

Key figures Eezy Q3/2024

	Revenue and EBIT-%
80		14,0 %
70		12,0 %
60		10,0 %
50		8,0 %
Revenue M€ 40		6,0 %
30		4,0 %
20		2,0 %
10		0,0 %
0		-2,0 %
	Q1/2020 Q2/2020 Q2/2023 Q3/2020 Q4/2020 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q3/2023 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q1/2021 Q2/2021 Q3/2021 Q4/2021
	Revenue == EBIT-%

EUR thousand	7-9/2024	7-9/2023	Change	1-9/2024	1-9/2023	Change	2023
Revenue	44 945	55 959	-20%	132 109	166 842	-21%	218 974
EBITDA	3 316	4 399	-25%	7 992	10 952	-27%	14 519
EBITDA %	7.4%	7.9%		6.0%	6.6%		6.6%
EBIT	1 143	2 282	-50%	2 228	4 722	-53%	4 031
EBIT %	2.5%	4.1%		1.7%	2.8%		1.8%
EPS, EUR per share	0.02	0.05		0.02	0.08		0.03
Chain-wide revenue, EUR million	66.5	78.9	-16%	193.9	233.9	-17%	307.6

Income statement

EUR thousand	7-9/2024	7-9/2023	1-9/2024	1-9/2023	2023
Revenue	44 945	55 959	132 109	166 842	218 974
Other operating income	173	71	304	222	261
Share of result of equity accounted investments	-	-	-	-2	-2
Materials and services	-1 701	-2 026	-6 452	-7 046	-9 724
Personnel expenses	-36 879	-45 594	-108 111	-136 790	-178 326
Other operating expenses	-3 222	-4 011	-9 858	-12 274	-16 663
Depreciation, amortisation and impairment	-2 173	-2 117	-5 763	-6 229	-10 488
EBIT	1 143	2 282	2 228	4 722	4 031
Financial income	50	53	621	49	108
Financial expenses	-901	-661	-2 529	-1 931	-2 740
Financial income and expenses	-851	-608	-1 909	-1 882	-2 632
Profit (loss) before taxes	292	1 673	320	2 840	1 399
Income taxes	36	-330	107	-619	-370
Profit attributable to non-controlling interests	-62	34	-39	146	384
Profit attributable to owners of the parent company	389	1 310	466	2 075	645

• The result is particularly affected by the decrease in the share of the industry and construction sectors in the staffing services which has weakened the profitability.
• On the other hand, the profitability was improved by the lower personnel expenses of group employees and other operating expenses.
• EUR 0.4 million impairment related to the premises, EUR 0,4 million personnel expenses related to severance payments and EUR 0,2 million in other one -time costs related to the renewal of operating model, total EUR 1.0 million were recorded in the result in Q3.
• Employees Q3 FTE:
  • o Group functions 442 (515)
  • o Staffed employees 2697 (3 289)
• Acquisition related amortization approx. EUR 0.8 million (EUR 0.9 million in Q3 2023)

Balance sheet

EUR thousand	9/2024	9/2023	2023
ASSETS
Goodwill	141 654	141 654	141 654
Intangible assets	22 330	26 245	23 500
Tangible assets	5 862	3 844	7 969
Long-term receivables and investments	3 453	4 049	2 504
Non-current assets	173 300	175 793	175 628
Current receivables	27 413	33 117	29 786
Cash and cash equivalents	135	291	1 270
Current assets total	27 548	33 408	31 057
ASSETS TOTAL	200 848	209 201	206 684
EQUITY AND LIABILITIES
Total equity attributable to
shareholders of the parent company	106 335	107 573	106 137
Non-controlling interests	2 821	3 536	3 774
Total equity	109 156	111 109	109 911
Non-current liabilities total	52 714	52 736	57 609
Current liabilities total	38 978	45 356	39 164
EQUITY AND LIABILITIES TOTAL	200 848	209 201	206 684

• Goodwill and intangible assets approx. EUR 164.0 million
  • o Goodwill impairment testing did not detect any signs for impairment.
• In January–September, Eezy increased its holdings in Doctors by Eezy Oy to 100%, in Eezy Import Oy to 85% and in Eezy Flow Oy in 73,06%.
• Equity EUR 109.2 million o Equity ratio 54.3%
• Net debt EUR 57.9 million
  • o excluding IFRS 16: EUR 51.7 million

Balance sheet key figures

EUR thousand		9/2024 6/2024 12/2023 09/2023
Net debt		57 866 60 0061 58 0011		54 908
Net debt excluding IFRS16		51 740 53 135 5 50 383 51 473
Net debt / EBITDA	5.0 xl	4.7 x	4.0 xl	3.5 x
Gearing, %	53.0%	54.9%1	52.8%	49.4%
Equity ratio, %	54.3%	53.1%l	53.2%l	53.1%
Equity per share, EUR	4.36	4.37	4.39	4.44

• The total amount of net debt has decreased compared to June 2024.
• 1-9/2024 one-time costs of EUR 1.4 million recorded in the result.

Cash flow statement

EUR thousand	7-9/2024	7-9/2023	1-9/2024	1-9/2023	2023
Cash flows from operating activities
Customer payments received	48 347	57 969	135 413	167 596	222 674
Cash paid to suppliers and employees	-44 450	-55 426	-129 426	-161 752	-211 274
Cash flows from operating activities before financial items and taxes	3 897	2 543	5 987	5 844	11 399
Financial items paid and received	-515	86	-1 902	-558	-2 447
Income taxes paid	-29	-346	-877	-2 530	-2 467
Net cash flows from operating activities	3 353	2 283	3 208	2 756	6 486
Net cash flows from investing activities	-784	-607	-2 570	-2 027	-2 849
Net cash flows from financing activities	-2 570	-1 524	-1 773	-6 206	-8 135
Net change in cash and cash equivalents	-1	152	-1 135	-5 477	-4 498
Cash and cash equivalents at the beginning of the reporting period	136	139	1 270	5 768	5 768
Cash and cash equivalents at the end of the reporting period	135	291	135	291	1 270

• Operative free cash flow EUR 2.5 million in Q32024 (Q32023 EUR 1.3 million).

• Investments Q32024 were mainly related to IT investments.
• Net cash flows from financing activities include the use of overdraft facilities EUR 2.6 million.

Outlook for 2024

• The year has continued in a low economic cycle, and our clients' views on their needs for workforce and capacity to invest still remain uncertain.
• In previous economic turnarounds, our industry has reacted swiftly to changing conditions.

Eezy does not give guidance for 2024.

#GoodWork2028 Taking the strategy forward

Focus on Making a good working life, together

Improving performance and growth - key priorities for the strategy period

How do we get to 8% EBIT level?

relationships

ERP project takes a giant leap forward

• The Staffing services ERP project is moving ahead at a fast pace.
• In the third quarter, we have taken major leaps in system development, enabling the system to be deployed with a wide range of functionalities and high volumes.
• At the beginning of November, we brought the large masses of workers and customers in the horeca sector in Southern Finland into the system. We are also introducing a significant number of new functionalities.

One advantage of the app is that I can see the shifts that have been made for us in the past and the information about them. It makes it easier to find the right person. Especially in the evening, it's great to be able to open a shift yourself. "

Petra Saarela, Assistant Restaurant Manager, ISS

Thank You!