Eezy Oyj

Quarterly Report • May 7, 2024

Demand for staffing services remains weak – focus on increasing productivity

In Brief

January–March 2024

• Revenue was EUR 41.5 million (EUR 52.8 million in January–March 2023). Revenue decreased by 21%.
• EBITDA was EUR 2.3 million (3.4).
• EBIT was EUR 0.5 million (1.3) and was 1.2% of revenue (2.5%).
• EUR 0.3 million in personnel expenses related to severance payments were recorded in the result.
• Earnings per share was EUR 0.01 (0.02).

Outlook for 2024

Eezy does not give guidance for 2024.

Key figures (IFRS)

EUR million, unless otherwise specified	1–3/2024	1–3/2023	1–12/2023
Revenue	41.5	52.8	219.0
EBITDA	2.3	3.4	14.5
EBITDA, %	5.5%	6.5%	6.6%
EBIT	0.5	1.3	4.0
EBIT, %	1.2%	2.5%	1.8%
EPS, basic, EUR	0.01	0.02	0.03
EPS, diluted, EUR	0.01	0.02	0.03
Net debt / EBITDA	4.5 x	3.0 x	4.0 x
Chain-wide revenue	60.0	73.8	307.6

Siina Saksi, CEO:

"Demand for staffing in our main sectors, construction and manufacturing, remained weak for the first part of the year. Revenue increased for our Professional services, which is a great achievement in a difficult market. The yearly savings of EUR 3 million, as planned in our profitability program, show in lower fixed costs. Our strategy progresses as planned. We have made significant progress in our new technology roll-out as well as in co-selling our vast service portfolio to our clients.

In the first quarter, our revenue was EUR 41.5 million, decreasing (-21%) due to a sharp drop in demand for Staffing Services. In Staffing Services, demand weakened most in the construction and industrial sectors. These sectors account for nearly half of our revenue in the Staffing Services business area. Orders are also shorter – for the time being, our customers are reluctant to commit to long contracts. The overall staffing market declined by -8% in January-February (vs. 2023. source: HELA). The market volume includes the healthcare sector, which has grown strongly in recent years.

Our Professional Services business area's revenue grew 7% in the first quarter to EUR 8.0 million (7.4), a great result in this challenging economic environment. The growth was driven by Employment Services for the public sector and Employee Surveys. Demand for direct recruitment, personal assessments and light entrepreneurship services has declined in this weak economic climate.

Our EBIT for the first quarter was EUR 0.5 million (1.3), a decrease mainly explained by the decline in the revenue of Staffing Services and the industry focus in our clientele, which was unfavorable in this market situation. EBIT was decreased by one-off costs of EUR 0.3 million in personnel expenses related to severance payments. We have implemented the profitability program we launched in August. Guaranteed yearly savings of EUR 3 million in fixed costs will improve our profitability. We will continue the detailed examination of costs and the optimization of operations according to our plan without compromising the business or our ability to grow faster than the market when the cycle improves.

Our strategy is on track – first results already visible

We published our new strategy "Good Work 2028" in February. Our long-term goals are to grow faster than the market in our Staffing Services, double the revenue of our Professional Services and achieve an EBIT level of 8% in 2028.

A key source for growth is to harness the power of our nationwide network of regional operators, and, of our digital service, which is independent of time and place.

The core of improving profitability lies in leveraging the economies of scale brought by growth and in harnessing technology and artificial intelligence in our core business processes.

In April, we started rolling out the AI-enabled ERP system in Staffing Services with first customers and staffed employees. We see now in practice what a significant source of productivity, growth and competitive advantage our new system, developed by us, is. We will continue the development and deployment work throughout 2024. I am beyond excited about this.

The economic cycle has been exceptionally difficult throughout my time as CEO. However, I still see strong opportunities for growth and productivity gains over this strategic period. Our competitive advantages include the largest national network, a strong and responsible brand, satisfied customers, and a broad client base. We can also offer our customers the widest range of services within the market. We will revolutionize the staffing service industry with our AI-enabled technology. By focusing together with the Eezy team on what we do best in the country, we will achieve our strategic goals."

Market review

The HR services market relevant to Eezy's business includes staffing services, light entrepreneurship services and selected professional services. Due to the working life megatrends and the increased need for flexible workforce we believe in the growth potential of the market.

According to an estimate by management, the size of the entire HR services market in Finland was EUR 3.3 billion in 2023, of which the staffing services were EUR 2.6 billion. The market size of the relevant recruitment services was over EUR 100 million. The invoicing volume of light entrepreneurship services market has been estimated to be approx. EUR 300 million and revenue to be approx. EUR 25-30 million. Market for employment services is estimated to be EUR 130-140 million. Employee experience surveys and consulting services markets are approx. EUR 150 million.

According to the Employment Industry Finland (HELA) association, the revenue of the largest companies in the staffing service market decreased approx. 7% in February 2024 and in January–February approx. 8% compared to last year. According to HELA, the economic circumstances in HR services are still weak, but the decline in sales is expected to stabilize in the next few months. The market volume includes the healthcare sector, which has grown strongly in recent years.

In Finland, the share of flexible forms of working relative to all work remains significantly lower than in comparable European countries. Management believes that the market will continue its structural growth as flexible forms of working become more common.

Business developments

Economic conditions continued weak in the first quarter of 2024, decreasing the workforce needs of many customers. The revenue decreased by 26 % in the staffing services area where the decline in revenue comes specially from the industry and construction sectors, which represents about a third of Eezy's revenue. The retail sector volumes remained almost at last year's level.

The weak development in revenue varies by geographic area and by customer, but the general trend is similar in whole Finland. In Southern Finland and in franchise areas the decline in demand compared to the comparative period has been smaller.

In the professional services area revenue increased by 7%. Especially the Employment services for the public sector grew strongly. On the other hand, the demand for direct search services has decreased with the economic downturn in the recruitment service industry.

Revenue

Eezy's revenue amounted to EUR 41.5 million (52.8), decreasing by 21% compared to the corresponding period in the previous year.

Revenue decreased by 26% in the staffing services area, where the most significant decline in revenue comes from the industry and construction sectors. In the professional services area revenue increased by 7%, where especially Employment services continued to grow strongly.

Eezy's chain-wide revenue amounted to EUR 60.0 million (73.8) decreasing by 19%. Franchise fees totaled EUR 1.1 million (1.3). The invoicing volume of light entrepreneurship services was EUR 8.0 million (9.4).

Result

EBITDA was EUR 2.3 million (3.4). 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. EUR 0.3 million in personnel expenses related to severance payments were recorded in the result.

Operating profit was EUR 0.5 million (1.3). Total depreciation, amortization and impairment was EUR 1.8 million (2.1), of which EUR 0.8 million (0.9) was acquisition related amortization.

The result before taxes was EUR 0.2 million (0.7) and the result for the period was EUR 0.3 million (0.5). Eezy increased its ownership in Eezy Valmennuskeskus Ltd by 10%, which decreased the contingent consideration related to Eezy Valmennuskeskus by approx. EUR 0.9 million and resulted in financial income of approx. EUR 0.5 million. Earnings per share was EUR 0.01 (0.02).

Revenue by service area

EUR million	1–3/2024	1–3/2023	Change %	1–12/2023
Staffing services	33.6	45.4	-26%	188.3
Professional services	8.0	7.4	7%	31.0
Common functions and eliminations	-0.2	-0.1	-	-0.3
Total	41.5	52.8	-21%	219.0

Financial position and cash flow

Eezy's consolidated balance sheet on 31 March 2024 amounted to EUR 203.0 million (210.4), of which equity made up EUR 109.9 million (113.4).

As of 31 March 2024, the Group has liabilities to credit institutions amounting to EUR 52.9 million (52.0), of which EUR 47.3 million (47.6) was non-current.

Cash balance on 31 March 2024 was EUR 0.1 million (0.9). The Group has overdraft facilities in total of EUR 10.0 million, of which EUR 2.5 million were used on 31 March 2024.

Equity ratio stood at 54.2% (53.9%). The Group's net debt including IFRS16 leasing items on 31 March 2024 amounted to EUR 60.2 million (56.8). Net debt excluding IFRS16 leasing items was EUR 52.8 million (52.1). The net debt/EBITDA ratio was 4.5 x (3.0 x).

Operative free cash flow amounted to EUR -2.2 million (-2.7).

Investments and acquisitions

Eezy's investments in subsidiary shares presented in the cash flow statement amounted to EUR 0.5 million (0.0). Investments include increasing the ownership in Eezy Valmennuskeskus Ltd.

Investments in tangible and intangible assets totaled EUR 0.7 million (0.7). Investments were mainly related to IT investments.

Employees

Eezy employs people in Group functions and as staffed employees assigned to customer companies. Eezy employed on average of 477 (514) people in Group functions and on average 2 244 (3 025) staffed employees on FTE basis.

Due to the nature of the staffing service business, Eezy's total number of personnel employed is higher than the number of personnel employed on average. In the calculation of the average number of staffed employees, the work input of the employees has been converted into person-years. The users of light entrepreneurship services are not included in the Group's personnel numbers.

Changes in management

Saara Tikkanen started work as HR and Development Director on 8 January 2024.

On 11 January 2024, Ari Myllyniemi was appointed as interim Director of Staffing services and as member of the management team. Thomas Hynninen left the position of Director, Staffing services and management team.

On 31 March 2024 the management team included

• Siina Saksi, CEO
• Hannu Nyman, CFO
• Ari Myllyniemi, interim Director, Staffing services
• Markus Jussila, Director, Professional services
• Saara Tikkanen, HR and Development Director
• Päivi Salo, Chief Digital Officer (CDO)
• Marleena Bask, Chief Communication and Marketing Officer

Joni Aaltonen has been appointed as Eezy Plc's Chief Financial Officer and a member of the Group management team effective from 1 April 2024. Hannu Nyman continued his career at another employer.

Shares and shareholders

On 31 March 2024, Eezy Plc had 25 046 815 (25 046 815) registered shares. The company holds no treasury shares. The company had 3 450 (2 946) shareholders, including nominee registered shareholders.

In January–March 2024, a total of 7 634 962 (463 279) shares were traded and the total trading volume was EUR 10.8 million (1.5). During the period, the highest quotation was EUR 1.76 (3.31) and the lowest EUR 1.05 (3.18). The volume-weighted average price of the share was EUR 1.42 (3.27). The closing price of the share at the end of March was EUR 1.20 (3.24) and the market value stood at EUR 30.1 million (81.2).

On 31 March 2024, the members of the Board of Directors and the members of the management team owned a total of 2 083 570 (397 470) Eezy shares, corresponding to approximately 8.3% (1.6%) of shares and of the votes to which they entitle. The share numbers include the direct holdings of the persons in question and their controlled companies. In addition, Board members are employed in managerial duties by significant shareholders.

The company has received flagging notices: The ownership of NoHo Partners Oyj has decreased below 5% after the company sold their shares, the ownership of Sentica Buyout V Ky has exceeded 25%, the ownership of SVP-Invest Oy has exceeded 5% and the ownership of OP-Rahastoyhtiö Oy has exceeded 5%.

Ten largest shareholders as of 31 March 2024:

Shareholder	Shares	%
1. Sentica Buyout V Ky	7 065 658	28.21
2. Meissa-Capital Oy	3 223 071	12.87
5. Op-Suomi Small Cap fund	1 719 668	6.87
3. SVP-Invest Oy	1 500 000	5.99
4. Evli Suomi Small Cap fund	1 341 126	5.35
6. WestStar Oy	552 464	2.21
7. Visio Allocator fund	498 000	1.99
8. Oy Jobinvest Ltd	410 093	1.64
9. Notacon Oy	331 353	1.32
10. Säästöpankki Small Cap fund	322 200	1.29
10 largest in total	16 963 633	67.73
Nominee-registered	746 013	2.98
Others	7 337 169	29.29
Total	25 046 815	100.00

Governance

Annual General Meeting

The Annual General Meeting (AGM) was held after the review period on 9 April 2024.

The financial statements and the consolidated financial statements for the financial year 2023 were adopted. The members of the board of directors and the CEOs were discharged from liability for financial year 2023. The remuneration report and the remuneration policy for governing bodies was approved.

The AGM decided that no dividend is paid based on the balance sheet adopted for the financial year 2023.

Seven members were elected to the board of directors. Tapio Pajuharju, Kati Hagros, Maria Pajamo, Paul-Petteri Savolainen, Mika Uotila and Mikko Wirén were re-elected as members of the board of directors. Tomi Laaksola was elected as a new member.

The members of the board of directors will be paid monthly remuneration EUR 5 000 per month for the chairperson of the board and EUR 2 500 per month for all other members of the board each. In addition, for members of the board of directors' committees will be paid a meeting fee of EUR 300 for each committee meeting.

The AGM re-elected the company's current auditor, KPMG Oy Ab, which has stated that Niklas Oikia, APA, will act as the new responsible auditor. KPMG Oy Ab as the auditor of the company will also carry out the assurance of the company's sustainability reporting for the financial year 2024.

In a formation meeting of the board, held after the AGM, Tapio Pajuharju was elected to continue as the chairman. Mika Uotila (chair), Kati Hagros and Paul Savolainen will be the Audit committee.

The board of directors decided to add responsibility matters to the remit of the Human Resources Committee. The Sustainability and Human resources Committee assists the board of directors in matters related to the appointment, terms of employment and remuneration of senior management, remuneration of other personnel and personnel policy, as well as matters related to corporate and social responsibility. The Sustainability and Human Resources Committee members will be Maria Pajamo (chair), Tapio Pajuharju and Mikko Wirén.

Valid authorizations

The authorisations given by the AGM on 9 April 2024 are described in detail in the stock exchange release about the AGM's decisions.

The AGM authorised the board of directors to decide on the repurchase of the company's own shares using the company's unrestricted equity. The total maximum number of shares to be repurchased under the authorisation shall be 2 500 000 shares. The authorisation is valid until the end of the annual general meeting of 2025, however, for a maximum of 18 months. The authorization is unused.

The AGM authorised the board of directors to decide, in one or more tranches, on the issuance of shares as well as on the issuance of option rights and other special rights entitling to shares as referred to in chapter 10(1) of the Finnish Limited Liability Companies Act. The total maximum number of shares to be issued under the authorisation shall be 2 500 000 shares. The authorisation is valid until the end of the annual general meeting of 2025, however, for a maximum of 18 months. The authorization is unused.

Strategy and long-term financial targets

Eezy Plc's board of directors has approved the company's updated strategy and long-term financial targets for 2024- 2028. With the new strategy, Eezy focuses on services related to its customers' personnel, leadership, and corporate culture. Company seeks revenue and profitability growth especially from the use of technology and artificial intelligence in the Staffing Services business area.

Eezy's long-term targets for the strategy period aim for profitable growth. In Staffing services, Eezy seeks faster revenue growth than the staffing market. For the Professional Services business area, the goal is to double revenue from the 2023 level by the end of the strategy period.

Eezy also aims to improve its profitability remarkably and to achieve an 8% operating profit (EBIT) margin by the end of the strategy period. Improving profitability is based on

leveraging the economies of scale brought by revenue growth, increasing productivity through the utilization of technology and artificial intelligence, and enhancing efficiency through stronger productization of services.

Eezy's goal is to continue to distribute 30-50 percent of the annual result as dividends.

Five areas have been identified as the most important sources of growth.

Leveraging nation-wide strenght. With a nationwide network of offices and franchise-entrepreneurs, the company sees significant growth opportunities in the construction and industry sectors, regionally unevenly grown retail and horeca sectors, as well as in services currently offered limited outside the capital area, such as personnel assessment and executive search.

Increasing productivity by use of technology and AI. Eezy's growth and efficiency improvement are supported by significant investments in the use of technology and artificial intelligence. The development project of the resource planning system in the Staffing business area scales operations and productivity, improves delivery reliability and speed, which gives the company a clear competitive advantage and growth opportunities especially in fast-paced industries such as the horeca and retail sectors. The use of technology and artificial intelligence creates significant growth and productivity opportunities for other services as well.

Social and health care and office industries' staffing. The company's goal is to expand its Staffing services business more strongly in the social and health care and office work sectors during the strategy period. These sectors are less cyclical than many other staffing sectors, such as construction or industry.

Increasing efficiency by conceptualization and productization of services. By productizing and conceptualizing its services more effectively, Eezy estimates that it can increase its market share in the needs of its customers' HR and growth related strategies and improve its efficiency and profitability.

Scaling of foreign labor. With the labor shortage, our society needs workers also from outside the national borders. Eezy intends to strengthen the recruitment of foreign labor during the strategy period.

Eezy aims for primarily organic growth during the strategy period, but growth can also be supported by acquisitions that support the strategy.

Eezy is a significant and responsible societal actor in Finland. A growing private sector, high employment and solving the labor shortage are vital conditions for the Finnish welfare society. Eezy helps its customers succeed in their business by recruiting skilled workers flexibly, researching and developing employee experience and leadership, and designing corporate cultures that support companies' strategy. Our mission is to be a maker of a good working life.

Risks and uncertainties

Eezy's risk management principles are based on the Finnish Corporate Governance Code for Listed Companies. The objective of risk management is to ensure that the group's targets are reached and to safeguard the continuity of operations.

Poor economic development and high inflation in Finland may have an adverse impact on Eezy's business and result. In economic downturn it is possible that companies use less staffing services and other HR services offered by Eezy.

Sick leaves may negatively affect Eezy through the sick leaves of either staffed employees or employees in group functions, as well as by disturbing or stopping customers' businesses.

Material short-term risks also include tighter competition in the HR and recruitment market, changes in legislation or collective agreements, and the cyclical nature of the business.

There are also significant risks related to acquisitions. If the performance of the acquired company does not match expectations, the integration fails, or other targets set for the acquisition are not reached, there may be material effects for Eezy's profitability and financial position.

More information about risk management is available on the company website.

Guidance for 2024

Eezy does not give guidance for 2024.

Events after the review period

Joni Aaltonen has been appointed as Eezy Plc's Chief Financial Officer and a member of the Group management team effective from 1 April 2024.

The Annual General Meeting (AGM) was held on 9 April 2024.

Eezy Plc Board of Directors

More information:

Siina Saksi, CEO tel. +358 50 550 3912

Joni Aaltonen, CFO tel. +358 40 524 7270

Marleena Bask, Communications and Marketing Director tel. +358 50 352 3643

Result publication event:

A Finnish-language briefing for analysts and media will be held on 7 May 2024 at 13.00 Finnish time as a webcast at https://eezy.videosync.fi/q1-2024

The briefing will be hosted by CEO Siina Saksi and CFO Joni Aaltonen. During the presentation. there will be an opportunity to ask questions. The presentation material will be available at the company website at https://eezy.fi/en/investors/financials/reports-andpresentations/ before the conference. A recording of the audiocast will be available at the same website later.

Result dates

Half-Year Report January–June 2024	6 August 2024
Interim Report January–September 2024	5 November 2024

Consolidated statement of comprehensive income (IFRS)

(unaudited)

EUR thousand	1 Jan – 31 Mar 2024	1 Jan – 31 Mar 2023	1 Jan – 31 Dec 2023
Revenue	41 450	52 776	218 974
Other operating income	80	60	261
Share of result of equity accounted investments	-	-15	-2
Materials and services	-2 262	-2 326	-9 724
Personnel expenses	-33 690	-43 245	-178 326
Other operating expenses	-3 291	-3 811	-16 663
Depreciation, amortization and impairment losses	-1 795	-2 096	-10 488
Operating profit	492	1 343	4 031
Financial income	513	-46	108
Financial expense	-790	-611	-2 740
Financial income and expenses	-277	-656	-2 632
Profit before taxes	215	687	1 399
Income taxes	42	-172	-370
Profit for the period	257	515	1 029
Comprehensive income for the period	257	515	1 029
Profit attributable to
Owners of the parent company	301	521	645
Non-controlling interests	-44	-6	384
Profit for the period	257	515	1 029
Earnings per share, basic (EUR)	0.01	0.02	0.03
Earnings per share, diluted (EUR)	0.01	0.02	0.03

Consolidated balance sheet (IFRS)

EUR thousand	31 Mar 2024	31 Mar 2023	31 Dec 2023
ASSETS
Non-current assets
Goodwill	141 654	141 654	141 654
Intangible assets	23 112	27 606	23 500
Property, plant and equipment	7 668	5 156	7 969
Equity accounted investments	-	137	-
Investments in shares	240	240	240
Receivables	1 818	2 476	1 992
Deferred tax asset	997	1 166	272
Total non-current assets	175 489	178 437	175 628
Current assets
Trade receivables and other receivables	26 972	30 713	29 574
Current income tax receivables	354	345	212
Cash and cash equivalents	137	881	1 270
Total current assets	27 462	31 939	31 057
TOTAL ASSETS	202 951	210 376	206 684
EQUITY AND LIABILITIES
Equity attributable to the owners of the parent
company
Share capital	80	80	80
Reserve for invested unrestricted equity	107 876	107 876	107 876
Retained earnings	-1 516	2 014	-1 819
Total equity attributable to the owners of the parent
company	106 441	109 970	106 137
Non-controlling interests	3 500	3 422	3 774
Total equity	109 940	113 392	109 911
Non-current liabilities
Loans from financial institutions	47 330	47 551	48 568
Lease liabilities	4 947	2 606	5 215
Other liabilities	20	41	23
Deferred tax liability	3 664	4 716	3 802
Total non-current liabilities	55 961	54 914	57 609
Current liabilities
Loans from financial institutions	5 558	4 448	2 106
Lease liabilities	2 478	2 050	2 402
Trade payables and other liabilities	28 217	34 535	34 181
Current income tax liabilities	796	1 037	475
Total current liabilities	37 049	42 069	39 164
Total liabilities	93 010	96 983	96 773
TOTAL EQUITY AND LIABILITIES	202 951	210 376	206 684

Consolidated cash flow statement (IFRS)

EUR thousand	1 Jan – 31 Mar 2024	1 Jan – 31 Mar 2023	1 Jan – 31 Dec 2023
Cash flows from operating activities
Customer payments received	44 740	54 930	222 674
Cash paid to suppliers and employees	-45 548	-56 344	-211 274
Cash flows from operating activities before financial items and taxes	-808	-1 414	11 399
Interest paid	-206	-81	-2 632
Interest received	22	11	209
Other financial items	32	17	-24
Income taxes paid	-641	-1 821	-2 467
Net cash flows from operating activities	-1 601	-3 288	6 486
Cash flows from investing activities
Purchase of tangible and intangible assets	-721	-650	-2 899
Proceeds from sale of tangible assets	85	-	-
Acquisition of subsidiaries, net of cash acquired	-476	-	-
Disposal of equity accounted investments	-	-	50
Loans granted	-	-33	-33
Proceeds from repayments of loans	-	-	33
Net cash flows from investing activities	-1 112	-683	-2 849
Cash flows from financing activities
Change in non-controlling interests	-	-2	-215
Proceeds from current borrowings	2 481	-	-
Repayment of current borrowings	-272	-69	-1 337
Payment of lease liabilities	-629	-650	-2 603
Dividends paid	-	-196	-3 980
Net cash flows from financing activities	1 579	-917	-8 135
Net change in cash and cash equivalents	-1 134	-4 887	-4 498
Cash and cash equivalents at the beginning of the reporting period	1 270	5 768	5 768
Cash and cash equivalents at the end of the reporting period	137	881	1 270

Changes in equity (IFRS)

		Attributable to owners of the parent
EUR thousand	Share capital	Reserve for invested unrestricted equity	Retained earnings	Total	Non controlling interests	Total equity
Equity 1 Jan 2024	80	107 876	-1 819	106 137	3 774	109 911
Result for the period	-	-	301	301	-44	257
Total comprehensive income	-	-	301	301	-44	257
Transactions with owners
Dividend distribution	-	-	-	-	-231	-231
Share based payments	-	-	2	2	-	2
Total equity 31 Mar 2024	80	107 876	-1 516	106 441	3 500	109 940

	Attributable to owners of the parent
EUR thousand	Share capital	Reserve for invested unrestricted equity	Retained earnings	Total	Non controlling interests	Total equity
Equity 1 Jan 2023	80	107 876	1 488	109 444	3 630	113 074
Result for the period	-	-	521	521	-6	515
Total comprehensive income	-	-	521	521	-6	515
Transactions with owners
Dividend distribution	-	-	-	-	-196	-196
Changes in non-controlling interests	-	-	4	4	-6	-2
Share based payments	-	-	1	1	-	1
Total equity 31 Mar 2023	80	107 876	2 014	109 970	3 422	113 392

	Attributable to owners of the parent
EUR thousand	Reserve for invested Share unrestricted capital equity		Retained earnings	Total	Non controlling interests	Total equity
Equity 1 Jan 2023	80	107 876	1 488	109 444	3 630	113 074
Result for the period	-	-	645	645	384	1 029
Total comprehensive income	-	-	645	645	384	1 029
Transactions with owners
Dividend distribution	-	-	-3 757	-3 757	-223	-3 980
Changes in non-controlling interests	-	-	-198	-198	-18	-215
Share based payments	-	-	3	3	-	3
Total equity 31 Dec 2023	80	107 876	-1 819	106 137	3 774	109 911

Notes to the Interim Report

Eezy's services include staffing services, professional services as well as light entrepreneurship services. Staffing services are provided through franchisees in addition to Group companies. Services are provided to a broad range of sectors including the hotel and restaurant, retail, manufacturing, construction, and health care services sectors.

Eezy Plc ("parent company", "Eezy Plc"), the parent company of Eezy Group ("Eezy", "Group"), is a Finnish public limited company with a business ID of 2854570-7. The domicile of Eezy Plc is in Helsinki, Finland and the registered postal address is PL 901, 20101 Turku.

Basis of preparation

Eezy Plc has prepared this Interim Report in accordance with IAS 34 Interim Financial Reporting. The financial information in the Interim Report has been prepared in accordance with International Financial Reporting Standards (IFRS) and the accounting policies comply with the IFRS standards and IFRIC interpretations effective as at 31 March 2024. The accounting policies in the Interim Report are the same as in Financial Statements 2023.

The information presented in the Interim Report is unaudited. All figures presented have been rounded and consequently the sum of individual figures may deviate from the presented sum figure.

Accounting estimates

In preparing this Interim Report, management has been required to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The business growth and EBITDA used in goodwill impairment testing are based on management's assessment of the future development considering the general weak economic development in Finland and their effect on the economic outlook in HR services. In addition, the increased competition in the personnel service and recruitment market has been taken into account. Goodwill is tested regularly for impairment.

Revenue

Eezy's revenue comprises income from staffing services delivered both by group's own staffing units and through the franchise chain, and from professional services including light entrepreneurship services.

In staffing services Eezy provides the customer the resources agreed. Eezy seeks employees through open applications as well as through its own employee pool in order to find an employee fulfilling the customer requirements within a short notice. The employee signs the employment contract with Eezy and Eezy is responsible for all the employer obligations, but work is performed under the customer company's management. Staffing services' revenue consists of income from services performed and invoiced by Eezy Group companies.

In franchising services Eezy signs a contract with local franchisees, which gives the local company a right to sell services using Eezy's business concept and brand. Eezy also offers business support services to their customers. Franchising revenue comprises charges based on cooperation agreements.

In the professional services area, Eezy provides consulting services for organizational development, cultural design, and personnel surveys. Eezy also provides recruitment, aptitude testing, training, and executive search services. Additionally, Eezy provides workforce training, coaching, guidance, and rehabilitation services to public sector as well as entrance examination courses and courses for upper secondary school students for private customers.

Light entrepreneurship services comprise the invoicing and business support services provided to the employee customers and the revenue from light entrepreneurship services comprise the fees collected from the employee customers. With the light entrepreneurship services provided to private persons they can operate as independent entrepreneurs without establishing a company of their own.

Revenue is reported divided into two service areas: Staffing services and Professional services. The revenue from staffing services includes both the group's own staffing services and the franchise fees. The revenue of professional services includes professional services and light entrepreneurship services.

Revenue by service area:

EUR thousand	1 Jan – 31 Mar 2024	1 Jan – 31 Mar 2023	1 Jan – 31 Dec 2023
Staffing services	33 636	45 396	188 268
Professional services	8 001	7 447	31 030
Common functions and eliminations	-186	-68	-325
Total revenue	41 450	52 776	218 974

Business combinations

Acquisitions 1–3/2024

Eezy increased its ownership in Eezy Valmennuskeskus Ltd by 10%, which decreased the contingent consideration related to Eezy Valmennuskeskus by approx. EUR 0.9 million and resulted in financial income of approx. EUR 0.5 million. Eezy Valmennuskeskus Ltd has been consolidated by 100-percent to Eezy Group (IFRS) since initial acquisition date.

Acquisitions 1–3/2023

During comparative period there were no acquisitions.

Goodwill and intangible assets

				Non			Total
			IT	Customer	competition	Development	intangible
EUR thousand		Goodwill Trademarks	software	relationships	agreements	costs	assets
Cost at 1 Jan 2024	141 654	3 639	14 251	28 618	1 613	1 147	49 269
Additions	-	-	656	-	-	60	717
Cost at 31 Mar 2024	141 654	3 639	14 907	28 618	1 613	1 206	49 986
Accumulated amortization and impairment at 1 Jan 2024	-	-3 068	-8 669	-12 932	-729	-369	-25 767
Amortization	-	-19	-232	-711	-82	-61	-1 105
Accumulated amortization and impairment at 31 Mar
2024	-	-3 087	-8 901	-13 643	-811	-430	-26 872
Net carrying value at 1 Jan 2024	141 654	571	5 582	15 686	884	778	23 500
Net carrying value at 31 Mar
2024	141 654	552	6 006	14 975	802	776	23 112

					Non		Total
			IT	Customer	competition	Development	intangible
EUR thousand		Goodwill Trademarks	software	relationships	agreements	costs	assets
Cost at 1 Jan 2023	141 654	3 692	12 072	28 618	1 622	885	46 889
Additions	-	-	550	-	-	72	622
Cost at 31 Mar 2023	141 654	3 692	12 622	28 618	1 622	956	47 510
Accumulated amortization and
impairment at 1 Jan 2023	-	-1 047	-7 594	-9 433	-406	-123	-18 603
Amortization	-	-92	-334	-739	-83	-53	-1 300
Accumulated amortization and impairment at 31 Mar
2023	-	-1 138	-7 928	-10 172	-489	-176	-19 903
Net carrying value at 1 Jan
2023	141 654	2 646	4 477	19 185	1 216	761	28 284
Net carrying value at 31 Mar
2023	141 654	2 554	4 694	18 447	1 133	780	27 606
					Non		Total
			IT	Customer	competition	Development	intangible
EUR thousand		Goodwill Trademarks	software	relationships	agreements	costs	assets
Cost at 1 Jan 2023	141 654	3 692	12 072	28 618	1 622	885	46 889
Additions	-	-	2 404	-	-	291	2 695
Disposals	-	-53	-225	-	-8	-28	-315
Cost at 31 Dec 2023	141 654	3 639	14 251	28 618	1 613	1 147	49 269
Accumulated amortization and impairment at 1 Jan 2023	-	-1 047	-7 594	-9 433	-406	-123	-18 603
Disposals	-	53	210	-	8	-	272
Amortization	-	-366	-1 274	-2 955	-332	-245	-5 172
Impairment	-	-1 709	-10	-545	-	-	-2 264
Accumulated amortization
and impairment at 31 Dec
2023	-	-3 068	-8 669	-12 932	-729	-369	-25 767
Net carrying value at 1 Jan
2023	141 654	2 646	4 477	19 185	1 216	761	28 284
Net carrying value at 31 Dec 2023	141 654	571	5 582	15 686	884	778	23 500

Property, plant and equipment

	Machinery
		Buildings	Machinery and	and equipment
EUR thousand	Buildings	right-of-use	equipment	right-of-use	Other	Total
Cost at 1 Jan 2024	887	10 134	1 224	738	95	13 078
Additions	-	-	-	68	-	68
Disposals	-	-24	-49	-148	-	-221
Revaluation	-	370	-	-1	-	370
Cost at 31 Mar 2024	887	10 480	1 175	657	95	13 295
Accumulated depreciation and
impairment at 1 Jan 2024	-585	-3 032	-1 066	-415	-14	-5 110
Disposals	-	24	-	148	-	172
Depreciation	-23	-595	-9	-58	-5	-690
Accumulated depreciation and
impairment at 31 Mar 2024	-608	-3 603	-1 075	-326	-20	-5 628
Net book value at 1 Jan 2024	302	7 102	159	323	81	7 969
Net book value at 31 Mar 2024	279	6 878	100	332	75	7 668

				Machinery
		Buildings right-of-use	Machinery and	and equipment
EUR thousand	Buildings		equipment	right-of-use	Other	Total
Cost at 1 Jan 2023	884	8 749	1 498	928	102	12 161
Additions	22	-	4	65	-	90
Disposals	-	-	-	-55	-	-55
Revaluation	-	146	-	-64	-	82
Cost at 31 Mar 2023	906	8 895	1 501	873	102	12 278
Accumulated depreciation and
impairment at 1 Jan 2023	-576	-4 246	-1 201	-385	-73	-6 481
Disposals	-	-	-	55	-	55
Depreciation	-29	-577	-20	-70	-	-696
Accumulated depreciation and
impairment at 31 Mar 2023	-606	-4 823	-1 220	-400	-73	-7 123
Net book value at 1 Jan 2023	307	4 503	297	542	29	5 680
Net book value at 31 Mar 2023	300	4 072	281	473	29	5 156

				Machinery
		Buildings	Machinery and	and equipment
EUR thousand	Buildings	right-of-use	equipment	right-of-use	Other	Total
Cost at 1 Jan 2023	884	8 749	1 498	928	102	12 161
Additions	176	4 816	6	236	66	5 300
Disposals	-173	-3 564	-279	-234	-73	-4 323
Revaluation	-	132	-	-192	-	-60
Cost at 31 Dec 2023	887	10 134	1 224	738	95	13 078
Accumulated depreciation and
impairment at 1 Jan 2023	-576	-4 246	-1 201	-385	-73	-6 481
Disposals	173	3 564	279	234	73	4 323
Depreciation	-97	-2 349	-61	-263	-14	-2 784
Impairment	-85	-	-82	-	-	-167
Accumulated depreciation and
impairment at 31 Dec 2023	-585	-3 032	-1 066	-415	-14	-5 110
Net book value at 1 Jan 2023	307	4 503	297	542	29	5 680
Net book value at 31 Dec 2023	302	7 102	159	323	81	7 969

Financial assets and liabilities measured at fair value

Below is presented the fair value hierarchy of the financial instruments recognized at fair value.

	31 Mar 2024		31 Mar 2023		31 Dec 2023
EUR thousand	Fair value	Level	Fair value	Level	Fair value	Level
Investments in shares, unlisted	240	3	240	3	240	3
Contingent consideration	44	3	998	3	978	3

During the reporting period there were no transfers between hierarchy levels 1, 2 or 3. Fair values of the financial assets and liabilities measured at amortized cost are not materially different from the carrying values.

Commitments and contingencies

Eezy has a group cash pooling arrangement managed by Eezy Plc and the arrangement includes all subsidiaries. All current and future cash pool receivables are a used as a comprehensive guarantee for liabilities on the bank accounts included in the cash pool agreement.

EUR thousand	31 Mar 2024	31 Mar 2023	31 Dec 2023
Liabilities in balance sheet for which collaterals given
Borrowings, non-current	47 330	47 551	48 568
Borrowings, current	5 558	4 448	2 106
Total	52 888	51 999	50 675

The group's loans include covenants defined in the financial agreements, which were updated in March 2024. The loan covenants are net debt ratio, ratio of interest-bearing net debt compared to adjusted EBITDA and the new loan covenant minimum cash balance.

EUR thousand	31 Mar 2024	31 Mar 2023	31 Dec 2023
Mortgages on own behalf
Company mortgages	100 000	100 000	100 000
Total	100 000	100 000	100 000

Related party transactions

Transactions and balances with related parties:

EUR thousand	1 Jan – 31 Mar 2024	1 Jan – 31 Mar 2023	1 Jan – 31 Dec 2023
Companies that have significant influence
Sales	2 963	3 272	16 364
Purchases	-49	-53	-392
Trade receivables and other receivables	4 375	3 827	4 438
Trade payables and other liabilities	4	11	6
Associated companies
Loan receivables	-	33	-

Related party transactions are made on the same terms and conditions as transactions with independent parties.

Events after the review period

Joni Aaltonen has been appointed as Eezy Plc's Chief Financial Officer and a member of the Group management team effective from 1 April 2024.

The Annual General Meeting (AGM) was held on 9 April 2024.

Key figures, their calculation and reconciliations

Eezy presents selected key figures which relate to the performance and financial position of the company. All these key figures are not measures defined in the IFRS and they are thus considered as alternative performance measures.

Alternative performance measures should not be viewed in isolation and they are not substitutes to the key figures presented in the audited financial statements. The companies do not calculate alternative performance measures in a uniform way, and thus the alternative performance measures presented by Eezy may not be comparable with the similarly named key figures presented by other companies.

Key figures

EUR thousand, unless otherwise specified	1 Jan – 31 Mar 2024	1 Jan – 31 Mar 2023	Change %	1 Jan – 31 Dec 2023
Key figures for income statement
Revenue	41 450	52 776	-21%	218 974
EBITDA	2 287	3 439	-33%	14 519
EBITDA margin, %	5.5%	6.5%	-	6.6%
EBIT	492	1 343	-63%	4 031
EBIT margin, %	1.2%	2.5%	-	1.8%
Earnings per share, basic, EUR	0.01	0.02	-	0.03
Earnings per share, diluted, EUR	0.01	0.02	-	0.03
Weighted average number of outstanding shares, pcs	25 046 815	25 046 815	-	25 046 815
Weighted average number of outstanding shares, diluted, pcs	25 201 826	25 279 104	-	25 277 374
Number of outstanding shares at the end of reporting period, pcs	25 046 815	25 046 815	-	25 046 815
Key figures for balance sheet
Net debt	60 221	56 772	-	58 001
Net debt excluding IFRS16	52 796	52 116	-	50 383
Net debt / EBITDA	4.5 x	3.0 x	-	4.0 x
Gearing, %	54.8%	50.1%	-	52.8%
Equity ratio, %	54.2%	53.9%	-	53.2%
Equity per share, EUR	4.39	4.53	-	4.39
Key figures for cash flow
Operative free cash flow	-2 159	-2 713	-	5 898
Purchase of tangible and intangible assets	-721	-650	-	-2 899
Acquisition of subsidiaries, net of cash acquired	-476	-	-	-
Operative key figures
Chain-wide revenue, EUR million	60.0	73.8	-19%	307.6
Franchise fees, EUR million	1.1	1.3	-12%	5.2
Light entrepreneurship invoicing volume, EUR million	8.0	9.4	-15%	38.9

Reconciliation of Certain Alternative Performance Measures

EUR thousand	1 Jan – 31 Mar 2024	1 Jan – 31 Mar 2023	1 Jan – 31 Dec 2023
EBITDA
EBIT	492	1 343	4 031
Acquisition related amortization 1) and impairment losses	808	910	5 891
Other depreciation, amortization and impairment losses	987	1 186	4 597
Total depreciation, amortization and impairment
losses	1 795	2 096	10 488
EBITDA	2 287	3 439	14 519
Operative free cash flow
Cash flows from operating activities before financial items and taxes	-808	-1 414	11 399
Purchase of tangible and intangible assets	-721	-650	-2 899
Payment of lease liabilities	-629	-650	-2 603
Operative free cash flow	-2 159	-2 713	5 898

1) The acquisition related amortization comprises the amortization made on the recognized fair value adjustments arisen from business combinations.

Calculation of key figures

Key figures for income statement

EBITDA	=	Operating profit + Depreciation, amortization and impairment losses
EBITDA margin, %	=	EBITDA / Revenue x100
Operating profit (EBIT)	=	Operating profit
Operating profit margin, %	=	Operating profit / Revenue x100
Earnings per share, basic	=	Profit for the period attributable to the owners of the parent company / Weighted average number of outstanding shares
Earnings per share, diluted	=	Profit for the period attributable to the owners of the parent company / Weighted average number of outstanding shares taking into account obligations arising from potential dilutive share issues of the Parent Company in the future
Key figures for balance sheet
Net debt	=	Interest bearing liabilities - Interest-bearing receivables - Cash at bank and in hand
Net debt excluding IFRS16	=	Net debt - IFRS 16 items
Net debt / EBITDA	=	Net debt / EBITDA
Gearing	=	Net debt / Equity x100
Equity ratio	=	Equity / (Total equity and liabilities - Advances received) x100
Equity per share	=	Equity / Number of outstanding shares at the end of reporting period
Key figures for cash flow
Operative free cash flow	=	Cash flow from operating activities presented in the cash flow statement before financing items and taxes - Purchase of tangible and intangible assets - Payment of lease liabilities
Purchase of tangible and intangible assets	=	Investments in tangible and intangible assets presented in the cash flow statement
Acquisition of subsidiaries, net of cash acquired	=	Acquired shares of subsidiaries presented in the cash flow statement
Operative key figures
Chain-wide revenue	=	Consolidated revenue + Revenue of chain franchisees - Franchise fees (and other significant internal chain revenue) + Light entrepreneurship invoicing volume to the extent it is excluded from consolidated revenue
Franchise fees	=	Fees paid by franchisees based on revenue and/or gross profit + Initial fees
Light entrepreneurship invoicing volume	=	Invoicing volume of the light entrepreneurship services