Talenom Oyj

Good morning everyone and welcome to join this financial statement release 2025 of Talenom. My name is Juho Ahosola and I'm the CEO of Talenom and I have started in my position in the beginning of this month after this demerge with ISOR. And with me here is today our new CFO Matti Säkkinen who started in his position as well at the same time with me. Hello everyone and welcome also from my behalf. Thank you. Okay, let's roll out. Here's the agenda for this review. So we start from demerits. Short recap on the history with the demerits and then also purpose. Then a couple of words on this post-demert style and on what we are, what we do. Then a couple of thoughts on market and strategy as well. And then I will comment briefly on this review period. And after me Matti will open a bit more detailed our financial performance and will comment our outlook and guidance for this year 2026. But let's start with this demerge or separation. So as we know companies started this review of the potential separation of the e-source software business into an independent publicly listed company. And after a couple of stages, we are here that there are two independent companies, Talenom and Easer. And as we know, there are on both sides independent strategies, own management, own boards and no any cross ownerships or that kind of structures. So two completely independent cases, independent companies operating in the future. And this was basically the big thing of 2025 and we are as a company super happy that this is now finalized. Our personnel worked super hard around this and we're really looking forward in the future as an independent Tallinn. And I wish to my former ISOR colleagues all the best for the future and I'm sure they will make it a really great story. And then if we comment briefly on these reasons behind this demarche and what was like the ratio behind this separation. So basically there are two main points. First of all, both companies can operate from software perspective more flexibly and grow faster. Easier on their side, they can acquire clients through other accounting firms and whatever channels they found working in the future. And then we, Talanom, we are not anymore dependent on any single software provider and we can use best solutions, best available solutions in all our customers cases and to support those needs. So much more flexibility and much more opportunities in growth for both companies in the future. Then secondly, focus is super important in business always. And we here at Talenom, we can focus only on this service business, one clear business area. And I'm sure that will generate good results in the future. But yeah, better growth opportunities, more flexibility, and then also focus in our side. And to be clear with our software strategy, so our strategy is to always use best available solutions, best available tools, sometimes this or sometimes it might be some other software, but always starting from client needs. and also what supports our growth. We want to grow in the future. But that's demerged and now we are super happy that this is done and we can start this new era of Talenom. And let's then comment on this post demerged Talenom briefly. So what we are, Talenom is a service company first of all. And the main idea remains the same that it has been more than 50 years. So we want to help entrepreneurs succeed. And we do it by different kind of accounting payroll and consulting services as well. And we operate in three countries, Finland, Sweden and Spain. And we combine in our growth two pillars, organic growth and then the selective acquisitions. And how we work, how we do it, we combine strong local ownership and expertise with this, our scalable One Thalannum concept. So first of all, we want to be super local in all countries and those locations, cities, areas that we are working. And then on the other hand, we have this One Thalannum concept that is scalable, what truly works and creates results in these three different areas, customer experience, employee experience and profitability as well. And as I commented our software strategy, the plan is to use best available tools and technologies to support our growth in the future. And we believe that this setup will provide a good foundation for sustainable and well-managed growth in the future. So we're a service company. Then if we have a short look in our operating areas and also organisational structure. So we operate in three countries, as I said earlier, in Finland, we started our operation 1972. So more than 50 years history, we have strong brand, strong organisation in Finland and really great history behind. And I'm sure that in ahead of us as well. Sweden we started our operations 2019 with first acquisition and in Spain 2021 with the first acquisition as well and we have roughly 1200 full-time employees in 72 offices and on the right hand side you can see how those are divided between different countries and how many offices we have as well. And to be clear, we are not now looking to expand to new countries. So we believe that we have enough market to win in these our current countries and operating areas. And I will a bit later open more that market and explain why we truly believe that we have enough room for growth in these countries. Then when it comes to organizational structure, Year 2025, it was, we had a lot of focus in this demerge, ISOR demerge, and it took a lot of energy and focus from management, but also from basically all levels in the organization. And we built during previous year management teams for both ESR and Talonum. And then also we were building these management teams in countries as well. So a lot of work with this demerge and organizing ourselves during 2025. And as said a couple of times, we are really happy and excited that this is now done and we can focus in the future. Then I would like to comment briefly on our revenue. So now, as we are a service company, our revenue comes from different kind of services, starting from our core services. Those are accounting services, payroll services and account receivable services. And these services are highly recurring. So our revenue is mostly recurring and that's of course good for investor perspective. Then in addition to these core services we have also different kind of value-added services as an example CFO services, HR services, legal services and these services we see that we can grow with these services and it could be really like even more important revenue stream for us in the future. But then on the other hand, those are also supporting our customer experience and the clients that are buying the most services from us, they are the happiest ones. And also we have industry focused solutions for selected industries. And the idea there is that we can provide even deeper service and more detailed services in these areas. So we are service company, highly recurring revenue. Those are the main points. Then if we have a look into market and our strategy next. And let's start from the market and a couple of interesting points from here. First of all, if we think all our countries and markets, so to say, those are in a way quite similar. Markets are really fragmented, a lot of small companies. We can also recognize this consolidation trend basically in all our operating countries. So bigger companies are buying those smaller ones and Also this like rising regularization is driving towards this consolidation. And then the interesting case when it comes to these markets, and I'm also here answering the question why we are not looking to expand to new countries. So let's start from Finland. We have roughly 1.5 billion market in Finland. Our market share is roughly 5%. As I said, we are really established, strong company, strong brand. in Finland with a long and successful history. But then when we look at that 5% market share, we can see that there's still a lot of room for growth in Finland as well. So my message is that we see a lot of potential in Finland in the future as well. Then looking at Sweden, there's even more potential. So roughly 2 billion market size and our market share is roughly that 1%. So a lot of room for growth, a lot of opportunities in the long run. And then the biggest market, the size of this pie is illustrating the size of the market. So as we can see, 12 billion market size and our market share is roughly 0.1%. And so super small slice from that market and a lot of opportunities. And when we are looking at these three pies together, we can definitely see that market size is not going to be a problem for us in the future. And now we are going to focus purely in these three countries. That's our decision as a company. So a lot of focus in these countries. We're not looking to expand to new ones. Then if we look these markets from productivity perspective, and this is our internal data, and we are here comparing Swedish and Spanish accountant invoicing with a Finnish colleague. And what we can see here is that there's roughly 40% productivity gap between Finland and Sweden and more than 50% between Finland and Spain. And of course price levels vary a bit but I would say that in the big picture price level in Finland and Sweden is roughly the same. Spain a bit cheaper but that doesn't explain this gap in productivity. So my message here is clear that we have a lot of room for improvement in these two other countries as well. Of course, in Finland, we want to improve as well, but a lot of potential in these big, massive markets. And we believe that with this one-talent approach, we can achieve good results in the future. Then I would like to, as a last point, when it comes to market, I would like to comment how this new era is changing the market from our perspective. So as I told earlier, we can use now those softwares that we want and we can build our software strategies from there. different perspective than prior this demerits. So we believe that when we can use other softwares than ISOR, we can attract two different segments. So first of all, we have recognized that that kind of customer segment that simply for some reason do not want to change the software that they are using and they are operating with. in the financial management and they want to stay in that current system. And it's been a bit hard in past to sell for these kind of clients because they have been forced to change both software that they are using and then also service provider. So I think we will have more flexibility in that side in the future. And we can, inside these markets, attract more clients. Then on the other hand we want to focus more on larger and more complex clients and those clients usually they have more complex software needs and with this flexibility we can attract those clients more as well. So the message is that within the same market we can have like larger reach so to say. But that's about markets and our opportunities in these markets. Then I would like to comment some key elements of our strategy briefly. And let's start from this one Talanom concept. So this is definitely the core of our strategy in the future. So this one Talanom, it's our concept. It covers our best practices, processes, ways of doing things. And we have been building this together with all countries and found those processes, practices, ways of doing things that are scalable. And then we have tested this, of course, in all countries. And what we have learned is that in all our operating countries, we can find the correlation between one-talanum index, which measures how much we use these one-talanum processes and practices. And then these are most important KPIs like NPS, which is measuring customer experience, then employee experience and profitability as well. And we can make a conclusion that the more we use one-talanum concept, the better the results are. So it definitely makes sense to focus on implementing this one-talanum concept in the future. And that's something where our strategy is focusing heavily in the future. Then secondly, I would like to comment on our M&A strategy. So as we know, we have conducted multiple acquisitions during previous years in all our operating countries, basically. And we are going to do acquisitions in the future, super selective acquisitions. And during past years, we have learned, first of all, a lot and we have found our way of doing acquisitions. And we want to acquire that kind of companies that truly believe in this one Talenom approach and this our approach and are willing to integrate with Talenom. They see that this truly makes value and sense for them. Then secondly we are super selective and what means selective in practice it means that we say no more than yes and it's really good that during the process if we at some point find that we don't have future together so then saying no it's really right thing to do. But then one thing is this like that we see the future in the same way and this one talent concept and willing to integrate. But then in addition to that, it's important that we acquire only growth minded companies because we want to grow in with organic growth in the future. It's super essential that regardless of history of the office, we have super strong growth mindset in all our offices. And then to be clear, we are not doing this kind of like volume acquisition just in that purpose to get some more revenue. It doesn't make any sense and it doesn't support company value neither. So no volume acquisitions, only these selected ones. If we move on to this third point here in these strategy slides, so organic growth. And we have a strong more than 50 years history in this organic growth, and we want to focus it heavily in the future as well. We have already dedicated sales marketing teams in all countries. We are doing a lot of digital marketing, active sales work. By the way, it's worth mentioning that in Spain, as an example, it's not normal at all to sell actively accounting services. So we see a lot of potential there. as well as in all our operating countries with this active sales work. And this is super important to us. So to be clear, we want to sell more clients and acquire new clients and serve them super well that they are willing to recommend us in the future for other entrepreneurs as well. So that's one pillar of organic growth. Then second one is to grow with our existing customers. So as I told earlier, we have different kind of consulting services like HR services, CFO services, legal services. And we see this important source of growth in the long run. And we are willing to be better in this area in the future. And then we can also see that more clients are buying from us, the happier they are. So it's definitely crucial in terms of customer experience to succeed with this upselling or how we want to call it. But two pillars in this organic growth, and I want to be clear, we want to be an organization that is growing with organic growth. Then that was more about this like long term and future and what we are as a new Talenum. But here's our priorities for this year, 2026. And I would like to comment this briefly. So three priorities that we are going to follow in these reviews in the future as well. Starting from the first one, so implementing the new strategy in all operating countries. And as we know, we have started as an independent company, so to say, in the beginning of this month. And we don't have that long history yet. So really implementing this, our One Thalannum strategy well and working with these basics and focus. So implementation of strategy, that's one pillar. And this One Thalannum, I would like to emphasize the importance of it. Then secondly, improving our profitability in Sweden and Spain. We are not happy with results in the past, especially we know that we have had challenges in Sweden with profitability in the long term. And we have done some adjustments in Sweden especially. There's much less employees in Sweden than previous year this time. And to be clear, we are not now planning any heavy restructurings in either Sweden, Spain or Finland. We don't have that kind of plans, but we have adjusted resources. And of course, in the future, we are following that they are adjusted related to our business operations. But that's not everything about profitability. It comes from this one talent on practices, processes, from this concept. And we are working heavily implementing it and we truly believe that we will see that in. in the results during this year. And what it comes to Sweden, our goal and our purpose is to be profitability epitomized during this year 26. And then third point, implementing growth strategies in all operating countries. And we believe in all our countries. We want to grow in all our operating countries. And now we are, of course, focusing on these software strategies during this new era of Talanom. And then secondly, we are planning to grow with these selective acquisitions as well. But those three priorities we will follow in the future in this RIB use during this year. Then Talanom as an investment. So I would like to summarize how this new Talanom looks like an investment case. So first of all, we have quite defensive business model. Revenue, as told, is mostly recurring. And also these services, accounting services, payroll services are quite essential for SMEs. They truly need someone to do that accounting and payroll as well. Then we have solid profitability and strong cash flow, and it enables in the long run both dividends and growth investments. And when it comes to these growth investments, this third bullet point, low capital intensity, I mean that when we invest, we are investing in that kind of elements like M&A and so acquisitions and then this organic growth and usually these kind of investments they generate quite rapidly cash flow as well. And so like the type of investments that we are doing, we don't invest that much in that kind of like developing something that will generate cash flow in the like far in the future. So that's important what it also comes to this cash flow. And we are targeting in the long run more than 10% growth combining these two elements or organic growth and these selective acquisitions. Then as a last part of this, my presentation for Matti, I will comment briefly on year 2025. So starting from here, three points. First of all, this year 2025, it was a year of massive changes in terms of strategy. So this demerge, ESER demerge was a massive thing for us. And as I said, we are now happy and excited that it's finalized and we are really looking looking forward into future as an independent company. And it took a lot of effort from us, from management, but basically all layers in the organization. And I want to thank all our personnel for that hard work around this. Then secondly, when it comes to our financial targets, we didn't achieve them and our comparable net sales and EBITDA both grew a bit slightly during 2025 when it comes to these continuing operations. But when we didn't reach our targets, we are not happy with this situation and and we want to improve in the future of course. So we are disappointed with the result but now we are really looking towards future. So what it comes to future I would like to say that we have clear service business case here as Talenom. We believe that this is like from management behalf and from company behalf this is There's much more clarity and what it comes also into investor perspective, it's much more clear case than previously. And we believe that we can grow solidly and create long term value with this case in the future. And the organization is super excited to get started. Here's from my behalf short comments on Q4 financial results. So what it comes to comparable net sales, it grew a bit driven by Finland and Spain, 1.9% and it was 24.4 million euros. And then our comparable EBITDA as well as our operating profit was developing slightly or almost at the same level than previous year. But now, Matti will take over and kindly ask those questions in chat. We will answer those a bit later.

Thank you. Thanks, Juho. Yes, and as Juho said earlier, we have now completed our demetri process, and it's meaning that in this presentation, I will totally focus on our continuing operations and also comparable key figures. and let's start with our group's comparable net sales it was 107.6 million euros and our growth was 1.8 percent in the last quarter our growth was 1.9 percent and net sales was 24.4 million euros This growth came from Finland and Spain and on the other hand in Sweden our growth was negative and it was impacting negatively to our group level net sales. Groups comparable EBITDA was 19 million euros and it was also improvement to our profitability, about 4.4%. And if you look at this Q4 EBITDA, it was 2.3 million euros, and it was at least almost the same level than in the comparison period. And Finland impacted positively to our profitability, and Spain, we had a negative impact, and Sweden was at the same level. Group's comparable operating profit, it was 5.3 million euros, and this improvement is in line with our EBITDA development also, so change from the previous year was 17.4%. In the last quarter, our net operating profit was minus 1.2 million euros, and it was almost at the same level with comparison period. And now we jump to the country-specific comparable key figures, and let's start with Finland. And here we see that our growth was over 4% and our net sales was almost 70 million euros in 2025. And in the last quarter, our growth was 2.6% and net sales was 16 million euros. And this is totally organic growth and it was driven by successful new customer acquisition. We still want to note that the general economic situation is challenging and it's also challenging our growth activities. We see a high level of bankruptcies and also companies are closing down the businesses. Finland's comparable EBITDA, it was 20 million euros and we had about 1 million improvement there compared to the previous year. In the last quarter our EBITDA was 4.2 million euros and also in quarter four we had improvement in our profitability level. And this came via higher level of net sales and also we make our operations with increased efficiency. Now, jump to Sweden, and we see the comparable net sales development here. And in 2025, our net sales was 21.4 million euros, and decline was almost minus 12%. In the last quarter, our net sales was 4.5 million euros and the decline was almost 11%, minus 11%. And as we have reported earlier, we have had a little bit higher customer churn in Sweden and this is impacting to our net sales development also. So we are continuing and also continued our actions to reduce churn and also acquire new customers. Sweden's EBITDA, it was minus €1 million in 2025. And there was a light improvement for the previous year. And if you look at this Q4, it was minus €9 million. 100,000 euros and almost there was a light improvement. But yeah, we are not happy with this profitability level and we are continuing our cost adjustments. And as we have said earlier, we expect that we will achieve positive EBITDA in 2026. Spain, comparable net sales, it was 16.5 million euros, and here we see that this is the highest growth in the company, so growth was almost 14% in 2025. And in the last quarter, our growth was even higher, it was 18%, so We are in good trend with this growth in Spain. We made two acquisitions during the previous year in April and in November. So two of third of this growth came from these acquisitions and also one third came organically. And Spain comparable EBITDA in 2025, it was minus thousand euros and this last quarter it was disappointing for us it was minus 900 000 euros in this fire 4 there was some non-recurrent expenses and we had also higher level of sales costs there and impact of these was approximately half million euros And then our investments and depreciations. Here we see that our investment level, it was 8.8 million euros in 2025. And we made the highest investment to new customer contracts and also to acquisitions. And our depreciations were 13.7 million euros. It was in the same level than in the previous year. And we have also separated this our depreciation structure that there is a separated this IFRS 16 based depreciations. So it's meaning that this 9.9 million euros depreciations is coming from these investments what we see in the slide. Then dividend proposal and our dividend policy. Our continuing operations earnings per share were six cents, and the board of directors proposal for a dividend of a maximum of five cents per share, of which three cents per share would be paid after the annual general meeting, and maximum of two cents per share at the later date at the discretion of the board of directors. and our annual general meeting is scheduled to be held on 23 April 2026. And dividend policy. The company's goal is to enable sustainable and growing dividend distribution. Any potential dividend distribution will be planned so as not to jeopardize the achievement of the company's strategic goals or its financial position. And at the end, let's look at our outlook and guidance. So, we published our guidance for 2026 in December, and we expect that our net sales will be from 110 to 120 million euros, and the comparative EBITDA from 18 to 22 million euros. In the next week, we will have a webcast event where we tell more about our strategy. So welcome to this event then. Thanks from my behalf.

Okay, thanks. Thank you, Matti. It seems that we are not having any questions. Okay, so then I would like to thank you all for attending this event. Thank you very much. Thank you. Bye-bye.