Interim report
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Business Review Q3 2025 Cash flow improved significantly, and we initiated a review of the potential separation of the Easor software business into an independent listed company 1 January to 30 September 2025 (unaudited)
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2 Business Review Q3 2025: Cash flow improved significantly, and we initiated a review of the potential separation of the Easor software business into an independent listed company January–September 2025 in brief • Net sales EUR 100.4 million (97.0), growth 3.5% (5.4) • Comparable net sales EUR 98.9 (97.0) million, growth 1.9% (5.4) • EBITDA EUR 29.1 million (28.7), 29.0% (29.6) of net sales • Comparable EBITDA EUR 27.8 million (26.9), 28.1% (27.8) of net sales • Operating profit (EBIT) EUR 10.7 million (11.4), 10.6% (11.7) of net sales • Comparable EBIT EUR 9.4 million (9.6), 9.5% (9.9) of net sales • Net profit EUR 6.1 million (5.9) • Earnings per share EUR 0.13 (0.13) July–September 2025 in brief • Net sales EUR 29.8 million (29.1), growth 2.4% (2.7) • Comparable net sales EUR 29.8 (29.1) million, growth 2.4% (2.7) • EBITDA EUR 8.8 million (9.0), 29.5% (30.8) of net sales • Comparable EBITDA EUR 8.6 (8.1) million, 28.8% (27.7) of net sales • Operating profit (EBIT) EUR 2.4 million (3.0), 8.2% (10.3) of net sales • Comparable EBIT EUR 2.3 million (2.1), 7.6% (7.3) of net sales • Net profit EUR 1.3 million (1.2) • Earnings per share EUR 0.03 (0.03) Reported key figures Group 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 100,416 97,024 3.5% 29,761 29,053 2.4% Net sales, growth % 3.5% 5.4% 2.4% 2.7% EBITDA, EUR 1,000 29,145 28,695 1.6% 8,766 8,954 -2.1% EBITDA of net sales, % 29.0% 29.6% 29.5% 30.8% Operating profit (EBIT), EUR 1,000 10,652 11,362 -6.2% 2,443 3,006 -18.7% Operating profit (EBIT), as % of net sales 10.6% 11.7% 8.2% 10.3% Return on investment (ROI), % (rolling 12 months) 6.9% 8.8% -21.9% Interest-bearing net liabilities, EUR 1,000 91,361 87,763 4.1% Net gearing ratio, % 160.4% 162.1% -1.1% Equity ratio, % 30.7% 30.7% -0.1% Net investments, EUR 1,000 14,025 17,371 -19.3% 3,605 4,245 -15.1% Liquid assets, EUR 1,000 12,366 8,456 46.2% 12,366 8,456 39.6% Earnings per share, EUR 0.13 0.13 2.2% 0.03 0.03 1.5% Weighted average number of shares during the period 45,477,972 45,471,240 0.0% 45,477,972 45,477,972 0.0% Net profit, EUR 1,000 6,072 5,941 2.2% 1,267 1,249 1.5%
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3 Comparable key figures 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 98,916 97,024 1,9% 29,761 29,053 2,4% Net sales, growth % 1.9% 5.4% 2.4% 2.7% EBITDA, EUR 1,000 27,844 26,932 3.4% 8,581 8,058 6.5% EBITDA of net sales, % 28.1% 27.8% 28.8% 27.7% Operating profit (EBIT), EUR 1,000 9,351 9,599 -2.6% 2,258 2,110 7.0% Operating profit (EBIT), as % of net sales 9.5% 9.9% 7.6% 7.3% The comparable key figures exclude a one-off increase of EUR 1.5 million in January-September net sales due to a change in the net sales recognition policy. In January-September, a EUR 0.2 million expense related to additional purchase prices from acquisitions and a EUR 1.8 million income recognition in the comparison period have also been deducted from EBITDA and operating profit. Guidance for 2025 unchanged Talenom estimates that 2025 net sales will be around EUR 130–140 million and EBITDA around EUR 36– 42 million. CEO Otto-Pekka Huhtala The Group's comparable net sales increased by 2.4% (2.7) to EUR 29.8 million (29.1) in the third quarter. The comparable net sales of the Accounting business were EUR 24.5 million and net sales of the continuously billed Software business were EUR 5.2 million. In January-September, comparable Group net sales grew by 1.9% (5.4) to EUR 98.9 million (97.0). The net sales of the Accounting business were EUR 83.0 million and comparable net sales of the continuously billed Software business were EUR 15.9 million. Organic growth in the Finnish and Spanish businesses was good, while Sweden weighed on the growth rate. Thanks to new customer acquisition, Finnish net sales grew by some 3.5% (-0.5) in the third quarter. Although growth has been slower than before, we are satisfied with the growth, considering recent industry development. According to a study by Taloushallintoliitto, industry growth was negative in the second quarter. Sweden's net sales declined, even though efforts to turn around net sales growth have progressed. In Sweden, actions towards a profitability turnaround have started to show in relative profitability. We systematically continue with ONE Talenom operating models, processes and the implementation of our software. Organic growth in Spain strengthened, and we made an acquisition in line with our strategy in April. During the summer, we completed a feature in our software required for the transition to e-invoicing. We also continued to roll out our software to our customers to facilitate their business management and prepare them for the e-invoicing transition. In addition, we started distributing the software to accounting firms outside the company. The Group’s profitability was good. The comparable EBITDA for the third quarter was EUR 8.6 million (8.1) and the comparable operating profit was EUR 2.3 million (2.1). Of the third quarter's comparable EBITDA, the accounting business generated EUR 4.8 million and the software business generated EUR 3.8 million.
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4 EBITDA improved in Finland and Sweden. Operating profit rose slightly, and its development was still hampered by increased depreciation. The comparable EBITDA for January-September improved by approximately EUR 0.9 million. In the same period, investments in own software decreased by around EUR 2.7 million from the comparison period. As a result, cash flow after investments improved by some 45% year on year. In the fall of 2024, we announced a strategy update in which we decided to start selling our software to other accounting firms as well. The strategy work has progressed with the separation of business operations at the beginning of the year and the launch of the Software business's own Easor brand. In the summer, the Board approved independent, finalized growth strategies for both businesses, in line with the long-term financial targets. In September, we announced that we would initiate a strategic review of the potential separation of the Easor software business into an independent listed company. We appointed Juho Ahosola (M.Sc. (Econ.), Master of Administrative Sciences, eMBA, born 1988), who has long been a member of the Board of Executives and is responsible for the accounting business, as Deputy CEO. This enables the Group CEO to focus more on the separation and management of the software business. The future looks bright for the company. The company can leverage its expertise as the digitalization of the accounting industry progresses in Europe, both in its accounting and software businesses. According to our assessment, a potential demerger is expected to improve the performance of the Easor software business and the Talenom accounting business through organizational clarity and independent, focused decision- making bodies. As two separate companies, Easor and Talenom would be positioned to grow and develop faster.
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5 Group's financial development in January–September 2025 Comparable net sales grew by 1.9% to EUR 98.9 million (97.0). Growth was driven by successful new customer acquisition in Finland and Spain, supported by an acquisition in Spain at the beginning of April. The development in Sweden slowed down net sales growth, with net sales there remaining below the comparison period. Personnel costs amounted to EUR 56.1 million (56.6) representing 55.9% (58.3) of net sales. Other operating expenses, including materials and services, totaled EUR 15.2 million (14.0) or 15.2% (14.4) of net sales. Comparable EBITDA increased by 3.4% to EUR 27.8 million (26.9) or 28.1% (27.8) of net sales. Comparable operating profit decreased by -2.6% to EUR 9.4 million (9.6) or 9.5% (9.9) of net sales. The good development in Finland and Spain had a positive impact on profitability. The development in Sweden slowed down the profitability improvement, with net sales remaining below the comparison period. Operating profit development was further hampered by increased depreciation. Net profit grew by 2.2% to EUR 6.1 million (5.9). Net financial expenses were EUR 2.8 million (3.5). 70% 17% 13% 0% Comparable net sales by country 1–9/2025 Finland Sweden Spain Other countries 68% 20% 12% 0% Comparable net sales by country 1–9/2024 Finland Sweden Spain Other countries 0 20 40 60 80 100 120 1–9/2021 1–9/2022 1–9/2023 1–9/2024 1–9/2025 Comparable net sales (EUR million) 0% 5% 10% 15% 20% 25% 0 5 10 15 1–9/2021 1–9/2022 1–9/2023 1–9/2024 1–9/2025 Comparable EBIT Comparable EBIT, EUR million Comparable EBIT, % of net sales
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6 Group financial development July-September 2025 Comparable net sales grew by 2.4% to EUR 29.8 million (29.1). Comparable net sales growth was driven by successful new customer acquisition in Finland and Spain, supported by an acquisition made in Spain in April. The development in Sweden slowed down net sales growth, with net sales still remaining below the comparison period. Comparable EBITDA increased by 6.5% to EUR 8.6 million (8.1) or 28.8% (27.7) of net sales. EBITDA growth came from Finland and Sweden, while Spain remained at the comparison period's level. Comparable operating profit increased by 7.0% to EUR 2.3 million (2.1) or 7.6% (7.3) of net sales. Operating profit development was hampered by further increased depreciation. Net profit grew by 1.5% to EUR 1.3 million (1.2). Country-specific financial development Finland Reported key figures 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 70,427 66,050 6.6% 20,851 20,152 3.5% Net sales growth, % 6.6% -1.4% 3.5% -0.5% EBITDA, EUR 1000 28,777 26,485 8.7% 8,655 8,340 3.8% EBITDA of net sales, % 40.9% 40.1% 41.5% 41.4% Depreciation and amortisations, EUR 1,000 -14,673 -13,598 7.9% -5,008 -4,625 8.3% Operating profit, EUR 1,000 14,104 12,887 9.4% 3,647 3,715 -1.8% Operating profit of net sales, % 20.0% 19.5% 17.5% 18.4% Comparable key figures 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 68,927 66,050 4.4% 20,851 20,152 3.5% Net sales growth, % 4.4% -1.4% 3.5% -0.5% EBITDA, EUR 1000 27,277 26,485 3.0% 8,655 8,340 3.8% EBITDA of net sales, % 39.6% 40.1% 41.5% 41.4% Depreciation and amortisations, EUR 1,000 -14,673 -13,598 7.9% -5,008 -4,625 8.3% Operating profit, EUR 1,000 12,604 12,887 -2.2% 3,647 3,715 -1.8% Operating profit of net sales, % 18.3% 19.5% 17.5% 18.4% January-September 2025 Comparable net sales grew by 4.4% to EUR 68.9 million (66.1). In Finland, the decrease in Talenom's customers' transaction volumes has stopped. Thanks to successful new customer acquisition, Finland's comparable net sales has turned to growth.
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7 Comparable EBITDA increased due to net sales growth and further improved efficiency. Comparable operating profit decreased due to increased depreciation. July-September 2025 Comparable net sales grew by 3.5% to EUR 20.9 million (20.2). In Finland, the decline in Talenom's customer's transaction volumes has stopped and leveled off at the current level Thanks to successful new customer acquisition, Finland's comparable net sales turned to growth. Comparable EBITDA increased due to growth and further improved efficiency. Comparable operating profit decreased due to increased depreciation. Sweden 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 16,853 19,200 -12.2% 4,327 4,977 -13.1% Net sales growth, % -12.2% -1.8% -13.1% -9.8% EBITDA, EUR 1,000 -59 -81 26.8% -278 -496 43.9% EBITDA of net sales, % -0.4% -0.4% -6.4% -10.0% Depreciation and amortisations, EUR 1,000 -2,178 -2251 -3.2% -726 -827 -12.2% Operating profit, EUR 1,000 -2,238 -2332 4.0% -1,004 -1,323 24.1% Operating profit of net sales, % -13.3% -12.1% -23.2% -26.6% January-September 2025 Net sales decreased by -12.2% to EUR 16.9 million (19.2). In Sweden, net sales decreased as a result of customer churn. Integration challenges have caused more customer churn than normal in the first acquisitions. We saw the trend turning for the better in new sales and churn, but the customer churn will negatively impact net sales development in 2025. Relative EBITDA was -0.4% (-0.4) and the operating profit was -13.3% (-12.1) of net sales. Profitability was burdened by the decrease in net sales, and the aim is to scale the number of employees to correspond to net sales. Cost scaling has not been possible at the same pace as the decline in net sales, as we have aimed to secure growth preconditions. July-September 2025 Net sales decreased by -13.1% to EUR 4.3 million (5.0). In Sweden, net sales continued to contract due to customer churn. Actions to reduce the churn and acquire new customers continued. In Sweden, actions towards a profitability turnaround have started to show in relative profitability. Relative EBITDA margin was -6.4% (-10.0) and the EBIT margin was -23.2% (-26.6). Profitability development is hampered by revenue development.
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8 Spain 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 12,700 11,317 12.2% 4,394 3,763 16.8% Net sales growth, % 12.2% 121.7% 16.8% 59.4% EBITDA, EUR 1000 909 658 38.1% 236 250 -5.4% EBITDA of net sales, % 7.2% 5.8% 5.4% 6.6% Depreciation and amortisations, EUR 1,000 -1,635 -1,481.7 10.4% -588 -494 19.2% Operating profit, EUR 1,000 -726 -823 11.8% -352 -244 -44.4% Operating profit of net sales, % -5.7% -7.3% -8.0% -6.5% January-September 2025 Net sales grew by 12.2% to EUR 12.7 million (11.3). Organic growth in Spain strengthened, and an acquisition at the beginning of April supported the growth. Organic growth is expected to strengthen with well-functioning new customer acquisition and the entry into force of the e-invoicing Directive. Relative EBITDA was 7.2% (5.8). EBITDA improved, and we continued to focus on improving profitability by streamlining processes and investing in acquiring recurring and profitable customers. July-September 2025 Net sales grew by 16.8% to EUR 4.4 million (3.8). Organic growth in Spain strengthened. Organic growth is expected to strengthen with well-functioning new customer acquisition and the entry into force of the e- invoicing Directive. The e-invoicing Directive requires every business to acquire software to send and receive e-invoices. In light of current information, the Directive will enter into force in stages in 2025-2027, depending on the size of the company. This is expected to increase demand for Talenom’s turnkey solution, which provides the customer with software and service in the same package. Relative EBITDA was 5.4% (6.6). EBITDA decreased slightly due to one-off business costs and seasonality materializing differently. The company still focused on improving profitability by streamlining processes and investing in acquiring recurring and profitable customers. Other countries (Italy) 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 437 457 -4.4% 189 162 16.9% Net sales growth, % -4.4% 17.0% 16.9% 7.9% EBITDA, EUR 1,000 -283 -130 -117.0% -32 -36 10.6% EBITDA of net sales, % -64.8% -28.5% -16.9% -22.1% Depreciation and amortisations, EUR 1,000 -6 -2 160.9% 0 -2 -82.6% Operating profit, EUR 1,000 -289 -133 -118.0% -32 -38 15.0% Operating profit of net sales, % -66.2% -29.0% -17.1% -23.5% Talenom acquired a bridgehead from Italy in early 2023. Our priority is to grow organically in Italy. The Italian business model has changed, and responsible accountants produce some of the services through outsourcing. Therefore, net sales have decreased. Measured by EBITDA, the Italian business is currently loss-making, which is caused by investments in the Software business and the pilot being launched in Italy.
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9 Unallocated items Unallocated items include net sales and cost recognition of additional purchase prices related to acquisitions. The impact of these was EUR 2.0 million negative compared to the reference period. 1–9/2025 1–9/2024 Change, % 7–9/2025 7–9/2024 Change, % Net sales, EUR 1,000 Net sales growth, % EBITDA, EUR 1,000 -199 1,763 -111.3% 185 896 -79,3% EBITDA of net sales, % Depreciation and amortisations, EUR 1,000 Operating profit, EUR 1,000 -199 1,763 -111.3% 185 896 -79.3% Operating profit of net sales, % Key business figures From the beginning of 2025, Talenom reports key figures for two business areas: Software business and Accounting business. Comparable key figures for the business areas are not available for 2024. January-September 2025 Software business 1–9/2025 Accounting business 1–9/2025 Group 1–9/2025 Group 1–9/2024 Net sales, EUR 1,000 17,413 83,003 100,416 97,024 EBITDA, EUR 1000 12,713 16,432 29,145 28,695 EBITDA of net sales, % 73.0% 19.8% 29.0% 29.6% Operating profit, EUR 1,000 4,339 6,313 10,652 11,362 Operating profit of net sales, % 24.9% 7.6% 10.6% 11.7% The higher net sales in January-September were affected by a change in the net sales recognition principle of the Software business, which improved reported net sales by EUR 1.5 million. July-September 2025 Software business 7–9/2025 Accounting business 7–9/2025 Group 7–9/2025 Group 7–9/2024 Net sales, EUR 1,000 5,231 24,529 29,761 29,053 EBITDA, EUR 1000 3,796 4,971 8,766 8,954 EBITDA of net sales, % 72,6% 20,3% 29,5% 30,8% Operating profit, EUR 1,000 853 1,590 2,443 3,006 Operating profit of net sales, % 16,3% 6,5% 8,2% 10,3%
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10 Development in the number of customers Q3/2022 Q3/2023 Q3/2024 Q3/2025 SaaS, charged separately 9,071 9,577 9,810 10,032 SaaS, not charged separately 251 823 2483 4,847 Customers total 9,322 10,400 12,293 14,879 Investments and business acquisitions during the review period Net investments during the review period totaled EUR 14.0 (17.4) million. Investments 1–9/2025 1–9/2024 Change New customer agreements, EUR 1,000 2,513 2,553 -40 Software and digital services, EUR 1,000 8,393 11,069 -2,676 Acquisitions in Finland, EUR 1,000 0 0 0 Acquisitions abroad, EUR 1,000 1,839 2,713 -874 Other investments 1,280 1,036 244 Total net investments, EUR 1,000 14,025 17,371 -3,346 Share transactions in January-September: - Querol & Querol Assessors, Spain Purchase prices, net sales and operating profit of the acquisition targets during the review period: EUR 1,000 Share transactions Business acquisitions Total purchase prices 1,750 0 Maximum contingent consideration 50 0 Net sales, previous 12 months at time of purchase, total 1,421 0 Operating profit, previous 12 months at time of purchase, total 248 0 Key events during the review period Talenom published a strategy update in October 2024, in which Talenom decided to separate the software business into its own company and start selling its software to external accounting firms as well. As a result of successful pilot sales, Talenom started selling software under its own Easor brand in spring 2025. From the beginning of 2025, Talenom has reported key figures for two business areas: Software business and Accounting business. A steadily growing international accounting business operates under the Talenom name, and a scalable SaaS business, which seeks strong growth, especially from abroad, operates under the Easor name. To support the execution of the businesses' independent strategies, the company's Board of Directors has decided to initiate a strategic review. As part of this process, the company is exploring opportunities to separate the Easor software business into an independent company, which would then be listed on the stock exchange.
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11 Events after the review period Changes in the Executive Board and its organization To support the execution of the businesses' independent strategies, the company has organized its Executive Board as follows: The Talenom Accounting Business Executive Board includes Deputy CEO Juho Ahosola, Executive Vice President Antti Aho, Group Financial Controller Matti Säkkinen, CHRO Annica Glanz, Chief Country Officer, Finland, Marika Aho, Chief Country Officer, Spain, Lourdes Santisteban and Chief Country Officer, Sweden, Åsa Grönberg. The Easor Software Business Executive Board includes the Group CEO and COO Otto-Pekka Huhtala, Growth Director Valtter Tahkola, Product Director Patrik Niskanen, and CFO Matti Eilonen. The Talenom Group Executive Board includes CEO Otto-Pekka Huhtala and CFO Matti Eilonen. Basis of preparation This Business Review is not an Interim Financial Report prepared in accordance with the IAS 34 standard. The company prepares its interim financial reporting in accordance with the Securities Market Act, in addition to which the company releases Business Reviews for the first three and first nine months of the year. The Business Review contain key information regarding the financial position and development of the Talenom Group. The operating segments have been formed based on geographical areas. Segment reporting is based on the operating countries of the Group companies. Countries in the early development phase are reported as one item. The figures of the Business Review are unaudited. The company reports commonly applied alternative performance measures to reflect the underlying business performance and enhance comparability between financial periods. Alternative performance measures not based on IFRS standards provide notable additional information to company management, investors and other interested parties. Alternative performance measures should not be considered as a substitute for key figures in accordance with IFRS. Alternative performance measures used by the company include operating profit (EBIT), operating profit (EBIT) as % of net sales, comparable operating profit, comparable operating profit as % of net sales, EBITDA, EBITDA as % of net sales, return on investment (ROI) %, interest-bearing net liabilities, net gearing ratio %, equity ratio %, working capital and net investments. The formulas are presented below in the section “Formulas”.
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12 TABLES Consolidated comprehensive income statement EUR 1,000 1-9/2025 1-9/2024 1-12/2024 Net sales 100,416 97,024 126,231 Other operating income 93 2,192 2,955 Materials and services -2,493 -2,799 -3,532 Employee benefit expenses -56,133 -56,550 -75,640 Depreciation and amortisations -18,493 -17,333 -23,337 Other operating expenses -12,737 -11,172 -15,259 Operating profit 10,652 11,362 11,417 Financial income 233 268 284 Financial expenses -3,053 -3,731 -4,786 Net financial expenses -2,820 -3,464 -4,502 Profit (loss) before taxes 7,833 7,898 6,915 Income taxes -1,761 -1,957 -825 Profit (loss) for the financial period 6,072 5,941 6,090 Other items of comprehensive income Items that may be reclassified subsequently to profit or loss Translation differences -20 29 -58 Cash flow hedging -5 0 -119 Taxes on items that may be reclassified subsequently to profit or loss 1 0 24 Total comprehensive income for the financial period 6,049 5,970 5,937
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13 Consolidated balance sheet EUR 1,000 30 Sep. 2025 30 Sep. 2024 31 Dec. 2024 ASSETS Non-current assets Goodwill 69,746 68,643 68,643 Other intangible assets 51,712 54,069 54,310 Right-of-use assets 11,681 9,392 9,382 Property, plant and equipment 5,006 4,750 4,737 Other non-current financial assets 188 200 186 Deferred tax assets 3,483 1,599 2,603 Capitalised contract costs 11,568 11,564 11,764 Total non-current assets 153,383 150,217 151,624 Current assets Trade and other receivables 20,088 17,448 16,733 Current tax assets 351 623 952 Cash and cash equivalents 12,378 8,459 8,669 Total current assets 32,817 26,530 26,353 Total assets 186,200 176,748 177,978 EQUITY Share capital 80 80 80 Reserve for invested unrestricted equity 30,935 30,935 30,935 Fair value reserve -99 -43 -95 Retained earnings 26,057 23,158 23,458 Total equity 56,972 54,130 54,377 LIABILITIES Non-current liabilities Financial liabilities 91,078 85,653 86,157 Trade payables and other liabilities 0 1,149 650 Lease liabilities 8,604 5,734 5,714 Deferred tax liabilities 4,122 4,392 4,291 Total non-current liabilities 103,804 96,928 96,812 Current liabilities Financial liabilities 606 54 549 Trade payables and other liabilities 19,722 21,242 22,259 Lease liabilities 3,439 3,877 3,866 Current tax liabilities 1,657 517 115 Total current liabilities 25,425 25,690 26,789 Total liabilities 129,228 122,618 123,601 Total equity and liabilities 186,200 176,748 177,978
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14 FORMULAS Net sales growth, % = net sales - net sales of the preceding year x 100 net sales of the preceding year Operating profit (EBIT) = net sales + other operating income - materials and services - personnel expenses - depreciations and amortisations - other operating expenses Operating profit (EBIT), % = EBIT x 100 net sales Return on investment (ROI), % (rolling 12 months) = operating profit (EBIT) before taxes + interest and other financial expenses x 100 total equity and liabilities - non-interest-bearing liabilities (average of the accounting period) Interest-bearing net liabilities = interest-bearing liabilities - cash in hand and in banks Gearing ratio, % = interest-bearing liabilities - cash in hand and in banks x 100 capital and reserves Equity ratio, % = capital and reserves x 100 balance sheet total - advances received Working capital = inventories + non-interest-bearing current receivables - non-interest-bearing current liabilities Net investments = investments in tangible and intangible assets - sales of assets Earnings per share = net profit of the review period Weighted average number of shares outstanding during the review period Compound annual growth rate (CAGR) = ( liikevaihto jakson lopussa liikevaihto jakson alussa ) 1 vuosien määrä -1 EBITDA = operating profit + depreciation + amortisation EBITDA, % = EBITDA x 100 net sales Comparable net sales = net sales - one-off increase due to change in the recognition principle for net sales Comparable EBITDA = EBITDA - one-off increase due to change in the recognition principle for net sales - expenses and income recognition related to additional purchase prices from acquisitions Comparable operating profit = operating profit - one-off increase due to change in the recognition principle for net sales - expenses and income recognition related to additional purchase prices from acquisitions
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15 Operating profit (EBIT) measures Talenom's ability to generate a profit in its business operations. Operating profit is a key metric of the company’s profitability and financial performance, and indicates the profit generated from business operations. Operating profit margin refers to operating profit as a percentage of net sales and is used to proportion operating profit to net sales and improve comparability of operating profit over reporting periods. Return on investment, meanwhile, measures operating result relative to invested equity. It describes Talenom’s relative profitability, in other words, how effectively the company can generate profit for capital invested in the company. Interest-bearing net liabilities is the net sum of Talenom’s debt financing. The key figure provides information on the company’s indebtedness and capital structure Net gearing is the ratio between Talenom’s equity and interest-bearing liabilities It describes the level of risk associated with the company’s financing and is a useful metric for tracking the company’s debt-to-equity ratio. Equity ratio is a financing structure metric that shows what proportion of the company’s balance sheet is financed by its own equity. Equity ratio provides information on the level of risk associated with financing and the level of equity used in business operations, and describes the company’s solvency and tolerance against loss in the long term. Working capital measures the amount of financing committed in Talenom’s business operations and describes the efficiency of capital use. Net investments measure the amount of investments minus the sale of fixed assets. The key figure provides additional information on the cash flow needs of business operations. EBITDA is an important key figure that measures Talenom's ability to generate profit in business before depreciation, amortisations and financial items. EBITDA margin refers to EBITDA as a percentage of net sales and is used to proportion EBITDA to net sales and improve comparability of EBITDA over reporting periods. Comparable EBITDA describes EBITDA without one-off income statement impacts from changes in accounting principles and recognitions and expenses arising from additional purchase prices related to acquisitions. Comparable operating profit describes operating profit without one-off income statement impacts from changes in accounting principles and recognitions and expenses arising from additional purchase prices related to acquisitions. TALENOM PLC Board of Directors Further information: Otto-Pekka Huhtala CEO, Talenom Oyj +358 40 703 8554 otto-pekka.huhtala@talenom.fi