Half-year financial report of Panostaja Oyj 1 November 2021–30 April 2022

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Panostaja Oyj

Panostaja Oyj’s Halffiscal year Rreport November 1, 2021–April 30, 2022

Panostaja Oyj Half-Year Financial Report June 2, 2022 10:00 a.m.


Investment capacity strengthened by SokoPro Trade


February 2022–April 2022 (3 months) in brief:

  • Net sales increased in two of the four segments. Sales for the whole Group fell by 1% to MEUR 33.0 (MEUR 33.3).

  • EBIT improved in two of the four segments. EBIT for the whole Group improved compared to the reference period, standing at 7.9 MEUR (-0.4 MEUR). EBIT for the reporting period includes €9.4 million profit on sales of the SokoPro agreement.

  • Panostaja’s Grano segment has sold its SokoPro business operations to the international company iBinder. The operation was carried out in the form of an equity transaction and the purchase price for the shares was approximately 45.5 million euros.

  • Grano’s net sales for the reporting period fell by 3% compared to the reference period. EBIT was 8.6 MEUR (0.8 MEUR), including the profit from sales of SokoPro of 9.4 MEUR. Net sales for the current period increased by 2% compared to net sales for the reference period which were adjusted for the sale of SokoPro.

November 2021–April 2022 (6 months) in brief:

  • Net sales increased in three of the four segments. The turnover of the Group as a whole increased by 2.9% to MEUR 68.8 (MEUR 66.8).

  • EBIT improved for three of the four segments. EBIT for the whole Group improved compared to the reference period, standing at 7.0 MEUR (-1.6 MEUR).

  • Grano’s net sales for the reporting period increased by 1% compared to the prior year’s reference period. EBIT was 9.0 MEUR (0.7 MEUR), including the profit on sales of SokoPro of 9.4 MEUR.

  • Earnings per share (undiluted) were 5.9 cents (-7.5 cents).


CEO Tapio Tommila:

“The second quarter of the fiscal year was twofold: there were notable successes and the implementation of the updated strategy progressed, but the performance of our segments was somewhat lacking. The SokoPro deal, which is important for our updated strategy, was successfully concluded, freeing up a significant amount of investment capital for the acquisition of new segments. In line with our strategy, we intend to make several new investments during our strategic period extending to 2024.

Financial market developments at the start of the year were generally difficult due to inflationary pressure as well as the resulting tighter monetary policy and the likelihood of interest rate hikes. Russia’s invasion of Ukraine has caused great uncertainty in terms of general economic development, particularly due to possible disruptions in energy, commodity and food markets. The increase in demand and inflationary pressure are also affecting our segments, but the partial stabilization of company valuation levels, seen on the markets at the start of the year, encourages cautious optimism in a situation where our strategic phase is centered on new investments. We see that the business acquisition market has remained active and that there are many good investments available in the target sectors and in our size class.

The sector orientation at the heart of our strategy will be built around a new operating model in which our network of advisors providing expertise on each sector will strengthen the competitiveness of Panostaja’s investment activities and add value to the development of our segments. . In the second quarter, our team recruited six leading experts in the target sectors, who have extensive experience in creating value in our target sectors. Our core team works closely with our advisors to explore and evaluate new investment targets and develop a value creation strategy. We got off to a good start in the second quarter and we now have an excellent and motivated team.

The second quarter as a whole was difficult for us and we were well below our profit target; Grano’s net sales were weak as the crisis in Ukraine caused demand to stagnate due to general caution and, at the same time, activity in the construction cluster declined significantly. Weak net sales have weakened Grano’s profitability, but the recovery in demand at the end of the quarter and the fact that the availability of materials has improved due to the end of the UPM strike gives hope for a trend upward for the remainder of the year. . Oscar Software continued to increase its number of tenders, but our efforts to accelerate the realization of transaction benefits continue. The development of Hygga was further hampered by challenges with the availability of clinical staff. CoreHW development continued on an expected positive trend with improving customer project activity. Gugguu’s financial period ended in March and we recorded a 2% increase in net sales. The company has made progress in entering international markets, although somewhat slower than expected. »

Financial development November 1, 2021–April 30, 2022

Key figures
DIE

Q2

Q2

6 month

6 month

12 months

02/22-
4/22

02/21-
04/21

11/21-
4/22

11/20-
04/21

11/20-
10/21

Net sales, MEUR

33.0

33.3

68.8

66.8

133.0

EBIT, MEUR

7.9

-0.4

7.0

-1.6

2.0

Profit before tax, MEUR

7.4

-0.9

6.0

-2.8

0.0

Profit/loss for the financial period, MEUR

7.4

-2.4

6.5

-4.9

-1.0

Distribution:

Parent company shareholders

3.8

-2.2

3.1

-3.9

-1.7

Minority shareholders

3.6

-0.2

3.4

-1.0

0.7

Earnings per share, non-diluted, EUR

0.07

-0.04

0.06

-0.08

-0.03

Net interest-bearing liabilities

35.9

61.7

35.9

61.7

56.3

Gear ratio, %

56.9

95.9

56.9

95.9

83.1

Equity ratio, %

41.0

34.1

41.0

34.1

37.2

Equity per share, EUR

0.79

0.71

0.79

0.71

0.75

Breakdown of turnover by segment
DIE

Q2

Q2

6 month

6 month

12 months

Net sales

02/22-
4/22

02/21-
04/21

11/21-
4/22

11/20-
04/21

11/20-
10/21

Grano

26.1

26.9

55.0

54.2

107.9

hygga

2.0

2.1

4.0

4.0

8.1

CoreHW

2.1

1.4

4.1

3.1

6.1

Oscar software

2.9

2.8

5.8

5.6

11.0

Others

0.0

0.0

0.0

0.0

0.0

Eliminations

0.0

0.0

-0.1

-0.1

-0.1

Total group

33.0

33.3

68.8

66.8

133.0

Breakdown of EBIT by segment
DIE

Q2

Q2

6 month

6 month

12 months

EBIT

02/22-
4/22

02/21-
04/21

11/21-
4/22

11/20-
04/21

11/20-
10/21

Grano

8.6

0.8

9.0

0.7

5.6

hygga

-0.1

-0.1

-0.3

-0.4

-0.2

CoreHW

0.0

-0.6

-0.2

-1.0

-1.4

Oscar software

-0.2

0.1

-0.3

0.4

0.3

Others

-0.5

-0.7

-1.1

-1.3

-2.2

Total group

7.9

-0.4

7.0

-1.6

2.0

Panostaja Group’s business activities for the current reporting period are presented in five segments: Grano, Hygga, CoreHW, Oscar Software and others (parent company and associated companies).

An associated company, Gugguu Group Oy, provided a report for the reporting period. The impact on the result of associated companies reported during the reporting period was -0.1 MEUR (0.1 MEUR), which is presented on a separate line in the consolidated income statement.

Gugguu’s deviant financial period ended during the reporting period in March. During this period, Gugguu’s net sales increased by 2% to 4.8 MEUR (4.6 MEUR) and EBIT amounted to 0.1 MEUR (0.4 MEUR).

Outlook for fiscal year 2022

Regarding the business acquisition market, many opportunities are available and the market is active. The need to take advantage of ownership agreements and growth opportunities will persist for SMEs, but high market liquidity and increased pricing expectations from sellers make the operating environment more challenging. for business acquisitions. We will continue to explore new possible investment targets in accordance with our strategy and will assess divestment opportunities within the investment target ownership strategies.

It is believed that the demand situation for different investments will evolve in the short term as follows:

• Demand from Oscar Software will remain good.

• Demand from Grano, Hygga and CoreHW will remain satisfactory.

The demand information presented above involves uncertainties related to the possible escalation of the COVID-19 pandemic and any economic impact of the war in Ukraine, which are difficult to anticipate. The escalation of the pandemic could impact the future development of Grano and Hygga, in particular, and quickly and drastically alter the estimate provided above. The effects of the war in Ukraine and related economic sanctions will increase economic uncertainty in Finland and abroad, which could negatively impact segment demand or material availability, and therefore material prices and delivery capabilities.

Panostaja Oyj

board of directors

For more information, contact CEO Tapio Tommila, +358 (0)40 527 6311

Panostaja Oyj
Tapio Tommila
CEO

Panostaja is an investment company developing Finnish companies in the growing services and software sectors as an active shareholder. The company aims to be the most sought after partner of business owners who are divesting their business as well as top managers and investors. Together with its partners, Panostaja increases the Group’s shareholder value and creates Finnish success stories.

Panostaja holds a majority stake in four investment targets. Grano Oy is Finland’s most versatile content services expert. Hygga Oy is a company providing healthcare services and ERP system for healthcare providers. CoreHW provides high value-added RF IC design services. Oscar Software provides ERP systems and financial management services.

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