Capnor Weasel Bidco Oyj, Half Year Financial report January – June 2024

CAPNOR WEASEL BIDCO OYJ

Half Year Financial report

January – June 2024

 

 

 

 

 

Change

 

 

Change

 

EUR thousand

Q2 2024

Q2 2023

in %

H1 2024

H1 2023

in %

FY 2023

Revenue

28,352

29,135

-3 %

48,640

61,135

-20 %

141,318

EBITDA

4,027

2,840

42 %

929

8,900

-90 %

31,367

EBITDA margin

14 %

10 %

 

2 %

15 %

 

22 %

EBIT

963

305

216 %

-4,872

3,847

-227 %

20,493

EBIT margin

3 %

1 %

 

-10 %

6 %

 

15 %

Operational Cash Flow

-532

-6,893

-92 %

9,901

861

1050 %

11,197

Operational Cash Flow %

-2 %

-24 %

 

20 %

1 %

 

8 %

Adjusted EBITDA*

4,027

2,840

42 %

929

9,278

-90 %

32,673

Adjusted EBITDA margin*

14 %

10 %

 

2 %

15 %

 

23 %

Adjusted EBIT

963

305

216 %

-4,872

4,225

-215 %

21,799

Adjusted EBIT margin

3 %

1 %

 

-10 %

7 %

 

15 %

Adjusted Operational Cash Flow

-532

-6,893

-92 %

9,901

1,239

699 %

12,504

Adjusted Operational Cash Flow %

-2 %

-24 %

 

20 %

2 %

 

9 %

 

*  Year 2023 EBITDA, EBIT & Operational Cash Flow included an impact from the IT Salonen transaction and a brand renewal together with
   costs related to iLOQ 20 years anniversary, which have been treated as items affecting comparability. The adjustment related to brand renewal in
   378 thousand euros. The adjustment related to IT Salonen acquisition was 60 thousand and iLOQ 20 years anniversary events 870 thousand
   euros. These costs have been excluded in the Adjusted EBITDA, EBIT and Operational Cash Flow figures above.

 

Management overview of the second quarter

iLOQ Group’s revenue decreased 3 percent compared to the corresponding period of the previous year. Negative market sentiment has prevailed throughout the year in the Nordics as continued postponement in decision making in the renovation market has affected overall demand. However, the worst slowdown seems to be behind in the Nordics and there are first signs of improving market sentiment. iLOQ’s Build Environment market in the Nordics is not, however, expected to materially improve in 2024. Management is confident that the long-term growth potential and drivers in the market remain intact despite a short-term slowdown, due to delayed investments by customers, and that iLOQ is well positioned to continue to outgrow the market also during periods of softer market activity.

 

iLOQ continues to invest in future growth and the market entry in the US, an enormous market and opportunity for iLOQ, is on schedule and progressing as planned. iLOQ has a local sales organization in place, which has already generated a solid pipeline in the US market. Logistic channels and partner networks are being built and the US standard ANSI cylinder products were launched at the year-end in 2023. Everest Infrastructure Partners and iLOQ signed an agreement in April to roll out battery-free smart locks at telecom towers throughout the U.S. iLOQ announced in June to join forces with Carson Living. Carson Living is a leader in the multifamily industry providing cutting edge, user friendly software (mobile and web apps) that streamlines buildings operations by integrating property management software, building hardware such as access control, intercoms, smart locks (and more) and a 24/7 live remote doorman team.

 

Gross margins remained unchanged at the historical healthy levels. The organization for future growth is now fully established and hence the quarter-on-quarter volume growth related operational gearing improved EBITDA materially compared to the previous quarter.

 

Management reiterates its expectation of iLOQ Group revenue to grow in 2024 over 2023 driven by international expansion.

 

Operational cashflow improved compared to the previous year mainly due to improvement in the net working capital efficiency.

 

Second quarter 2024

 

Total revenue decreased 3% compared to Q2 2023. Still low activity in the multi-residential new construction and renovation markets in the Nordics, but good performance in the rest of the world continued and international expansion also underpinned the revenue compared to the same period in the previous year.

 

EBITDA amounted to MEUR 4.0 (2.8), corresponding to a 14% (10%) EBITDA margin.

 

EBIT amounted to MEUR 1.0 (0.3), corresponding to a 3% (1%) EBIT margin.

 

Operational cashflow was MEUR -0.5 (-6.9). Improvement was based on improved EBITDA and lower net working capital.

 

First half 2024

Total revenue decreased 20% compared to H1 2023.

 

EBITDA amounted to MEUR 0.9 (8.9), corresponding to a 2% (15%) EBITDA margin. Gross margins have remained unchanged at the historical healthy levels. Continued investments in growth, including costs related to the US market entry, continued to increase opex and impacted EBITDA negatively especially in the first quarter, which in combination with lower delivery volumes resulted in the negative EBITDA development.

 

EBIT amounted to MEUR -4.9 (3.9), corresponding to a -10% (6%) EBIT margin.

 

Operational Cash Flow was MEUR 9.9 (0.9). Improvement was based on increased net working capital efficiency.

 

Capnor Weasel Bidco Oyj successfully priced senior secured floating rate notes of EUR 55 million with a tenor of five years in March. The New Notes have a floating rate coupon of 3 months EURIBOR + 4.00 per cent per annum and final maturity in March 2029. Capnor Weasel Bidco Oyj intends to apply for listing of the New Notes on the corporate bond list of Nasdaq Stockholm. The total amount of different fees related to the transaction amounted to MEUR 1.4.

 

Events after the reporting period

iLOQ announced to create customized mobile-key-based solution to provide secure access to DFMG's rooftop sites. After the roll-out at the rooftop sites, DFMG will implement the intelligent, secure, and sustainable solutions from iLOQ for its radio towers in Germany. Founded in 2002 (as a subsidiary of Deutsche Telekom), Deutsche Funkturm (DFMG) is a key player in developing infrastructure for German mobile network operators, broadcasters, operators of radio relays, and the radio networks of authorities and other institutions. With more than 35,000 antenna sites, it is the largest operator of radio infrastructure in Germany and the 3rd largest in Europe.

 

 

Quarterly Information

 

QUARTERLY INFORMATION

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Revenue

25,716

28,790

27,439

51,003

32,000

29,135

22,905

57,278

20,288

28,352

EBITDA

5,368

4,684

4,701

16,625

6,060

2,840

1,679

20,786

-3,098

4,027

EBITDA margin

21 %

16 %

17 %

33 %

19 %

10 %

7 %

36 %

-15 %

14 %

EBIT

3,083

2,405

2,414

13,952

3,542

305

-948

17,594

-5,835

963

EBIT margin

12 %

8 %

9 %

27 %

11 %

1 %

-4 %

31 %

-29 %

3 %

Operational Cash Flow

3,451

442

-2,372

7,065

7,753

-6,893

-3,639

12,295

10,433

-532

Operational Cash Flow %

13 %

2 %

-9 %

14 %

24 %

-24 %

-16 %

21 %

51 %

-2 %

Adjusted EBITDA

5,368

5,172

4,701

16,625

6,438

2,840

2,609

20,786

-3,098

4,027

Adjusted EBITDA margin

21 %

18 %

17 %

33 %

20 %

10 %

11 %

36 %

-15 %

14 %

 

 

Declaration of the Board

 

We confirm that, to the best of our knowledge, the condensed financial statements give a true and fair view of the Group’s assets, liabilities, financial position and results of operations for the period. We also confirm, to the best of our knowledge, that the management overview includes a fair review of important events that have occurred during the first half of 2024.

 

 

 

 

Espoo August 14, 2024

 

 

 

 

 

                                                     Heikki Hiltunen                                             Magnus Hammarstöm

                                                  President and CEO                                         Member of the Board

INCOME STATEMENT

 

CONSOLIDATED INCOME STATEMENT, IFRS

 

 

 

 

EUR Thousand

Q2 2024

Q2 2023

H1 2024

H1 2023

FY 2023

 

 

 

 

 

 

Revenue

28,352

29,135

48,640

61,135

141,318

Other income

3

0

8

0

35

 

0

0

 

 

 

Materials and services

-11,855

-14,228

-21,159

-27,399

-59,724

Employee benefit expenses

-6,907

-6,299

-15,934

-13,847

-26,908

Depreciation, amortisation and impairment losses

-3,063

-2,536

-5,801

-5,054

-10,873

Other operating expenses

-5,565

-5,767

-10,627

-10,988

-23,355

Operating profit

963

305

-4,872

3,847

20,493

 

 

 

 

 

 

Finance income

15

4

178

84

278

Finance cost

-844

-1,226

-4,092

-2,659

-6,330

Net financial expenses

-829

-1,221

-3,915

-2,575

-6,051

 

 

 

 

 

 

Profit (-loss) before taxes

134

-916

-8,787

1,271

14,442

 

 

 

 

 

 

Income taxes

159

12

417

-467

-3,338

 

 

 

 

 

 

Profit (loss) for the financial period

293

-905

-8,369

804

11,104

 

 

 

 

 

 

Items that may be subsequently reclassified to profit or loss

 

 

 

 

 

Translation differences

-11

-1

-59

9

25

 

 

 

 

 

 

Total comprehensive income

281

-906

-8,428

813

11,129

 

 

 

 

 

 

Earnings per share, undiluted (EUR)

2,929

-9,049

-83,692

8,041

111,039

Earnings per share, diluted (EUR)

2,929

-9,049

-83,692

8,041

111,039

 

BALANCE SHEET

 

CONSOLIDATED BALANCE SHEET, IFRS

 

 

 

EUR Thousand

June 2024

June 2023

Dec 2023

 

 

 

 

ASSETS

 

 

 

Non-current assets

 

 

 

Intangible assets

108,315

105,301

107,750

Goodwill

92,467

92,467

92,467

Property, plant and equipment

6,374

7,063

6,989

Deferred tax assets

485

409

395

Total non-current assets

207,642

205,241

207,601

 

 

 

 

 

 

 

 

Inventories

26,710

32,079

24,477

Trade and other receivables

18,725

21,103

36,908

Current tax receivables for the financial year

1,749

670

143

Cash and cash equivalents

4,906

2,350

7,397

Total current assets

52,089

56,202

68,925

 

 

 

 

Total assets

259,731

261,444

276,526

 

 

 

 

EQUITY & LIABILITIES

 

 

 

Equity

 

 

 

Share capital

80

80

80

Invested unrestricted equity fund

143,240

143,240

143,240

Translation difference

-26

-2

33

Retained earnings

19,317

17,741

27,972

Total equity

162,612

161,060

171,325

 

 

 

 

LIABILITIES

 

 

 

Non-current liabilities

 

 

 

Financial liabilities

54,607

54,938

54,979

Non-current lease liabilities

1,465

847

1,716

Non-current provisions

922

1,057

880

Deferred tax liabilities

15,943

16,816

16,316

Total non-current liabilities

72,938

73,658

73,891

 

 

 

 

Current liabilities

 

 

 

Short-term interest-bearing liabilities

1,387

4,003

5,062

Account payables and other liabilities

20,149

21,137

22,401

Current lease liabilities

1,575

1,447

1,597

Current provisions

824

100

386

Current tax liabilities

247

38

1,864

Total current liabilities

24,181

26,725

31,309

 

 

 

 

Total liabilities

97,119

100,384

105,201

 

 

 

 

Total equity and liabilities

259,731

261,444

276,526

 

STATEMENT OF CASH FLOWS

 

CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS

 

 

 

 

EUR Thousand

 

 

H1 2024

H1 2023

FY 2023

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOW FORM OPERATING ACTIVITIES

 

 

 

 

Profit (Loss) for the financial period

 

 

-8,369

804

11,104

Adjustments:

 

 

 

 

 

Depreciation and amortization

 

 

5,801

5,054

10,873

Unrealized exchange rate gains and losses

 

0

0

-306

Financial Income

 

 

-178

-84

-278

Financial Expense

 

 

4,092

2,659

6,330

Taxes

 

 

-417

467

3,338

Other adjustments

 

 

-370

0

-817

Change in Working Capital:

 

 

 

 

 

Change in trade and other receivables

 

 

18,183

8,919

-6,886

Change in inventory

 

 

-2,233

-5,962

1,640

Change in trade and other payables

 

 

-2,208

-3,634

-1,417

Change in provisions

 

 

480

-121

-12

Interest paid

 

 

-2,654

-2,222

-5,127

Interest received

 

 

10

0

35

Income tax paid

 

 

-3,218

-3,025

-4,117

Other financial items

 

 

-1,468

-91

-138

Net cash flow from operating activities (A)

 

7,450

2,765

14,223

 

 

 

 

 

 

Cash flow from investing activities

 

 

 

 

 

Payments from tangible assets sales

 

 

0

18

18

Investments in intangible assets

 

 

-4,936

-6,147

-12,892

Investments in tangible assets

 

 

-313

-1,113

-621

Net cash flow from investing activities (B)

 

-5,249

-7,242

-13,496

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

Payments of lease liabilities

 

 

-904

-880

-1,851

Withdrawals of short-term loans

 

 

1,325

3,942

8,365

Proceeds from short-term liabilities

 

 

-5,000

0

-3,365

Withdrawals of long-term loans

 

 

55,000

0

0

Payments of long-tem liabilities

 

 

-55,000

0

-62

Net cash flow from financing activities (C)

 

-4,579

3,062

3,087

 

 

 

 

 

 

CHANGE IN CASH AND EQUIVALENTS (A+B+C)

 

-2,379

-1,416

3,814

 

 

 

 

 

 

Cash and cash equivalents, in the beginning of period

 

7,397

4,087

4,087

Net effect of exchange rate changes on cash and cash equivalents

 

 

-113

-321

-504

Cash and cash equivalents, at the end of period

 

4,906

2,350

7,397

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

EUR thousand

Share capital

Share premium reserve

Reserve for invested non-restricted equity

Translation reserve

Retained earnings

Total

Equity on Jan 1, 2024

80

0

143,240

33

27,972

171,325

Adjustment for previous year's retained earnings

0

0

0

0

-286

-286

Comprehensive income

 

 

 

 

 

 

Profit for the financial year

0

0

0

-59

-8,369

-8,428

Total comprehensive income

80

0

143,240

-26

19,318

162,612

Equity on Jun 30, 2024

80

0

143,240

-26

19,318

162,612

 

 

EUR thousand

Share capital

Share premium reserve

Reserve for invested non-restricted equity

Translation reserve

Retained earnings

Total

Equity on Jan 1, 2023

80

0

143,240

8

17,658

160,986

Adjustment for previous year's retained earnings

0

0

0

0

-722

-722

Comprehensive income

 

 

 

 

 

 

Profit for the financial year

0

0

0

-9

804

795

Total comprehensive income

80

0

143,240

-1

17,740

161,059

Equity on Jun 30, 2023

80

0

143,240

-1

17,740

161,059

 

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

1. Reporting Entity

 

Capnor Weasel Bidco Oyj (the Company) is domiciled in Finland. These condensed interim financial statements for the quarter ended June 30, 2024 comprise the Company and its subsidiaries (together referred to as the ‘Group’)

 

2. Accounting Principles

 

The Group’s Interim Report for January-June 2024 has been prepared in line with IAS 34, ‘Interim Financial Reporting’ and should be read in conjunction with the Group’s financial statements for 2023, published on April 12, 2024. The Group has applied the same accounting principles in the preparation of this Interim Report as in its Financial Statements for 2023. The information presented in this Interim Report has not been audited.

 

3. Seasonality

 

The Group operates in an industry that sees seasonal changes in revenue. In a typical year, the first three quarters amount to approximately two thirds of the Group’s full-year revenue while the last quarter sees the revenue rise to amount to one third of the full-year revenue. Therefore, in a normalized year, the financial results of the fourth quarter can be expected to be stronger than compared to the first three quarters.

 

4. Segment reporting

 

Capnor Weasel Bidco Group is a Finnish group of companies. In addition to the parent company Capnor Weasel Bidco Oyj, iLOQ Group belongs to the Group. Industrial operations are in the iLOQ Group that offers solutions for electronical locking. iLOQ Group operates with a network business model in the manufacture and distribution of products. iLOQ Group’s products are sold through iLOQ’s distribution channel providing professional installation and maintenance services. iLOQ Group has subsidiaries in Sweden, Denmark, Norway, Germany, the Netherlands, France, Spain, Poland, Great Britain, Canada, Australia and United States. The Group's business operations are managed and monitored as one entity. Subsidiaries are sales organizations and their turnover consists of commission charges from the iLOQ Group's parent company. Based on the similarity of business operations, products, services and production process, the Group has only one operating segment. The Executive Board is iLOQ Group's chief operative decision maker. The Executive Board evaluates the performance of the company and the use of resources as a whole. Composition of the Group's turnover and geographical distribution is presented with the notes related to turnover. The Group has no external customers with net sales over 10% of the Group's total net sales. The Group's most significant non-current assets are located at the domicile state of the parent company.

 

5. Revenue

 

The revenue of Capnor Weasel Bidco Group consists of digital locking and access management systems. The Group's products consist of supplied locks and software as well as lock operation and maintenance services. The Group's customers are retailers and partners of locking products. Revenue is recognized when control over the goods or the service is transferred to the customer. Lock deliveries are recognized as revenue when control is transferred on the basis of the delivery of the products, when the risks and benefits have been transferred to retailers. EX Works Incoterms delivery term is generally used on the delivery of products. For one significant customer, performance obligation is satisfied at the time of the delivery, and for these deliveries Delivered Duty Paid Incoterms are applied. Revenue from maintenance and repair services is recognized over time as the customer receives the benefits simultaneously as the service is provided. Sales contracts are made with the regular payment terms. A yearly discount can be granted to customers for products sold.

The Group's revenue by geographical area is presented below.

 

REVENUE BY GEOGRAPHY

Q2

% of REV

Q2

% of REV

H1

% of REV

H1

% of REV

EUR thousand

2024

2023

2024

2023

Finland

9,938

35 %

8,910

31 %

15,171

31 %

18,640

30 %

Northern Europe excl Finland

7,877

28 %

7,548

26 %

13,445

28 %

16,365

27 %

Rest of the World

10,537

37 %

12,676

44 %

20,024

41 %

26,130

43 %

Total Sales  

28,352

100 %

29,135

100 %

48,640

100 %

61,135

100 %

 

The classification of revenue according to the timing of product deliveries and service production is presented below.

 

REVENUE

Q2

% of REV

Q2

% of REV

H1

% of REV

H1

% of REV

EUR thousand

2024

2023

2024

2023

Revenue is recognized at point in time 

26,791

94 %

28,167

97 %

45,887

94.3 %

59,310

97.0 %

Revenue is recognized over time 

1,561

6 %

968

3 %

2,753

5.7 %

1,824

3.0 %

Total Sales  

28,352

100 %

29,135

100 %

48,640

100 %

61,135

100 %

 

INTANGIBLE ASSETS

 

EUR thousand

Technology

Intangible Rights

Brand

Goodwill

Other Intangible assets

Customer relations

Work in progress

Total

Acquisition cost, Jan 1, 2024

85,742

2,253

12,865

92,467

4,200

12,142

17,501

227,170

Adjustments for previous financial periods

0

0

0

0

0

0

0

0

Transfer between items

5,492

0

0

0

36

0

-5,528

0

Additions

 

239

0

 

 

0

4,697

4,936

Acquisition cost, Jun 30, 2024

91,234

2,492

12,865

92,467

4,236

12,142

16,670

232,106

 

 

 

 

 

 

 

 

 

Accumulated depreciations and impairment Jan 1, 2024

17,733

722

3,480

0

1,737

3,281

0

26,953

Amortisation

2,600

148

429

0

360

405

429

4,370

Accumulated depreciations and impairment Jun 30, 2024

20,333

869

3,909

0

2,097

3,686

429

31,322

 

 

 

 

 

 

 

 

 

Carrying amount Jan 1, 2024

68,009

1,531

9,385

92,467

2,463

8,861

17,501

200,217

Carrying amount Jun 30, 2024

70,902

1,622

8,956

92,467

2,140

8,457

16,242

200,783

 

EUR thousand

Technology

Intangible Rights

Brand

Goodwill

Other Intangible assets

Customer relations

Work in progress

Total

Acquisition cost, Jan 1, 2023

83,066

1,728

12,865

92,412

2,767

12,142

9,246

214,224

Adjustments for previous financial periods

 

 

55

 

 

 

55

Transfer between items

1,470

 

 

 

687

 

-2,157

0

Additions

1,039

152

 

 

149

 

4,811

6,151

Acquisition cost, Jun 30, 2023

85,575

1,880

12,865

92,467

3,603

12,142

11,900

220,432

 

 

 

 

 

 

 

 

 

Accumulated depreciations and impairment Jan 1, 2023

12,634

461

2,622

0

849

2,472

0

19,039

Amortisation

2,361

119

429

0

312

405

0

3,626

Accumulated depreciations and impairment Jun 30, 2023

14,995

580

3,051

0

1,161

2,877

0

22,664

 

 

 

 

 

 

 

 

 

Carrying amount Jan 1, 2023

70,433

1,267

10,243

92,412

1,918

9,670

9,246

195,186

Carrying amount Jun 30, 2023

70,580

1,300

9,814

92,467

2,442

9,265

11,900

197,768

 

 

PROPERTY, PLANT AND EQUIPMENT

 

EUR thousand

Machinery and equipment

Work in progress

Other tangible assets

Cars

Premises

Total

Acquisition cost, Jan 1, 2024

6,501

773

458

3,063

5,840

16,635

      Additions in acquisition

0

0

0

0

0

0

Transfer between items

0

0

0

0

0

0

Additions

280

18

15

103

468

884

Deductions

0

-67

0

0

0

-67

Acquisition cost, Jun 30, 2024

6,781

723

473

3,166

6,308

17,451

 

 

 

 

 

 

 

Accumulated depreciations and impairment Jan 1, 2024

3,734

0

257

2,270

3,384

9,646

Amortisation

548

0

35

278

570

1,431

Accumulated depreciations and impairment Jun 30, 2024

4,283

0

292

2,548

3,954

11,077

 

 

 

 

 

 

 

Carrying amount Jan 1, 2024

2,767

773

200

793

2,456

6,989

Carrying amount Jun 30, 2024

2,498

723

180

618

2,354

6,374

 

 

Owned property, plant and equipment

 

 

 

Right-of-use assets

EUR thousand

Machinery and equipment

Work in progress

Other tangible assets

Cars

Premises

Total

Acquisition cost, Jan 1, 2023

5,862

811

438

2,587

4,325

14,022

      Additions in acquisition

 

 

 

 

 

0

Transfer between items

245

-245

 

 

 

0

Additions

96

1,017

20

7

55

1,195

Deductions

-15

-20

 

 

 

-35

Acquisition cost, Jun 30, 2023

6,188

1,563

458

2,594

4,380

15,182

 

 

 

 

 

 

 

Accumulated depreciations and impairment Jan 1, 2023

2,591

0

188

1,651

2,260

6,690

Amortisation

565

 

35

263

566

1,428

Accumulated depreciations and impairment Jun 30, 2023

3,156

0

223

1,914

2,826

8,118

 

 

 

 

 

 

 

Carrying amount Jan 1, 2023

3,271

811

250

937

2,065

7,334

Carrying amount Jun 30, 2023

3,032

1,563

235

680

1,554

7,063

 

RELATED PARTY TRANSACTIONS

 

The Group’s related parties consist of parent company iLOQ Oy and its subsidiaries. In addition, related parties include iLOQ-Group’s Board members as key management personnel, the CEO and members of the Group management, as well as entities that are under the control of key management personnel and their family members. There were no related party transactions during the reported period.

 

CONTINGENT LIABILITIES

 

COLLATERALS AND CONTINGENT LIABILITIES

 

 

 

 

EUR thousand

 

H1 2024

H1 2023

FY 2023

Contingent liabilities

 

 

 

 

Credit facility

 

30,000

15,000

15,000

Lease guarantee

 

146

203

204

Delivery guarantee

 

600

17

664

Corporate credit card

 

110

122

140

Total

 

30,856

15,374

16,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EUR thousand

 

H1 2024

H1 2023

FY 2023

Collateral given for own commitments

 

160,000

155,000

155,000

Collateral given on behalf of others

 

 

 

 

Collateral

 

0

0

0

Guarantee

 

0

0

0

Total

 

160,000

155,000

155,000

 

 

Definitions of alternative performance measures

 

  1. EBITDA = EBIT before depreciation, amortization and impairments

 

  1. Operational Cash Flow = EBITDA + Change in trade and other receivables + Change in inventory + Change in trade and other payables + Change in provisions + Investments in intangible assets + Investments and Payments in tangible assets. Operational Cash Flow is used internally by the group to follow EBITDA which takes into account investments and change in working capital

 

  1. Operational Cash Flow % = Operational Cash Flow / Revenue

 

  1. Adjusted EBITDA, Adjusted EBIT & Adjusted Operational Cash Flow = Same as above but excluding an impact from the IT Salonen transaction, the brand renewal and the iLOQ 20 years anniversary events, which have been treated as items affecting comparability. Year 2023  EBITDA, EBIT & Operational Cash Flow included an impact from the IT Salonen transaction and the brand renewal together with costs related to iLOQ 20 years anniversary, which have been treated as items affecting comparability. The adjustment related to brand renewal in Q1 2023 was 378 thousand. The adjustment related to IT Salonen acquisition was 60 thousand and iLOQ 20 years anniversary events 870 thousand euros. Both took place in Q3 2023. These costs have been excluded in the Adjusted EBITDA, EBIT and Operational Cash Flow figures.

 

 

CONTACT

 

Additional information about the company can be found on the corporate website www.iloq.com. The company can be contacted by e-mail, info@iloq.com

 

For questions concerning this report please contact:

 

Heikki Hiltunen

CEO and President

Heikki.Hiltunen@iloq.com

 

Timo Pirskanen

CFO

Timo.Pirskanen@iloq.com

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