REPORT OF THE BOARD OF DIRECTORS
Eezy
financial
review
2021
Contents
Report of the Board of Directors ........................... 4–11
Key figures .............................................. 12–14
Consolidated financial statements (IFRS) ................. 15–58
Parent company financial statements .................... 59–70
Signatures to the Financial Statements and Report
of the Board of Directors .................................... 71
Auditor’s report ......................................... 72–75
Board of Directors ......................................... 76
Management Team ........................................ 77
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REPORT OF THE BOARD OF DIRECTORS
Report of the Board of Directors
Market review
The HR services market relevant to Eezy’s business
includes staffing services, light entrepreneurship
services and selected professional services. Markets
are estimated to have contracted temporarily by
15–25% and to have already recovered to near the
previous levels. Due to the working life megatrends and
the increased need for flexible workforce we expect
the markets to continue on growth track.
According to an estimate by management, the size
of the entire HR services market in Finland was EUR 3
billion in 2021, of which the staffing services were EUR
2.4 billion. The market size of the relevant recruitment
services was somewhat over EUR 100 million. The
market size of light entrepreneurship services has been
estimated to be approx. EUR 250 million.
According to The Private Employment Agencies
Association (HPL), the revenue of the largest companies
in the staffing service market increased 26% in
November and 7% in January–November compared
to last year. According to HPL, the economic outlook
in staffing services is good.
The management estimates that also the
professional services market is growing again. In the
light entrepreneurship services market, the competition
has increased due to new actors.
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.
Corona effects
Corona virus has strongly affected our customers and
us since spring 2020. The progress of vaccinations and
subsequent easing of restrictions during summer 2021
turned the business back to growth.
Corona’s effects can be clearly seen in the industrial
and construction sectors, which normally generate
half of our revenue. The sector as whole has recovered
well and enjoys good demand. Importing foreign labor
is still difficult.
The negative impact has been largest in the Horeca
sector, which normally generates about one quarter
of our revenue. The volumes strongly picked up during
the summer and autumn, but weakened again in
December due to Corona restrictions.
Volumes in the retail sector have been mildly growing.
The Corona spike caused by the Omicron variant
has since December significantly affected the Horeca
sector.
Possible sick leaves can increase our cost level.
The role of workforce availability has increased
again, like before Corona. Workforce availability
problems are expected to grow on the Horeca sector,
but challenges are found also on other sectors.
Lengthened crisis may increase customers’ financial
difficulties, which can lead to credit losses. Our own
liquidity is currently good.
Revenue
OCTOBERDECEMBER
Eezy’s revenue amounted to EUR 60.5 million (43.4),
increasing by 39% compared to the corresponding
period in the previous year.
Revenue increased by 37% in the staffing service
area. In the professional services area revenue
increased by 82% mainly due the strengthening of
the market. In the light entrepreneurship service area
revenue decreased by 5%.
Eezy’s chain-wide revenue amounted to EUR 89.7
million (67.9) increasing by 32%. Franchise fees totaled
EUR 2.0 million (1.7). The invoicing volume of light
entrepreneurship services was EUR 11.6 million (10.9).
Revenue increased by 37% in the Work and Talent
business unit due the Corona recovery in staffing and
good growth in recruitment services. In the Growth and
Renewal business unit revenue increased by 75% due
to both the Corona recovery and the Valmennuskeskus
acquisition.
JANUARYDECEMBER
Eezy’s revenue amounted to EUR 203.3 million (190.6),
increasing by 7% compared to the previous year.
Revenue in the staffing service area increased by
3%. Growth was limited by the small volumes in Horeca
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REPORT OF THE BOARD OF DIRECTORS
Revenue by service area
EUR million 10–12/2021 10–12/2020 Change % 1–12/2021 1–12/2020 Change %
Staffing services 51.5 37.5 37% 178.1 173.4 3%
Franchise fees 2.0 1.7 20% 7.1 6.1 16%
Professional services 6.3 3.5 82% 15.7 8.4 87%
Light entrepreneurship
services 0.7 0.7 -5% 2.5 2.7 -8%
Total 60.5 43.4 39% 203.3 190.6 7%
Revenue by business unit
EUR million 10–12/2021 10–12/2020 Change % 1–12/2021 1–12/2020 Change %
Work and Talent 55.7 40.7 37% 193.1 184.4 5%
Growth and Renewal 4.7 2.7 75% 10.1 6.2 64%
Total 60.5 43.4 39% 203.3 190.6 7%
and industrial sectors in the early part of the year. In the
professional services area revenue increased by 87%
due to both the acquisitions done in the previous year
and the organic growth. In the light entrepreneurship
service area revenue decreased by 8%.
Eezy’s chain-wide revenue amounted to EUR 305.5
million (282.6) increasing by 8%. Franchise fees totaled
EUR 7.1 million (6.1). The invoicing volume of light
entrepreneurship services was EUR 41.4 million (41.9).
Revenue increased by 5% in the Work and Talent
business unit due to weak early part of the year. In the
Growth and Renewal business unit revenue increased
by 64% due to both the Corona recovery and the
acquisitions done.
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REPORT OF THE BOARD OF DIRECTORS
Result
OCTOBERDECEMBER
EBITDA was EUR 5.3 million (3.4). Operating profit was
EUR 3.2 million (1.5).
Total depreciation, amortization and impairment was
EUR 2.1 million, of which EUR 1.0 million was acquisition
related amortization. The result before taxes was EUR
2.8 million (1.0) and the result for the period was EUR
2.2 million (0.8). Earnings per share was EUR 0.08 (0.02).
JANUARYDECEMBER
EBITDA was EUR 19.5 million (13.5). Operating profit was
EUR 11.8 million (5.6). Negative impact of Corona was
visible in all business areas in the early part of the year.
Profitability improved toward the end of the period, as
the society normalized along the vaccinations.
Other operating income includes approx. EUR
1.7 million positive impact from change in light
entrepreneurship service fee’s VAT handling and the
Corona subsidy from State treasury totaling EUR 1.0
million.
Total depreciation, amortization and impairment was
EUR 7.7 million, of which EUR 4.0 million was acquisition
related amortization. The result before taxes was EUR
10.3 million (4.0) and the result for the period was EUR
8.1 million (3.2). Earnings per share was EUR 0.31 (0.11).
Financial position and cash flow
Eezy’s consolidated balance sheet on 31 December
2021 amounted to EUR 206.8 million (205.2), of which
equity made up EUR 109.1 million (103.7).
As of 31 December 2021, the Group has liabilities to
credit institutions amounting to EUR 48.3 million (51.9).
of which EUR 43.9 (47.6) was non-current.
Cash balance on 31 December 2021 was EUR 6.1
million (15.4). The Group has overdraft facilities in
total of EUR 10.0 million, all of which were unused on
31 December 2021. The remaining positive effect from
relaxed due dates on pension payments and taxes was
approx. EUR 1 million.
Equity ratio stood at 52.8% (50.6%). The Group’s net
debt including IFRS16 leasing items on 31 December
2021 amounted to EUR 48.7 million (42.4). Net debt
excluding IFRS16 leasing items was EUR 44.2 million
(36.4). The net debt/EBITDA ratio was 2.4 x (3.1 x).
Operative free cash flow amounted to EUR 7.4 million
(2.2) in October–December and EUR 8.3 million (21.3)
in January–December. Tax and pension payments of
approx. EUR 9 million, related to Corona actions in
2020, decreased cash flow as planned.
Investments and acquisitions
Eezy’s investments in subsidiary shares presented in the
cash flow statement amounted to EUR 4.6 million (1.5) in
October–December and EUR 4.6 million (2.1) in January–
December. Investments include acquisitions of Triton
Henkilöstöpalvelut Oy and KK Valmennuskeskus Oy
as well as an additional purchase price relating to an
earlier acquisition.
On 1 October 2021 Eezy strengthened its recruitment
of labour from outside Finland through its purchase of
Triton Henkilöstöpavelut Oy (current Eezy Triton Oy),
which imports labour to Finland from several eastern
European countries. Triton was established in 2018 and
revenue stands at approx. EUR 4 million.
Eezy strengthened its offering to the public sector
by acquiring KK Valmennuskeskus Oy (current Eezy
Valmennuskeskus Oy) on 1 November 2021. The revenue
of Valmennuskeskus is approx. EUR 10 million.
Eezy sold its Swedish subsidiary VMP-Group Sweden
AB to Palm & Partners Bemanning AB on 4 January
2021. The transaction did not significantly impact
Eezy’s result in 2021.
Investments in tangible and intangible assets totaled
EUR0.4 million (0.8) in October–December and EUR
1.7 million (2.1) in January–December. Investments in
tangible and intangible assets were mainly related to
IT investments.
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REPORT OF THE BOARD OF DIRECTORS
Employees
Eezy employs people in Group functions and as staffed
employees assigned to customer companies. In
October–December, Eezy employed an average of 437
(359) and in January–December 374 (370) on average
people in Group functions and on average 3860 (2 722)
in October–December and 3 320 (3 309) in January–
December 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
andorganisation
The company announced in August changes to
the composition of the management team and the
organization.
Going forward, the business units are:
• The Work and Talent business unit offers services
for staff leasing, recruitment, headhunting and
relocation, through our own business units as
well as through our franchise units.
• The Growth and Renewal business unit offers
organisational and management research
and development services as well as training
services. It also develops and sells services
and platforms that promote the renewal of the
working life, such as light entrepreneurship
services.
Management team of the Eezy group:
• Sami Asikainen, CEO
• Hannu Nyman, CFO
• Pasi Papunen, Director, Growth and Renewal
• Thomas Hynninen, Director, Work and Talent
• Hanna Lehto, Director, People and Culture
• Isa Merikallio, Content Director
• Päivi Salo, CDO
On 8 December 2021, Pasi Papunen was appointed as
an executive vice president.
Shares and shareholders
On 31 December 2021, Eezy Plc had 25 046 815
(24849375) registered shares. In the review period, in
total 197 440 new shares were issued, of which 45 843
for completing the Eezy Triton acquisition and 151 597
for completing the Eezy Valmennuskeskus acquisition.
The company holds no treasury shares. The company
had 2 627 (2 625) shareholders, including nominee
registered shareholders.
In January–December 2021, a total of 4 046 053
(3305350) shares were traded and the total trading
volume was EUR 23.7 million (15.6). During the period,
the highest quotation was EUR 7.20 (7.35) and the lowest
EUR 4.90 (2.58). The volume-weighted average price of
the share was EUR 5.85 (4.73). The closing price of the
share at the end of December was EUR 5.98 (5.90) and
the market value stood at EUR 149.8 million (146.6).
On 31 December 2021, the members of the Board
of Directors and the members of the management
team owned a total of 1237 129 (1433 171) Eezy shares,
corresponding to approximately 4.9% (5.8%) 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.
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REPORT OF THE BOARD OF DIRECTORS
Ten largest shareholders as of 31 December 2021:
Shareholder Shares %
1. Sentica Buyout V Ky 6,105,458 24.38
2. NoHo Partners Oyj 5,864,745 23.42
3. Meissa-Capital Oy 3,223,071 12.87
4. Evli Finnish Small Cap Fund 1,121,699 4.48
5. OP Finland Micro Cap Fund 572,757 2.29
6. S-Bank Fenno Equity Fund 421,062 1.68
7. Asikainen Sami 414,350 1.65
8. Säästöpankki Small Cap Fund 322,200 1.29
9. Ilmarinen Mutual Pension 274,261 1.09
10. Laine Capital Oy 256,785 1.03
10 largest in total 18,576,388 74.17
Nominee-registered 2,227,952 8.90
Others 4,242,475 16.94
Total 25,046,815 100.00
The company has received flagging notices during
the period: The ownership of NoHo Partners Plc
has decreased below 25%, and the ownership of
Handelsbanken Fonder AB has exceeded 5%.
Governance
The Corporate Governance Statement and the
Remuneration Report are issued separately from
the Report of the Board of the Directors, and the
documents are available at the company’s website.
ANNUAL GENERAL MEETING
The Annual General Meeting (AGM) was held on 13
April 2021. The AGM adopted the Financial Statements
for the year 2020.
The AGM decided that for year 2020 a dividend of
EUR0.10 per share is distributed by a resolution of the
general meeting. The dividend, EUR 2.5 million in total,
was paid on 22 April 2021. In addition, the board of
directors was authorised to later decide on a possible
dividend of max. EUR 0.05 per share. On 8 December
2021, the board of directors decided on using the
authorisation given by the AGM. The dividend of EUR
0.05 per share, EUR 1.3 million in total, was paid on 17
December 2021. The total dividend from year 2020 has
been EUR 0.15 per share.
The AGM elected eight members to the Board of
Directors. Tapio Pajuharju, Kati Hagros, Liisa Harjula,
Timo Laine, Timo Mänty, Paul-Petteri Savolainen, Jarno
Suominen and Mika Uotila were re-elected as members
of the Board of Directors.
The members of the board of directors will be paid
monthly remuneration EUR 4,000 per month for the
chairperson of the board and EUR 2,000 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 EUR300 for each committee
meeting.
Authorized Public Accountant KPMG Oy Ab was re-
elected as the company’s auditor. KPMG Oy Ab has
informed that Authorized Public Accountant Mr. Esa
Kailiala will act as the principal auditor.
In the organization meeting held on the same day,
the Board of Directors elected Tapio Pajuharju as its
Chairman. Liisa Harjula was elected as Chairman of
the Audit Committee and Jarno Suominen and Kati
Hagros as members of the Audit Committee.
VALID AUTHORIZATIONS
The authorizations given by the AGM on 13 April 2021
are described in detail in the stock exchange release
about the AGM’s decisions.
The AGM authorized the board of directors to decide
on the distribution of dividends from the company’s
unrestricted equity so that the amount of dividends to
be distributed does not exceed a total of EUR 0.05 per
share. The authorization was used on 8 December 2021.
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 2,400,000 shares. The shares are
repurchased in trading organized by Nasdaq Helsinki
Oy at a price formed in public trading on the date of
repurchase. The authorisation is valid until the end of
the annual general meeting of 2022, however, for a
maximum of 18 months. The authorization is unused.
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REPORT OF THE BOARD OF DIRECTORS
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 4,800,000 shares.
The authorisation is valid until the end of the annual
general meeting of 2022, however, for a maximum of
18 months. Based on the authorization, 45,843 new
shares have been issued for the Eezy Triton acquisition
and 151,597 shares for the Eezy Valmennuskeskus
acquisition.
Long-term incentive plan
In November, Eezy Plc’s Board of Directors resolved to
amend the terms of the long-term incentive plan for
the company’s key employees due to the changes in
the company’s business environment caused by the
Coronavirus pandemic. The terms of the long-term
incentive plan was amended by extending the duration
of the long-term incentive plan by one year until 2026
and adding a new earning period.
The establishment of the long-term incentive plan
has been announced on 18 December 2019. No shares
were issued for the first and second earning period.
Eezy Plc’s Board of Directors has resolved on the third
earning period of the long-term incentive plan for the
company’s key employees. The third earning period is
13 months, starting on 1 December 2021, and ending
on 31December 2022. The reward criteria for the third
earning period are based on Eezy Plc’s revenue and
operating profit margin. There are 18 participants in
the long-term incentive plan’s third earning period. A
maximum of 246,000 reward shares could be awarded
for the third earning period.
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.
Corona virus and the restrictions related to it may
continue to weaken the general economic conditions
in Finland. This may negatively affect Eezy by
customers’ businesses stopping or disturbing, or by
customers’ financial difficulties. The virus can also
directly affect Eezy through the sick leaves of either
staffed employees or employees in group functions.
Poor economic development in Finland may have an
indirect 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.
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 2022
Eezy expects revenue to grow and EBIT-% to increase
during 2022. The guidance will be made more precise
during the year.
Dividend proposal
The parent company’s distributable funds in the
financial statement on 31 December 2021 was EUR 125.1
million, of which profit for the financial period was EUR
3.2 million. Board of Directors proposes a dividend of
EUR 0.15 per share, of which EUR 0.10 will be paid in April
and EUR 0.05 in October.
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REPORT OF THE BOARD OF DIRECTORS
Statement of non-financial
information
Eezy’s business
The Eezy Group consists of the parent company, Eezy
Plc, and its subsidiaries. Eezy’s operations are divided
into two units: the Work and Talent business unit and
the Growth and Renewal business unit.
The Work and Talent business unit provides staffing
and recruitment services to customers and employees.
In staffing, Eezy serves corporate customers, with the
employee being in an employment relationship with
the staffing company but working for the customer
company for a specified period of time. Eezy offers
staffing services through its own units as well as
through franchisees. Eezy’s recruitment services
include headhunting, aptitude assessments and
relocation services.
The Growth and Renewal business unit provides
research, training and development services for
companies’ personnel as well as management
consulting and coaching services. The unit also
includes tutoring services for upper secondary school
students and university students as well as employment
services ranging from training services to coaching,
integration, guidance and rehabilitation services.
Eezy’s light entrepreneurship services enable private
individuals to operate as independent entrepreneurs
without having to start their own company, by invoicing
their customers through Eezy’s service.
Eezy’s extensive range of services responds to
the changing needs of working life in Finland. Eezy’s
diverse offering enables the company to serve as
a comprehensive HR partner to customers and
individuals.
Environment
Eezy’s operations do not involve significant
environmental considerations. The direct environmental
impact of Eezy’s services is estimated to be low due
to the nature of the company’s business operations.
In its internal operations, Eezy has a strong focus on
the themes of sustainable development by means of
harmonised recycling policies and by placing emphasis
on eco-friendly choices in the company’s policies
concerning work-related travel, for example.
Social and personnel-related issues
Eezy aims to help employers and employees succeed
in the changing world of work. Eezy’s business, growth
and success are based on highly competent personnel,
including both the Group’s direct personnel and staffed
employees. In addition to the continuous development
of personnel competence, Eezy has a strong focus on
promoting well-being.
In all of its operations, Eezy observes the rules of fair
working life, collective agreements and applicable
legislation. Eezy engages in cooperation with trade
unions, the public sector and educational institutions,
and Eezy also looks after the occupational safety of
staffed employees in cooperation with customers.
Eezy plays an important role in preventing
social exclusion. Eezy works actively together with
Employment and Economic Development Offices and
various employment promotion projects. Eezy provides
advice and training to immigrants on questions
concerning working life, offers integration services and
is a significant employer of young people.
The central themes of Eezy’s HR policy are well-
being at work and occupational safety. Eezy trains
and coaches its employees to facilitate their
professional development. Well-being at work is
measured by regular job satisfaction surveys and by
monitoring sickness absence rates. Eezy has an active
occupational health and safety committee that is
responsible for occupational safety and works together
with customer companies to develop occupational
safety. Occupational accident monitoring is carried
out together with the occupational health care
provider on the basis of accident statistics with the aim
of improving occupational safety.
Respect for human rights and the
prevention of corruption and bribery
During the year under review, Eezy introduced a
Whistleblowing channel to facilitate the external
and internal reporting of suspected violations in
accordance with the EU’s Whistleblower Directive.
Eezy respects and observes human rights. Employees
and jobseekers are not discriminated against on any
10
REPORT OF THE BOARD OF DIRECTORS
grounds. With regard to foreign labour, Eezy confirms
that foreign workers have the right to work and
supports the prevention of trafficking in human beings.
Eezy does not tolerate any form of harassment or
workplace bullying. Eezy has not been informed of any
human rights violations related to its operations during
the year under review or the financial year preceding it.
Eezy has established a data protection and data
security organisation based on the EU’s General Data
Protection Regulation (GDPR) and the company has
operating processes in place to ensure appropriate
data protection and data security.
Eezy is committed to preventing all forms of
corruption, including extortion and bribery. No favours,
gifts or benefits are offered or received that could
reasonably be expected to influence decision-making
within the company. The personnel have the opportunity
to report violations and suspected misconduct through
a separate Whistleblowing channel or by reporting
such incidents to their supervisor or the company’s
senior management. Eezy has not received any reports
of violations or suspected misconduct during the year
under review or the financial year preceding it.
Helsinki, 16 February 2022
Eezy Plc
Board of Directors
11
KEY FIGURES
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.
Key figures, their calculation
and reconciliations
Key figures
EUR thousand, unless otherwise specified
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Change
%
1 Jan–31 Dec
2019
1 Jan–31 Dec
2018
Key figures for income statement
Revenue 203,328 190,637 7% 169,784 81,698
EBITDA 19,492 13,495 44% 12,586 10,070
EBITDA margin, % 9.6% 7.1% - 7.4% 12.3%
EBIT 11,812 5,565 112% 8,022 8,154
EBIT margin, % 5.8% 2.9% - 4.7% 10.0%
Earnings per share, undiluted, EUR 0.31 0.11 - 0.25 0.38
Earnings per share, diluted, EUR 0.30 0.11 - 0.25 -
Weighted average number of outstanding shares, pcs 24,883,655 24,849,375 - 18,296,109 10,559,819
Weighted average number of outstanding shares,
diluted, pcs 25,081,134 24,997,332 - 18,301,372 -
Number of outstanding shares at the end
of reporting period, pcs 25,046,815 24,849,375 - 24,849,375 14,799,198
Key figures for balance sheet
Net debt 48,702 42,424 - 56,513 14,023
Net debt excluding IFRS16 44,200 36,440 - 51,887 11,373
Net debt / EBITDA (net leverage) 2.4 x
1
2.9 x
1
- 2.7 x
1
1.3 x
Gearing, % 44.6% 40.9% - 55.5% 27.6%
Equity ratio, % 52.8% 50.6% - 48.6% 52.8%
Equity per share, EUR 4.36 4.17 - 4.10 3.43
Key figures for cash flow
Operative free cash flow 8,295 21,267 - 13,061 9,843
Purchase of tangible and intangible assets -1,688 -2,096 - -1,691 -667
Acquisition of subsidiaries, net of cash acquired -4,609 -2,082 - -11,417 -7,937
Operative key figures
Chain-wide revenue, EUR million 305.5 282.6 8% 285.6 207.4
Franchise-fees, EUR million 7.1 6.1 16% 7.8 8.9
Light entrepreneurship invoicing volume, EUR million 41.4 41.9 -1% 49.9 46.1
1
EBITDA is based on estimated combined pro forma EBITDA of last 12 months.
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.
12
KEY FIGURES
Reconciliation of Certain Alternative Performance Measures
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
1 Jan–31 Dec
2019
1 Jan–31 Dec
2018
EBITDA
EBIT 11,812 5,565 8,022 8,154
Acquisition related amortization
1
4,045 3,914 1,645 16
Other depreciation, amortization and impairment losses 3,636 4,016 2,919 1,900
Total depreciation, amortization and impairment losses 7,680 7,929 4,564 1,916
EBITDA 19,492 13,495 12,586 10,070
Operative free cash flow
Cash flows from operating activities before financial items
andtaxes 9,982 23,363 14,752 10,510
Purchase of tangible and intangible assets -1,688 -2,096 -1,691 -667
Operative free cash flow 8,295 21,267 13,061 9,843
1
The acquisition related amortization comprises the amortization made on the recognized fair value adjustments arisen from business combinations.
13
KEY FIGURES
Calculation of key figures
Key figures for income statement
EBITDA = Operating profit + Depreciation, amortization and impairment losses
EBITDA margin, % =
EBITDA
Revenue
x 100
Operating profit (EBIT) = Operating profit
Operating profit margin, % =
Operating profit
Revenue
x 100
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 the 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
leverage)
=
Net debt
EBITDA
x 100
Gearing =
Net debt
Equity
x 100
Equity ratio =
Equity
(Total equity and liabilities − advances received)
x 100
Equity per share =
Equity
Number of outstanding shares at the end of reporting period
x 100
Cash flow key figures
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
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) + self-employment 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
14
KEY FIGURES
15
Eezy
consolidated
financial
statements
2021
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of
comprehensive income (IFRS)
EUR thousand Note 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Revenue 3 203,328 190,637
Other operating income 4 3,070 1,330
Share of result of equity accounted investments - -1
Materials and services 5 -6,059 -4,444
Personnel expenses 6, 7 -165,576 -155,124
Other operating expenses 9, 10 -15,270 -18,904
Depreciation, amortization and impairment losses 8 -7,680 -7,929
Operating profit 11,812 5,565
Financial income 11 149 150
Financial expense 11 -1,614 -1,702
Financial income and expenses 11 -1,465 -1,552
Profit (loss) before taxes 10,348 4,014
Income taxes 12 -2,266 -819
Profit (loss) for the period 8,081 3,195
Profit attributable to:
Owners of the parent company 7,601 2,680
Non-controlling interests 480 515
Profit (loss) for the period 8,081 3,195
Earnings per share attributable to the owners of the parent
company:
Earnings per share, basic (EUR) 24 0.31 0.11
Earnings per share, diluted (EUR) 24 0.30 0.11
Other comprehensive income:
Items that will not be reclassified to profit or loss
Changes in the fair value of share investments
19 3 -78
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations
Other comprehensive income for the period, net of tax 52 -69
Total comprehensive income for the period 8,134 3,126
Total comprehensive income attributable to:
Owners of the parent company
Non-controlling interests
Total comprehensive income for the period 8,134 3,126
The notes are an integral part of the consolidated financial statements.
16
CONSOLIDATED FINANCIAL STATEMENTS
EUR thousand Note 31 Dec 2021 31 Dec 2020
ASSETS
Non-current assets
Goodwill 16 134,054 127,938
Intangible assets 16 28,314 29,731
Property, plant and equipment 17 5,095 6,984
Investments in shares 19 240 586
Receivables 21, 27 1,152 1,227
Deferred tax asset 20 201 374
Total non-current assets 169,056 166,841
Current assets
Trade receivables and other receivables 21, 27 31,649 20,851
Current income tax receivables 14 0
Cash and cash equivalents 22 6,106 15,447
Total current assets 37,769 36,298
Assets classified as held for sale 15 - 2,096
Total assets 206,825 205,235
EQUITY AND LIABILITIES
Equity attributable to the owners of the parent company
Share capital 23 80 80
Reserve for invested unrestricted equity 23 107,876 106,572
Fair value reserve 23 - -3
Translation differences 23 - -50
Retained earnings 23 -1,857 -5,714
Total equity attributable to the owners of the parent company 106,099 100,885
Non-controlling interests 3,037 2,859
Total equity 109,136 103,744
Non-current liabilities
Loans from financial institutions 25, 27 43,924 47,630
Lease liabilities 25, 27 2,527 3,998
Other liabilities 26, 27 1,944 66
Deferred tax liability 20 5,190 5,504
Total non-current liabilities 53,586 57,198
Current liabilities
Loans from financial institutions 25, 27 4,400 4,247
Lease liabilities 25, 27 1,975 1,986
Trade payables and other liabilities 26, 27 35,499 34,630
Current income tax liabilities 2,228 1,679
Total current liabilities 44,102 42,542
Liabilities directly associated with assets classified as held for sale 15 - 1,752
Total liabilities 97,688 101,491
Total equity and liabilities 206,825 205,235
The notes are an integral part of the consolidated financial statements.
Consolidated balance sheet
(IFRS)
17
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated cash flow
statement (IFRS)
EUR thousand Note 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Cash flows from operating activities
Customer payments received 196,950 204,069
Cash paid to suppliers and employees -186,967 -180,705
Cash flows from operating activities before financial items and taxes 9,982 23,363
Interest paid -1,497 -1,627
Interest received 64 66
Other financial items 67 52
Income taxes paid -2,497 -397
Loans granted - -21
Proceeds from repayments of loans 43 142
Net cash flows from operating activities 6,163 21,579
Cash flows from investing activities
Purchase of tangible and intangible assets 16, 17 -1,688 -2,096
Proceeds from sale of tangible assets 17 231 332
Acquisition of subsidiaries, net of cash acquired 14 -4,609 -2,082
Disposal of subsidiaries 14 500 -
Disposal of equity accounted investments 30 - 135
Proceeds from sale of investments 311 41
Proceeds from repayments of loans 190 8
Net cash flows from investing activities -5,065 -3,663
Cash flows from financing activities
Change in non-controlling interests -41 -118
Repayment of current borrowings 25 -4,328 -3,204
Repayment of non-current borrowings 25 - -79
Payment of lease liabilities 25 -2,050 -1,998
Dividends paid 23 -4,021 -2,779
Net cash flows from financing activities -10,439 -8,177
Net change in cash and cash equivalents -9,341 9,739
Cash and cash equivalents at the beginning of the financial year 15,447 5,710
Effects of exchange rate changes - -1
Cash and cash equivalents at the end of the financial year 6,106 15,447
The notes are an integral part of the consolidated financial statements.
18
CONSOLIDATED FINANCIAL STATEMENTS
Changes in equity (IFRS)
Attributable to the owners of the parent
EUR thousand Note
Share
capital
Reserve for
invested
unrestricted
equity
Fair
value
reserve
Translation
differences
Retained
earnings Total
Non-
controlling
interests
Total
equity
Equity 1 Jan 2021 80 106,572 -3 -50 -5,714 100,885 2,859 103,744
Profit (loss) for the period - - - - 7,601 7,601 480 8,081
Other comprehensive
income:
Change in fair value - - 3 - - 3 - 3
Translation differences - - - 50 - 50 - 50
Other comprehensive
income for the period, net
of tax - - 3 50 - 52 - 52
Total comprehensive income - - 3 50 7,601 7,653 480 8,134
Transactions with owners
Dividend distribution 23 - - - - -3,737 -3,737 -284 -4,021
Share issue 23 - 1,305 - - - 1,305 - 1,305
Changes in non-
controlling interests 29 - - - - -23 -23 -18 -41
Share based payments 7 - - - - 16 16 - 16
Total equity 31 Dec 2021 80 107,876 - - -1,857 106,099 3,037 109,136
Equity 1 Jan 2020 80 106,572 75 -53 -5,864 100,809 1,024 101,833
Profit (loss) for the period - - - - 2,680 2,680 515 3,195
Other comprehensive
income:
Change in fair value - - -78 - - -78 - -78
Translation differences - - - 4 5 8 - 8
Other comprehensive
income for the period,
net of tax - - -78 4 5 -69 - -69
Total comprehensive income - - -78 4 2,685 2,611 515 3,126
Transactions with owners
Dividend distribution 23 - - - - -2,485 -2,485 -294 -2,779
Changes in non-
controlling interests 29 - - - - -59 -59 1,613 1,554
Share based payments 7 - - - - 9 9 - 9
Other changes - - - - 1 1 1 2
Total equity 31 Dec 2020 80 106,572 -3 -50 -5,714 100 885 2,859 103,744
The notes are an integral part of the consolidated financial statements.
19
CONSOLIDATED FINANCIAL STATEMENTS
1. General information and basis
ofpreparation
GENERAL INFORMATION
successful work experiences by offering staffing
services and light entrepreneurship services as well as a
wide range of professional services for the working life.
(“parent company”, “Eezy Plc”), the parent
company of Eezy Group (“Eezy”, “Group”) is a Finnish
with a business ID of 2854570-
7. The domicile of Eezy Plc is in
registered postal address is
A copy of the consolidated financial statements is
available at the website www.eezy.fi.
The Board of Directors of Eezy Plc has approved the
publication of these financial statements in its meeting
on 16 February 2022. According to the Finnish Limited
Liability Companies Act, shareholders are authorized
to approve or reject the financial statements in the
Annual General Meeting held after the publication.
The Annual General Meeting can also decide on the
amendments of the financial statements.
Eezy Group consist of the parent company Eezy Plc
and its subsidiaries.
BASIS OF PREPARATION
These consolidated financial statements have been
prepared in accordance with International Financial
Reporting Standards (IFRS) and interpretations
issued by the SIC and IFRIC interpretations in force
as at 31 December 2021. International Financial
Reporting Standards refer to the standards and their
interpretations approved for application in the EU
in accordance with the procedure stipulated in the
EU Regulation (EC) No. 1606/2002 and embodied in
the Finnish Accounting Act and provisions under it.
The notes to the consolidated financial statements
Notes to the Consolidated
Financial Statements
have also been prepared in accordance with the
requirements in Finnish accounting legislation and
Community law that complement IFRS regulations.
The consolidated financial statements are prepared
for a calendar year, which is the financial period of
the parent company and the Group companies. The
consolidated financial statements are presented
in thousands of euros, unless otherwise stated.
Additionally, the sum of individual numbers may
deviate from the presented sum figure due to rounding
differences. The comparative prior year information
is presented in brackets after the information for the
current financial year. The consolidated financial
statements are presented in euros, which is the parent
company’s functional and presentation currency.
The information in the consolidated financial
statements is based on original acquisition costs,
except where otherwise stated in the accounting policy.
SEGMENTS
Staffing is the core business of the Group and the
Group operates in the domestic market. The Board of
Directors of the parent company is the chief operating
decision maker (CODM) that makes decision on
the allocation of resources and reviews the profit or
loss. The operations of the Group are managed and
reviewed as a whole and therefore the Group has only
one segment. The figures that the CODM reviews do
not differ materially from the figures presented in the
consolidated income statement and balance sheet.
No geographical information is presented as since
January 2021 the Group operates only in Finland and
in comparative year mainly in Finland.
FOREIGN CURRENCY ITEMS
The consolidated financial statements are presented
in euros, which is the parent company’s functional and
presentation currency. Group’s transactions are mainly
denominated in euros. Foreign currency transactions
are translated into the functional currency using the
exchange rates at the dates of the transactions.
The results and financial position of foreign
operations that have a functional currency different
from the presentation currency are translated into the
presentation currency as follows:
20
CONSOLIDATED FINANCIAL STATEMENTS
• assets and liabilities for each balance sheet
presented are translated at the closing rate at
the date of that balance sheet,
• income and expenses for each statement
of comprehensive income are translated at
average exchange rates (unless this is not a
reasonable approximation of the cumulative
effect of the rates prevailing on the transaction
dates, in which case income and expenses are
translated at the dates of the transactions), and
• all resulting exchange differences are
recognized in other comprehensive income.
In financial year 2021 the Group had no functional
currencies different from presentation currency.
2. Significant management judgement
and estimates
The preparation of consolidated financial statements
requires management to use judgement and
estimates, which have an impact on the application of
the accounting policy and the amounts of significant
assets, liabilities, income and expenses. The actual
results may differ from these estimates. The changes
in accounting estimates are recognized in the financial
year in which the change in estimate occurs as well
as in future financial years on which they have an
impact. Information on significant areas, which include
significant estimates, uncertainties and judgement in
the application of the accounting policies related to
the items in the consolidated financial statements are
presented in the following notes.
• 3. Revenue
• 12. Income taxes
• 14. Business combinations
• 16. Intangible assets
• 18. Leases
• 20. Deferred tax assets and liabilities
• 27. Financial risk management
Estimates and judgement are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the company and that
are assumed to be reasonable under the circumstances.
EFFECT OF COVID19 TO ACCOUNTING ESTIMATES
ANDGROUP’S BUSINESS
Total effect of Corona virus pandemic on revenue
has differed during the pandemic according to
restrictions. Corona virus pandemic has had a
negative effect on both general economic conditions
in Finland and internationally, as well as customers
businesses, which in turn has reduced the demand for
staffing services and other HR services provided by the
Group. Spreading of COVID-19 virus and restrictions
and negative effects on customer demand caused
by it have affected adversely Eezy’s financial result
and business, especially in the Horeca sector, which
is impacted by the restrictions posed on restaurants.
Restrictions on travelling have also an impact on
importing foreign labor. Corona’s negative effects are
seen also in the industrial and constructions sectors,
but the situation has improved in the second half of
the year 2021. Omicron wave in the end of year 2021
has again weakened especially Horeca sector and
increased the level of risk. Eezy’s management has
updated business forecasts according to the effects
of the pandemic, but the outlook for short-term
development considering level of vaccinations and
width of restrictions has been challenging since the
operational requirements of our customers can change
rapidly, for example due to new variants.
The key assumptions of impairment testing
Group assesses on every reporting date if there are
indicators of impairment of goodwill. If any signs are
detected, the carrying value of goodwill is compared
to recoverable amount. In 2021 and 2020, impairment
testing has been performed quarterly. The business
growth and EBITDA used in goodwill impairment
testing are based on management’s assessment of the
speed of recovery from the current COVID-19 situation
as well as the future market demand and availability
of workforce. More information on intangible assets is
provided on note 16.
Financial risk management
The most significant financial risks for Eezy are liquidity
risk and credit risk.
Liquidity risk relates to ensuring and maintaining
sufficient financing for Eezy. Eezy strives to
continuously assess and monitor the amount of
financing needed for the business operations, by,
among others, performing a monthly analysis on the
sales development and investment needs in order to
ensure the Group has sufficient liquid assets to finance
the operations and to repay the borrowings when they
fall due. Due to COVID-19 some of customers’ ability to
pay was estimated to be weakened especially in 2020
and to ensure sufficient financing, the Group utilised
relaxed due dates of pension payments and taxes in
spring 2020.
Credit risk arises specially from trade receivables and
the growth funding receivables. The Group monitors
continuously the level of write downs on receivables
and changes the models by taking into account
existing conditions and forward-looking information.
Due to COVID-19 some of customers’ ability to pay are
estimated to be weakened especially in 2020 and the
Group has recognised write-downs totalling EUR 227
(2515) thousand and reversed unused amount of EUR
307 (42) thousand.
More information on financial risk management is
provided on note 27.
21
CONSOLIDATED FINANCIAL STATEMENTS
3. Revenue
Eezy’s revenue comprises income from staffing services,
professional services and 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 service area, Eezy provides
recruitment, aptitude testing, training and
development and executive search services to its
customers. Additionally, Eezy provides consulting
services for organizational development and personnel
surveys. Flow acquisition in 2020 increased the share
of consulting services and the Valmennuskeskus
acquisition in late 2021 increased the amount of
training and coaching services. Valmennuskeskus
offers workforce training, coaching, guidance and
rehabilitation services 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 by service area:
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Staffing services 178,054 173,388
Franchise fees 7,058 6,106
Professional services 15,723 8,422
Light entrepreneurship
services 2,493 2,721
Total revenue 203,328 190,637
Eezy has two business units. The Work and Talent
business unit offers services for staff leasing,
recruitment, headhunting and relocation, through
its own business units as well as through its franchise
units. The Growth and Renewal business unit offers
organisational and management research and
development services, as well as training and
coaching services. It also develops and sells services
and platforms that promote the renewal of the working
life, such as light entrepreneurship services.
Revenue by business unit:
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Work and Talent 193,138 184,417
Growth and Renewal 10,190 6,220
Total revenue 203,328 190,637
Bad debt provisions related to trade receivables and
contractual assets are presented in note 27.
Eezy does not have incremental costs for obtaining
a contract or costs to fulfil a contract.
ACCOUNTING POLICY
Revenue recognition
Revenue is recognized when service or goods have
been delivered and control is perceived to been
transferred to the customer to amount in which Eezy
expects to be entitled to based on the customer
contract in exchange for the services performed.
STAFFING SERVICES
In staffing services Eezy signs a contract with the
customer, in which the personnel resourced required
by the customer are determined, and for which Eezy
invoices according to principles defined in the contract.
The range of services, contract terms and the length
of the contract varies by customers. Assignments are
mainly fixed-term contracts.
Staffing services are considered as a series of
(distinct) services, as each working hour is a distinct
item, services are substantially the same, and have
the same pattern of transfer to the customer over
time. These series of services are recognized as one
performance obligation.
The price for the services is agreed on the customer
contract, in which set prices are given for each service.
Customer contracts do not include any significant
variable consideration. The staffing services are mainly
invoiced every two weeks. Typical payment term is 7–14
days net.
Revenue are recognized over time as the customer
benefits from the staffing services simultaneously as
services are rendered. In addition, Eezy utilizes the
practical expedient provided in IFRS 15 and recognizes
the revenue for services provided by the reporting date
in the amount to which it has a right to invoice.
22
CONSOLIDATED FINANCIAL STATEMENTS
In staffing service contracts including growth
funding arrangements, which Eezy has because of
acquisition of Smile in 2019, the customer is obliged
to purchase the amount of staffing services defined
in the contract during a certain period. Contracts
including growth funding arrangements are fixed-
period contracts; typically 1–5 years. Eezy makes a
growth funding payment to the customer based on
a purchase commitment defined in the contract.
Purchase commitment has been determined based
on annual purchase estimate informed by the
customer. By its nature, a growth funding payment is
an advanced payment paid to the customer based on
a purchase commitment and therefore recognized in
receivables. The customer earns the growth funding
paid in advance during the contract period based on
the purchases made by them. The growth funding is
a discount paid to the customer in advance which is
recorded as a deduction of revenue when services are
rendered to the customer.
Growth funding is recognized in other current
and non-current receivables. The total amount of
growth funding receivables was EUR 1 041 thousand
as at 31 December 2021 (EUR 1 458 thousand as at 31
December 2020). Based on management estimate,
growth funding receivables will be deducted from the
recognized revenue during the next 1 to 5 years. More
information on growth funding is presented in note 27.
FRANCHISING
Eezy Group signs cooperation agreements with
chain entrepreneurs, which, based on management
judgement, comprises the following performance
obligations. According to the cooperation agreement,
Eezy provides to the local franchisee firstly the
franchising right, i.e. the right to sell services using
Eezy’s business concept and brand and secondly
business support services.
According to the cooperation agreement, a local
entrepreneur pays a cooperation fee to Eezy which
includes the franchising right and business support
services. The franchising right is a license as the local
entrepreneur is given a right to use Eezy’s intellectual
property. Revenue is recognized over time. The
cooperation charges are payments based on the local
entrepreneurs’ revenue and/or gross profit and revenue
is recognized as the local entrepreneurs’ sales occurs.
Revenue from the business support services is also
recognized over time as the customer simultaneously
benefits from the service as Eezy provides it.
PROFESSIONAL SERVICES
In recruitment and outplacement services Eezy
provides its customers the whole recruitment process
or parts if it. Eezy also provides consulting services for
organizational development and personnel surveys.
Additionally, Eezy provides workforce training,
coaching, guiding and rehabilitation services for
the public sector as well as university entrance
examination courses and courses for upper secondary
school students for private customers. Professional
services are considered as a series of distinct services,
as each working hour is a distinct item, services are
substantially the same, and have the same pattern of
transfer to the customer over time. Revenue from these
services is recognized as services are rendered.
The customer contracts don’t include return or
refund obligations or specific terms on warranties.
Typical payment term agreed in the contract is 14–30
days net.
LIGHT ENTREPRENEURSHIP SERVICES
Light entrepreneurship services comprise invoicing
and administration services provided to the customers.
A private individual selling one’s own expertise,
invoices the services provided through Eezy’s service
and receives the payment agreed with their customer
with Eezy’s fee deducted from the balance. According
to the management only one performance obligation
is included in the customer contract: an invoicing
service, which includes separate tasks. Although the
service includes separate tasks, all are substantially
the same, and have the same pattern of transfer to
the customer (series of distinct services). Revenue
from invoicing service is recognized as services are
rendered, i.e. when the client’s customer is invoiced.
Contractual assets and liabilities
Contract assets are presented in other current and
non-current receivables and related liabilities in
current and non-current other liabilities. Receivables
that Eezy has an unconditional right to receive, i.e.
only the passage of time is required before payment
of the consideration is due, are presented as trade
receivables.
Significant management judgement
and estimates
Revenue is recognized to the extent that it is highly
probable that a significant reversal in the amount
of revenue will not occur. Eezy’s management uses
judgement when growth funding is recognized as
deduction of revenue when services are rendered.
Customer earns the growth funding paid in advance
during the contract term based on purchases. Purchase
commitment is defined based on the yearly purchase
estimate made by the customer. By its nature growth
funding is an advance payment paid to customer which
is recognized as reduction of revenue when services
are rendered to the customer. The purchase estimate
informed by the customer may differ from the actual
purchases and therefore the amounts recognized in
revenue may differ from the estimate.
23
CONSOLIDATED FINANCIAL STATEMENTS
4. Other operating income
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Change in VAT handling 1,688 -
Grants received 1,079 1,052
Gain on disposal of investments in group companies 109 -
Gain on disposal of equity accounted investments - 51
Gain on disposal of tangible and intangible assets 22 7
Other operating income 171 220
Total 3,070 1,330
Other operating income include a change in light
entrepreneurship service fee’s VAT handling of EUR
1688 thousand in 2021 (EUR 0 thousand in 2020).
5. Materials and services
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Recruitment costs -245 -314
Other external services -5,815 -4,130
Total -6,059 -4,444
Other external services consist primarily of sub-
contracting and other services.
Grants received include a corona subsidy from State
treasury totaling EUR 1 000 thousand in 2021 (EUR 800
thousand in 2020).
6. Personnel expenses
Eezy’s personnel expenses consists of wages and
salaries, pension and social security expenses and
expenses related to the share-based payments.
The Group’s pension plans are classified as defined
contribution plans.
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Wages and salaries -137,558 -130,649
Pension expenses -23,515 -19,779
Share-based payments (note 7) -17 -19
Other social security expenses -4,487 -4,678
Total -165,576 -155,124
Key management remuneration is presented in note 13.
Related party transactions.
24
CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTING POLICY
Pension obligations are classified as defined benefit
plans or defined contribution plans. The Group’s
statutory pension plans in Finland are classified as
defined contribution plans. For defined contribution
plans, the Group pays contributions to a separate
fund, i. e. pension insurance companies. The Group
does not have legal or constructive obligations to
further payments if the fund does not have sufficient
assets to pay the employee benefits related to the
employee service from current and prior periods.
Contributions to the defined contribution plans are
7. Share-based payments
The Board of Directors of Eezy Plc decided on
17 December 2019 on a long-term share-based
compensation plan (LTIP 2019–2026) targeted to key
employees and on 30 November 2021 to amend the
terms due to the changes in the company’s business
environment caused by the coronavirus pandemic.
The terms of the long-term incentive were amended
by extending the duration of the long-term incentive
plan by one year until 2026 and adding a new earning
period.
The aim of the incentive plan is to align the objectives
of the shareholders and the key personnel in order to
increase the value of the company as well as to ensure
the execution of business strategy on a long-term basis.
In addition, the aim is to engage the key personnel of
the company and to offer them a competitive incentive
plan based on share ownership and the development
of the company’s value.
The share-based incentive plan contains five earning
periods. The first 13 months earning period started on
1 December 2019 and ended on 31 December 2020.
The second 13 months earning period started on 1
December 2020 and ended on 31 December 2021. The
third 13 months earning period started on 1 December
2021 and ends on 31 December 2022. The fourth
24 months earning period starts on 1 January 2023
recognized in the income statement in the period to
which the contributions relate. Eezy does not have any
defined benefit plans.
The average number of employees during the
financial year in presented in the table below:
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Salaried employees 374 370
Workers 3,320 3,309
Total 3,694 3,679
and ends on 31 December 2024. The fifth 24 months
earning period starts on 1 January 2025 and ends on
31 December 2026. The Company’s Board of Directors
determines the reward criteria and their target levels
as well as the employees covered by the incentive plan
before the beginning of each earning period.
No shares were issued for the first and second
earning periods.
From the third period a maximum of 246,000 shares
can be paid as compensation. The compensation will
be paid to the key personnel in the spring of 2023.
The payment of the compensation is subject to the
condition that the key employee’s employment or
service relationship has not been terminated prior to
the payment. Additionally, the payment is subject to
achieving the set revenue and operating profit margin
targets. The amount of compensation paid is subject to
the achievement levels of the performance targets. The
Board of Directors has the right to pay the compensation
in shares, cash or as a combination of these. Based on
management’s judgement, the compensation will be
paid as a combination of shares and cash.
The fair value of the shares granted is determined
based on the company’s quoted share value reduced
by the estimated number of dividends paid during the
accounting period.
Long-term (2019–2026) share-based compensation plan Earning period 1 Dec 2019–31 Dec 2020
Number of shares granted (maximum) 137,210
Number of shares forfeited 31,008
Number of shares not exercised 106,202
Number of shares granted as at 31 Dec 2021 0
Share price at the beginning of service 6.25
Performance conditions Service condition
Revenue growth and operating profit %
Estimated time of payment No payment
Payment method Combination of shares and cash
Number of participants 7
25
CONSOLIDATED FINANCIAL STATEMENTS
Long-term (2019–2026) share-based compensation plan Earning period 1 Dec 2020–31 Dec 2021
Number of shares granted (maximum) 179,091
Number of shares forfeited -
Number of shares not exercised 179,091
Number of shares granted as at 31 Dec 2021 0
Share price at the beginning of service 4.87
Performance conditions Service condition
Revenue and operating profit
Estimated time of payment No payment
Payment method Combination of shares and cash
Number of participants 8
Long-term (2019–2026) share-based compensation plan Earning period 1 Dec 2021–31 Dec 2022
Number of shares granted (maximum) 246,000
Number of shares forfeited -
Number of shares granted as at 31 Dec 2021 246,000
Share price at the beginning of service 5.92
Performance conditions Service condition
Revenue and operating profit %
Estimated time of payment March 2023
Payment method Combination of shares and cash
Number of participants 18
The amount of expenses recognized in the accounting
period is EUR 17 (19) thousand, of which EUR 16 (9)
thousand is from the share portion and recognized
within the equity. The amount of the liability recognized
in the balance sheet is EUR 16 (16) thousand as at 31
December 2021.
ACCOUNTING POLICY
Eezy has a share-based compensation plan where the
settlement is a combination of equity and cash. The
cost is recognized over the period during which the
employee has to remain in the company’s payroll in
order the award to vest. Cost is recognized from the
grant date or the service beginning date, whichever is
earlier, until the settlement date.
The component paid as equity (shares) is recognized
as an expense measured at the grant date fair value
and is not remeasured after the grant date. The
performance conditions of the arrangement are non-
market conditions and are not taken into account in
the grant date fair value but instead are taken into
account by adjusting the number of shares that are
expected to vest. The expense recognized is based
on management’s judgement on the likelihood of
achieving the performance conditions, and as such the
number of shares that are expected to vest. In addition,
the expense recognized is impacted by the company’s
management’s estimate on the number of participants
in the arrangement that will remain in the company’s
payroll until the award is settled. The achievement
of vesting conditions is estimated at the end of each
reporting period and ultimately the amount recognized
is based on the number of shares that eventually vest.
The cash-settled component is measured at the end
of each reporting period and at the liability settlement
date. Also, for the cash-settled award, the amount
recognized is impacted by the management’s estimate
on the achievement of performance targets and the
number of the participants in the arrangement that
will remain in the company’s payroll until the award is
settled.
The expense on the component settled in shares
is recognized as personnel expenses and the
corresponding amount is credited in retained earnings.
The cash-settled amount is recognized as personnel
expenses and as non-current other liabilities in the
balance sheet.
26
CONSOLIDATED FINANCIAL STATEMENTS
8. Depreciation, amortization and impairment
The acquisition related amortization comprises the
amortization made on the recognized fair value
adjustments arisen from business combinations.
Depreciation, amortization and impairment by asset
class is presented in the table below:
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Acquisition related amortization
Trademarks -249 -248
Customer relationships -2,727 -2,666
Non-competition agreements -1,068 -1,001
Total -4,045 -3,914
Other intangible assets
Trademarks -24 -12
IT software -1,167 -1,556
Development costs -14 -
Total -1,204 -1,568
Total amortization, intangible assets -5,249 -5,482
Property, plant and equipment
Buildings -147 -119
Buildings, right-of-use -1,974 -1,959
Machinery and equipment -138 -242
Machinery and equipment, right-of-use -173 -105
Other property, plant and equipment - -23
Total -2,431 -2,448
Total other depreciation, amortization and impairment losses
1
-3,636 -4,016
Total depreciation and amortization -7,680 -7,929
1
Total other depreciation, amort ization and impairment losses is total depreciation and amortization less the acquisition related amortization.
27
CONSOLIDATED FINANCIAL STATEMENTS
9. Other operating expenses
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Administrative expenses -3,492 -4,090
Travelling expenses -3,079 -3,385
Marketing expenses -2,990 -2,973
IT machinery and software expenses -2,734 -2,360
Personnel related expenses -1,007 -530
Facility maintenance expenses -438 -1,248
Transaction expenses related to acquisitions -415 -210
Credit losses 80 -2,473
Other operating expenses
1
-1,195 -1,635
Total -15,270 -18,904
1
Other expenses consist of multiple items that are not material separately.
10. Auditors’ fees
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Statutory audit 235 184
Other advisory services 7 -
Tax advisory services 14 25
Other services 58 96
Total 313 305
Auditor fees include the fees paid to the auditors of
each Group company. Other services include mainly
the expenses related to the acquisitions.
11. Financial income and expenses
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Financial income
Interest income from receivables 68 64
Gain on disposal of financial assets carried at fair value - 28
Other financial income 81 58
Total 149 150
Financial expenses
Interest expenses from borrowings -1,265 -1,332
Interest expenses from lease liabilities -131 -114
Other interest expenses -94 -175
Other financial expenses -123 -81
Total -1,614 -1,702
Total financial income and expenses -1,465 -1,552
28
CONSOLIDATED FINANCIAL STATEMENTS
12. Income taxes
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Current income tax expense -2,803 -1,577
Adjustments to taxes for prior periods 1 0
Total current income tax expenses -2,802 -1,577
Change in deferred tax assets -172 98
Change in deferred tax liabilities 708 660
Deferred tax expense/benefit 536 758
Total income taxes -2,266 -819
The reconciliation between income tax expense and
tax payable is presented in the table below:
EUR thousand 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Result for the period before taxes 10,348 4,014
Tax calculated at the Finnish tax rate of 20% -2,070 -803
Tax effect of tax free and non-deductible items:
Effect of the expenses not deductible for tax purposes
1
-224 -206
Effect of the tax-free income 26 24
Utilization of previously unrecognized deferred tax assets - 148
Recognition of deferred tax assets for previously
unrecognized losses - 20
Losses for which no deferred tax asset has been recognized - -
Effect of other tax rates for foreign subsidiaries - -2
Adjustments in respect to prior years 1 -
Total income taxes -2,266 -819
1
Non-deductible items consist mainly of costs related to acquisitions.
Deferred tax assets and liabilities have been measured
using the tax rate of 20%. The effective tax rate of the
Group was 22 (20) %.
ACCOUNTING POLICY
The tax expense in profit or loss consist the tax based on
the taxable income for the financial year and deferred
taxes. Taxes are recognized in the profit or loss, except
when they are directly related to the items recognized
in equity or other comprehensive income, when the
tax impact is also recognized as a corresponding item
within equity. Taxes based on the taxable income for
the financial year is calculated using the applicable
income tax rate in each country. The tax expense for
the financial year is adjusted by any taxes related to
the previous financial years.
Significant management judgement
and estimates
The tax expense recognized in profit or loss consists
of the tax based on the taxable profit for the financial
year, taxes related to the previous financial years and
changes in deferred taxes. The management estimates
the utilization of deferred tax assets against any future
taxable profit. Management judgement on income
taxes is presented in notes 14 and 20.
29
CONSOLIDATED FINANCIAL STATEMENTS
13. Related party transactions
Transactions and balances with related parties:
EUR thousand 2021 2020
Communities that hold significant control in community
Sales 10,566 9,322
Purchases -257 -87
Trade receivables 2,016 797
Trade payables and other liabilities 10 3
Associated companies
Loan receivables - 61
MANAGEMENT COMPENSATION
(Board of Directors, CEO, key management)
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Short-term employee
benefits 1,324 1,133
Post-employment benefits 190 185
Termination benefits - 217
Share-based payments 9 14
Total 1,523 1,549
Key management wages and salaries include
severance payments in 2020.
CEO pension obligations and severance
compensation
The CEO participates in the statutory Finnish pension
scheme (TyEL) under the Employees Pension Act under
which the pension is based on the service period and
earnings. No specific retirement age has been agreed.
The pension expenses recognized was EUR 52 (43)
thousand. The CEO’s term of notice is three months in
case the CEO decides to resign and nine months if the
contract is terminated by the company. The CEO will
receive normal compensation during the termination
period and is not entitled to a separate compensation.
ACCOUNTING POLICY
Parties are considered to be related if one party has the
ability to control the other party or exercise significant
influence over the other party in making financial
and operating decision. Eezy’s related parties include
associated companies and key management personnel.
Key management personnel include members of
the board of directors and the group management
team, CEO and substitute CEO, and their close family
members. In addition, Eezy’s related parties include
owners that use control or exercise significant influence
in Eezy Plc and companies in which they have control
or companies in which the person that uses control in
Eezy Plc exercises significant influence or belongs to
the company’s or its parent’s management. The Group
structure is presented in note 28.
Eezy had an office lease contract with a company
controlled by a member of a related party until
December 2020. Related party transactions are made
on the same terms and conditions as transactions
with independent parties. Related party loans and
receivables are presented in notes 21, 26 and 27.
Key management remuneration is presented below:
BOARD OF DIRECTORS REMUNERATION
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Tapio Pajuharju 48 44
Kati Hagros 25 24
Liisa Harjula 25 24
Timo Laine 24 22
Timo Mänty 24 22
Paul-Petteri Savolainen 24 22
Jarno Suominen 25 24
Mika Uotila 24 22
Total 220 203
KEY MANAGEMENT WAGES AND SALARIES
(not including CEO)
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Wages, salaries and benefits 782 861
CEO REMUNERATION
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Wages, salaries and benefits 296 259
30
CONSOLIDATED FINANCIAL STATEMENTS
14. Business combinations and disposal of subsidiaries
Acquisitions 2021
ACQUISITION OF EEZY VALMENNUSKESKUS, EEZY
TRITON AND VALUESCOUT
Eezy strengthened its offering to the public sector
by acquiring KK Valmennuskeskus Oy (current Eezy
Valmennuskeskus Oy) on 1 November 2021. The revenue
of Valmennuskeskus is approx. EUR 10 million.
On 1 October 2021 Eezy strengthened its import of
labour from outside Finland through its purchase of
Triton Henkilöstöpalvelut Oy (current Eezy Triton Oy),
which is a company that imports labour to Finland from
several eastern European countries. Eezy Triton Oy was
established in 2018 and revenue stands at approx. EUR
4 million.
Eezy strengthened its research business by acquiring
ValueScout research method business on 1 June 2021.
ValueScout is a research method which examines
emotional experience and finds hidden growth
potential in customer, brand and personnel experience.
EUR thousand
Eezy
Valmennuskeskus Eezy Triton ValueScout
Purchase considerations
Cash consideration 3,781 894 100
Shares issued 999 306 -
Contingent consideration 1,868 - -
Total purchase consideration 6,647 1,200 100
SHARES ISSUED IN EXCHANGE FOR EEZY
VALMENNUSKESKUS AND EEZY TRITON
The fair value of Eezy shares issued in exchange for
Eezy Valmennuskeskus is EUR 999 thousand based on
the number of 152 thousand shares and subscription
price of EUR 6.5867 per share (volume weighted
average price in 22–28 October 2021).
The fair value of Eezy shares issued in exchange for
Eezy Triton is EUR 306 thousand based on the number
of 46 thousand shares and subscription price of EUR
6.6750 per share (volume weighted average price in
27–29 September 2021).
CONTINGENT CONSIDERATIONS OF ACQUIRING EEZY
VALMENNUSKESKUS AND VALUE SCOUT
Eezy acquired a 80% majority of the shares of Eezy
Valmennuskeskus on 1 November 2021. According to
the terms of the acquisition, both Eezy and the non-
controlling interests of Eezy Valmennuskeskus have
the right to execute trade over remaining 20% of the
shares of Eezy Valmennuskeskus in 2024. The purchase
price of the shares that Eezy may acquire later is
based on the profitability of Eezy Valmennuskeskus
in 2022–2023. Because of the sell and purchase
options in the agreement, Eezy Valmennuskeskus
has been consolidated by 100-percent to Eezy Group
since 1 November 2021, and contingent consideration
measured at fair value of EUR 1 868 thousand has been
recorded for the purchase price of the non-controlling
interest.
There is an additional contingent consideration
included in the acquisition agreement of ValueScout,
which is determined based on the sales margin for the
period of 1 June 2021 – 30 May 2026. According to the
company’s management estimate, EUR 79 thousand
represents the fair value of the additional purchase
consideration at the time of acquisition. Based on the
terms of the agreement, the seller does not have the
right to access the contingent consideration if the key
management person is not employed at the period of
the contingent consideration. Therefore, the purchase
consideration of EUR 79 thousand will be accounted
for as personnel expense for the work performed after
the acquisition during 2021–2026.
31
CONSOLIDATED FINANCIAL STATEMENTS
FAIR VALUES OF THE ACQUIRED ASSETS AND LIABILITIES ASSUMED
IN THE BUSINESS COMBINATIONS AT THE ACQUISITION DATE
EUR thousand
Eezy
Valmennuskeskus Eezy Triton ValueScout
Non-current assets
Intangible assets 2,127 165 34
Property, plant and equipment 24 - -
Receivables 256 - -
Total non-current assets 2,407 165 34
Current assets
Trade receivables and other receivables 1,709 441 -
Current income tax receivable 14 - -
Cash and cash equivalents 3 122 -
Total current assets 1,726 563 -
Total assets 4,133 728 34
Non-current liabilities
Loans from financial institutions 557 - -
Deferred tax liability 354 33 7
Total non-current liabilities 911 33 7
Current liabilities
Loans from financial institutions 239 - -
Trade payables and other liabilities 1,098 505 -
Current income tax liabilities 265 6 -
Total current liabilities 1,602 510 -
Total liabilities 2,531 543 7
Net assets acquired 1,620 185 27
Goodwill 5,027 1,016 73
Purchase consideration 6,647 1,200 100
FAIR VALUES OF THE ACQUIRED IDENTIFIED INTANGIBLE ASSETS
ATTHE ACQUISITION DATE:
EUR thousand
Eezy
Valmennuskeskus Eezy Triton ValueScout
Customer relationships 934 - -
Trademarks 506 - 21
Non-competition agreements 329 165 13
Total 1,769 165 34
32
CONSOLIDATED FINANCIAL STATEMENTS
EEZY VALMENNUSKESKUS
The gross amount of trade receivables at the date
of the acquisition was EUR 929 thousand and it was
estimated to be fully collectable.
Goodwill arising from the acquisition of Eezy
Valmennuskeskus amounted to EUR 5,027 thousand
which comprises mainly workforce, synergies and
market position. The goodwill recognized in connection
with the acquisition is not tax deductible.
The transaction costs of the acquisition amounted to
EUR 163 thousand and are recorded in other operating
expenses for the period 2021.
EEZY TRITON
The gross amount of trade receivables at the date
of the acquisition was EUR 341 thousand and it was
estimated to be fully collectable.
Goodwill arising from the acquisition of Eezy Triton
amounted to EUR 1,016 thousand which comprises mainly
workforce, synergies and network of subcontractors. The
goodwill recognized in connection with the acquisition
is not tax deductible.
The transaction costs of the acquisition amounted to
EUR 113 thousand and are recorded in other operating
expenses for the period 2021.
VALUESCOUT
Goodwill arising from the acquisition of ValueScout
amounted to EUR 73 thousand which comprises mainly
research method and know-how related to it. There
were no transaction costs related to the acquisition.
IMPACT ON EARNINGS
Revenue and profit (loss) for the period of the acquired
companies from the date of acquisition included in
the consolidated financial statements for the financial
year 2021:
EUR thousand Eezy Valmennuskeskus Eezy Triton
Impact on the Group Revenue and Result
Revenue 1,581 705
Result for the period 142 46
If the acquisition had taken place on 1 January 2021, the
pro forma consolidated revenue for the financial year
from 1 January 2021 to 31 December 2021 would have
been EUR 214,272 thousand and pro forma consolidated
operating profit would have been EUR 12,480 thousand.
The pro forma figures are based on the consolidated
revenue and operating profit for the financial year
2021 as well as on the revenue and operating profit
of the acquired company from the beginning of 2021
until the date of the acquisition. Figures have been
adjusted related to the amortizations of intangible
assets related to acquisition, as if acquisition had been
done on 1 January 2021 and additional amortizations
recorded since then.
CASH FLOWS FROM PURCHASE CONSIDERATIONS DURING
FINANCIAL YEAR 2021
EUR thousand
Eezy
Valmennuskeskus Eezy Triton ValueScout
Cash consideration 3,781 894 100
Deducted: Cash and cash equivalents acquired -3 -122 -
Net cash flow 3,778 772 100
33
CONSOLIDATED FINANCIAL STATEMENTS
EEZY FLOW SHARES ISSUED IN EXCHANGE
FOR FLOW CONSULTING
Eezy Flow shares issued in exchange for Flow Consulting
have been recorded at fair value of EUR 1,676 thousand.
CONTINGENT CONSIDERATION OF ACQUIRING
JAAKKO LEHTO EXECUTIVE SEARCH
There is an additional contingent consideration
included in the acquisition agreement of Jaakko Lehto
Executive Search, which is determined based on the
EBITDA for the periods of 1 January – 31 December
2021, 1 January – 31 December 2022 and 1 January
– 31 December 2023. According to the company’s
management estimate, EUR 301 thousand represents
the fair value of the additional purchase consideration
at the time of acquisition. Based on the terms of the
agreement, the sellers do not have the right to access
the contingent consideration if none of the key
management personnel of Jaakko Lehto Executive
Search is employed at the payment date of part of
the contingent consideration. Therefore, the purchase
consideration of EUR 301 thousand will be accounted
for as personnel expenses for the work performed after
the acquisition during 2021–2023. In case the EBITDA is
below the level agreed on the agreement, the additional
purchase consideration will not be paid.
EUR thousand Flow Consulting
Jaakko Lehto
Executive Search ProMotive
Purchase considerations
Cash consideration 1,406 75 75
Shares issued 1,676 - -
Total purchase consideration 3,082 75 75
Acquisitions 2020
ACQUISITION OF FLOW CONSULTING, JAAKKO LEHTO
EXECUTIVE SEARCH AND PROMOTIVE
Eezy Flow Oy (prev. Eezy Spirit Oy) acquired Flow
Consulting on 1 October 2020 which is a management
consulting and coaching company focusing on
change management. Flow Consulting renews
strategies, concepts, leadership as well as employee
and customer experience. Eezy Flow is the market
leader in Finland in employee satisfaction surveys. The
intention is to create a strong player in the research,
coaching and consulting market in order to respond
to the changes in the working life.
Eezy Personnel acquired on 1 October 2020 the
businesses of Jaakko Lehto Executive Search Oy and
ProMotive Oy and strengthened its position as one of
the largest players in the recruitment, executive search
and outplacement markets.
34
CONSOLIDATED FINANCIAL STATEMENTS
FAIR VALUES OF THE ACQUIRED ASSETS AND LIABILITIES ASSUMED
IN THE BUSINESS COMBINATIONS AT THE ACQUISITION DATE:
EUR thousand Flow Consulting
Jaakko Lehto
Executive Search ProMotive
Non-current assets
Intangible assets 697 15 18
Property, plant and equipment 5 - -
Receivables 9 - -
Total non-current assets 711 15 18
Current assets
Trade receivables and other receivables 495 - -
Cash and cash equivalents 168 - -
Total current assets 663 - -
Total assets 1,374 15 18
Non-current liabilities
Deferred tax liability 139 3 4
Total non-current liabilities 139 3 4
Current liabilities
Trade payables and other liabilities 295 - -
Current income tax liabilities 41 - -
Total current liabilities 336 - -
Total liabilities 476 3 4
Net assets acquired 898 12 14
Goodwill 2,184 64 61
Purchase consideration 3,082 75 75
FAIR VALUES OF THE ACQUIRED IDENTIFIED INTANGIBLE
ASSETS AT THE ACQUISITION DATE:
EUR thousand Flow Consulting
Jaakko Lehto
Executive Search ProMotive
Customer relationships 346 11 14
Non-competition agreements 351 4 4
Total 697 15 18
35
CONSOLIDATED FINANCIAL STATEMENTS
FLOW CONSULTING
The gross amount of trade receivables at the date
of the acquisition was EUR 494 thousand and it was
estimated to be fully collectable.
Goodwill arising from the acquisition of Flow
Consulting amounted to EUR 2,184 thousand which
comprises mainly workforce, synergies and market
position. The goodwill recognized in connection with
the acquisition is not tax deductible.
The transaction costs of the acquisition amounted to
EUR 154 thousand and are recorded in other operating
expenses for the period 2020.
JAAKKO LEHTO EXECUTIVE SEARCH
Goodwill arising from the acquisition of Jaakko Lehto
Executive Search amounted to EUR 64 thousand
which comprises mainly workforce, synergies, market
position and the expertise in its field of business.
There were no transaction costs related to the
acquisition.
PROMOTIVE
Goodwill arising from the acquisition of ProMotive
amounted to EUR 61 thousand and it comprises mainly
workforce, synergies, market position.
There were no transaction costs related to the
acquisition.
IMPACT ON EARNINGS
Revenue and profit (loss) for the period of the acquired
company from the date of acquisition included in the
consolidated financial statements for the financial
year 2020:
EUR thousand
Flow Consulting
1 Oct–31 Dec 2020
Impact on the Group
Revenue and Result
Revenue 677
Result for the period -58
If the acquisition had taken place on 1 January 2020, the
pro forma consolidated revenue for the financial year
from 1 January 2020 to 31 December 2020 would have
been EUR 192,375 thousand and pro forma consolidated
operating profit would have been EUR 5,855 thousand.
The pro forma figures are based on the consolidated
revenue and operating profit for the financial year
2020 as well as on the revenue and operating profit
of the acquired company from the beginning of 2020
until the date of the acquisition. Figures have been
adjusted related to the amortizations of intangible
assets related to acquisition, as if acquisition had been
done on 1 January 2020 and additional amortizations
recorded since then.
CASH FLOWS FROM PURCHASE CONSIDERATIONS DURING
FINANCIAL YEAR 2020
EUR thousand Flow Consulting
Jaakko Lehto
Executive Search ProMotive
Cash consideration 1,406 75 75
Deducted: Cash and cash equivalents acquired -168 - -
Net cash flow 1,238 75 75
OTHERS
Eezy purchased all the shares of Hazana Oy in January
2020. Hazana Oy was previously part of the Eezy
franchise chain. Acquisition had no significant impact
on the revenue and result of Eezy group in 2020.
In March, Eezy established Eezy United Oy together
with minority shareholders. Eezy United shall start
employing both current and former athletes.
ACCOUNTING POLICY
The acquisitions are accounted for using the acquisition
method. The cost of the acquisition is measured at the
fair value of consideration transferred comprising of the
fair values of the assets transferred, liabilities incurred
to the former owners of the acquired business, equity
interests issued as purchase consideration, and the fair
value of any contingent consideration arrangement.
The excess of the aggregate of the consideration
transferred over the fair value of the net identifiable
assets acquired is goodwill.
On the acquisition of a subsidiary, fair values are
attributed to the identifiable net assets including
identifiable intangible assets and contingent liabilities
acquired.
Significant management judgement and estimates
The net assets acquired is measured at fair value. The
fair value of the net assets acquired is based on market
value or estimated expected cash flows (customer
relationships, trademarks and non-competition
agreements) or the estimated market value of similar
assets. Eezy’s management has used judgement and
made assumptions in the customer relationship and
trademark fair value determination, which is based
on the management assumptions and estimates of
36
CONSOLIDATED FINANCIAL STATEMENTS
the expected long-term revenue and profitability
development, length of the customer relationships
and discount rate. In addition to the assumptions
mentioned, management has made assumptions on
the possible impact of competition to Eezy’s business
when valuing non-competition agreements. If the
estimates and assumptions of the development of the
business turns out to be too optimistic, an impairment
may be required to be recognized on the assets.
The management believes that the estimates and
assumptions used are appropriate when determining
fair values. The trademarks, customer relationships and
non-competition agreements recognized as a result of
acquisitions are presented in note 16. Intangible assets.
The fair value of the contingent consideration
included in the acquisition purchase consideration is
determined based on the present value of the expected
15. Assets classified as held for sale
Eezy sold its Swedish subsidiary VMP-Group Sweden
AB to Palm & Partners Bemanning AB on 4 January
2021. As of 31 December 2020, Eezy has classified
VMP-Group Sweden AB and its subsidiaries’ assets and
liabilities as held for sale. VMP-Group Sweden provides
staffing services to customers in Sweden. VMP-Group
Sweden turnover was EUR 3.2 million and EBITDA EUR
0.2 million in 2020. The transaction did not significantly
impact Eezy’s result in 2021.
EUR thousand 31 Dec 2021 31 Dec 2020
Assets classified as held for sale
Goodwill - 173
Tangible assets - 172
Trade receivables and other receivables - 572
Cash and cash equivalents - 1,179
Assets classified as held for sale total - 2,096
Liabilities directly associated with assets classified as held for
sale
Lease liabilities - 177
Trade payables and other liabilities - 1,575
Liabilities directly associated with assets classified as held for
sale total - 1,752
cash flows. The final purchase consideration may differ
from the amount estimated by management and these
changes in fair value are recognized in the statement
of comprehensive income. The carrying values of the
contingent considerations recognized at the balance
sheet date are presented in note 26. Trade payables
and other liabilities.
Divestments in financial year 2021
Eezy sold its Swedish subsidiary VMP-Group Sweden
AB to Palm & Partners Bemanning AB on 4 January
2021. The transaction did not significantly impact
Eezy’s result in 2021.
Divestments in financial year 2020
During financial year 2020 there were no disposal of
subsidiaries.
37
CONSOLIDATED FINANCIAL STATEMENTS
16. Intangible assets
EUR thousand Goodwill
Trade-
marks IT Software
Customer
relation-
ships
Non-
competition
agreements
Development
costs
Intangible
assets
total
Cost at 1 Jan 2021 127,938 2,623 8,144 26,870 3,315 - 40,953
Acquisitions 6,116 527 16 934 508 342 2,327
Additions - 34 1,298 - - 174 1,506
Disposals - - - - -150 - -150
Cost at 31 Dec 2021 134,054 3,184 9,458 27,804 3,674 515 44,636
Accumulated amortization and
impairment at 1 Jan 2021 - -420 -5,526 -3,780 -1,496 - -11,222
Disposals - - - - 150 - 150
Amortizations - -273 -1,008 -2,727 -1,068 -14 -5,090
Impairments - - -157 - - - -157
Accumulated amortization and
impairment at 31 Dec 2021 - -693 -6,691 -6,507 -2,415 -14 -16,320
Net carrying value at 1 Jan 2021 127,938 2,203 2,619 23,090 1,819 - 29,731
Net carrying value at 31 Dec 2021 134,054 2,491 2,767 21,297 1,259 501 28,314
EUR thousand Goodwill
Trade-
marks IT Software
Customer
relation-
ships
Non-com-
petition
agreements
Advances
paid
Intangible
assets
total
Cost at 1 Jan 2020 125,757 2,596 5,808 26,500 2,956 56 37,916
Translation differences -1 - - - - - -
Acquisitions 2,353 - - 370 360 - 730
Additions - 21 2,336 - - - 2,357
Classification as held for sale -173 - - - - - -
Transfers between classes - 6 - - - -56 -50
Cost at 31 Dec 2020 127,938 2,623 8,144 26,870 3,315 - 40,953
Accumulated amortization and
impairment at 1 Jan 2020 - -160 -3 971 -1 114 -496 - -5 740
Amortizations - -260 -1,024 -2,666 -1,001 - -4,951
Impairments - - -531 - - - -531
Accumulated amortization and
impairment at 31 Dec 2020 - -420 -5,526 -3,780 -1,496 - -11,222
Net carrying value at 1 Jan 2020 125,757 2,436 1,831 25,386 2,460 56 32,169
Net carrying value at 31 Dec 2020 127,938 2,203 2,619 23,090 1,819 - 29,731
38
CONSOLIDATED FINANCIAL STATEMENTS
Goodwill impairment testing
Goodwill is tested for impairment annually to identify
any impairment. In addition, the Group monitors any
internal and external indicators to identify any signs for
impairment. If signs are detected, the carrying value of
goodwill is compared to recoverable amount. In 2020
and 2021, impairment testing has been performed
quarterly.
In the goodwill impairment testing, the carrying
value of the group of cash generating units (CGU) is
compared to the recoverable amount of the CGU.
Eezy has one CGU which is the segment defined by the
company and is the level used to monitor the goodwill.
If the recoverable amount of the CGU is lower than
the carrying value, the difference is recognized as an
impairment loss in the statement of comprehensive
income. Impairment tests have indicated that the
recoverable amount of the CGU exceeds the carrying
value and goodwill has not been impaired.
Impairment testing and the key assumptions
The recoverable amount of the CGU is determined
using a value-in-use method. Value-in-use is calculated
by discounting the future cash flows. The calculation
of the recoverable amount is impacted primarily by
changes in the forecasted EBITDA, discount rate used
and the estimated revenue growth. The business growth
and EBITDA are based on management’s assessment
of the speed of recovery from the current COVID-19
situation as well as the future market demand and
environment.
The key assumptions used in the value-in-use
calculations:
31 Dec 2021 31 Dec 2020
The average cumulative
increase in revenue, forecast
period 10.4% 12.7%
Terminal growth assumption 1.0% 1.0%
Average EBITDA, forecast
period 10.3% 10.1%
Forecasted EBITDA, terminal
value 9.5% 9.0%
Pre-tax discount rate 10.9% 10.5%
Impairment testing calculations are based on the cash
flow forecasts and the budget prepared by the Group’s
management team and approved by the Board of
Directors, including the forecast and terminal periods.
A five-year forecast period is used in the impairment
testing calculations. The (after-tax) discount rate used
is based on the weighted average cost of capital
(WACC).
The management has determined the following assumptions
used in the calculations:
Assumption Description
Revenue growth
Revenue growth is based on the review period forecast. The impact of the acquisitions
completed in the financial year on the Group’s revenue has been considered in the growth
forecast.
EBITDA
EBITDA is based on the budgets, forecasted profitability development in the review period as
well as expected long-term profitability.
Terminal growth assumption
The growth assumption for the terminal period has been determined as 1% which represents
the long-term inflation projections.
Discount rate The discount rate is determined based on peer company analysis.
The forecasted cash flows are based on the existing
business of the cash generating unit at the time of
testing. Expansion investments have not been taken
into account in the cash flow forecast estimates. The
Group’s cash generating unit provides mainly staffing
services.
The management judgement and estimates
regarding future have a central role in preparing
the impairment testing calculations. The discounted
cash flow method used in preparing the calculations
requires forecasts and assumptions of which the most
significant relate to revenue growth, the development
of costs, the level of maintenance investments and
changes in the discount rate.
The main uncertainty factors in calculations are
the ultimate duration of the COVID-19 pandemic and
speed of recovery in business. The growth assumption
for the terminal period has been determined as 1%
which represents the long-term inflation projections. It
is possible that the predictions related to the cash flow
forecasts are not achieved. As a result, the impairment
of goodwill or other assets may have a significantly
negative effect on the result and the financial position
in the future periods.
39
CONSOLIDATED FINANCIAL STATEMENTS
The result of impairment testing is assessed by
comparing recoverable amount of CGU to carrying
value of CGU as follows:
Recoverable amount /
Carrying value Test result
less than 1.0 Impairment
1.0–1.2 Exceeds slightly
1.2–1.5 Exceeds clearly
more than 1.5 Exceeds remarkably
Test result of impairment testing exceeds remarkably,
therefore no impairment losses have been recognized
in any financial periods presented. The management
has prepared a sensitivity analysis for the key factors
and based on the management estimate none of the
reasonably possible changes in the staffing service
key assumptions would lead to a situation in which the
recoverable amount would be less than the carrying
value of the cash generating unit.
ACCOUNTING POLICY
Group’s intangible assets comprise mainly goodwill
arising from business combinations and other
intangible assets identified in connection with the
business combinations, such as trademarks, non-
competition agreements and customer relationships.
GOODWILL
Goodwill arising from business combinations is
the excess of the consideration paid, amount of
non-controlling interest in the acquired entity and
acquisition-date fair value of any previous equity
interests in the acquired entity over the fair value of the
net identifiable assets acquired. Goodwill represents
the consideration paid for the future economic benefits
that cannot be separately identified and recognized.
Goodwill is not amortized but is tested for impairment
annually and whenever there is an indication that it
might be impaired. Impairment loss is immediately
recognized in the income statement if the carrying
amount exceeds the recoverable amount. Impairment
losses on goodwill are not reversed. Goodwill is
measured at cost less any accumulated impairment
losses incurred.
TRADEMARKS
Eezy has obtained trademarks for the acquired
companies in the business combinations. As part of the
purchase price allocation a value has been determined
for significant trademarks and they are recognized in
intangible assets.
DEVELOPMENT COSTS
Research expenses are booked as an expense as they
are incurred. Development costs are recognized as an
intangible asset when the Group can demonstrate that:
• the technical feasibility of completing the
intangible asset so that the asset will be
available for use or sale,
• the intention is to complete and its ability and
intention to use or sell the asset,
• the asset will generate future economic benefits,
• the availability of resources is to complete the
asset,
• is the ability to measure reliably the expenditure
during development.
The development costs recognized as assets
are amortized over their estimated useful lives.
Development costs previously recognized as an
expense are not recognized as an asset in a subsequent
period.
OTHER INTANGIBLE ASSETS
An intangible asset is recognized only if it is probable
that future economic benefits will flow to the company
and the cost can be measured reliably. The other
intangible assets with finite useful life identified in
the business combinations are recognized separately
from goodwill if they meet the recognition criteria of
an intangible asset, i.e. are separable or arise from
contractual or other legal rights and if the cost can be
measured reliably.
NONCOMPETITION AGREEMENTS
In the business combinations the seller generally agrees
to a non-competition agreement related to staffing
services for a limited duration. As part of the purchase
price allocation a value has been determined for non-
competition arrangements and they are recognized in
intangible assets.
40
CONSOLIDATED FINANCIAL STATEMENTS
CUSTOMER RELATIONSHIPS
In the business combinations, a value has been
determined for the existing customer contracts and
customer relationships as a part of the purchase price
allocation. The value determined in connection with
the purchase price allocation has been recognized in
intangible assets.
Intangible assets are amortized over the following
estimated useful life:
Trademarks 10 years
IT software 3–5 years
Non-competition agreements 2–3 years
Customer relationships 7–10 years
Development costs 3–5 years
The residual value, useful life and amortization method
are reviewed at least at each financial year-end and
adjusted to reflect the changes in economic benefit
expectations.
Amortization is terminated when an intangible asset
is classified (or included in the group that is classified)
as held for sale in accordance with IFRS 5 Non-current
Assets Held for Sale and Discontinued Operations.
IMPAIRMENT OF TANGIBLE
AND INTANGIBLE ASSETS
The Group estimates at the end of each balance sheet
date if any indications of impairment exist. If such exists,
the recoverable amount of the assets is estimated.
In addition, the recoverable amount is estimated
annually regardless of indications of impairment for
the following assets: goodwill, intangible assets with
indefinite useful life, and intangible assets under
construction. The need for impairment is monitored at
the level of cash generating units (CGU) which is the
lowest level that is largely independent of the cash
inflows from other groups of assets.
The recoverable amount is the higher of an asset’s
fair value less costs of disposal and its value in use. The
value in use is the estimate of the future cash flows of
an asset or cash generating unit which are discounted
to present value. The pre-tax rate which represents
the market view of time value of money and risks
associated to asset or cash generating unit is used as
a discount rate.
Impairment loss is recognized if the carrying value
of an asset is higher than the recoverable amount.
Impairment loss is recognized in profit and loss.
The useful life of the asset is reassessed when an
impairment loss is recognized.
Impairment is reversed if there is a change in
estimates used in determining the recoverable
amount of an asset. Impairment is not reversed over
the carrying value of the asset without recognition
of impairment. An impairment loss recognized for
goodwill is not reversed in any circumstances.
Significant management judgement
and estimates
BUSINESS COMBINATIONS
In business combinations, management makes
estimates related to e.g. future cash flows of an
acquired business, fair value adjustments, value and
useful life of trademarks and synergies obtained from
the acquisition.
GOODWILL IMPAIRMENT TESTING
In the goodwill impairment testing, the carrying
value of the group of cash generating units (CGU) is
compared to the recoverable amount of the CGU at
least annually and when there are indications that it
might be impaired. The recoverable amount of the cash
generating units is based on value in use calculations.
Industry specific factors have been taken into account
in the discount rate used.
The recoverable amount used in impairment testing
is assessed by using budgets, forecasts and terminal
periods and the sensitivity is analyzed for discount
rate, profitability, and changes in residual value growth
factors. Changes in these estimates or in the structure
or number of cash generating units or group of units
may cause impairment in the fair value of assets or
goodwill. The estimates concern the expected sale
prices of services, expected price development of
service costs, and discount rate.
The value in use estimates require forecasts and
assumptions, of which the most significant concern
the revenue growth and development of costs, the
level of maintenance investments and changes in the
discount rate. It is possible that the predictions related
to cash flow forecasts are not achieved. As a result,
the impairment of goodwill or other assets may have a
significant negative effect on the result and financial
position in the future periods.
41
CONSOLIDATED FINANCIAL STATEMENTS
17. Property, plant and equipment
EUR thousand Buildings
Buildings,
right-of-use
Machinery and
equipment
Machinery and
equipment,
right-of-use Other
Advances paid
and work in
progress Total
Cost at 1 Jan 2021 1,080 9,616 1,646 341 102 - 12,786
Acquisitions - - 24 - - - 24
Additions 137 624 25 690 - - 1,476
Disposals -390 -2,198 -214 -185 - - -2,987
Revaluation - -746 - 3 - - -743
Cost at 31 Dec 2021 827 7,296 1,481 849 102 - 10,556
Accumulated depreciation
and impairment at 1 Jan 2021 -658 -3,871 -959 -241 -73 - -5,802
Disposals 390 2,198 - 185 - - 2,773
Depreciation -147 -1,858 -129 -173 - - -2,307
Impairment - -116 -10 - - - -126
Accumulated depreciation
and impairment
at 31 Dec 2021 -415 -3,647 -1,098 -229 -73 - -5,462
Net carrying value
at 1 Jan 2021 422 5,745 687 100 29 - 6,984
Net carrying value
at 31 Dec 2021 413 3,650 383 620 29 - 5,095
EUR thousand Buildings
Buildings,
right-of-use
Machinery and
equipment
Machinery and
equipment,
right-of-use Other
Advances paid
and work in
progress Total
Cost at 1 Jan 2020 962 6,409 1,947 388 102 557 10,366
Translation differences - 0 0 -1 - - -0
Acquisitions - - 4 - - - 4
Additions 119 3,403 26 122 - 578 4,248
Disposals - -24 -296 - - -1,135 -1,454
Classification as held for sale - -215 -36 -152 - - -403
Revaluation - 42 - -17 - - 25
Cost at 31 Dec 2020 1,080 9,616 1,646 341 102 - 12,786
Accumulated depreciation
and impairment at 1 Jan 2020 -539 -2,017 -753 -233 -51 - -3,592
Translation differences - -1 -0 0 - - -1
Classification as held for sale - 106 36 97 - - 239
Depreciation -119 -1,914 -242 -105 -23 - -2,403
Impairment - -45 - - - - -45
Accumulated depreciation
and impairment
at 31 Dec 2020 -658 -3,871 -959 -241 -73 - -5,802
Net carrying value
at 1 Jan 2020 430 4,392 1,194 155 52 557 6,780
Net carrying value
at 31 Dec 2020 422 5,745 687 100 29 - 6,984
42
CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTING POLICY
Property, plant and equipment is measured at cost less
accumulated depreciation and impairment losses and
is recognized in the balance sheet when it is probable
that future economic benefits will flow to the Group
and costs can be measured reliably.
The cost of property, plant and equipment comprises
the expenses directly attributable to the acquisition.
The subsequent expenses incurred are recognized in
the carrying value of an item of property, plant and
equipment or as a separate item if it is probable
that future economic benefits will flow to the Group
and costs can be measured reliably. Repair and
maintenance expenses are recognized in profit or loss
as incurred. If an item of property, plant and equipment
consists of several separate parts that have different
useful life each part is recognized as a separate item.
The Group’s property, plant and equipment are
depreciated over the estimated useful life. The
depreciation periods are 5–8 years.
The residual value and useful life of property, plant
and equipment are reviewed at least annually at the
balance sheet date and impairment adjustments
are made if necessary. The Group estimates if there
are any indications for impairment at each balance
sheet date. If the carrying value of the asset is greater
than the recoverable amount, the carrying value
of the asset is reduced to its recoverable amount
immediately. An item of property, plant and equipment
classified as held for sale in accordance with IFRS 5 is
not depreciated.
The gains and losses from the sale of property, plant
and equipment are presented in the other operating
income or expenses. The gain or loss is determined as a
difference between the sales price and carrying value.
43
CONSOLIDATED FINANCIAL STATEMENTS
18. Leases
Eezy’s leases relate primally to premises and cars.
The most significant leases are for the premises in
the largest cities in which the operations have been
centralized. These leases are mainly 3 to 5-year fixed
term leases. Leases may include extension options
and it is determined on a lease-by-lease basis if the
extension option is exercised or not. Smaller premises
have been leased for a perpetual term.
Right-of-use assets are presented in note 17.
The following lease liabilities are included in the
borrowings in the balance sheet:
LEASE LIABILITIES
EUR thousand 31 Dec 2021 31 Dec 2020
Current 1,975 1,986
Non-current 2,527 3,998
Total 4,502 5,984
The maturity of the lease liabilities is presented in
note27.
Eezy has leases that have not yet commenced
but Eezy is contractually committed to. The leases
commence during 2022 and the total lease liability of
the contracts is approximately EUR 2 million.
The following amounts related to leases are recognized
in profit or loss:
EUR thousand
1 Jan–31 Dec
2021
1 Jan–31 Dec
2020
Depreciation and
impairment losses -2,146 -2,019
Interest expenses from lease
liabilities -131 -114
Lease expenses from short
term leases -49 -226
Lease expenses from leases
of low value assets -583 -636
The total cash outflow for leases in 2021 was EUR 2,814
(2,974) thousand.
ACCOUNTING POLICY
Right-of-use assets are measured at cost comprising
the amount of the lease liability and any prepayments.
Right-of-use assets are depreciated over the shorter of
the asset’s useful life and the lease term.
Lease liability is initially measured at the
commencement of the lease at the present value of
the future payments. Lease payments include fixed
payments and variable lease payments based on an
index, any penalties for terminating the lease if the
lease term reflects the termination. Payments for the
periods covered by the extension options are included
in the lease liability if the lease is reasonably certain to
be extended.
Lease payments are discounted using the interest
rate implicit in the lease or the lessee’s incremental
borrowing rate if the interest rate implicit in the lease
cannot be readily determined. Eezy’s incremental
borrowing rate is determined based on financing
offers, lease term and economic environment.
Eezy’s leases include variable lease payments based
on an index which are not included in the measurement
of the lease liability until they realize. The lease liability
is remeasured when the lease payment based on an
index change. A corresponding adjustment is done to
the right-of-use asset amount.
Lease payments are allocated between principal
and finance cost. The finance cost is expensed over
the lease term to produce a constant periodic rate of
interest on the remaining balance of the liability for
each period.
Eezy’s leases include lease components and non-
lease components. The consideration in the contract
is allocated to the lease and non-lease components
based on their relative stand-alone prices.
Payments for short-term leases and leases of low-
value assets are recognized on a straight-line basis
as an expense in the result for the period. Short-term
leases are leases with a lease term of 12 months or
less. Exemption is applied to all classes of underlying
assets. Low-value assets comprise IT equipment and
machinery and office equipment.
Significant management judgement and estimates
In determining the lease term, management considers
all facts and circumstances that create an economic
incentive to exercise an extension option, or not to
exercise a termination option. Extension options (or
periods after termination options) are only included
in the lease term if the lease is reasonably certain to
be extended (or not terminated). Otherwise the Group
assesses the historical leases and need for replacement
leases when determining lease terms.
The lease term is reassessed if a significant event
or significant change in circumstances occurs or the
group becomes obliged to exercise or not to exercise
an option.
44
CONSOLIDATED FINANCIAL STATEMENTS
19. Investments in shares and funds
Fair values of investments and the fair value hierarchy levels
are presented in the table below:
31 Dec 2021
Fair value Level
31 Dec 2020
Fair value Level
Investments in shares, quoted - 1 351 1
Investments in shares, unquoted 240 3 235 3
Total 240 586
are measured at cost when it is determined that the
acquisition cost is a reasonable estimate of the fair
value. Listed shares are measured at the balance sheet
date fair value. Listed shares have been sold during
2021 and at 31 December 2021 the Group has no listed
shares measured at fair value.
The financial instruments measured at fair value in
the balance sheet are classified based on the following
fair value hierarchy levels:
Level 1: The fair value of publicly traded instruments
(like listed shares) is based on the quoted year-end
market prices of similar assets or liabilities in active
markets. The bid price is used as the quoted market
price.
Level 2: The fair value of financial instruments that are
not traded on the active market is determined with a
valuation technique. These techniques maximize the
use of observable market data and apply company
specific estimates only to a minimal degree. When all
significant inputs needed to determine the fair value
of the instrument are observable, the instrument is
categorized on level 2.
Level 3: If one or several significant inputs are not
based on observable market data, the instrument is
categorized on level 3. Such instruments include the
Company’s investments in unlisted shares.
The changes in level 3 items are as follows:
Share investments
1 Jan 2020 243
Sales -8
31 Dec 2020 235
Addition 5
31 Dec 2021 240
In addition, the Group has contingent consideration
liabilities which were classified as level 3 in the fair
value hierarchy. More information is presented in notes
14 and 26.
ACCOUNTING POLICY
Share investments are measured at fair value. Eezy has
chosen to recognize the changes in the fair value of
the share investments in other comprehensive income
instead of the profit or loss for the period. Eezy sees this
as an appropriate decision as shares are non-current
investments not held for trading. The changes in the
fair value are not subsequently reclassified to profit
or loss. Dividend income is recognized in the profit or
loss for the period. Eezy’s share investments consist of
listed and unlisted shares. The fair value of the unlisted
shares is determined using valuation models. They
45
CONSOLIDATED FINANCIAL STATEMENTS
20. Deferred tax assets and liabilities
Deferred taxes are recognized for all temporary differences.
The changes in deferred taxes are as follows:
EUR thousand 1 Jan 2021
Recognized in
profit or loss 31 Dec 2021
Deferred tax assets
Tax losses carried forward 20 15 35
Tax losses from the period 98 -98 -
Interest cost suspended in taxation 47 -47 -
Leases 19 4 23
Credit loss provision 189 -46 143
Total 374 -172 201
EUR thousand 1 Jan 2020
Recognized in
profit or loss 31 Dec 2020
Deferred tax assets
Tax losses carried forward - 20 20
Tax losses from the period - 98 98
Interest cost suspended in taxation - 47 47
Leases 10 9 19
Credit loss provision 266 -77 189
Total 275 98 374
EUR thousand 1 Jan 2021
Recognized in
profit or loss Acquisitions 31 Dec 2021
Deferred tax liabilities
Business combinations 5,491 -706 394 5,179
Loans 14 -2 - 12
Total 5,504 -708 394 5,190
EUR thousand 1 Jan 2020
Recognized in
profit or loss
Recognized in
equity Acquisitions 31 Dec 2020
Deferred tax liabilities
Business combinations 6,001 -656 - 146 5,491
Loans 18 -4 - - 14
Leases -0 0 - - -
Share investments 19 - -19 - 0
Total 6,038 -660 -19 146 5,504
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current tax
assets and liabilities and the deferred taxes related to
the income tax of the same taxable entity.
ACCOUNTING POLICY
Deferred taxes are recognized for all temporary
differences between the carrying values and the tax
bases. The largest temporary differences arise from
the fair value adjustments of assets and liabilities in
business combinations, provisions and unused tax
losses. Deferred taxes are calculated using the tax
rates enacted or substantively enacted at the balance
sheet date.
Deferred tax assets are recognized to the extent
that it is probable that future taxable income will be
46
CONSOLIDATED FINANCIAL STATEMENTS
generated against which the deductible temporary
difference can be utilized. The recognition criteria of
the deferred tax asset is assessed at each balance
sheet date.
However, a deferred tax liability is not recognized,
when it arises from the initial recognition of an asset
or liability in a transaction other than a business
combination and the recognition of the asset or
liability at the time of the transaction affects neither
accounting nor taxable profit or loss.
Deferred tax assets and liabilities are offset when
the Group has a legally enforceable right to offset the
current tax assets against current tax liabilities, and
when the deferred tax assets and liabilities are related
to the income tax levied by the same taxation authority
either from the same taxable entity or different taxable
entities when there is an intention to settle the asset
and the liability on a net basis.
Significant management judgement and estimates
Eezy’s management uses judgement when recognizing
deferred tax assets and liabilities in the balance sheet.
Deferred tax assets are recognized on the balance
sheet only if the utilization of the assets is seen as
more probable than not utilizing the deferred tax
assets. Utilization is subject to the future generation of
taxable income. Assumptions related to the generation
of future taxable profit are based on the management
estimates on future cash flows. The Group’s ability to
generate taxable income is also subject to the general
economic situation, financing, competitiveness and
regulation environment which are not in the Group’s
control. These estimates and assumptions involve risks
and uncertainty, and thus it is possible that the changes
in circumstances will change the expectations which
may affect the amount of the deferred tax liabilities
and assets recognized as well as other unrecognized
tax losses and temporary differences.
21. Trade receivables and other receivables
EUR thousand 31 Dec 2021 31 Dec 2020
Non-current receivables
Growth funding receivables 683 1,017
Loan receivables from associated companies - 23
Other loan receivables - 6
Lease guarantees 441 182
Other receivables 27 -
Total non-current receivables 1,152 1,227
Current receivables
Trade receivables 30,105 19,044
Growth funding receivables 358 441
Loan receivables from associated companies - 38
Other loan receivables 46 90
Other receivables 454 459
Accrued income 687 778
Total current receivables 31,649 20,851
Total trade receivables and other receivables 32,800 22,078
Accrued income consists of employer insurance and
advance payments.
Trade receivables are measured at the transaction
price. The carrying value of the trade receivables and
other receivables equals their fair value. Information
on the impairment of the trade receivables and other
receivables and their credit risk is described in note 27.
47
CONSOLIDATED FINANCIAL STATEMENTS
22. Cash and cash equivalents
Cash and cash equivalents presented in the balance
sheet and cash flow statement consists of cash at
bank and in hand. Utilized credit limits are presented
as current liabilities. Credit limits are an essential part
of the liquidity management. Liquidity risk and its
management is described in note 27.
23. Equity
EUR thousand
Shares
1,000 pcs
Share
capital
Reserve
for invested
un restricted
equity
Fair
value
reserve
Translation
differences
Retained
earnings
Total attributable
to the owners
of the parent
company
Non-
controlling
interests
Total
equity
31 Dec 2021 25,047 80 107,876 - - -1,857 106,099 3,037 109,136
31 Dec 2020 24,849 80 106,572 -3 -50 -5,714 100,885 2,589 103,744
Share capital
Eezy Plc has one series of shares and all shares are
equally entitled to dividends. One share carries one
vote at the general meeting. Eezy’s shares are 9
September 2020 onwards listed on the official list of
Nasdaq Helsinki. Before that, Eezy’s shares were listed
in Nasdaq First North Growth Market.
Pcs 2021 2020
1 Jan 24,849,375 24,849,375
Directed share issue 197,440 -
31 Dec 25,046,815 24,849,375
The directed share issue in the 2021 financial year is
related to the Eezy Triton acquisition, in which 45,843
shares were issued, and to the Eezy Valmennuskeskus
acquisition, in which 151,597 shares were issued.
Own shares
The Company does not hold its own shares.
Dividends
The Annual General Meeting (AGM) decided on 13 April
2021 that for year 2020 a dividend of EUR 0.10 per share
is distributed by a resolution of the general meeting.
The dividend EUR 0.10 per share was paid on 22 April
2021. In addition, the board of directors was authorised
to later decide on a possible dividend of max. EUR 0.05
per share. On 8 December 2021, the board of directors
decided on using the authorisation given by the AGM.
The dividend of EUR 0.05 per share was paid on 17
December 2021. The total dividend from year 2020 has
been EUR 0.15 per share.
Reserve for invested unrestricted equity
The reserve for invested unrestricted equity includes
other investments that by nature are considered as
equity and the share subscription price unless it is
explicitly decided to be included in the share capital.
The changes in the reserve for invested unrestricted
equity are presented in the statement of changes in
equity.
Fair value reserve
The changes in the fair value of share investments after
the acquisition date, net of tax, are recognized in the
fair value reserve. On 31 December 2021 the Group has
no items recorded in the fair value reserve.
Translation differences
Translation differences consists of the translation
differences arising from the translation of foreign
Group companies. On 31 December 2021 the Group
has no items recorded in the translation differences.
ACCOUNTING POLICY
Share capital includes only ordinary shares. The
incremental costs directly attributable to the issue of
new shares or other equity instruments, net of tax, are
recognized in equity as a deduction from the proceeds.
If company buys back its own equity instruments,
the consideration paid is deducted from equity.
The dividend payable to the Group’s shareholders
is recognized in the financial year during which the
general meeting has approved the dividend.
48
CONSOLIDATED FINANCIAL STATEMENTS
24. Earnings per share
1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Result for the period attributable to the owners of the company 7,600,963 2,680,445
Weighted average number of shares, undiluted 24,883,655 24,849,375
Earnings per share, basic (EUR) 0.31 0.11
Impact of shares related to the share-based payments plan 197,479 147,957
Weighted average number of shares, diluted 25,081,134 24,997,332
Earnings per share, diluted (EUR) 0.30 0.11
The number of dilutive shares in 2021 was 197,479
(147,957).
ACCOUNTING POLICY
The basic earnings per share is calculated by dividing
the profit (loss) attributable to the owners of the parent
company by the weighted average number of shares.
In calculating the diluted earnings per share, the
dilution impact of the options and shares granted
to employees is taken into consideration. More
information on the share-based payments is in note 7.
25. Borrowings
Changes in borrowings divided to changes from financing cash
flows and other changes are presented in the table below:
EUR thousand
Loans from
financial institutions
Lease
liabilities Other loans Total
1 Jan 2020 55,109 4,625 29 59,764
Repayments of borrowings -3,282 -1,998 -18 -5,299
Acquisitions 12 - - 12
New leases - 3 502 - 3,502
Other changes 38 -145 -1 -108
31 Dec 2020 51,877 5,984 9 57,870
Repayments of borrowings -4,328 -2,050 -9 -6,387
Acquisitions 796 - - 796
New leases - 1,314 - 1,314
Revaluations - -745 - -745
Other changes -21 - - -21
31 Dec 2021 48,325 4,502 - 52,826
The financing arrangements of the Group relate
primarily to the financing of the business acquisitions.
The maturities of these financing arrangements
range from 1 to 5 years.
The Group’s loans include covenants defined in
the financing agreements. The most important loan
covenants are reported to the creditors half yearly. If
the Group does not meet the covenants, the creditor
may require an accelerated loan prepayment. During
the financial years presented, the Group has met loan
related covenants, which relate to net debt ratio and
ratio of interest bearing net debt compared to EBITDA.
The Group’s loans are denominated in euros and
primarily have floating interest rates. The repricing of
the loans occurs every 12 months. The impact on the
cash flows arising from changes in the loan interest
rates at the current market interest rate levels is
insignificant. The loan margins vary between 1.7% and
2.45%. The covenants also include terms related to
interest rate levels. Half yearly the margin can vary
between 1.45% and 2.70% depending on the level of
the covenant related to net debt and EBITDA.
49
CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTING POLICY
Borrowings are initially recognized at fair value,
net of transaction costs incurred. After the initial
recognition borrowings are measured at amortized
cost using the effective interest method. Borrowings
are classified as current liabilities if the Group intends
to settle the borrowings during the next 12 months after
the reporting date or if the Group does not have an
unconditional right to defer the settlement for at least
12 months after the reporting date.
The transaction costs incurred in connection with
the borrowings are recognized as interest expenses
using the effective interest method.
26. Trade payables and other liabilities
EUR thousand 31 Dec 2021 31 Dec 2020
Non-current liabilities
Contingent considerations 1,928 -
Share-based payments 16 16
Other liabilities - 50
Total non-current liabilities 1,944 66
Current liabilities
Trade payables 6,241 5,600
Contingent considerations 54 -
VAT liability 8,994 9,783
Personnel related liabilities 4,487 6,097
Other liabilities 515 531
Personnel related accrued expenses 14,689 12,257
Other accrued expenses 520 362
Total current liabilities 35,499 34,630
Total trade payables and other liabilities 37,443 34,696
ACCOUNTING POLICY
Fair values of trade payables and other liabilities equal
their carrying values. They are measured at cost or
amortized cost apart from contingent considerations
The carrying value of the borrowings equals their fair
value in the periods presented, as the coupon rates
have been on the same level with market rates, and
the impact of discounting the future cash flows using
the market interest rate at the valuation date is not
significant.
The maturities of the borrowings and more
information on the interest rate risk and the liquidity
risk management is presented in note 27.
which are measured at fair value. Fair value is based on
management’s estimate and it is classified as level 3 in
the fair value hierarchy.
50
CONSOLIDATED FINANCIAL STATEMENTS
27. Financial risk management
The group’s principles of financial risk management
have not significantly changed during reporting
period. Eezy and its operating activities are exposed
to certain financial risks. Financial risk management
is a part of the Group’s risk management processes
and an integral part of Eezy’s strategy process,
planning process and day-to-day management. Eezy’s
CEO is responsible for drafting the principles of risk
management and for ensuring that the principles are
implemented systematically and appropriately. Eezy’s
Group Management Team is responsible for identifying
group level risks. Risk management is reported to
Eezy’s Board of Directors and the Board confirms the
company’s principles of risk management.
The most significant financial risks for Eezy are credit
risk and liquidity risk. Group treasury monitors the day-
to-day liquidity and the CFO is responsible for the long-
term liquidity and for monitoring the covenants.
Liquidity risk
Liquidity risk relates to ensuring and maintaining
sufficient financing for Eezy. Eezy strives to continuously
assess and monitor the amount of financing needed for
the business operations, by, among others, performing
a monthly analysis on the sales development and
investment needs in order to ensure the Group has
sufficient liquid assets to finance the operations and
to repay the borrowings when they fall due. The CFO
analyses the possible need for additional financing.
The Group aims to ensure the availability and flexibility
of the Group’s financing with sufficient available
credit facilities, a balanced debt maturity profile and
sufficiently long loan periods as well as by using several
financial institutions as counterparties and different
forms of financing, when necessary. The Group’s
financing activities determine the optimal level of cash.
Cash and cash equivalents amounted to EUR 6,106
(15,447) thousand at the end of the financial year, in
addition to which the Group had undrawn committed
credit limits available totaling to EUR 10,000 (10,000)
thousand. In 2020 relaxed due dates of pension
payments and taxes temporarily increased the Group’s
cash and cash equivalents by approx. EUR 10.2 million.
The group has a long-term senior loan from financial
institutions and the financial agreements include the
terms of covenants. The breach of covenants may
lead to the situation where the creditor may require
an accelerated loan prepayment or immediate
prepayment. As of 31 December 2021, the Group has
non-current loans from financial institutions EUR 43,924
(47,630) thousand and current loans from financial
institutions EUR 4,400 (4,247) thousand. The terms and
conditions of the loans and related covenants are
described in note 25.
The following tables present the contractual maturity
analysis of the Group’s financial liabilities. The figures
are undiscounted and include interest payments and
repayments.
EUR thousand 0–6 months 7–12 months 1–3 years 4–5 years
Total contractual
cash flows
Carrying
value
31 Dec 2021
Loans from financial
institutions 1,496 3,991 45,731 188 51,406 48,325
Lease liabilities 1,053 1,003 2,536 57 4,648 4,502
Trade payables 6,241 - - - 6,241 6,241
Contingent considerations 54 - 1,908 20 1,981 1,981
Total 8,844 4,994 50,175 265 64,276 61,049
In addition to the table above: In spring 2020 periodical
(self-assessed) taxes were postponed and will mature
EUR thousand 0–6 months 7–12 months 1–3 years 4–5 years
Total contractual
cash flows
Carrying
value
31 Dec 2020
Loans from financial
institutions 1,436 3,965 10,570 40,134 56,104 51,877
Lease liabilities 1,086 1,017 3,734 384 6,222 5,984
Trade payables 5,600 - - - 5,600 5,600
Other loans 9 - - - 9 9
Total 8,131 4,982 14,304 40,518 67,935 63,470
following: below six months EUR 727 thousand, as total
of EUR 727 thousand.
51
CONSOLIDATED FINANCIAL STATEMENTS
Credit risk
Credit risk arises from trade receivables and the
growth funding receivables. Credit risk also arises from
loan receivables, other receivables and cash and cash
equivalents but based on Group’s analysis their credit
risk is considered immaterial.
The Group’s policy defines the creditworthiness
requirements for the counterparties. Credit risk
management and credit control are centralized in the
Group’s financial management.
The Group aims to minimize the risks related to
the receivables through the terms of payment of the
receivables, customer-specific monitoring of trade
receivables, effective collection, and checking of the
customers’ creditworthiness, as well as partly through
various collateral arrangements. For the growth
funding paid to their customers, the Group has received
a counterparty guarantee from these customers that
covers the growth funding paid to these customers.
The trade receivables and growth funding of certain
big customers together form credit risk concentrations
for the Group. The Group has aimed to secure the most
significant customer-specific receivable positions
through various collateral arrangements. Typical
collaterals are, among others, guarantees and various
pledges to the benefit of the Group.
During the financial year, the Group has recognized
EUR 227 (2,515) thousand on trade receivables and
growth funding receivables as credit losses and EUR
307 (42) thousand as reversal of unused amount in
profit or loss.
Trade receivables
The staffing service business is based on sales
invoiced. It involves a risk of credit losses typical for
the nature of the business and the industry. Historically,
the level of incurred credit losses on trade receivables
has typically been low.
The Group applies the simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables.
To measure the expected credit losses, trade
receivables have been grouped based on shared
credit risk characteristics and the days past due. The
Group monitors continuously the level of write downs
on receivables and changes the models by taken
into account existing conditions and forward-looking
information. Due to COVID-19 some of customers’
ability to pay are estimated to be weakened.
The expected loss rates are based on the payment
profiles of sales over a period of 36 months before 31
December 2021 or 31 December 2020, respectively, and
the corresponding historical credit losses experienced
within this period. The historical loss rates are adjusted
to reflect current and forward-looking information and
macroeconomic factors affecting the ability of the
customers to settle the receivables.
The table below presents the changes in the credit
loss allowance for the periods presented, the age
analysis of trade receivables, and for each age
analysis group the recognized impairments and the
percentages used:
EUR thousand Not due
Due, 1–30
days
Due, 31–60
days
Due, 61–90
days
Due, 91–180
days
Over 180
days Total
31 Dec 2021
Expected credit loss
rate, % 0.2% 0.8% 1.5% 2.0% 10.0% 26.0%
Carrying value of trade
receivables 26,383 1,906 307 148 613 1,197 30,553
Credit loss provision 53 15 5 3 61 311 448
EUR thousand Not due
Due, 1–30
days
Due, 31–60
days
Due, 61–90
days
Due, 91–180
days
Over 180
days Total
31 Dec 2020
Expected credit loss
rate, % 0.2% 0.8% 1.5% 2.0% 10.0% 26.0%
Carrying value of trade
receivables 16,125 941 504 472 388 960 19,390
Credit loss provision 32 8 8 9 39 250 345
52
CONSOLIDATED FINANCIAL STATEMENTS
EUR thousand 2021 2020
1 Jan 345 574
Change in provision 20 2,653
Recognized as credit losses -224 -2,924
Unused amount reversed 307 42
31 Dec 448 345
The Group monitors continuously the level of write
downs on receivables and changes the models by
taken into account existing conditions and forward-
looking information.
Trade receivables are written off when there is not
a reasonable expectation of recovery. Indicators that
there is not a reasonable expectation of recovery
include, amongst others, the failure of a debtor to
engage in a repayment plan with the Group and a
failure to make contractual payments for a period of
greater than 360 days past due.
Impairment losses on trade receivables are
presented as net impairment losses within operating
profit. Subsequent recoveries of amounts previously
written off are credited against the same line item.
Growth funding receivables
Growth funding has been paid to certain large
customers in the staffing service business. The earning
of the growth funding is based on the customers’ future
purchases and the payments of the trade receivables
generated from them. Growth funding receivables
were acquired in connection with the acquisition of
Smile in 2019 and they were measured at fair value
considering the estimated future credit losses. Growth
funding receivables are secured by using, among
others, guarantees and various pledges.
Unexpected customers insolvency situations may
lead to disruptions of providing services and may lead
to termination of growth funding agreements that are
earlier considered favorable. Corona virus pandemic
has had a negative effect on both general economic
conditions in Finland and internationally, as well as
some of customers businesses. The Group monitors
continuously the level of write downs on receivables
and changes the models by taking into account
existing conditions and forward-looking information.
After initial recognition, the Group recognizes
impairment from growth funding receivables based
on expected credit losses. The Company considers the
growth funding receivables to be low credit risk where
they have a low risk of default and the counterparty
has a strong capacity to meet its contractual cash flow
obligations in the near term. From these receivables,
12-month expected credit losses are recognized.
If the credit risk is not considered to be low or the
credit risk has increased significantly since initial
recognition, lifetime expected credit losses are
recognized from the growth funding receivables.
The mitigating effect of collateral is taken into
consideration in the recognized credit losses.
Significant management judgement and estimates
Eezy’s management uses judgement when determining
whether there has been a significant increase in the
credit risk of growth funding receivables so that
the recognition of lifetime expected credit losses is
commenced, and on the timing when the receivables
are written off as impaired. Management presumes
the credit risk to have increased significantly when the
payments are at least 180 days past due. Additionally,
the past-due receivables are analyzed on a case
by case basis. The growth funding receivables are
written off when there is not a reasonable expectation
of recovery, for example when the customer is in
liquidation or has entered bankruptcy.
Capital management
As a part of their capital management, Eezy’s
management monitors the borrowings and equity as
presented in the consolidated balance sheet. The aim
of the Group’s capital management (equity vs. debt)
is, with the optimal capital structure, to support the
business operations by ensuring normal operational
prerequisites, and to increase the shareholder value
in the long term. Capital management is also driven
by the owners’ aim to maintain a simple financial
structure. Capital needs are primarily fulfilled with
long-term debt financing.
The capital structure is adjusted mainly by dividend
distributions and share issues. The Group can also
decide to sell assets in order to reduce debt. The
development of the Group’s capital structure is
monitored with comparing net debt to adjusted EBITDA,
which is reported to the Group management regularly.
Net debt is calculated by deducting cash and cash
equivalents from non-current and current loans from
financial institutions, non-current other liabilities, lease
liabilities, current contingent consideration liabilities
and current financial liabilities. Adjusted EBITDA is
calculated by adding to operating profit the following:
depreciation, amortization and impairment losses, and
items affecting comparability, such as items relating to
acquisitions, closing of business operations, structural
reorganization and significant redundancy costs.
Interest rate risk
Interest rate risk means the risk that the fair value or
future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The
Group has not been materially exposed to fair value
interest rate risks because a significant part of its
loans are linked to the Euribor. Further, the cash flow
interest rate risk is not considered to be significant due
to the current interest rate level. The interest rates of
borrowings are described in note 25.
A reasonably possible change in interest rates on
the balance sheet date would not have had a material
impact in profit or loss for the financial year.
Foreign exchange risk
The Group operates only in Finland since January 2021,
53
CONSOLIDATED FINANCIAL STATEMENTS
but in comparative year had some business operations
in Sweden as well. Local companies operate in their
functional currency. Due to these factors, the impact
from foreign exchange risk is not material, and it is not
hedged. The foreign exchange risk associated with net
investments is not hedged.
28. Group structure
Subsidiaries belonging to the Group as at 31 December
2021 are presented in the table below:
Subsidiary Domicile Group ownership portion, %
Eezy VMP Oy Helsinki 100%
Bework Oy Helsinki 100%
Castanea Oy Helsinki 100%
Conrator Oy Helsinki 100%
Eezy Sonire Oy Helsinki 100%
Staffservice Finland Oy Helsinki 100%
Workcontrol Oy Helsinki 100%
Caperea Oy Helsinki 100%
Eezy Kevytyrittäjät Osk Helsinki 100%
Eezy Personnel Oy Tampere 100%
Hazana Oy Kuopio 100%
Extremely Nice Job Oy Helsinki 100%
Enjoy Etelä Oy Helsinki 100%
Enjoy Pohjoinen Oy Helsinki 100%
Enjoy Itä Oy Helsinki 100%
Enjoy Länsi Oy Helsinki 100%
Henkilöstöratkaisu Extraajat Oy Helsinki 100%
Extraajat Etelä-Suomi Oy Helsinki 100%
Extraajat Helsinki Oy Helsinki 100%
Eezy Kauppa Suomi Oy Helsinki 100%
Extraajat Pirkanmaa Oy Helsinki 100%
Extraajat Uusimaa Oy Helsinki 100%
Eezy Kauppa Länsi Oy Helsinki 100%
Eezy Flow Oy Turku 70.02%
Eezy Henkilöstöpalvelut Oy Tampere 100%
Happy Henkilöstöpalvelut Oy Tampere 100%
Smile Job Services Oy Tampere 100%
Resta Henkilöstöpalvelut Oy Tampere 100%
Smile Botnia Oy Tampere 100%
Doctors by Eezy Oy Tampere 76%
Smile Office Oy Tampere 100%
Smile Events & Promotions Oy Tampere 100%
Smile Huippu Oy Kuopio 100%
Smile Palvelut Jyväskylä Oy Tampere 100%
54
CONSOLIDATED FINANCIAL STATEMENTS
Subsidiary Domicile Group ownership portion, %
Smile MMS Oy Kuortane 100%
Smile Industries Oy Kuortane 100%
Smile Industries Kuopio Oy Tampere 100%
Smile Industries Tampere Oy Tampere 100%
Smile Pohjanmaa Oy Kuortane 100%
Smile Palvelut Helsinki Oy Tampere 100%
Smile Palvelut Pohjoinen Oy Tampere 100%
Smile Palvelut Ilo Oy Tampere 100%
Smile Palvelut Turku Oy Tampere 100%
Smile Services Oy Tampere 100%
Smile Super Oy Tampere 100%
Smile Tampere Oy Tampere 100%
Smile Banssi Oy Tampere 100%
Smile Banssi Etelä Oy Espoo 100%
Smile Banssi Häme Oy Espoo 100%
Smile Banssi Itä Oy Joensuu 100%
Smile Banssi Keski Oy Jyväskylä 100%
Smile Palvelut Royal Oy Tampere 100%
Eezy Teollinen Etelä Oy Helsinki 100%
Smile Seinäjoki Oy Tampere 100%
Smile Jobio Pohjanmaa Oy Tampere 100%
Smile Jobio Pirkanmaa Oy Tampere 100%
Smile Jobio Varsinais-Suomi Oy Tampere 100%
Smile Import Oy Tampere 80%
Eezy Teollinen Pohjoinen Oy Tampere 100%
Smile Kymppi Service Länsi-Suomi Oy Tampere 100%
Smile Palvelut Maja Oy Tampere 100%
Eezy United Oy Helsinki 70%
Eezy Triton Oy Helsinki 100%
Eezy Valmennuskeskus Oy Helsinki 80%
These consolidated financial statements consist of
Eezy Plc, the parent company of the Group, and all
subsidiaries over which the parent company has
control. Acquisitions that have impacted the Group
structure are presented in note 14.
ACCOUNTING POLICY
Subsidiaries are entities over which the Group has
control. The group controls an entity where the Group
is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect
those returns through its power to direct the activities of
the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. They
are deconsolidated from the date that control ceases.
The acquisition method of accounting is used
to eliminate share ownership between the Group
companies. The acquisition cost exceeding the
fair value of the net identifiable assets acquired is
recorded as goodwill. If the acquisition cost is less
than the fair value of the net identifiable assets of the
business acquired, the difference is recognized directly
as income in the result of the period.
The acquisition related costs, other than those
associated with the issue of debt or equity securities, are
expensed as incurred. Any contingent consideration
payable is recognized at fair value at the acquisition
date, and classified as a financial liability or equity.
The contingent consideration classified as a financial
liability is remeasured to fair value at each balance
sheet date and changes in fair value are recognized in
the result for the period. The contingent consideration
classified as equity is not remeasured. Any non-
controlling interests in the acquired entity is measured
at fair value or at the non-controlling interest’s
proportionate share of the acquired entity’s net
identifiable assets. The valuation policy is determined
on an acquisition-by-acquisition basis.
55
CONSOLIDATED FINANCIAL STATEMENTS
Inter-company transactions, balances and unrealized
gains on transactions between group companies are
eliminated. Unrealized losses are also eliminated
unless the transaction provides evidence of an
impairment of the transferred asset. Accounting
policies of subsidiaries have been changed where
necessary to ensure consistency with the policies
applied by the Group.
The profit (loss) for the period and total
comprehensive income for the period attributable to
the owners of the parent company and non-controlling
interests are presented in the consolidated statement
of comprehensive income. Total comprehensive
income for the period is allocated to non-controlling
interests although this would result in a negative
non-controlling interest. Non-controlling interests
in the equity is presented as a separate line item in
the balance sheet as part of equity. Changes in the
ownership of the subsidiaries that do not result in a
loss of control are treated as transactions with equity
owners of the Group. In a business combination
achieved in stages, the acquisition date carrying value
of the acquirer’s previously held equity interest in the
acquiree is remeasured to fair value at the acquisition
date and any gains or losses arising is recognized in
the result for the period. When the Group loses the
control in a subsidiary, any retained interest in the
entity is remeasured to its fair value at the date when
the control ceases and the difference arising from the
measurement is recognized in profit or loss.
29. Changes in the non-controlling interests
Company in which interests
are acquired
Acquisition
date
Acquired
share
New
ownership
interest
Purchase
consideration
(EUR thousand)
Change in non-
controlling
interests
(EUR thousand)
Change in
retained
earnings
(EUR thousand)
2021
Eezy Henkilöstöpalvelut Oy
Smile Industries Kuopio Oy 5 Feb 2021 10.00% 100.00% 40 -23 -18
2020
Eezy Henkilöstöpalvelut Oy
Smile Doctors Oy 30 Jan 2020 4.75% 76.00% 23 -23 0
Smile Banssi Oy
Smile Banssi Lappi Oy 10 Jun 2020 10.00% 100.00% 31 -7 -49
Smile Banssi Oy
Smile Banssi Uusimaa Oy 10 Sep 2020 10.00% 100.00% 62 -8 -23
30. Investments in associates
EUR thousand 2021 2020
Cost at 1 Jan - 85
Share of the result of
associates - -1
Divestments - -84
Cost at 31 Dec - -
Eezy sold its share of Enjoy Festival Oy on 31 January
2020. Outside of profit from the sale, EUR 0.05 million,
the sale had no significant impact on Eezy’s result in
2020.
56
CONSOLIDATED FINANCIAL STATEMENTS
31. 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 used as a comprehensive guarantee
for liabilities on the bank accounts included in the cash
pool agreement.
EUR thousand 31 Dec 2021 31 Dec 2020
Liabilities in balance sheet
for which collaterals given
Loans from financial
institutions, non-current 43,924 47,630
Loans from financial
institutions, current 4,400 4,247
Total 48,325 51,877
EUR thousand 31 Dec 2021 31 Dec 2020
Mortgages on own behalf
Company mortgages 100,000 100,000
Property, plant and
equipment 16 51
Total 100,016 100,051
The shares of Eezy VMP Oy and Eezy Henkilöstöpalvelut
Oy are pledged to existing and future financial
institution loans on the balance sheet dates.
More information on business combinations is
presented in note 14.
ACCOUNTING POLICY
A contingent liability is a possible obligation that
has arisen from past events and whose existence is
confirmed only by the occurrence of uncertain future
events not wholly in the control of the Group.
A contingent liability is also a present obligation
whose settlement probably does not require an outflow
of resources, and the amount cannot be measured
reliably. A contingent liability is presented in the notes
of the consolidated financial statements.
32. New standards
NEW AND AMENDED STANDARDS AND ACCOUNTING
POLICIES APPLIED IN THE FINANCIAL YEAR ENDED
31DECEMBER 2021
Group has applied following new and amended
standards and accounting policies from 1 January 2021
onwards. These have not had a significant impact on
consolidated financial statements 2021.
Covid-19-Related Rent Concessions beyond 30 June
2021 – Amendment to IFRS 16 Leases (effective from 1
April 2021 for financial years starting, at the latest, on
or after 1 January 2021)
The amendments allow the lessees not to account
for rent concessions as lease modifications if the
concessions are a direct consequence of the Covid-19
pandemic and only if certain conditions are met.
Interest Rate Benchmark Reform – Phase 2 –
Amendments to IFRS 9 Financial Instruments, IAS 39
Financial Instruments: Recognition and Measurement,
IFRS 7 Financial Instruments: Disclosures, IFRS 4
Insurance Contracts and IFRS 16 Leases (effective for
financial years beginning on or after 1 January 2021)
Amendments address issues affecting financial
statements when changes are made to contractual
cash flows and hedging relationships as a result of
interest rate benchmark reform. Amendments assist
companies in providing useful information about the
effects of interest rate benchmark reform on financial
statements.
Configuration or Customisation Costs in a Cloud
Computing Arrangement – IAS 38 Intangible Assets
(effective immediately)
The agenda decision published by IFRS Interpretation
Committee in April 2021 clarifies how to recognise
costs of configuring or customising a supplier’s
application software in a Software as a Service (SaaS)
arrangement. The agenda decision address whether
an intangible asset may be recognized by the entity
purchasing the service and if not how the configuration
or customisation costs are accounted for. The agenda
decisions have no effective date, so they are expected
to be applied as soon as possible since published.
ADOPTION OF NEW AND AMENDED STANDARDS
INFUTURE FINANCIAL YEARS
Group estimates that adoption of new and amended
standards listed below in future financial years will not
have a significant impact on consolidated financial
statements.
Onerous Contracts – Costs of Fulfilling a Contract –
Amendments to IAS 37 Provisions, Contingent Liabilities
57
CONSOLIDATED FINANCIAL STATEMENTS
and Contingent Assets (effective for financial years
beginning on or after 1 January 2022)
When an onerous contract is accounted for based
on the costs of fulfilling the contract, the amendments
clarify that these costs comprise both the incremental
costs and an allocation of other direct costs.
Annual Improvements to IFRS Standards 2018–2020
(effective for financial years beginning on or after 1
January 2022)
The annual improvements process provides a
mechanism for minor and non-urgent amendments
to IFRSs to be grouped together and issued in one
package annually. The amendments clarify e.g. the
following standards:
• IFRS 9 Financial Instruments – Fees in the ‘10
per cent’ test for derecognition of financial
liabilities: This amendment clarifies that – for
the purpose of performing the ‘10 per cent test’
for derecognition of financial liabilities – in
determining those fees paid net of fees received,
a borrower includes only fees paid or received
between the borrower and the lender, including
fees paid or received by either the borrower or
lender on the other’s behalf.
Classification of Liabilities as Current or Non-current
– Amendments to IAS 1 Presentation of Financial
Statements * (effective for financial years beginning on
or after 1 January 2023, early application is permitted)
The amendments are to promote consistency
in application and clarify the requirements on
determining if a liability is current or non-current.
Disclosure of Accounting Policies – Amendments to
IAS 1 Presentation of Financial Statements and IFRS
Practice Statement 2 Making Materiality Judgements*
(effective for financial years beginning on or after 1
January 2023, early application is permitted)
The amendments clarify the application of
materiality to disclosure of accounting policies.
Definition of Accounting Estimates – Amendments
to IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors* (effective for financial years
beginning on or after 1 January 2023, early application
is permitted)
The amendments clarify how companies should
distinguish changes in accounting policies from
changes in accounting estimates, with a primary focus
on the definition of and clarifications on accounting
estimates.
Deferred Tax related to Assets and Liabilities arising
from a Single Transaction – Amendments to IAS 12
Income Taxes* (effective for financial years beginning
on or after 1 January 2023, early application is
permitted)
The amendments narrow the initial recognition
exemption (IRE) and clarify that the exemption
does not apply to transactions such as leases and
decommissioning obligations which give rise to equal
and offsetting temporary differences.
* = not yet endorsed for use by the European Union as of 31 December 2021
58
PARENT COMPANY FINANCIAL STATEMENTS
59
Eezy
parent
company
financial
statements
2021
PARENT COMPANY FINANCIAL STATEMENTS
60
PARENT COMPANY FINANCIAL STATEMENTS
Parent company income
statement (FAS)
EUR 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
REVENUE 12,064,136.50 12,251,618.05
Other operating income 7,101.53 351.62
Personnel expenses
Wages and salaries -3,119,606.46 -990,798.22
Social security expenses
Pension expenses -509,527.35 -129,250.12
Other social security expenses -109,490.18 -24,159.51
Total social security expenses -619,017.53 -153,409.63
Total personnel expenses -3,738,623.99 -1,144,207.85
Depreciation, amortisation and impairment losses
Depreciation and amortisation according to plan -40,681.97 -47,458.38
Total depreciation, amortisation and impairment losses -40,681.97 -47,458.38
Other operating expenses -7,228,821.03 -12,682,408.70
OPERATING PROFIT (LOSS) 1,063,111.04 -1,622,105.26
Financial income and expenses
Other interest income and other financial income
From other companies 73.45 283.93
From group companies 1,679,042.61 1,665,002.29
Interests expenses and other financial expenses
To other companies -1,262,775.61 -1,332,084.50
To group companies -5.31 -1,262.03
Financial income and expenses 416,335.14 331,939.69
PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES 1,479,446.18 -1,290,165.57
Appropriations
Group contibution 2,500,000.00 2,380,000.00
Appropriations 2,500,000.00 2,380,000.00
Income taxes
Taxes for the financial year and previous financial years -816,254.64 -237,335.05
Income taxes -816,254.64 -237,335.05
PROFIT (LOSS) FOR THE FINANCIAL YEAR 3,163,191.54 852,499.38
61
PARENT COMPANY FINANCIAL STATEMENTS
Parent company balance
sheet (FAS)
EUR 31 Dec 2021 31 Dec 2020
ASSETS
NON-CURRENT ASSETS
Intangible assets
Intangible rights 30,342.93 0.00
Goodwill 94,166.69 0.00
Other non-current expenditures 165,850.62 136,549.80
Total intangible assets 290,360.24 136,549.80
Tangible assets
Machinery and equipment 45,366.54 60,488.70
Total tangible assets 45,366.54 60,488.70
Investments
Holdings in group companies 115,909,034.40 109,653,669.23
Total investments 115,909,034.40 109,653,669.23
TOTAL NON-CURRENT ASSETS 116,244,761.18 109,850,707.73
CURRENT ASSETS
Non-current receivables
Receivables from group companies 47,500,000.00 49,518,858.32
Other non-current receivables 19,171.64 0.00
Total non-current receivables 47,519,171.64 49,518,858.32
Current receivables
Trade receivables 2,335.76 0.00
Receivables from group companies 35,754,774.17 44,462,555.88
Other receivables 22,875.17 3,350.52
Prepayments and accrued income 198,785.63 92,020.54
Total current receivables 35,978,770.73 44,557,926.94
Cash at bank and in hand 5,605,663.51 14,548,644.07
TOTAL CURRENT ASSETS 89,103,605.88 108,625,429.33
TOTAL ASSETS 205,348,367.06 218,476,137.06
62
PARENT COMPANY FINANCIAL STATEMENTS
EUR 31 Dec 2021 31 Dec 2020
EQUITY AND LIABILITIES
EQUITY
Share capital 80,000.00 80,000.00
Reserve for invested unrestricted equity 110,507,409.02 109,202,890.02
Retained earnings 11,404,069.53 14,288,848.40
Profit (loss) for the financial year 3,163,191.54 852,499.38
TOTAL EQUITY 125,154,670.09 124,424,237.80
LIABILITIES
Non-current liabilities
Liabilities to credit institutes 43,444,440.00 47,666,664.00
Other non-current liabilities 60,000.00 0.00
Total non-current liabilities 43,504,440.00 47,666,664.00
Current liabilities
Liabilities to credit institutes 4,222,224.00 4,222,224.00
Trade payables 744,729.80 578,963.72
Liabilities to group companies 30,100,671.38 40,408,678.82
Other liabilities 279,144.28 246,583.60
Accruals and deferred income 1,342,487.51 928,785.12
Total current liabilities 36,689,256.97 46,385,235.26
TOTAL LIABILITIES 80,193,696.97 94,051,899.26
TOTAL EQUITY AND LIABILITIES 205,348,367.06 218,476,137.06
63
PARENT COMPANY FINANCIAL STATEMENTS
Parent company cash flow
statement (FAS)
EUR 1 Jan–31 Dec 2021 1 Jan–31 Dec 2020
Cash flow from operating activities
Cash receipts from customers 11,831,516.36 11,981,878.65
Cash paid to suppliers and employees -10,424,746.33 -13,015,293.85
Cash flow from operating activities before financial items
and taxes 1,406,770.03 -1,033,415.20
Interest and expenses paid from other operating financial
expenses -1,270,055.60 -1,338,776.53
Dividends received 0.00 10,760,000.00
Interest received from operating activities 1,723,226.53 1,053,262.04
Other financial expenses paid -364.23 -42.21
Direct taxes paid -606,535.03 21,973.56
Net cash from operating activities 1,253,041.70 9,463,001.66
Cash flow from investing activities
Investments in tangible and intangible assets -99,370.25 -163,845.30
Investments in subsidiaries -4,950,846.17 0.00
Net cash from investing activities -5,050,216.42 -163,845.30
Cash flow from financing activities
Repayment of current loans and borrowings -4,222,224.00 -3,111,112.00
Group cash pool 583,696.41 -1,884,664.92
Dividends paid -3,737,278.25 -2,484,937.50
Granted loans -150,000.00 -6,000,000.00
Group contribution received and paid 2,380,000.00 15,158,000.00
Proceeds from repayment of loans 0.00 3,518,555.55
Net cash from financing activities -5,145,805.84 5,195,841.13
Net increase/decrease in cash and cash equivalents -8,942,980.56 14,494,997.50
Cash and cash equivalents at beginning of financial year 14,548,644.07 53,646.57
Net increase/decrease in cash and cash equivalents -8,942,980.56 14,494,997.50
Cash and cash equivalents at end of financial year 5,605,663.51 14,548,644.07
64
PARENT COMPANY FINANCIAL STATEMENTS
Accounting principles for
financial statements
NOTES TO ACCOUNTING PRINCIPLES FOR FINANCIAL
STATEMENTS
The financial statements are prepared in accordance
with Accounting Act on the information presented in
the financial statements.
VALUATION AND RECOGNITION PRICIPLES AND
METHODS
Intangible assets held under non-current assets are
carried at cost consisting of related expenditures
less amortization according to plan. Tangible assets
are carried at cost consisting of related variable
expenditures less depriciation according to plan.
Trade, loan and other receivables held under current
assets are carried at the lower of nominal value and
probable value.
IMPACTS OF THE CORONAVIRUS
The company’s Board of Directors has assessed the
impact of epidemic that started in early 2020 and
expanded rapidly which impacted on the company’s
market environment, employees and business. The
corona virus epidemic has had some impact on the
company’s operating environment and the demand
of products and services. However, the epidemic has
not affected the company’s financial position and
solvency, which are at the appropriate level. There
are no risks to the company’s business continuity.
The company’s Board of Directors and management
monitor closely the development of the corona virus
situation and update their estimate on the impacts of
the epidemic as the situation progresses.
RECOGNITION PRICIPLES AND METHODS
Cost of intangible and intagible assets held under
non-current assets is amortized/depreciated in
accordance with a pre-determined plan by applying
the maximum amortization/depreciation allowed
under the Finnish Business Tax Act (BTA). The cost of an
asset, less its residual value, is depreciated/amortized
over its estimated useful life.
Asset
Estimated
useful life /
years
Depreciation /
amortization:
percentage and
method
Other non-current
expenditures 5–10
10 % or 20 %
straight line method
Machinery and
equipment approx. 8
maximum depreciation
allowed under BTA
IT software 5
20% straight
line method
FOREIGN CURRENCY TRANSACTIONS
The receivables in foreign currencies are translated
into Finnish currency using the exchange rate quoted
on the balance sheet date.
NOTES TO PARENT COMPANY
Eezy Plc, domicile Helsinki, is the parent company of
the Eezy group.
A copy of the consolidated financial statements of
the Eezy group is available from the Finnish patent and
registration office.
NOTES TO THE PERSONNEL AND MANAGEMENT
Average number of
personnel during the
financial year 2021 2020
Salaried employees 44 6
Total 44 6
AUDITORS’ FEES
KPMG Oy Ab
EUR 2021 2020
Statutory audit 142,235.18 116,844.19
Other advisory services 6,500.00 0.00
Tax advisory services 5,250.00 2,530.00
Other services 56,733.00 82,767.34
Total 210,718.18 202,141.53
65
PARENT COMPANY FINANCIAL STATEMENTS
Notes to assets
INTANGIBLE ASSETS
EUR
Intangible
rights
Other non-current
expenditures
Advances
paid Goodwill Total
Cost at 1 Jan 2021 0.00 163,845.30 0.00 0.00 163,845.30
Increases 34,089.75 154,462.50 126,907.45 100,000.00 415,459.70
Decreases 0.00 -109,182.00 -126,907.45 0.00 -236,089.45
Cost at 31 Dec 2021 34,089.75 209,125.80 0.00 100,000.00 343,215.55
Accumulated amortization and
impairment losses at 1 Jan 2021 0.00 -27,295.50 - 0.00 -27,295.50
Amortization -3,746.82 -15,979.68 - -5,833.31 -25,559.81
Accumulated amortization and
impairment losses at 31 Dec 2021 -3,746.82 -43,275.18 - -5,833.31 -52,855.31
Book value 31 Dec 2021 30,342.93 165,850.62 0.00 94,166.69 290,360.24
EUR
Intangible
rights
Other non-current
expenditures
Advances
paid Goodwill Total
Cost at 1 Jan 2020 0.00 0.00 0.00 0.00 0.00
Increases 0.00 163,845.30 0.00 0.00 163,845.30
Cost at 31 Dec 2020 0.00 163,845.30 0.00 0.00 163,845.30
Accumulated amortization and
impairment losses at 1 Jan 2020 0.00 0.00 - 0.00 0.00
Amortization 0.00 -27,295.50 - 0.00 -27,295.50
Accumulated amortization and
impairment losses at 31 Dec 2020 0.00 -27,295.50 - 0.00 -27,295.50
Book value 31 Dec 2020 0.00 136,549.80 0.00 0.00 136,549.80
66
PARENT COMPANY FINANCIAL STATEMENTS
TANGIBLE ASSETS
EUR Machinery and equipment Total
Cost at 1 Jan 2021 107,535.43 107,535.43
Cost at 31 Dec 2021 107,535.43 107,535.43
Accumulated depreciation and impairment losses
at 1 Jan 2021 -47,046.73 -47,046.73
Amortization -15,122.16 -15,122.16
Accumulated depreciation and impairment losses
at 31 Dec 2021 -62,168.89 -62,168.89
Book value 31 Dec 2021 45,366.54 45,366.54
EUR Machinery and equipment Total
Cost at 1 Jan 2020 107,535.43 107,535.43
Cost at 31 Dec 2020 107,535.43 107,535.43
Accumulated depreciation and impairment losses
at 1 Jan 2020 -26,883.85 -26,883.85
Amortization -20,162.88 -20,162.88
Accumulated depreciation and impairment losses
at 31 Dec 2020 -47,046.73 -47,046.73
Book value 31 Dec 2020 60,488.70 60,488,70
INVESTMENTS
EUR
Investments in
Group companies Total
Cost at 1 Jan 2021 109,653,669.23 109,653,669.23
Increases 6,255,365.17 6,255,365.17
Cost at 31 Dec 2021 115,909,034.40 115,909,034.40
Book value 31 Dec 2021 115,909,034.40 115,909,034.40
EUR
Investments in
Group companies Total
Cost at 1 Jan 2020 109,653,669.23 109,653,669.23
Cost at 31 Dec 2020 109,653,669.23 109,653,669.23
Book value 31 Dec 2020 109,653,669.23 109,653,669.23
PREPAYMENTS AND ACCRUED INCOME
EUR 31 Dec 2021 31 Dec 2020
Other accrued incomes 198,785.63 92,020.54
Prepayments and accrued income 198,785.63 92,020.54
67
PARENT COMPANY FINANCIAL STATEMENTS
EUR 31 Dec 2021 31 Dec 2020
CHANGES IN EQUITY
Restricted equity
Share capital at 1 Jan 80,000.00 80,000.00
Share capital at 31 Dec 80,000.00 80,000.00
Total restricted equity 80,000.00 80,000.00
Unrestricted equity
Reserve for invested unrestricted equity at 1 Jan 109,202,890.02 109,202,890.02
Issue of shares 1,304,519.00 0.00
Reserve for invested unrestricted equity at 31 Dec 110,507,409.02 109,202,890.02
Retained earnings at 1 Jan 15,141,347.78 16,773,785.90
Dividend distribution -3,737,278.25 -2,484,937.50
Retained earnings at 31 Dec 11,404,069.53 14,288,848.40
Profit (loss) for the financial year 3,163,191.54 852,499.38
Total unrestricted equity 125,074,670.09 124,344,237.80
TOTAL EQUITY 125,154,670.09 124,424,237.80
Specification of distributable funds
Retained earnings 11,404,069.53
Profit (loss) for the financial year 3,163,191.54
Reserve for invested unrestricted equity 110,507,409.02
Total unrestricted equity 125,074,670.09
Total distributable funds 125,074,670.09
Notes to equity and liabilities
68
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO REPORT OF THE BOARD OF DIRECTORS ACCORDING
TOLIMITED LIABILITY COMPANIES ACT
Share capital 2021 2020
Number of shares 25,046,815 24,849,375
The company has one share class, and each share
entitles to one vote in the General Meetings. The
shares carry no limitations on voting. The shares in the
company do not have a nominal value. All Eezy’s shares
carry equal rights to dividends and other distributions
of funds by the company (including distributions of
assets in the event of the liquidation of the company).
ACCRUALS AND DEFERRED INCOME
EUR 31 Dec 2021 31 Dec 2020
Accrued interests of the loans from financial institutions 108,423.60 116,062.51
Accrued income taxes 447,054.66 237,335.05
Personnel related accrued expenses 772,227.10 549,184.50
Other accrued expenses 14,782.15 26,203.06
Accruals and deferred income 1,342,487.51 928,785.12
DIVIDEND PROPOSAL
Board of Directors proposes a dividend of EUR 0.15 per
share, of which 0.10 eur will be paid in April and 0.05
eur in October.
69
PARENT COMPANY FINANCIAL STATEMENTS
EUR 31 Dec 2021 31 Dec 2020
Liabilities, mortgages and shares as collaterals
Liabilities to credit institutions, other mortgage as collateral 47,666,664.00 51,888,888.00
Liabilities to credit institutions 47,666,664.00 51,888,888.00
Liabilities, mortgages and shares as collaterals 47,666,664.00 51,888,888.00
Mortgage and shares, collateral for liabilities to credit institutions
Company mortgage given to collateral for liabilities to credit institutions 100,000,000.00 100,000,000.00
Other mortgage, collateral for liabilities to credit institutions 100,000,000.00 100,000,000.00
Book value of pledged shares, collateral for liabilities to credit institutions 109,653,669.23 109,653,669.23
Pledged shares 109,653,669.23 109,653,669.23
Mortgage and shares, collateral for liabilities to credit institutions 209,653,669.23 209,653,669.23
Collaterals give on behalf of group companies
Guarantees 10,669,997.00 10,000,000.00
Collaterals given on behalf of group companies 10,669,997.00 10,000,000.00
Collaterals 220,323,666.23 219,653,669.23
Commitments and other obligations
Rental liabilities, payable in less than one year 76,686.60 0.00
Rental liabilities, payble in more than one year 300,355.85 0.00
Rental liabilities 377,042.45 0.00
Lease obligations, payable in less than one year 79,158.92 76,123.95
Lease obligations, payble in more than one year 44,192.37 52,687.83
Lease obligations 123,351.29 128,811.78
Commitments 500,393.74 128,811.78
Collaterals and
commitments
70
SIGNATURES TO THE FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS
Signatures to the Financial
Statements and Report
of the Board of Directors
Helsinki, 16 February 2022
Tapio Pajuharju
Chair of the Board of Directors
Kati Hagros
Member of the Board of Directors
Liisa Harjula
Member of the Board of Directors
Timo Laine
Member of the Board of Directors
Timo Mänty
Member of the Board of Directors
Paul-Petteri Savolainen
Member of the Board of Directors
Jarno Suominen
Member of the Board of Directors
Mika Uotila
Member of the Board of Directors
Sami Asikainen
CEO
AUDITOR’S NOTE
An auditor’s statement has been issued today on the
complete audit. Helsinki, 16 February 2022
KPMG Oy Ab
Esa Kailiala
Authorized Public Accountant
71
AUDITOR’S REPORT
Auditor’s Report
To the Annual General Meeting
of Eezy Oyj
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS
OPINION
We have audited the financial statements of Eezy Oyj
(business identity code 2854570-7) for the year ended
31 December, 2021. The financial statements comprise
the consolidated balance sheet, consolidated
statement of comprehensive income, changes in
equity, cash flow statement and notes, including a
summary of significant accounting policies, as well
as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give
a true and fair view of the group’s financial
position, financial performance and cash flows
in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU
• the financial statements give a true and fair view
of the parent company’s financial performance
and financial position in accordance with the
laws and regulations governing the preparation
of financial statements in Finland and comply
with statutory requirements.
Our opinion is consistent with the additional report
submitted to the Audit Committee.
BASIS FOR OPINION
We conducted our audit in accordance with good
auditing practice in Finland. Our responsibilities under
good auditing practice are further described in the
Auditor’s Responsibilities for the Audit of the Financial
Statements
section of our report.
We are independent of the parent company and of
the group companies in accordance with the ethical
requirements that are applicable in Finland and are
relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-
audit services that we have provided to the parent
company and group companies are in compliance
with laws and regulations applicable in Finland
regarding these services, and we have not provided
any prohibited non-audit services referred to in Article
5(1) of regulation (EU) 537/2014. The non-audit services
that we have provided have been disclosed in note 10
to the consolidated financial statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
MATERIALITY
The scope of our audit was influenced by our application
of materiality. The materiality is determined based on
our professional judgement and is used to determine
the nature, timing and extent of our audit procedures
and to evaluate the effect of identified misstatements
on the financial statements as a whole. The level of
materiality we set is based on our assessment of the
magnitude of misstatements that, individually or in
aggregate, could reasonably be expected to have
influence on the economic decisions of the users of the
financial statements. We have also taken into account
misstatements and/or possible misstatements that in
our opinion are material for qualitative reasons for the
users of the financial statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the financial statements of the current
period. These matters were addressed in the context
of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide
a separate opinion on these matters. The significant
risks of material misstatement referred to in the EU
Regulation No 537/2014 point (c) of Article 10(2) are
included in the description of key audit matters below.
We have also addressed the risk of management
override of internal controls. This includes consideration
of whether there was evidence of management bias
that represented a risk of material misstatement due
to fraud.
72
AUDITOR’S REPORT
The key audit matter How the matter was addressed in the audit
Revenue recognition (EUR 203.3 million) (Accounting policies for the consolidated financial statements and note 3)
• Eezy Group’s revenue comprises income from staffing
services, professional services and self-employment
services. Franchising revenue comprises charges based
on cooperation agreements.
• The amount and timing of recognition of reportable
revenues depend on range of services, contract terms
and conditions, and contract term.
• Revenue recognition involves a risk of revenue being
recognized in the financial statements in the incorrect
period or at inaccurate amount.
• We evaluated the appropriateness of the company’s
revenue recognition policies applied and tested related
internal controls in place.
• We verified the accuracy of revenue recognition by testing
on a sample basis that the service provided and the
related invoice were recognized in the appropriate period
in accordance with the contract terms, among others.
In respect of trade receivables we examined doubtful
receivables.
• Furthermore, we inspected credit notes and controls over
credit note approval and recognition.
Valuation of consolidated goodwill (EUR 134.0 million) and subsidiary shares in parent company’s financial statements
(EUR 115.9 million) (Accounting policies for the consolidated financial statements, note 16 and notes to the parent company
financial statements)
• At the balance sheet date 31 December 2021 goodwill
totaled EUR 134.0 million, representing approximately
65% of the consolidated total assets. The subsidiary
shares, EUR 115.9 million, account for approximately 56%
for the parent company’s total assets.
• Consolidated goodwill is not amortised, but is tested at
least annually for impairment. Valuation of subsidiary
shares is tested in connection with the goodwill
impairment testing.
• Group management is responsible for preparing
impairment tests. The calculations use discounted
future cash flow forecasts in which management
makes significant judgments over revenue growth rate,
discount rate and long-term growth rate underlying the
projections.
• Preparation of impairment testing calculations requires
management make significant judgments and estimates
about the future.
• We assessed the appropriateness of the cash flow
forecasts and discount rates used in the calculations.
We analysed critically the management assumptions
underlying the future cash flow forecasts.
• We utilised our own valuation specialists that assessed the
technical accuracy of the calculations and compared the
assumptions used to market and industry information.
• In the year-end audit we considered the appropriateness
and adequacy of the notes provided on goodwill,
subsidiary shares and impairment testing calculations.
Interest-bearing liabilities (EUR 52.8 million) (Notes 25 and 27 to the consolidated financial statements)
• At the financial year-end 2021 the consolidated interest-
bearing liabilities totaled EUR 52.8 million, representing
approximately 26% of the consolidated equity and
liabilities. Significant part of the liabilities matures during
the next three years.
• As part of the year-end audit procedures we reconciled
the interest-bearing liability balances to external
confirmations.
• We considered the appropriateness of the notes
concerning the interest-bearing liabilities.
73
AUDITOR’S REPORT
RESPONSIBILITIES OF THE BOARD OF DIRECTORS
AND THE MANAGING DIRECTOR FOR THE FINANCIAL
STATEMENTS
The Board of Directors and the Managing Director
are responsible for the preparation of consolidated
financial statements that give a true and fair view in
accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU, and of financial
statements that give a true and fair view in accordance
with the laws and regulations governing the preparation
of financial statements in Finland and comply with
statutory requirements. The Board of Directors and the
Managing Director are also responsible for such internal
control as they determine is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of
Directors and the Managing Director are responsible
for assessing the parent company’s and the group’s
ability to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using
the going concern basis of accounting. The financial
statements are prepared using the going concern basis
of accounting unless there is an intention to liquidate
the parent company or the group or cease operations,
or there is no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT
OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an
audit conducted in accordance with good auditing
practice will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing
practice, we exercise professional judgment and
maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material
misstatement of the financial statements,
whether due to fraud or error, design and
perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our
opinion. The risk of not detecting a material
misstatement resulting from fraud is higher
than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of the Board
of Directors’ and the Managing Director’s
use of the going concern basis of accounting
and based on the audit evidence obtained,
whether a material uncertainty exists related to
events or conditions that may cast significant
doubt on the parent company’s or the group’s
ability to continue as a going concern. If we
conclude that a material uncertainty exists,
we are required to draw attention in our
auditor’s report to the related disclosures in
the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence
obtained up to the date of our auditor’s report.
However, future events or conditions may cause
the parent company or the group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure
and content of the financial statements,
including the disclosures, and whether the
financial statements represent the underlying
74
AUDITOR’S REPORT
transactions and events so that the financial
statements give a true and fair view.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the
entities or business activities within the group to
express an opinion on the consolidated financial
statements. We are responsible for the direction,
supervision and performance of the group
audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance
with a statement that we have complied with relevant
ethical requirements regarding independence, and
communicate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore
the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should
not be communicated in our report because the
adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of
such communication.
Other Reporting Requirements
INFORMATION ON OUR AUDIT ENGAGEMENT
We have been appointed as auditors by the Annual
General Meeting, and our appointment represents a
total period of uninterrupted engagement of five years.
Eezy Oyj has been a public interest entity since 9.9.2020.
OTHER INFORMATION
The Board of Directors and the Managing Director
are responsible for the other information. The other
information comprises the report of the Board of
Directors and the information included in the Annual
Report, but does not include the financial statements
and our auditor’s report thereon. We have obtained the
report of the Board of Directors prior to the date of this
auditor’s report, and the Annual Report is expected to
be made available to us after that date. Our opinion
on the financial statements does not cover the other
information.
In connection with our audit of the financial
statements, our responsibility is to read the other
information identified above and, in doing so, consider
whether the other information is materially inconsistent
with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be
materially misstated. With respect to the report of
the Board of Directors, our responsibility also includes
considering whether the report of the Board of Directors
has been prepared in accordance with the applicable
laws and regulations.
In our opinion, the information in the report of the
Board of Directors is consistent with the information in
the financial statements and the report of the Board of
Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material
misstatement of this other information, we are required
to report that fact. We have nothing to report in this
regard.
Helsinki 16.2.2022
KPMG OY AB
ESA KAILIALA
Authorised Public Accountant, KHT
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
75
BOARD OF DIRECTORS
Board of Directors
TAPIO PAJUHARJU
b. 1963, M.Sc. (Econ.)
Chairperson of the Board (2019–)
Member of the Board (2010–)
Harvia Group, CEO (2016–)
TIMO MÄNTY
b. 1960, M.Sc. (Econ.)
Member of the Board (2019–)
Onninen Oy, Chief Executive
Officer (2011–2016)
LIISA HARJULA
b. 1972, M.Sc. (Econ.), LL.M, LL.M
with court training
Member of the Board (2017–)
Sentica Partners Oy, Investment
director, CFO & IR (2013–)
JARNO SUOMINEN
b. 1972, Manager in Hotel and
Restaurant industry
Member of the Board (2019–)
NoHo Partners Oyj,
Deputy to the CEO (2020–),
Chief Financial Officer (2005–2019)
KATI HAGROS
b. 1970, M.Sc. (Eng.) and M.Sc. (Soc.)
Member of the Board (2019–)
Aalto University, Chief Digital
Officer, (2016–)
PAUL SAVOLAINEN
b. 1976, vocational qualification in
information technology, Further
Qualification for Entrepreneurs
Member of the Board (2013–)
Meissa-Capital Oy, CEO (2013–)
TIMO LAINE
b. 1966, MTK (technical school)
Member of the Board (2019–)
Founder of Restamax Oyj
(now NoHo Partners Oyj)
Wave Capital Oy, Chief Executive
Officer (2007–)
MIKA UOTILA
b. 1971, M.Sc. (Econ.)
Member of the Board (2017–)
Sentica Partners Oy, CEO (2007–)
76
MANAGEMENT TEAM
Management Team
SAMI ASIKAINEN
b. 1971, Vocational Qualification
inBusiness and Administration
CEO (2019–)
THOMAS HYNNINEN
b. 1971, M.Sc.
Director, Work and Talent (2021–)
HANNA LEHTO
b. 1984, M.A.
Director, People and Culture (2021–)
PÄIVI SALO
b. 1980, M.Sc. (Econ.)
Chief Digital Officer (2021–)
HANNU NYMAN
b. 1969, M.Sc.(Tech), M.Sc.(Econ.)
CFO (2019–)
ISA MERIKALLIO*
b. 1968, Baccalaureate of Sc. (Law)
Content Director (2021–)
* The responsibilities of Isa Merikallio have changed and she has left the management team on 25 February 2022.
PASI PAPUNEN
b. 1963, M.Soc.Sc.
Executive Vice President,
Growth and Renewal (2021–)
77
Independent Auditor’s
Reasonable Assurance Report
on Eezy Plc’s ESEF Financial
Statements
78
TO THE BOARD OF DIRECTORS OF EEZY PLC
We have undertaken a reasonable assurance
engagement on the iXBRL marking up of the
consolidated financial statements for the year ended
31 December, 2021, included in the Eezy Plc’s digital
files [743700ZKOMTB7X00OW54-2021-12-31-en.zip]
prepared in accordance with the requirements of
Article 4 of EU Delegated Regulation 2018/815 (ESEF
RTS).
The Responsibility of the Board of Directors
and Managing Director
The Board of Directors and Managing Director are
responsible for preparing the report of the Board of
Directors and financial statements (ESEF financial
statements) that comply with the requirements of ESEF
RTS. This responsibility includes:
• preparation of ESEF financial statements in
XHTML format in accordance with Article 3 of
the ESEF RTS
• marking up the consolidated financial
statements included in the ESEF financial
statements with iXBRL tags in accordance with
Article 4 of the ESEF RTS; and
• ensuring consistency between ESEF financial
statements and audited financial statements.
The Board of Directors and the Managing Director are
also responsible for such internal control as they deem
necessary to prepare the ESEF financial statements in
accordance with the requirements of the ESEF RTS.
Auditor’s Independence and Quality Control
We are independent of the company in accordance
with the ethical requirements applicable in Finland,
which apply to the engagement we have performed,
and we have fulfilled our other ethical obligations in
accordance with these requirements.
The auditor applies International Standard on Quality
Control 1 and accordingly maintains a comprehensive
system of quality control including documented
policies and procedures regarding compliance with
ethical requirements, professional standards and
applicable legal and regulatory requirements.
Auditor’s Responsibility
In accordance with the Engagement Letter our
responsibility is to express an opinion on whether the
marking up of the consolidated financial statements
included in the ESEF financial statements comply in all
material respects with the Article 4 of the ESEF RTS. We
conducted our reasonable assurance engagement in
accordance with
International Standard on Assurance
Engagements 3000.
The engagement involves procedures to obtain
evidence whether;
• the consolidated financial statements included
in the ESEF financial statements are, in all
material respects, marked up with iXBRL tags in
accordance with Article 4 of the ESEF RTS, and;
• the ESEF financial statements and the audited
financial statements are consistent with each
other.
The nature, timing and the extent of procedures
selected depend on practitioner’s judgement. This
includes the assessment of the risks of material
departures from the requirements set out in the ESEF
RTS, whether due to fraud or error.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
79
Opinion
In our opinion, the consolidated financial statements
included in the ESEF financial statements of Eezy Plc’s
identified as [743700ZKOMTB7X00OW54-2021-12-31-fi.
zip] for the year ended 31 December, 2021 are marked
up, in all material respects, in compliance with the ESEF
Regulatory Technical Standard.
Our audit opinion relating to the consolidated
financial statements of Eezy Plc’s for the year ended 31
December, 2021 is set out in our Auditor’s Report dated
16 February, 2022. In this report, we do not express an
audit opinion, review conclusion or any other assurance
conclusion on the consolidated financial statements.
Helsinki 15 March, 2022
KPMG OY AB
Esa Kailiala
Authorised Public Accountant, KHT
Eezy Plc
Itämerenkatu 3, FI-00180 Helsinki, Finland
PL 901, FI-20101 Turku, Finland
Website: www.eezy.fi
Email: firstname.lastname@eezy.fi
Business ID 2854570-7