News Tag: Corporate Information

Lemonsoft Oyj has decided to initiate change negotiations in the Lemonsoft Group in accordance with the Cooperation Act. The objective of the negotiations is to support a more efficient organization of the company's operations, to eliminate overlaps with businesses acquired and to achieve synergy benefits within the group.

In connection with the ongoing strategy update, Lemonsoft is considering moving to an industry-driven organizational model. The goal of the reorganization is to clarify responsibilities and improve customer service within each industry.

The negotiations include employees of Lemonsoft Oyj, Planmill Oy and Lixani Oy. Lemonsoft estimates the personnel reduction need to be less than 10 employees. About 130 employees in Finland are included in the change negotiations. Lemonsoft group employs a total of about 185 people.

Lemonsoft Oyj ("Lemonsoft") renews the group's management team as of November 9, 2022. The new management team consists of the following people and roles:

Kari Joki-Hollanti, CEO
Jan-Erik Lindfors, Deputy CEO
Mari Erkkilä, CFO
Pauli Siirtola, Director of Product Management
Alpo Luostarinen, Director, M&A and IR

Alpo Luostarinen, responsible for mergers and acquisitions as well as investor relations at Lemonsoft, has been appointed to the group's management team as of 9 November 2022. Luostarinen has been working in his role at Lemonsoft since 2021. Prior to this, he has worked in tasks related to M&A, financing and management consulting in various organizations.

Timur Karakan and Janika Vilponen, who previously acted as members of the management team, will continue at Lemonsoft.

CEO Kari Joki-Hollanti: "The implementation of our growth strategy is progressing well. Lemonsoft has grown significantly in recent years both in the number of customers and in the number of personnel. The renewed, more focused management team will focus on achieving Lemonsoft's strategic growth goals both organically and through acquisitions. At the same time, I would like to thank Timur and Janika for their contribution to the management team's work."

Lemonsoft Oyj will publish the following financial information in 2023:

• Financial Statements Bulletin January – December 2022 on Friday 17 February 2023
• Interim Report January – March 2023 on Friday 28 April 2023
• Half-year Report January-June 2023 on Friday 11 August 2023
• Interim Report January – September 2023 on Thursday 26 October 2023

Lemonsoft adheres to a 30-day silent period in its communication with investors and the media preceding the publication of financial information.

The Annual Report for the year 2021 is estimated to be published during week 11.

The Annual General Meeting is planned to be held on Tuesday 4 April 2023. Lemonsoft’s Board of Directors will summon the meeting at a later date.

Lemonsoft Oyj’s (”Lemonsoft”) Annual General Meeting on 5 April 2022 decided to establish a Shareholders’ Nomination Board. The Nomination Board prepares proposals on the election and remuneration of the members of the Board of Directors for Lemonsoft’s Annual General Meeting.

The Nomination Board consists of three members which represent the Company’s three largest shareholders, or the representatives nominated by such shareholders. The Chairman of the Board acts as an expert member of the Nomination Board. The right to nominate members to represent shareholders rests with three shareholders who are registered in the shareholders’ register maintained by Euroclear Finland Ltd or another operator on the last business day of August in the year preceding the Annual General Meeting and who hold the largest number of votes conferred by shares according to the shareholder register.

The following members have been appointed to the Shareholder’s Nomination Board of Lemonsoft Oyj:

– Sandra Backlund, CFO, Rite Ventures 
– Jarmo Kinnunen, lawyer, K&K Laki
– Jonathan Schönbäck, Senior Portfolio Manager, ODIN Fonder
 
At the first meeting, Sandra Backlund was appointed as the Chairman of the Nomination Board.
The Charter of the Nomination Board is available on the company’s investor website.

Lemonsoft Oyj acquires the entire share capital of Finazilla Oy, a software company specializing in business reporting, budgeting and forecasting. In connection with the transaction, Finazilla Oy acquires the business of Finazilla Oy’s parent company, Taloushallintaan fi Oy, which offers financial process optimization and enhancement services with Finazilla’s software. With the acquisition, Lemonsoft strengthens its offering in financial management solutions by offering its customers more comprehensive tools for managing the business information from ERP systems and for financial forecasting.

Finazilla is a cloud software solution for budgeting, reporting and continuous business planning, suitable for companies of all sizes for which financial planning and its active monitoring are part of decision-making. With Finazilla, companies can build profit and loss, balance sheet and cash flow budgets, in addition to sub-budgets for sales, purchases, personnel and investments. Finazilla Oy's customers are SMEs both directly and through partnering accounting firms. Taloushallintaan fi Oy offers financial monitoring, reporting and analysis services to SMEs utilizing Finazilla's software solution. The acquired businesses employ a total of 15 employees in their Jyväskylä office.

The combined net sales of the acquired businesses for the financial year ended 31 December 2021 were EUR 1.2 million (2020: 1.0) and EBITDA was EUR 0.2 million (2020: 0.2). According to the companies’ own reporting principles, 47% of the combined net sales in 2021 was SaaS revenue, 38% other recurring revenue and 15% implementation and additional services. The acquired businesses will be reported as part of Lemonsoft Group as of July 2022. The founders of the acquired businesses, Juhamatti Hyyppä, Jari-Pekka Hyyppä and Hannu Hyyppä, will continue in Finazilla Oy’s service and Juhamatti Hyyppä will continue as CEO of Finazilla Oy.

The total purchase price of the acquired businesses is approximately EUR 2.8 million. The purchase price consists of a debt-free enterprise value of EUR 2.6 million and a net cash of approximately EUR 0.2 million. The purchase price will be paid in cash at signing. In addition, the parties have agreed on an additional purchase price based on Finazilla Oy's net sales for 2022-2025. The additional purchase price amounts to a maximum of EUR 1.5 million, and if realized, 50% of the additional purchase price will be paid in cash and 50% in new shares issued by Lemonsoft Oyj.

Kari Joki-Hollanti, CEO of Lemonsoft:

"We are pleased to obtain more comprehensive tools for business information management and financial forecasting through Finazilla. Companies' need for information is constantly growing and we want to make this information easily available, both as a service and through comprehensive reports. I believe this will benefit all our customer industries."

Juhamatti Hyyppä, CEO of Finazilla Oy:

"We are happy to be part of a larger unit that wants to develop and build on the work we have started. We have created a strong solution for our customers and now we can expand our customer base and complement Lemonsoft's already comprehensive offering."

The combined key figures for the acquired businesses

Lemonsoft Oyj updates its profit forecast for 2022

Along with the acquisition, Lemonsoft has decided to raise its profit forecast for 2022.

Updated profit forecast for 2022

Lemonsoft estimates that the net sales for the financial year 2022 will increase by 30-36 percent compared to the financial year 2021, and that adjusted EBIT will be 28-33 percent of net sales in 2022.

Earlier profit forecast (published in connection with the acquisition of Logentia Oy on 6 May 2022)

Lemonsoft estimates that the net sales for the financial year 2022 will increase by 26-32 percent compared to the financial year 2021, and that adjusted EBIT will be 30-35 percent of net sales in 2022.

Lemonsoft Oyj

Board of Directors

Further information

Kari Joki-Hollanti
CEO
kari.joki-hollanti@lemonsoft.fi
+358 44 730 9271

Alpo Luostarinen
Director, M&A and IR
alpo.luostarinen@lemonsoft.fi
+358 50 911 3507

Certified advisor
Danske Bank A/S, Finland Branch, +358 40 841 3052

About Lemonsoft Oyj

Lemonsoft is a Finnish software company that designs, develops and sells ERP software solutions to streamline its customers’ processes across different business lines and administration. The extensive offering of software solutions and related services enables the company to provide its customers with holistic service. The company’s standardized and scalable software solutions are delivered mainly from the cloud and are based on the SaaS model in which customers pay a monthly service fee for the use of the software. The company operates in the ERP software market in Finland primarily as a service provider for SMEs. The company’s customer base consists of from especially industrial manufacturing, wholesale and retail, professional services automation, construction and accounting industries.