Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — Q3 2018 Earnings Presentation
38 slides from Enento Group Oyj's earnings presentation, Nov 8, 2018
Slide 1: Interim Report 1.1.–30.9.2018
CEO Jukka Ruuska 8 November 2018 Asiakastieto Group Plc INTERIM REPORT 1.1.–30.9.2018 1 Asiakastieto Group Oyj 8.11.2018
Slide 2: Contents
CONTENTS → Asiakastieto Group in brief → Group development in Q3 / 2018 → From the integration planning to normal operation → New services review → Key ratios of Q3 / 2018 → Summary of Financial Statements Q3 / 2018 2 Asiakastieto Group Oyj 8.11.2018
Slide 3: Creating Stronger Future Together
Creating Stronger FUTURE TOGETHER 3 Asiakastieto Group Oyj 8.11.2018
Slide 4: Background and History
BACKGROUND AND HISTORY ASIAKASTIETO GROUP PLC Since 1977 Since July 2018 Asiakastieto and UC have been one company Since 1905 – with two strong local brands 4 Asiakastieto Group Oyj 8.11.2018
Slide 5: Asiakastieto Group Today
ASIAKASTIETO GROUP TODAY → A leading business and → Approx. 500 employees based in consumer information service Finland and Sweden provider in Finland and → Pro Forma Net Sales for 2017 Sweden was 130 MEUR → Company brands → 70 000 customers within → UC in Sweden banking, finance, retail, public → A
Slide 6: About the New Combination June 2018
ABOUT THE NEW COMBINATION 29 JUNE 2018 Joining forces to meet Engaged the changing customer needs and and competent market environment people in the core Transfer of existing services Potential for higher between the markets efficiency enabling future growth Together one of the leaders in digital se
Slide 7: Combination Benefiting Employees, Customers and Shareholders
COMBINATION BENEFITING EMPLOYEES, CUSTOMERS AND SHAREHOLDERS • A solid Group committed to invest in development and growth Employees • Unique journey to create a new Nordic company together • Inspiring, respectful and passionate working community • Competence base & resources to accelerate service d
Slide 8: From Strategy to the Core Themes 2019
FROM STRATEGY TO THE CORE THEMES 2019 GOALS FOR THE COMBINATION STRATEGIC THEMES Customer first Efficiency → Growth from new services development Nordic offering → Customer first Faster digital innovations → Engaged and competent employees Reliability and quality 8 Asiakastieto Group Oyj 8.11.2018
Slide 9: Implementation of Integration
IMPLEMENTATION OF INTEGRATION 29 June 2018 1 July 2018 1 October 2018 AT + UC Combination Day1 organisation Target organisation 25 May 2018 Board of Directors supplemented by the EGM 29 June 2018 New Management Team 9 Asiakastieto Group Oyj 8.11.2018
Slide 10: Significant synergies, considerable financial benefits
• Significant cost synergies Estimated synergies Significant • Considerable sales synergies • Recurring capex savings ≥ 17 MEUR synergies Expected to be fully implemented by 2021. • Significant contribution from synergies Considerable • Well positioned to tap on the existing Accretive to EPS financi
Slide 11: Administration and Management
ADMINISTRATION AND MANAGEMENT Asiakastieto Group Plc’s GENERAL MEETING SHAREHOLDERS elects issues an elects audit report AUDITOR PricewaterhouseCoopers Oy BOARD OF DIRECTORS APA Martin Grandell Chairman of the Board Patrick Lapveteläinen AUDIT COMMITTEE elects reports supervises controls CEO INTERNA
Slide 12: Organisation
ORGANISATION CEO Jukka Ruuska IMO Sari Metsänen Deputy CEO Anders Hugosson RISK DECISIONS Heikki Koivula SALES AND MARKETING IT AND CUSTOMER DATA MANAGEMENT AFFÄRS- CUSTOMERS AND TECHNO- FINANCE HR Esa Kumpu FAKTA UNITS COMMS LOGY Antti Eleonor Krister Anders Kauppila Öhlander Mikko Victoria Ahlberg
Slide 13: The Board of Directors
THE BOARD OF DIRECTORS • Significant cost synergies ≥17 MEUR • Considerable sales synergies • Recurring capex savings Patrick Petri Bo Nicklas • Significant Martin contribution from synergies Carl-Magnus Anni Lapveteläinen Carpén Harald Ilebrand Johansson Chairman of BOD • Well positioned toMånsson
Slide 14: The Executive Team
THE EXECUTIVE TEAM • Significant cost synergies ≥17 MEUR Anders Antti Siri• Considerable Mikkosales Jukka Hugosson Kauppila Bengtssonsynergies Karemo Ruuska Deputy CEO; CFO; Finance, SME & Sales and CEO CIO Legal, IR • Recurring capex savings Consumers Customers • Significant contribution from syner
Slide 15: Nordic Service Offering
New Business Areas NORDIC SERVICE OFFERING 15 Asiakastieto Group Oyj 8.11.2018
Slide 16: New Business Areas
NEW BUSINESS AREAS Services in this business area include • Real estate and apartment information • Information about buildings and their Companies engaging in corporate valuation and consumer business, use our • Solutions that help customers to automate decision services and solutions for their col
Slide 17: Examples of the New Services Q3 / 2018
EXAMPLES OF THE NEW SERVICES Q3 / 2018 Provides the basic information New credit score for individuals, on the deceased person, their spouse, possible former spouses, Family Score optimised for unsecured loans. children, parents and siblings to • support death-related bank Relation Consumer Sorts th
Slide 18: The Importance of Positive Credit Information
THE IMPORTANCE OF POSITIVE CREDIT INFORMATION IS SUPPORTED BY THE EFFICIENT SYSTEMS IN BOTH COUNTRIES. CONSUMER CREDIT INQUIRY SYSTEM CREDIT REGISTER → Since 2013 – unique data in Finland → Since 1990 - unique data in Sweden → Types of credits → Type of credits ‒ Credit cards ‒ Credit cards ‒ Instal
Slide 19: Key ratios Q3 / 2018
Key ratios Q3 / 2018 19 Asiakastieto Group Oyj 8.11.2018
Slide 20: Overview of Q3 / 2018
OVERVIEW OF Q3 / 2018 EUR million (unless stated otherwise) Q3 / 2018 Q3 / 2017 FY 2017 COMMENTS Net Sales 31,4 13,3 56,2 → Q3 / 2018 was the first quarter Growth (year-on-year) 135,4 % 14,0 % 14,3 % with UC AB results consolidated to Asiakastieto Group. Adjusted EBITDA 10,9 6,1 24,8 Adjusted EBITDA
Slide 21: Overview of Q3 / 2018 Pro Forma
OVERVIEW OF Q3 / 2018 PRO FORMA EUR million (unless stated otherwise) Q3 / 2018 Q3 / 2017 FY 2017 COMMENTS Net Sales 31,4 31,1 129,6 → Net sales growth was +1,0 % Growth (year-on-year) 1,0 % n/a n/a at reported FX rates and +6,0 % at comparable FX Adjusted EBITDA 10,9 11,6 43,1 rates. Adjusted EBITD
Slide 22: Quarterly Net Sales
QUARTERLY NET SALES (EUR MILLION) COMMENTS → Q3 / 2018 was the first quarter with UC AB results consolidated to Asiakastieto Group. 22 Asiakastieto Group Oyj 8.11.2018
Slide 23: Quarterly Net Sales Pro Forma
QUARTERLY NET SALES PRO FORMA (EUR MILLION) COMMENTS → Net sales growth was +1,0 % at reported FX rates and +6,0 % at comparable FX rates. Note: constant FX rate = EUR/SEK 10,4197. 23 Asiakastieto Group Oyj 8.11.2018
Slide 24: Net Sales Growth
NET SALES GROWTH (NET SALES GROWTH, YEAR-ON-YEAR) COMMENTS → Q3 / 2018 was the first quarter with UC AB results consolidated to Asiakastieto Group. 24 Asiakastieto Group Oyj 8.11.2018
Slide 25: Net Sales Growth Pro Forma
NET SALES GROWTH PRO FORMA (NET SALES GROWTH, YEAR-ON-YEAR) COMMENTS → Same number of banking days in Q3 / 2018 than in corresponding period. → FX comparable growth rate 6,0 %. → Growth driven by Risk Decisions consumer risk management solutions as well as new services. Note: constant FX rate = EUR/
Slide 26: Revenue by Product Area Pro Forma
REVENUE BY PRODUCT AREA PRO FORMA (EUR MILLION) COMMENTS → Reported net sales growth negatively impacted by FX rate +3,5 % changes. -12,3 % +17,7 % -6,2 % 26 Asiakastieto Group Oyj 8.11.2018
Slide 27: Revenue by Product Area Pro Forma (Comparable FX)
REVENUE BY PRODUCT AREA PRO FORMA (EUR MILLION, AT COMPARABLE FX) COMMENTS → Risk Decisions growth driven by consumer risk management +8,4 % solutions. → Customer Data Management decreasing is a result of disposed of activities. -7,7 % → Digital Processes growth driven by the launch of Tambur (in Q2
Slide 28: New Services Share of Net Sales
NEW SERVICES SHARE OF NET SALES (% OF NET SALES) COMMENTS → Q3 / 2018 was the first quarter with UC AB results consolidated to Asiakastieto Group. → Share of new services was 8,6 %. → Eight new services launched during the third quarter. 28 Asiakastieto Group Oyj 8.11.2018
Slide 29: New Services Share of Net Sales Pro Forma
NEW SERVICES SHARE OF NET SALES PRO FORMA (% OF NET SALES) COMMENTS → Share of new services was 8,6 %. → Eight new services launched during the third quarter. 29 Asiakastieto Group Oyj 8.11.2018
Slide 30: Adjusted EBITDA Decrease 6,4 % Pro Forma
ADJUSTED EBITDA DECREASE 6,4 % PRO FORMA (EUR MILLION) 30 Asiakastieto Group Oyj 8.11.2018
Slide 31: Free Cash Flow
FREE CASH FLOW (EUR MILLION) COMMENTS → M&A and integration related non- recurring expenses impacted the free cash flow by EUR -3,7 million. 31 Asiakastieto Group Oyj 8.11.2018
Slide 32: Key Indicators
KEY INDICATORS EUR million (unless stated otherwise) Q3 / 2018 Q3 / 2017 FY 2017 COMMENTS Net debt 143,4 48,9 50,9 → Cash position of EUR 27,0 million. Net debt / adjusted EBITDA 3,5x * 2,0x 2,1x → Net debt / adjusted EBITDA at 3,5x *. Gearing, % 45,3 63,1 63,0 → Free cash flow containing a EUR -3,7
Slide 33: Summary Financial Statements Q3 / 2018
Summary FINANCIAL STATEMENTS Q3 / 2018 33 Asiakastieto Group Oyj 8.11.2018
Slide 34: Summary Income Statement
SUMMARY INCOME STATEMENT EUR million Q3 / 2018 Q3 / 2017 FY 2017 Net sales 31,4 13,3 56,2 Other operating income 0,0 0,1 0,2 Materials and services -5,5 -2,9 -12,0 Personnel expenses -9,9 -2,6 -12,6 Other operating expenses -8,2 -2,0 -8,8 Work performed by the entity and capitalised 0,4 0,2 1,3 Depr
Slide 35: Summary Income Statement Pro Forma
SUMMARY INCOME STATEMENT PRO FORMA EUR million Q3 / 2018 Q3 / 2017 FY 2017 Net sales 31,4 31,1 129,6 Other operating income 0,0 0,1 0,4 Materials and services -5,5 -5,0 -21,3 Personnel expenses -9,9 -8,2 -39,1 Other operating expenses -8,2 -7,4 -37,6 Work performed by the entity and capitalised 0,4
Slide 36: Summary Balance Sheet
SUMMARY BALANCE EUR million 30.9.2018 31.12.2017 SHEET EQUITY AND LIABILITIES Share capital 0,1 0,1 Invested unrestricted equity reserve 351,7 112,4 EUR million 30.9.2018 31.12.2017 Translation differences 4,7 -47,4 ASSETS Accumulated losses -39,8 16,0 Goodwill 349,8 118,4 Total equity 316,7 81,1 Ot
Slide 37: Summary Cash Flow
SUMMARY CASH FLOW EUR million Q3 / 2018 Q3 / 2017 FY 2017 Cash flows from operating activities Result before income tax 3,6 5,0 20,2 Depreciation and amortisation 3,8 0,8 3,1 Finance income and expenses 0,8 0,3 1,1 Profit (-) / loss (+) on disposal of property, plant and equipment 0,0 0,0 -0,2 Other
Slide 38: Questions and Answers
QUESTIONS AND ANSWERS Asiakastieto Group Plc INTERIM REPORT 1.1.–30.9.2018 38 Asiakastieto Group Oyj 8.11.2018