Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q3 2020 Earnings Presentation
46 slides from Enento Group Oyj's earnings presentation, Nov 6, 2020
Slide 1: CEO Jukka Ruuska and CFO Elina Stråhlman, 6 November 2020
CEO Jukka Ruuska and CFO Elina Stråhlman 6 November 2020 1 Enento Group Plc 6.11.2020
Slide 2: Content
Content Enento Group in brief − Nordic multilocal approach − Enento in business for 115 years Enento Group’s offering Nordic integration progress and business development Customer experience program Key ratios Q3 / 2020 COVID-19 and business resilience Group strategy 2020 – 2023 2 Enento Group Plc 6
Slide 3: Enento Group
Enento Group We build trust We operate in Finland under the brands in the everyday. Asiakastieto and Emaileri, in Sweden MARKET CAPITALISATION under the brands UC, Allabolag and 30.9.2020 Proff. In Denmark and Norway we run our business under the brand Proff. 816 MEUR LISTED ON Partners in Nordic NA
Slide 4: Enento - in business for 115 years
Enento - in business for 115 years In 1905, the first company to create Enento Group was established in Finland. In 1977, UC AB was established in Sweden. In 2006 / 2008, Suomen Asiakastieto Oy was sold to private equity. In 2013, UC acquired Ljungqvist fastighetsinformation (renamed to UC Bostadsvä
Slide 5: The core of the Enento brand
The core of the Enento brand FROM 15 JUNE ONWARDS OUR CORE DIALOGUE interactions between people, data and information businesses and society THE RING our circle of trust BUILDING TRUST IN THE EVERYDAY. 5 Enento Group Plc 6.8.2020 Building trust in the everyday.
Slide 6: Why do we exist; position and ambition
WHY DO WE EXIST We collect and transform data into intelligence which is used in interactions between people, businesses and society. When our data is used – it builds trust in the everyday between people, businesses and society. Our purpose is to build trust in the everyday. WHAT IS OUR POSITION AN
Slide 7: What do we offer
WHAT DO WE OFFER Building trust in the everyday.
Slide 8: We operate in a scalable and digital business with intelligence at the core
We operate in a scalable and digital business with intelligence at the core Public registers Outsourcing services Other Companies processed services Data gathering Intelligence Services Internet International services Customers Basic data Database Service expertise development Database 8 Enento Grou
Slide 9: Enento's competitive advantages
Enento’s competitive advantages Data sourcing Database Production Service Distribution • Known and reliable • Database built on • High service development and sales brand granularity availability and quality • Excellence in combining • Services integrated • Advanced data • Great quality data. • High
Slide 10: Enento's offering is divided in four business areas
Enento’s offering is divided in four business areas RISK SME & DIGITAL CUSTOMER DATA DECISIONS CONSUMERS PROCESSES MANAGEMENT 62,5% of net sales 25,3% of net sales 6,9% of net sales 5,3% of net sales Q1-Q3 2020 Q1-Q3 2020 Q1-Q3 2020 Q1-Q3 2020 10 Building trust in the everyday.
Slide 11: Services for companies and consumers
Services for companies and consumers Services for Services for Services for Services to efficient decision- housing related small and micro increase sales and making processes and companies and boost compliance consumers marketing purposes Services and solutions for Services and solutions Services a
Slide 12: Growth formula
Growth formula New services Nordic Volume offering Cross Penetration / selling Market share Acquisitions Pricing 12
Slide 13: Key figures Q3 / 2020
Key figures Q3 / 2020 Net sales Net sales growth at comparable FX 36,7 MEUR -1,0 % Net debt to Number of personnel Adjusted Adjusted Adjusted EBITDA 30.9.2020 EBITDA EBITDA margin 2,4 X 421 14,8 MEUR 40,3 % 13 Enento Group Plc 6.11.2020
Slide 14: Nordic integration progress and business development as growth drivers
NORDIC INTEGRATION PROGRESS AND BUSINESS DEVELOPMENT AS GROWTH DRIVERS Enento Group Plc 6.11.2020
Slide 15: Integration proceeding according to the plan
Integration proceeding according to the plan At the end of 2019 we disclosed that half of the synergy benefits of EUR 17,8 million in total from the combination of Asiakastieto, UC and Proff have been realised. During 2020, the integration work has continued and proceeded according to the plan and f
Slide 16: New services
New services COMMENTS New services, % of net sales 7 → Share of new services was 44 6,3 %. 8,6 New services 7,8 launched → Seven new services New services Q3 / 2020 launched during the launched second quarter. 6,3 Q1-Q3 / 2020 → Share of new services has 4,9 increased as planned 4,4 4,4 4,4 during t
Slide 17: Examples of new services Q3 / 2020
Examples of new services Q3 / 2020 Customer Beneficial Owner ESG Report Pro Online The highest quality B2C Monitoring The first ESG Report data (more than 2,1 A monitoring service of unlisted companies is million contacts) for that helps customers to now available also on digital marketing and updat
Slide 18: Customer Pro – target groups and audiences
Customer Pro – target groups and audiences MARKETING DATA SOURCES USER INTERFACE CHANNELS 2.1 million contact information, SNOY database • Digital marketing Statistics Finland, Grid database • Facebook ASML ban registers; Tele • Google and Post Robinson • Programmatic Finnish Environment advertising
Slide 19: UC Beneficial Owner services
UC Beneficial Owner services A service suite which helps you to make the right risk assessments and keep track of who you do business with. SINGLE BATCH LEVEL BENEFICIAL ONLINE ONLINE OWNER INQUIRIES INQUIRIES MONITORING NEW Enables automated information Get beneficial owner retrieval and less time
Slide 20: Customer experience program
CUSTOMER EXPERIENCE PROGRAM Enento Group Plc 6.11.2020
Slide 21: Touchpoint NPS B2C & B2B
Touchpoint NPS B2C & B2B COVID 19 AND REMOTE WORK - STILL HIGH RATINGS CONSUMER TARGET 70 ALL TIME HIGH NPS BUSINESS Touchpoint NPS result period: 1.1. – 30.9.2020 21 Enento Group Plc 6.11.2020
Slide 22: Relation NPS B2B
Relation NPS B2B FOCUS ON A BETTER START - NEW BUSINESS CUSTOMERS MORE LOYAL 3X THIS YEAR WE HAVE IMPROVED • Onboarding. HIGHER LOYALTY • Cooperation with customers in service NPS Score 25,5 LEVEL development. • Education material and the content in 8 the communication materials for customers. <1 ye
Slide 23: Virtual customer workshops
Virtual customer workshops DRIVING THE DEVELOPMENT OF BUSINESS LOAN INFORMATION SYSTEM RECIPE FOR VIRTUAL WORKSHOPS OUTCOME VALUE PROPOSITION CUSTOMERS ”Great! Asiakastieto was able to invite all Project scope and schedule the key players in the market to the same validated by our key customers. tab
Slide 24: Key ratios Q3 / 2020
KEY RATIOS Q3 / 2020 Enento Group Plc 6.11.2020
Slide 25: Overview of Q3 / 2020
Overview of Q3 / 2020 EUR million COMMENTS (unless stated otherwise) Q3 / 2020 Q3 / 2019 FY 2019 → Net sales grew +0,1 % at Net Sales 36,7 36,7 146,0 reported FX rates and declined -1,0 % at comparable Growth (year-on-year) 0,1 % 16,8 % 48,7 % FX rates. → Adjusted EBITDA increased by Adjusted EBITDA
Slide 26: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million → Q3/2019 onwards with Proff companies’ results 39,2 consolidated to Enento 36,7 37,6 36,7 36,7 35,9 35,6 Group. 34,5 31,4 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 26 Enento Group Plc 6.11.2020
Slide 27: Net sales growth
Net sales growth REPORTED AND PRO FORMA COMMENTS → Q3/2019 onwards with Net sales growth, year-on-year, reported, % Net sales growth, year-on-year, pro forma, % Proff companies’ results 146,4 consolidated to Enento 135,4 16,8 Group. 128,8 126,1 9,1 9,0 5,2 3,9 4,2 3,3 16,8 9,1 9,0 1,0 3,3 0,1 0,1 Q3
Slide 28: Net sales growth (pro forma)
Net sales growth PRO FORMA COMMENTS Net sales growth at reported FX, year-on-year, % → FX comparable growth rate -1,0 %. Net sales growth at comparable FX, year-on-year, % → Risk Decisions consumer risk management 18,3 solutions market demand impacted negatively 16,8 by the COVID-19 implications on
Slide 29: Revenue by business area
Revenue by business area AT COMPARABLE FX RATES COMMENTS → Risk Decisions consumer risk management -6,7 % solutions market demand impacted negatively by the COVID-19 implications on consumer 24,5 loan market in both Sweden and Finland. Risk 22,9 Decisions net sales however supported by good developm
Slide 30: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA increased despite negative organic growth due to 0,2 14,8 cost synergies and savings measures 0,1 0,2 → +5,7 % increase y-on-y in Q3 2020. → FX comparable growth rate +4,4 0,5 %. 14,0 -0,4 0,2 0,1 Adjusted Net sales Other Materials Personnel Other Work FX i
Slide 31: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 74,6 %. 12,5 → Strong cash flow from operating activities before 11,0 change in NWC. NWC development somewhat negative mainly due to the 7,9 timing of payables. 7,3 7,3 6,9 → Items affecting 5,3 comparability impacted the 5,2 f
Slide 32: Key indicators
Key indicators COMMENTS EUR million (unless stated otherwise) Q3 / 2020 Q3 / 2019 FY 2019 → Cash position of EUR 25,9 Net debt 140,3 152,7 148,1 million (committed EUR 20 million facility remains fully Net debt / adjusted EBITDA 2,4 2,7 2,9 unutilized). → Net debt / adjusted EBITDA Gearing, % 45,6 5
Slide 33: COVID-19 and business resilience
COVID-19 AND BUSINESS RESILIENCE Enento Group Plc 6.11.2020
Slide 34: COVID-19 readiness and business resilience
COVID-19 READINESS AND BUSINESS RESILIENCE ❑ ACTIONS TAKEN TO SECURE CONTINGENCY • Health and safety of personnel number one priority • Remote work continues according to the recommendations from authorities • Contingency plans in place • EUR 5 million savings on budgeted fixed costs 2020 according
Slide 35: Guidance 2020
Guidance 2020 Guidance1 from 6 August 2020 Enento Group expects its net sales to grow in full year 2020, the growth rate however remaining below the long-term Net sales target range of 5-10 %. EBITDA Enento Group expects its adjusted EBITDA margin in full year 2020 to remain at the previous year’s l
Slide 36: Long term financial targets unchanged despite economic downturn
Long term financial targets unchanged despite economic downturn Growth 5-10 percent annual average net sales growth. Profitability Adjusted EBITDA growth rate exceeding net sales growth rate. Balance sheet structure Net debt to Adjusted EBITDA below 3x. Enento Group Plc 6.11.2020
Slide 37: Board of Directors' resolution on distribution of funds
Board of Directors’ resolution on distribution of funds Resolution on distribution of funds to shareholders as capital Dividend per share, EUR repayment 1,00 0,95 0,95 0,95 It was noted that the Annual General Meeting on 12 June 2020 0,90 authorised the Board, at its discretion, to resolve the distr
Slide 38: Group strategy 2020-2023
SOME HIGHLIGHTS FROM ENENTO GROUP’S GROUP STRATEGY 2020-2023 38 Building trust in the everyday.
Slide 39: Our strategic offering goals and enablers
Our strategic offering goals and enablers 1. 2. 3. Retain and No 1 Choice in Become the leader strengthen our data-driven within business leading position in business processes information credit information as a service business Growth Opportunities Fraud Machine Learning Analytics New Data API´s G
Slide 40: Reaching strategic goals will enable strong growth and profitability
Reaching strategic goals WILL ENABLE STRONG GROWTH AND PROFITABILITY DESPITE ECONOMIC DOWNTURN AMBITIONS ENABLERS Strengthen our leading position 5 – 10 % within our credit information Revenue growth Strategic business. offering Become a leader within business Future fit & Profitable growth goals in
Slide 41: Sustainability at Enento Group
SUSTAINABILITY AT ENENTO GROUP We help our Enento Group’s Enento Group as a We contribute to a customers to environmental sustainable more sustainable make sustainable impact. workplace. economy in the decisions. society. Enento Group Plc 6.11.2020
Slide 42: Financials Q3 / 2020 summary
FINANCIALS Q3 / 2020 SUMMARY 42 Building trust in the everyday.
Slide 43: Q3 / 2020 Income statement
Q3 / 2020 Income statement EUR million Q3 / 2020 Q3 / 2019 FY 2019 Net sales 36,7 35,6 146,0 Other operating income 0,2 0,1 0,3 Materials and services -6,3 -6,4 -24,5 Personnel expenses -8,1 -8,8 -38,6 Work performed by the entity and capitalised 0,6 0,5 2,2 Other operating expenses -8,4 -8,7 -37,1
Slide 44: Q3 / 2020 Cash flow
Q3 / 2020 Cash flow EUR million Q3 / 2020 Q3/ 2019 FY 2019 Cash flows from operating activities Cash flows before change in working capital 14,8 13,4 47,8 Change in working capital -0,3 2,3 1,6 Net interests and other financing items -0,1 -0,1 -2,6 Income taxes paid -1,3 -1,0 -4,9 Net cash from oper
Slide 45: Upcoming events
Upcoming events 25 Nov 12 Feb Week 10 29 March 2020 2021 2021 2021 Virtual Capital Financial Annual Report and Annual General Markets Day Statements Bulletin Financial Statements Meeting in Helsinki 2020 2020 in Helsinki 45 Enento Group Plc 6.11.2020
Slide 46: Thank you!
Thank you! Further information Elina Stråhlman CFO +358 40 564 7877 [email protected] Pia Katila Investor Relations +358 50 347 0473 [email protected] Finland Norway Helsinki and Turku Oslo Sweden Denmark Stockholm, Gothenburg, Viborg Kalmar andGroup Enento UmeåPlc 6.11.2020