Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — Q2 2019 Earnings Presentation
46 slides from Enento Group Oyj's earnings presentation, Aug 8, 2019
Slide 1: CEO Jukka Ruuska, 8 August 2019
CEO Jukka Ruuska 8 August 2019 1 Asiakastieto Group Oyj 8.8.2019
Slide 2: Content
Content Asiakastieto Group in brief − Nordic company with strong local brands − Business areas and Functional units − Strategy 2019 and Growth formula Highlights of Q2 / 2019 − Integration progress − Nordic business development − Acquisition of Proff companies − Sustainability as a business opportun
Slide 3: A leading Nordic company in digital services and data innovation
A leading Nordic company in digital services and data innovation. Asiakastieto Group Oyj 8.8.2019
Slide 4: We provide services based on analysed and enriched data
We provide services based on analysed and enriched data so that companies, individuals and societies can make intelligent decisions. Intelligent decisions allow our customers to grow. 4 Asiakastieto Group Oyj 8.8.2019
Slide 5: Asiakastieto Group
Asiakastieto Group Asiakastieto and UC AB joined forces Intelligent decisions. in 2018. Operations continue under Bigger dreams. strong company brands, Suomen MARKET CAPITALISATION Asiakastieto in Finland and UC in 30.6.2019 Sweden. 691 MEUR LISTED ON NASDAQ HELSINKI Partners in Nordic region and in
Slide 6: In the front within digitalisation and data innovation
In the front within digitalisation and data innovation 6 Asiakastieto Group Oyj 8.8.2019
Slide 7: Key figures pro forma Q2 / 2019
Key figures pro forma Q2 / 2019 Net Sales Net sales growth at comparable FX 35,6 MEUR 5,8 % Net Debt to Number of Personnel Adjusted Adjusted Adjusted EBITDA 30.6.2019 EBITDA EBITDA Margin 3,2 X 459 12,2 MEUR 34,3 % 7 Asiakastieto Group Oyj 8.8.2019
Slide 8: Asiakastieto's business areas and functional units
Asiakastieto’s business areas and functional units RISK DECISIONS SME AND CONSUMERS FINANCE SALES AND MARKETING IT AND AND HUMAN CUSTOMERS AND COMMS TECHNOLOGY INVESTOR RESOURCES CUSTOMER DATA MANAGEMENT RELATIONS DIGITAL PROCESSES 8 Asiakastieto Group Oyj 8.8.2019
Slide 9: Asiakastieto's four business areas
Asiakastieto’s four business areas DIGITAL PROCESSES CUSTOMER DATA MANAGEMENT Services and solutions Services and solutions ‒ Real estate and apartment information ‒ Target group tools for surveying potential ‒ Information about buildings and their valuation customers ‒ Solutions that help customers
Slide 10: Strategic themes 2019
Strategic themes 2019 Customer Engaged and Business Financial first competent development growth personnel Asiakastieto Group Oyj 8.8.2019
Slide 11: Growth formula
Growth formula New services Nordic Volume offering Cross Penetration / selling Market share Acquisitions Pricing 11 Asiakastieto Group Oyj 8.8.2019
Slide 12: Long term financial targets
Long term financial targets Growth Achieve 5-10 percent average growth in Net sales. Profitability Achieve a rate of EBITDA growth that exceeds the percentage growth of Net sales. Balance sheet structure Maintain net debt to EBITDA of less than 3x while continuing to maintain an efficient capital st
Slide 13: Future outlook
Future outlook Net sales: Asiakastieto Group expects its net sales growth in 2019 to be in the middle of the range of its long-term target (5–10 %), compared to the previous year’s pro forma net sales. EBITDA: Asiakastieto Group expects its adjusted EBITDA, excluding the effect of IFRS 16 transition
Slide 14: Highlights
Highlights 14 Asiakastieto Group Oyj 8.8.2019
Slide 15: Highlights of Q2 / 2019
Highlights of Q2 / 2019 Nordic Acquisition of Sustainability Asiakastieto & UC business Proff companies as a business integration development (Norway, Sweden opportunity and Denmark) • Integration proceeding • Launched 14 new services • Freemium company • Acting in a responsible and sustainable acco
Slide 16: Integration progress
Integration progress Asiakastieto Group Oyj 8.8.2019
Slide 17: Integration proceeding according to plan
Integration proceeding according to plan Integration related cost synergy initiatives have been realised according to the original plan − Most significant cost synergies realised within IT operating expenses and organisational efficiency gains − Further smaller cost efficiency initiatives in impleme
Slide 18: Nordic business development
Nordic business development Asiakastieto Group Oyj 8.8.2019
Slide 19: New services share of net sales pro forma
New services share of net sales pro forma COMMENTS → Share of new services was 4,0 %. New services, % of Net sales → Fourteen (14) new 9,0 services launched during 8,6 8,2 8,2 the second quarter. 7,6 7,8 6,7 → Net sales contribution of new services remained below our long-term 4,4 target level in th
Slide 20: International monitoring for foreign trade (FI)
International monitoring for foreign trade (FI) Threats / opportunities React on the Monitoring keeps track on changes taking place in customers' recognized basis of creditworthiness or other background information 24 hours a day. changes Only by automated monitoring one can react to changes fast en
Slide 21: Allabolag.se
Allabolag.se Allabolag.se is Sweden's most popular freemium company information service covering all Swedish companies with approx. 2,3 million unique visitors on a monthly basis. Allabolag PLUS – subscription based data basket New information features New functional features Estimated company value
Slide 22: Acquisition of Proff companies
Acquisition of Proff companies Norway Sweden Denmark Asiakastieto Group Oyj 8.8.2019
Slide 23: Proff – The Business Finder
Proff – The Business Finder Asiakastieto becoming the Nordic leader in freemium company information Company information services with approx. 3 million unique visitors on monthly level (Norway, Sweden, Denmark) Similar freemium company information to allabolag.se in Sweden and asiakastieto.fi/yrityk
Slide 24: Compliance services
Compliance services Banking customer as an example The UC KYC service was discontinued in Sweden because the future cash flows generated by the service concept (developed in 2017–2018) Authorised are unlikely to cover the necessary Signature UC KYC continued development and future Check overhead exp
Slide 25: Sustainability as a business opportunity
Sustainability as a business opportunity Asiakastieto Group Oyj 8.8.2019
Slide 26: Enabling sustainable business for our customers
Enabling sustainable business for our customers DIRECT IMPACT SOCIETAL IMPACT INDIRECT SOCIETAL Environment IMPACT Customer Community Incorporating Personnel sustainability into our Shareholders services and solutions, Security and privacy for example: Laws and regulation ESG Positive Report Data 26
Slide 27: The first Report on non-financial information 2018
The first Report on non-financial information 2018 The material aspects of Asiakastieto’s corporate DIRECT IMPACT responsibility will guide the responsibility work maintaining trust and transparency in the markets having a customer needs-driven and continuously evolving product and service offering
Slide 28: Key ratios Q2 / 2019
Key ratios Q2 / 2019 Asiakastieto Group Oyj 8.8.2019
Slide 29: Overview of Q2 / 2019
Overview of Q2 / 2019 EUR million (unless stated otherwise) Q2 / 2019 Q2 / 2018 FY 2018 COMMENTS Net Sales 35,6 15,7 98,1 → Q2/2019 was the fourth Growth (year-on-year) 126,1 % 8,9 % 74,6 % quarter with UC AB results consolidated to Asiakastieto Group. Adjusted EBITDA 12,2 6,6 36,1 Adjusted EBITDA m
Slide 30: Overview of Q2 / 2019 pro forma
Overview of Q2 / 2019 pro forma EUR million (unless stated otherwise) Q2 / 2019 Q2 / 2018 FY 2018 COMMENTS Net Sales 35,6 34,1 134,3 → Net sales growth was +4,2 % Growth (year-on-year) 4,2 % 6,8 % 3,6 % at reported FX rates and +5,8 % at comparable FX rates. 12,2 9,7 42,1 → Adjusted EBITDA excluding
Slide 31: Quarterly net sales
Quarterly net sales COMMENTS → Q3/2018 – Q2/2019 with Net sales, EUR million UC AB results consolidated 35,9 35,6 34,5 to Asiakastieto Group. 31,4 15,1 15,7 14,4 14,6 13,3 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 31 Asiakastieto Group Oyj 8.8.2019
Slide 32: Quarterly net sales pro forma
Quarterly net sales pro forma COMMENTS Net sales at reported FX, EUR million → Net sales growth Q2/2019 Net sales at constant FX, EUR million was +4,2 % at reported FX 35,9 35,4 35,6 35,6 34,6 34,1 33,6 34,5 34,2 rates and +5,8 % at 33,0 32,8 31,9 31,1 31,7 31,4 31,1 comparable FX rates. 30,4 29,3 →
Slide 33: Net sales growth
Net sales growth COMMENTS Net sales growth, year-on-year, % → Q3/2018 – Q2/2019 with UC AB results consolidated 146,4 to Asiakastieto Group. 135,4 128,8 126,1 12,2 14,0 15,4 8,9 8,9 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 33 Asiakastieto Group Oyj 8.8.2019
Slide 34: Net sales growth pro forma
Net sales growth pro forma COMMENTS Net sales growth at reported FX, year-on-year, % → FX comparable growth Net sales growth at constant FX, year-on-year, % rate +5,8 %. 10,6 → Risk Decisions consumer risk management 7,7 solutions continued their 7,1 strong net sales 6,8 6,1 development in the 5,8 s
Slide 35: Revenue by business area pro forma at reported FX rates
Revenue by business area pro forma at reported FX rates COMMENTS +7,7% → Reported Net sales growth negatively impacted by FX 23,9 rate changes. 22,2 Q2/2018, EUR million at reported FX Q2/2019, EUR million at reported FX -3,8% 7,6 7,3 +5,4% -3,9% 2,2 2,1 2,1 2,2 Risk Decisions SME and Consumers Cust
Slide 36: Revenue by business area pro forma at constant FX rates
Revenue by business area pro forma at constant FX rates COMMENTS +9,2% → Risk Decisions consumer risk management solutions continued strong. 23,9 21,9 → SME and Consumers negative Q2/2018, EUR million at constant FX growth is impacted by the decrease Q2/2019, EUR million at constant FX in the sales
Slide 37: New services share of net sales pro forma
New services share of net sales pro forma COMMENTS → Share of new services was 4,0 %. New services, % of Net sales → Fourteen (14) new 9,0 services launched during 8,6 8,2 8,2 the second quarter. 7,6 7,8 6,7 → Net sales contribution of new services remained below our long-term 4,4 target level in th
Slide 38: Adjusted EBITDA increased 20,1 % pro forma
Adjusted EBITDA increased 20,1 % pro forma (excl. IFRS 16 impact, at reported FX) 0,6 -0,3 0,5 12,2 1,9 0,0 -0,2 0,0 -0,1 11,7 9,7 Discontinuation of UC KYC service impacted the adjusted EBITDA by EUR -0,3 million (mainly in other operating expenses) Adjusted Net sales Other Materials Personnel Othe
Slide 39: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Non-recurring M&A and redundancy-related 7,9 payments arising from 7,3 operational restructuring impacted the free cash flow by EUR -0,5 million. 5,3 4,8 → Management’s long-term 4,3 incentive plan payouts 3,9 4,1 (withholding tax portion paid in
Slide 40: Key indicators
Key indicators EUR million Q2 / 2019 Q2 / 2018 FY 2018 COMMENTS (unless stated otherwise) Net debt 158,7 147,1 137,0 → Cash position of EUR 20,2 million. pro forma pro forma Net debt / adjusted EBITDA 3,2 3,6 3,3 → Net debt / adjusted EBITDA at 3,2x. Gearing, % 53,0 47,5 42,6 → Free cash flow contai
Slide 41: Guidance 2019
Guidance 2019 Guidance1 Net sales from 1 July 2019 Asiakastieto Group expects its net sales growth in 2019 to be in the middle of the range of its long-term target (5–10 %), compared to the previous year’s pro forma net sales. Net sales (previously published) Asiakastieto Group expects its net sales
Slide 42: Financials Q2 / 2019 Summary
Financials Q2 / 2019 Summary Asiakastieto Group Oyj 8.8.2019
Slide 43: Q2 / 2019 Income statement
Q2 / 2019 Income statement EUR million Q2 / 2019 Q2 / 2018 FY 2018 Net sales 35,6 15,7 98,1 Other operating income 0,0 0,0 0,1 Materials and services -6,2 -3,7 -18,3 Personnel expenses -10,5 -3,4 -26,8 Other operating expenses -8,7 -7,0 -28,1 Work performed by the entity and capitalised 0,5 0,4 1,6
Slide 44: Income statement pro forma
Income statement pro forma EUR million Q2 / 2019 Q2 / 2018 FY 2018 Net sales 35,6 34,1 134,3 Other operating income 0,0 0,1 0,1 Materials and services -6,2 -6,0 -22,8 Personnel expenses -10,5 -10,7 -40,7 Other operating expenses -8,7 -11,0 -38,2 Work performed by the entity and capitalised 0,5 0,5 2
Slide 45: Q2 / 2019 Cash flow
Q2 / 2019 Cash flow EUR million Q2 / 2019 Q2 / 2018 FY 2018 Cash flows from operating activities Cash flows before change in working capital 9,9 1,5 25,0 Change in working capital 0,1 2,9 0,2 Net interests and other financing items -1,3 -0,5 -2,1 Income taxes paid -1,4 -0,9 -3,6 Net cash from operat
Slide 46: Thank you!
Thank you! Further information Antti Kauppila CFO +358 44 066 3925 [email protected] Pia Katila Investor Relations +358 50 347 0473 [email protected] Asiakastieto Group Oyj 8.8.2019