Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — FY2018 Earnings Presentation
45 slides from Enento Group Oyj's earnings presentation, Feb 15, 2019
Slide 1: Financial Statements 1.1.–31.12.2018
CEO Jukka Ruuska 15 February 2019 Asiakastieto Group Plc FINANCIAL STATEMENTS 1.1.–31.12.2018 Asiakastieto Group Oyj
Slide 2: Content
Content Asiakastieto Group − Nordic company with strong local brands − Nordic service offering − Business areas and Functional units − Strategy 2019 Highlights of 2018 − Integration progress − Business development − Outsourcing of UC Affärsfakta AB − Sustainability as a business opportunity Key rati
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
Slide 4: Asiakastieto Group
Asiakastieto Group A leading business and consumer 447 employees at the end of 2018 information service provider in Net sales pro forma 2018 was 134,3 MEUR Finland and Sweden 70 000 customers within banking, finance, Company brands retail, public sector and small companies − Asiakastieto in Finland
Slide 5: In the front within digitalization and data innovation
In the front within digitalization and data innovation 5 Asiakastieto Group Oyj
Slide 6: Key figures pro forma 2018
Key figures pro forma 2018 Group’s Increase in Net Sales Net Sales (at comparable FX) 134,3 7,3 MEUR % Net debt to Number Adjusted Adjusted EBITDA Adjusted EBITDA of Personnel EBITDA margin 3,3 X 447 42,1 MEUR 31,3 % 6 Asiakastieto Group Oyj
Slide 7: Asiakastieto Group
Asiakastieto Group STRONG LOCAL BRANDS Since 1977 Since 1905 7 Asiakastieto Group Oyj
Slide 8: Business areas and Functional units
Business areas and Functional units RISK DECISIONS CUSTOMER DATA MANAGEMENT SALES AND MARKETING IT AND FINANCE HR CUSTOMERS AND COMMS TECHNOLOGY AND IR SME AND CONSUMERS DIGITAL PROCESSES 8 Asiakastieto Group Oyj
Slide 9: Net sales by Business areas 2018
Net sales by Business areas 2018 Sales and marketing professionals can improve the Services in this business area include efficiency of their work and boost customer ‒ Real estate and apartment information management by our ‒ Information about buildings and their valuation ‒ Target group tools for s
Slide 10: Strategic themes 2019
Strategic themes 2019 PERSONNEL CUSTOMER FIRST DEVELOPMENT We will build our new company culture, using a We need to put our We strive for a fast coaching leadership style Customer First to be Business and retain personnel and able to improve Development recruit new talents. the customer experience.
Slide 11: Growth formula
Growth formula New services Nordic Volume offering Cross Penetration / selling Market share Acquisitions Pricing 11 Asiakastieto Group Oyj
Slide 12: Long term financial targets
G Long term financial targets1 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
Slide 13: Highlights
Highlights 13 Asiakastieto Group Oyj
Slide 14: Highlights of 2018
Highlights of 2018 Business Outsourcing of Sustainability Asiakastieto &UC Development UC Affärsfakta AB as a business integration opportunity • Combination 29.6.2018 • Launched 19 new services (H2) • Telesales operations • Trust and transparency • Target organisation 1.10.2018 EXAMPLES: • LOI signe
Slide 15: Integration progress
Integration progress 15 Asiakastieto Group Oyj
Slide 16: Integration achievements
Integration achievements Intense integration work − Integration plan consists of over 100 roadmaps (including cost synergies, cross border sales, new services, ways of working) − Continuous follow up of the progress Nordic organisation in place as of 1 October 2018 − Integrated matrix organisation w
Slide 17: Business development
Business development 17 Asiakastieto Group Oyj
Slide 18: New services share of net sales
New services share of net sales COMMENTS % of Net sales 15,6 → Q3 / 2018 and 15,0 14,6 Q4 / 2018 with 12,9 UC AB results 12,3 consolidated to 10,5 Asiakastieto 9,6 Group. 8,6 7,8 → Share of new services was 7,8 %. → 11 new services launched during the fourth quarter. Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016
Slide 19: Nordic service development
Nordic service development GDPR Service Housing Valuation 19 Asiakastieto Group Oyj
Slide 20: Growth Indicator - forecast of growth
Growth Indicator - forecast of growth Classifies companies into five classes based on their growth potential. The companies in the best class are 10x more likely to Growth Indicator supports sales processes achieve double digit growth than those in the worst class. Available on all Finnish limited c
Slide 21: UC Affärsfakta AB
UC Affärsfakta AB 21 Asiakastieto Group Oyj
Slide 22: Outsourcing of UC Affärsfakta AB
Outsourcing of UC Affärsfakta AB Asiakastieto will transfer the telesales operations practised by Affärsfakta to the company founded by the unit’s current management. Outsourcing the telesales operations is a flexible way to increase efficiency and develop these functions ‒ LOI signed on 16 January
Slide 23: Sustainability as a business opportunity
Sustainability as a business opportunity 23 Asiakastieto Group Oyj
Slide 24: Trust and transparency
Trust and transparency Trust is the foundation of a market economy. Without trust and transparency, the market will not be able to operate quickly and efficiently. The development of trust requires transparency: reliability and availability of information needed for agreements, commerce and creditin
Slide 25: ESG Report – unique data of companies' backgrounds
ESG Report – unique data of companies’ backgrounds First ESG Report on private companies. Based on entirely new data streams: • Criminal judgments • Penalty payments and negligence fees • Certificates • Air pollutants • Bans on business operations • Company’s financial situation USE FOR • knowing th
Slide 26: Our services are supporting actions against overindebtedness of consumers
Our services are supporting actions against overindebtedness of consumers CONSUMER CREDIT INQUIRY SYSTEM CREDIT REGISTER Creditors Credit and Misuse Banks Finance companies Database → Since 2013 – unique data in Finland → Since 1990 – unique data in Sweden → Types of credit → Types of credit ‒ Credi
Slide 27: Key ratios Q4 / 2018
Key ratios Q4 / 2018 Asiakastieto Group Oyj
Slide 28: Overview of Q4 / 2018
Overview of Q4 / 2018 EUR million (unless stated otherwise) Q4 / 2018 Q4 / 2017 FY 2018 FY 2017 COMMENTS Net Sales 35,9 14,6 98,1 56,2 → Q4 / 2018 was the Growth (year-on-year) 146,4 % 15,4 % 74,6 % 14,3 % second quarter with UC AB results Adjusted EBITDA 12,2 5,9 36,1 24,8 consolidated to Adjusted
Slide 29: Overview of Q4 / 2018 pro forma
Overview of Q4 / 2018 pro forma EUR million (unless stated otherwise) Q4 / 2018 Q4 / 2017 FY 2018 FY 2017 COMMENTS Net Sales 35,9 34,6 134,3 129,6 → Net sales growth was +3,9 Growth (year-on-year) 3,9 % n/a 3,6 % n/a % at reported FX rates and +7,1 % at comparable FX rates. Adjusted EBITDA 12,2 10,7
Slide 30: Quarterly net sales
Quarterly net sales EUR million 35,9 COMMENTS 31,4 → Q3 / 2018 and Q4 / 2018 with UC AB results consolidated to Asiakastieto Group. 15,1 15,7 13,8 14,4 14,6 12,6 13,3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 2018 2018 2018 2018 30 Asiakastieto Group Oyj
Slide 31: Quarterly net sales pro forma
Quarterly net sales pro forma Net sales at reported FX, EUR million COMMENTS Net sales at constant FX, EUR million → Net sales growth 35,9 35,9 Q4 / 2018 was 34,6 33,5 34,1 34,1 +3,9 % at 32,8 32,2 31,1 31,4 31,6 reported FX rates 29,8 and +7,1 % at comparable FX rates. Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2
Slide 32: Net sales growth
Net sales growth Net sales growth, year-on-year, % 146,4 COMMENTS 135,4 → Q3 / 2018 and Q4 / 2018 with UC AB results consolidated to Asiakastieto Group. 15,6 12,2 14,0 15,4 11,2 8,9 8,9 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 2018 2018 2018 2018 32 Asiakastieto Group Oyj
Slide 33: Net sales growth pro forma
Net sales growth pro forma COMMENTS Net sales growth at reported FX, year-on-year, % 10,6 Net sales growth at constant FX, year-on-year, % → FX comparable growth rate 7,1 %. → Growth driven by 7,1 6,8 Risk Decisions 6,0 consumer risk 5,5 management solutions as well 3,9 as new services. 2,6 1,0 Q3 Q
Slide 34: Revenue by product area pro forma
Revenue by product area pro forma COMMENTS 23,1 → Reported net sales Q4 2017, EUR million growth negatively 21,6 Q4 2018, EUR million impacted by FX rate changes. + 7,0 % - 1,4 % 8,5 8,3 - 14,3% + 22,5 % 2,9 2,5 1,6 2,0 Risk Decisions Customer Data Digital Processes SME and Consumers Management 34 A
Slide 35: Revenue by product area pro forma
Revenue by product area pro forma COMMENTS → Risk Decisions growth 23,1 Q4 2017, EUR million, at comparable FX driven by consumer risk management solutions. 21,0 Q4 2018, EUR million, at comparable FX → Customer Data Management decreasing + 10,1 % is a result of disposed of activities. → Digital Pro
Slide 36: New services share of net sales pro forma
New services share of net sales pro forma COMMENTS % of Net sales → Share of new 9,0 services was 7,8 %. 8,6 8,2 8,2 7,6 7,8 → 11 new services 6,7 launched during the fourth quarter. Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2017 2018 2018 2018 2018 36 Asiakastieto Group Oyj
Slide 37: Adjusted EBITDA increase 14,7 % pro forma
Adjusted EBITDA increase 14,7 % pro forma -0,1 -0,5 0,7 -0,2 -0,5 12,2 -0,2 2,4 10,7 Adjusted Net sales Other Materials Personnel Other Work FX impact Adjusted EBITDA in operating and services expenses operating performed by EBITDA in Q4 2017 income expenses the entity and Q4 2018 capitalised 37 Asi
Slide 38: Free cash flow
Free cash flow COMMENTS 7,9 EUR million → M&A and integration related non-recurring expenses 4,8 impacted the free 4,6 4,3 cash flow by 4,1 3,9 EUR -2,6 million. 3,5 2,4 1,5 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 2018 2018 2018 2018 38 Asiakastieto Group Oyj
Slide 39: Key indicators
Key indicators EUR million (unless stated otherwise) Q4 / 2018 Q4 / 2017 FY 2018 FY 2017 COMMENTS Net debt 137,0 50,9 137,0 50,9 → Cash position of EUR pro forma pro forma 33,2 million. Net debt / adjusted EBITDA 2,1 2,1 3,3*) 3,3 → Net debt / adjusted EBITDA at 3,3x *. Gearing, % 42,6 63,0 42,6 63,
Slide 40: Guidance 2019
Guidance 2019 Guidance1 Guidance 29 June 2018 Asiakastieto expects its operating environment to remain stable in 2018 in its key markets in Finland and Sweden, and that it is able to initiate actions in the second half of the financial year to start to realise synergy benefits from the combination w
Slide 41: Financials Q4 / 2018 Summary
Financials Q4 / 2018 Summary Asiakastieto Group Oyj
Slide 42: Q4 2018 Income statement
Q4 2018 Income statement EUR million Q4 / 2018 Q4 / 2017 FY 2018 FY 2017 Net sales 35,9 14,6 98,1 56,2 Other operating income 0,0 0,1 0,1 0,2 Materials and services -6,0 -3,0 -18,3 -12,0 Personnel expenses -10,0 -3,6 -26,8 -12,6 Other operating expenses -9,1 -2,8 -28,0 -8,8 Work performed by the ent
Slide 43: Income statement pro forma
Income statement pro forma EUR million Q4 / 2018 Q4 / 2017 FY 2018 FY 2017 Net sales 35,9 34,6 134,3 129,6 Other operating income 0,0 0,1 0,1 0,4 Materials and services -5,9 -5,5 -22,8 -21,3 Personnel expenses -10,0 -10,9 -40,7 -39,1 Other operating expenses -9,1 -9,6 -38,2 -37,6 Work performed by t
Slide 44: Q4 2018 Cash flow
Q4 2018 Cash flow EUR million Q4 / 2018 Q4 / 2017 FY 2018 FY 2017 Cash flows from operating activities Net cash from operating activities 8,2 5,8 19,6 19,9 Cash flows from investing activities Net cash used in investing activities -1,7 -7,7 -91,0 -10,0 Cash flows from financing activities Net cash u
Slide 45: 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] 45 Asiakastieto Group Oyj