Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Investor Presentation (May 2023)
36 slides from Enento Group Oyj's investor presentation, May 2023
Slide 1: Enento Group Plc Investor Presentation Q1 2023
Enento Group Plc Investor Presentation Q1 2023 Arto Paukku Investor Relations Officer Enento Group Plc – Investor Presentation Q1 2023
Slide 2: Disclaimer
Disclaimer This presentation includes forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “will,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or any similar expressions identify certain of these forward-look
Slide 3: Enento Group at a glance
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 31.3.2023 Building trust in the everyday. HELSINKI. 394 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 31.3.2023 31.3.2023 the brands Asiakastieto and Emaileri, in Sweden 40,0 14,7 Partners in Europe and in the Nordic reg
Slide 4: Executive Management Team
Executive Management Team Jeanette Jäger Elina Stråhlman Siri Hane Gabriella Göransson Heikki Ylipekkala CEO CFO Director Director Director Business Insight Business Area Consumer Insight Business Area Digital Processes Business Area Karl-Johan Werner Victoria Preger Sari Ek-Petroff Daniel Ejderberg
Slide 5: We build trust in the everyday
Our Purpose: We build trust in the everyday. We collect and transform data to intelligence and knowledge which are used in interactions between people, businesses and society.
Slide 6: Our core values
Our core values. Guides us how we act towards ourselves, customers and all our stakeholders. We build We care trust & dare We grow together 6 Building trust in the everyday.
Slide 7: Enento Group strategy with a strengthened focus on execution
Enento Group strategy with a strengthened focus on execution Strategic offering goals Long-term targets Retain and strengthen our leading position in 5-10 percent annual average the credit information business. net sales growth Become the leading provider of business information Adjusted EBITDA grow
Slide 8: Sustainability at Enento Group
SUSTAINABILITY AT ENENTO GROUP The sustainability strategy of Enento consists of four focus areas that support Sustainable Development Goals by the United Nations We help our Enento Group’s Enento Group as We contribute to a customers with environmental a sustainable more sustainable sustainable imp
Slide 9: Net sales and profitability development have been stable
Net sales and profitability development have been stable during the turbulent years, margin has improved EUR million Adjusted EBITDA % 180 168 40 164 160 151 39 146 134 38 140 36,6% 37 Adjusted EBITDA % 36,2% 120 35,7% 36 35,3% Net Sales 100 35 Adjusted EBITDA 80 34 60 33 31,3% 32 40 59 61 31 52 54
Slide 10: Enento addressing the market trends with high-quality data
Enento addressing the market trends with high-quality data and advanced analytics, competitive offering and trusted brands Advanced analytics as an outsourced service Nordic market size EUR 600 million Tightening Increased regulation focus on increasing Major reputational the need for risk, ESG Mark
Slide 11: Building scale through value-adding, intelligent services
Building scale through value-adding, intelligent services built on data collected from various sources Data Sources Unique Datasets & Services Distribution Channels Customers Advanced Customized Banks, Banks Company analytics services financial data - through services & preferred Decisioning APIs an
Slide 12: Growth drivers
NEW SERVICES NORDIC VOLUME OFFERING GROWTH CROSS- PENETRATION SELLING M&A PRICING 12 Enento Group Plc – Investor Presentation Q1 2023
Slide 13: Innovation at Enento: New and enhanced services
Innovation at Enento: New and enhanced services driving growth and increasing customer loyalty Investing in future growth Share of new services* from group net sales ✓ Strategic growth bets, such as the ESG 8,3 7,6 offering, by developing new services that are 7,4 7,4 6,8 6,9 using the latest techno
Slide 14: Three business areas serving more than 76.000 companies
Three business areas serving more than 76.000 companies and 500.000 consumers in the Nordics Share of group net sales – Q1 2023 Share of group net sales – FY2022 Digital Processes Denmark and others Norway 7% 2% 10% Business Insight 49% 44% Consumer Insight 51% Sweden Finland 36% Enento Group Plc –
Slide 15: Business Overview
Business Overview Business Insight Consumer Insight Digital Processes BUSINESS LINES BUSINESS LINES BUSINESS LINES Enterprise Solutions, Premium Consumer Credit Information, Real-estate and apartment Solutions, Freemium Solutions Consumer Marketing Information, information, Compliance Services Direc
Slide 16: Enento as an investment
Enento as an investment Resilient Strong customer Solid track Attractive capital Sustainability at business model relationships record of allocation the core through supported by with integrated profitable through strong service offering megatrends services growth cash flows 16 Enento Group Plc – In
Slide 17: Strong free cash flow enabling shareholder returns through dividends
Strong free cash flow enabling shareholder returns through dividends Free cash flow Dividend payout Dividend per share, EUR +21% CAGR EUR million 1,00 1,00 35 34 0,95 0,95 0,95 32 33 30 30 25 24 24 23 23 23 20 16 15 10 5 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Enento Group Plc – Investor
Slide 18: Guidance 2023
Guidance 2023 Net sales Enento Group expects net sales in 2023 to grow between 0% - 5% excluding the impact from the discontinued Tambur service at comparable exchange rates as compared to 2022. Adjusted EBITDA Enento Group expects its adjusted EBITDA margin to be in the range of 36,0% - 37,0%. 18 E
Slide 19: Q1 2023
Q1 2023 Enento Group Plc – Investor Presentation Q1 2023
Slide 20: Positive start to the year with steady profitable growth
Positive start to the year with steady profitable growth trajectory continuing Q1/2023 in brief Net Sales Growth Margin Improvement Efficiency Program Customer Experience +2,3%* driven by Topline growth and Program proceeding Q1 NPS of 43 from Business Insight’s efficiency measures according to plan
Slide 21: Key figures Q1/2023
Key figures Q1/2023 Net sales +2,3%* Adjusted EBITDA +12,3%* Adjusted EBITDA margin 40,0 14,7 36,8 +3,5 pp-% MEUR MEUR % Free cash flow +42,7% Net debt to adjusted EBITDA Share of new services 10,1 2,1 8,3 +2,4 pp-% MEUR X (2,3x) % * At comparable foreign exchange rates 21 Enento Group Plc – Investo
Slide 22: Efficiency Program proceeding according to plans
Efficiency Program proceeding according to plans: About EUR 4M run-rate impact achieved by end of Q1, equal to around half of FY2024 targeted benefits of EUR 8M • Change negotiations completed in Finland, Sweden and FTE Efficiency Norway in mid March and as a result, total of 40 employees reduced •
Slide 23: Key figures Q1 / 2023
Key figures Q1 / 2023 Q1 / 2023 Net sales +2,3%* Adjusted EBITDA +12,3%* Adjusted EBITDA % Adjusted EBIT +30,2%* Net debt to adjusted EBITDA 40,0 14,7 36,8 12,0 2,1 +3,5 pp-% -0,2x MEUR MEUR % MEUR X Q1 / 2022 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 40,7
Slide 24: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES +4,7% Q1 / 2022 +2,2% Q1 / 2023 COMMENTS 19,4 18,6 17,2 17,6 → Business Insight net sales developed well in Enterprise and Freemium, while Premium was declining due to certificate delivery delay as a result of product renewal in Finland. → Consu
Slide 25: Adjusted EBITDA
Adjusted EBITDA 0,1 COMMENTS 0,5 → Adjusted EBITDA increased significantly year-on-year due 1,0 to strong sales growth in scalable services combined with successful cost 0,1 0,0 0,1 optimization and profitability improvement actions. → Successful profitability 0,9 14,7 measures leading to declining
Slide 26: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 83,5% 10,5 10,1 → Free cash flow increased mainly due to 9,9 10,0 10,0 cash flow from operations and lower tax payments. → Operating cash flow before change in 7,1 working capital increased in line with the 6,4 positive develop
Slide 27: Key indicators
Key indicators EUR million (unless stated otherwise) Q1 / 2023 Q1 / 2022 FY 2022 COMMENTS Net debt 128,7 134,5 131,8 → Cash position at EUR 27,2 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,1 2,3 2,2 remains fully unutilized). → Net debt / adjusted EBITDA at 2,1x. → Gross
Slide 28: Appendix
Appendix Enento Group Plc – Investor Presentation Q1 2023
Slide 29: Enento Group organization
Enento Group Jeanette Jäger Not in Executive CEO Management Team Legal Strategy Transformation Martin Smedberg Andreas Darner Business Insight Siri Hane MarCom & Human Data & IT & Sales Customer Finance Resources Analytics Technology Consumer Insight Operations Gabriella Göransson Mikko Elina Sari K
Slide 30: Financial KPIs
Financial KPIs Net sales Adjusted EBITDA Adjusted EBITDA margin % 163 168 59 61 35,3 35,7 36,2 36,6 146 151 52 54 31,3 134 42 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Free Cash Flow Adjusted EBIT Dividend per share 32,1 32,6 33,9 35,3 35,7 36,2 36,6 0,95 0,95 0,95 1
Slide 31: Solid revenue and profitability development track
Solid revenue and profitability development track 2022 +5,1% at +2,5% 2022 +5,9% at comparable FX rates comparable FX rates +3,5% +8,0% +9,5% 3,6% +8,7% 168 61,2 163 +22,3% 4,9% 59,1 +4,1% 151 54,0 146 -2,3% 51,5 134 129 43,1 42,1 36 6,0 +14,2% +5,9% +21,0% +12,6% 24,8 56 20,5 21,7 49 44 98 36,1 201
Slide 32: Dividend policy and history
Dividend policy and history Dividend per share, EUR 1,00 1,00 1,00 0,95 0,95 0,95 0,95 Dividend Policy 0,90 • The Company’s dividend policy is to distribute as dividends at least 70 per cent of the Company’s net profit, whilst, taking into consideration the business development and investment needs
Slide 33: Key figures full year 2022
Key figures full year 2022 Net sales +5,1%* Adjusted EBITDA +5,9%* Adjusted EBITDA margin 167,5 61,2 36,6 +0.4 pp-% MEUR MEUR % Free cash flow +13,6% Net debt to adjusted EBITDA Share of new services 33,9 2,2 4,6 -2,7 pp-% MEUR X (2,4x) % MEUR Distribution of funds of EUR 1.00 per share proposed – r
Slide 34: Key highlights 2022
Key highlights 2022 Profitable Growth • Profitability started improving according to plans from Agenda Materializing Q3, and we have proactively acted to secure and improve our profitability Customers are our • Enento B2B NPS score outperforms finance industry highest priority peers: Business NPS 48
Slide 35: Key events 2022
Key events 2022 JANUARY FEBRUARY MARCH MAY SEPTEMBER The consortium of seven Enento Group signed a new three- banks announced the termination year financing agreement, consisting of cooperation agreement of EUR 150 million long-term loan and with Enento related to Tambur, a EUR 30 million revolving
Slide 36: Enento Group Plc
Enento Group Plc Arto Paukku Investor Relations Officer +358 50 469 5380 [email protected] 36