Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q2 2020 Earnings Presentation
40 slides from Enento Group Oyj's earnings presentation, Aug 6, 2020
Slide 1: CEO Jukka Ruuska and CFO Elina Stråhlman, 6 August 2020
CEO Jukka Ruuska and CFO Elina Stråhlman 6 August 2020 1 Enento Group Plc 6.8.2020
Slide 2: Content
Content Enento Group in brief − Asiakastieto Group is now Enento Group − Nordic company with strong local brands − Enento in business for 115 years Enento Group’s offering Nordic integration progress and business development Key ratios Q2 / 2020 COVID-19 Readiness and resilience Group strategy 2020
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 30.6.2020 Proff. In Denmark and Norway we run our business under the brand Proff. 883 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
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. Building trust in the e
Slide 7: What is our position and ambition
WHAT IS OUR POSITION AND AMBITION We transform data into knowledge and intelligence that are used by people, businesses and society through our solutions and services. As the Nordic knowledge company we power society with intelligence. Building trust in the everyday.
Slide 8: What do we offer
WHAT DO WE OFFER Building trust in the everyday.
Slide 9: 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 9 Enento Grou
Slide 10: 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 11: 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 62,6% of net sales 25,8% of net sales 6,4% of net sales 5,2% of net sales H1 2020 H1 2020 H1 2020 H1 2020 11 Building trust in the everyday.
Slide 12: 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 13: Key figures Q2 / 2020
Key figures Q2 / 2020 Net sales Net sales growth at comparable FX 36,7 MEUR 3,4 % Net debt to Number of personnel Adjusted Adjusted Adjusted EBITDA 30.6.2020 EBITDA EBITDA margin 3,0 X 430 12,5 MEUR 33,9 % 13 Enento Group Plc 6.8.2020
Slide 14: Nordic integration progress and business development
NORDIC INTEGRATION PROGRESS AND BUSINESS DEVELOPMENT Enento Group Plc 6.8.2020
Slide 15: Integration proceeding according to plan
Integration proceeding according to 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 H1, the integration work has continued and proceeded according to the plan. Revenue sy
Slide 16: New services
New services COMMENTS 37 20 New services, % of net sales → Share of new services was 4,9 %. 10,5 New services launched → Twenty new services Q1-Q2/2020 New services launched during the 8,6 launched second quarter. 7,8 Q2 2020 → Share of new services has increased as planned during the first half, an
Slide 17: Examples of new services Q2 / 2020
Examples of new services Q2 / 2020 Corona Housing Online Company Society Service Monitoring Report web service within Company basics, Risk Indicator, Payment application ID Protection To get an indication of defaults and payments, Monitors the customer the financial state of the Collection data, Key
Slide 18: Key ratios Q2 / 2020
KEY RATIOS Q2 / 2020 Enento Group Plc 6.8.2020
Slide 19: Overview of Q2 / 2020
Overview of Q2 / 2020 EUR million COMMENTS (unless stated otherwise) Q2 / 2020 Q2 / 2019 FY 2019 → Net sales growth was +3,3 % Net Sales 36,7 35,6 146,0 at reported FX rates and +3,4 % at comparable FX rates. Growth (year-on-year) 3,3 % 126,1 % 48,7 % → Adjusted EBITDA increased by +2,1 % at reporte
Slide 20: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million → Q3/2018 – Q2/2020 with UC AB results consolidated to 39,2 Enento Group. 36,7 37,6 36,7 35,9 35,6 34,5 → Q3/2019 – Q2/2020 with 31,4 Proff companies’ results consolidated to Enento Group. 15,7 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 20
Slide 21: Net sales growth
Net sales growth REPORTED AND PRO FORMA COMMENTS → Q3/2018 – Q2/2020 with Net sales growth, year-on-year, reported, % Net sales growth, year-on-year, pro forma, % UC AB results 146,4 consolidated to Enento 135,4 16,8 Group. 128,8 126,1 → Q3/2019 – Q2/2020 with Proff companies’ results consolidated t
Slide 22: Net sales growth
Net sales growth PRO FORMA COMMENTS Net sales growth at reported FX, year-on-year, % → FX comparable growth rate +3,4 %. Net sales growth at comparable FX, year-on-year, % → Risk Decisions consumer risk 18,3 management solutions market demand 16,8 impacted negatively by the COVID-19 implications on
Slide 23: Revenue by business area
Revenue by business area AT COMPARABLE FX RATES COMMENTS -3,8% → Risk Decisions consumer risk management solutions market demand impacted 23,9 negatively by the COVID-19 implications on 22,9 consumer loan market in both Sweden and Finland. Risk Decisions business information Q2 2019 Q2 2020 services
Slide 24: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA impacted 0,5 -1,5 0,2 -0,4 by Proff, low organic net sales development and IT 1,2 costs. → 2,1 % increase y-on-y in Q2 2020. → FX comparable growth rate +2,3 %. 0,2 0,0 12,5 12,2 Adjusted Net sales Other Materials Personnel Other Work FX impact Adjusted EBI
Slide 25: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Free cash flow impacted by negative NWC 12,5 development mainly due to the timing of payables. → Items affecting comparability impacted the 7,9 free cash flow by EUR -1,3 7,3 7,3 million (EUR -0,5 million). 6,9 5,3 5,2 4,1 2,4 Q2 2018 Q3 2018 Q4
Slide 26: Key indicators
Key indicators COMMENTS EUR million (unless stated otherwise) Q2 / 2020 Q2 / 2019 FY 2019 → Cash position of EUR 17,1 Net debt 150,2 158,7 148,1 million (committed EUR 20 million facility remains fully Net debt / adjusted EBITDA 3,0 3,2 2,9 unutilized). → Net debt / adjusted EBITDA Gearing, % 49,6 5
Slide 27: COVID-19 readiness and resilience
COVID-19 READINESS AND RESILIENCE Enento Group Plc 6.8.2020
Slide 28: COVID-19 readiness and resilience
COVID-19 READINESS AND RESILIENCE ❑ PROCESS AND READINESS - Four Corona action streams established - People, Business continuity, Customers and offering and Finance - Health and safety of personnel number one priority; back to the office -decisions in August - Contingency plans in place ❑ FINANCIAL
Slide 29: COVID-19 readiness and resilience
COVID-19 READINESS AND RESILIENCE ❑ SECURING FINANCIALS: COST SAVINGS AND OTHER ACTIONS - EUR 5 million savings on budgeted fixed costs for 2020 - Re-prioritized service development and marketing activities - We are ready to quickly respond to new customer needs ❑ FINANCIAL POSITION - Net debt to Ad
Slide 30: Resilience over the economic downturn
Resilience over the economic downturn RISK NON- MUST-HAVE MANAGEMENT CYCLICAL OFFERING SERVICES OFFERING Counter-party risk management. Helping customers to be ready and quickly react in challenging Cost savings (for example economic environment. Compliance services. digitalisation of the housing ma
Slide 31: New guidance 2020
New guidance 2020 Guidance1 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 level. Enento Gr
Slide 32: Some highlights from Enento Group's Group strategy 2020-2023
SOME HIGHLIGHTS FROM ENENTO GROUP’S GROUP STRATEGY 2020-2023 32 Building trust in the everyday.
Slide 33: 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 34: 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 35: 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 6.8.2020
Slide 36: Financials Q2 / 2020 summary
FINANCIALS Q2 / 2020 SUMMARY 36 Building trust in the everyday.
Slide 37: Q2 / 2020 Income statement
Q2 / 2020 Income statement EUR million Q2 / 2020 Q2 / 2019 FY 2019 Net sales 36,7 35,6 146,0 Other operating income 0,2 0,0 0,3 Materials and services -6,5 -6,2 -24,5 Personnel expenses -9,2 -10,5 -38,6 Work performed by the entity and capitalised 0,7 0,5 2,2 Other operating expenses -11,2 -8,7 -37,
Slide 38: Q2 / 2020 Cash flow
Q2 / 2020 Cash flow EUR million Q2 / 2020 Q2 / 2019 FY 2019 Cash flows from operating activities Cash flows before change in working capital 10,1 9,9 47,8 Change in working capital -1,6 0,1 1,6 Net interests and other financing items -1,1 -1,3 -2,6 Income taxes paid -1,2 -1,4 -4,9 Net cash from oper
Slide 39: Upcoming events 2020
Upcoming events 2020 Autumn 6 Nov 2020 2020 Virtual Q3 / 2020 Capital Markets Day Interim Report in Helsinki 39 Enento Group Plc 6.8.2020
Slide 40: 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 6.8.2020