Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — Q1 2018 Earnings Presentation
35 slides from Enento Group Oyj's earnings presentation, May 4, 2018
Slide 1: Interim Report 1.1.–31.3.2018
CEO Jukka Ruuska 4 May 2018 Asiakastieto Group Plc INTERIM REPORT 1.1.–31.3.2018 1 Asiakastieto Group Plc 4.5.2018
Slide 2: Contents
CONTENTS • Asiakastieto Group in Brief • Highlights of Q1 / 2018 • Creating Stronger Future Together • GDPR Update • Overview of Q1 / 2018 Results • Summary of Financial Statements Q1 / 2018 2 Asiakastieto Group Plc 4.5.2018
Slide 3: This is Asiakastieto
THIS IS ASIAKASTIETO • Asiakastieto is one of the leading information Agile already from 1905 service houses in Finland • An agile and developing leader in the line VISION • Our vision is to offer the best knowledge base and services for our clients’ decision-making in B2B The Best Decisions every s
Slide 4: Database as the core of business operations
DATABASE as the core of business operations 4 Asiakastieto Group Plc 4.5.2018
Slide 5: Product Area Structure
PRODUCT AREA STRUCTURE Business Information Services Consumer Information Services Customer Management Services Business Information Services 55,4 % Consumer Information Services 27,8 % Real Estate and Collateral Information Services Customer Management Services 9,2 % Real Estate and Collateral Info
Slide 6: Key Figures Q1 / 2018
Group’s Net Sales Free Cash Flow 15,1 MEUR 1,5 MEUR Increase in Net Sales Average Number of Personnel Asiakastieto’s KEY FIGURES 8,9 % 163 Q1 / 2018 Adjusted EBITDA Adjusted EBITDA margin 6,4 MEUR 42,6 % 6 Asiakastieto Group Plc 4.5.2018
Slide 7: Creating Stronger Future Together
Creating Stronger FUTURE TOGETHER 7 Asiakastieto Group Plc 4.5.2018
Slide 8: Asiakastieto and UC to combine: creating stronger future together
ASIAKASTIETO AND UC TO COMBINE: CREATING STRONGER FUTURE TOGETHER Creating a leading Nordic company Combined entity • The combination creates one of the • Aggregated net sales of EUR 131 MEUR1 leading Nordic companies in digital • Nearly 500 competent employees services and data innovations • Total
Slide 9: Strong rationale for the combination
STRONG RATIONALE FOR THE COMBINATION Joining forces Engaged to meet the changing and competent customer needs and people in the core market environment Together one Commitment to of the leaders in Potential for higher high quality and digital services and efficiency enabling top-level reliability da
Slide 10: Changing customer needs and market environment provide growth opportunities
THE CHANGING CUSTOMER NEEDS AND MARKET ENVIRONMENT PROVIDE AMPLE GROWTH OPPORTUNITIES AND FORM BASIS FOR STRATEGIC RATIONALE Global trends… …combined with evolving customer needs1 Growing need for Improving efficiency Nordic and global and customer experience services with digitalization Digitalisat
Slide 11: Combination benefiting employees, customers and shareholders
COMBINATION BENEFITING EMPLOYEES, CUSTOMERS AND SHAREHOLDERS • A solid Group committed to invest in development and growth Employees • Unique journey to create a new Nordic company together • Inspiring, respectful and passionate working community • Competence base & resources to accelerate service d
Slide 12: Leading business and consumer information service providers in Finland and Sweden
LEADING BUSINESS AND CONSUMER INFORMATION SERVICE PROVIDERS IN FINLAND AND SWEDEN CUSTOMER GROUPS PRODUCT AREA STRUCTURE KEY FIGURES, 20171,2 8% Agile already from 1905 Net sales (IFRS) # of staff, year-end 9% Vision: The Best Decisions % of Net sales 56.2 MEUR 158 2017 55% Mission: Trust and Transp
Slide 13: Strategic fit forms ground for the combination
STRATEGIC FIT FORMS GROUND FOR THE COMBINATION OF ASIAKASTIETO AND UC Engaged and competent people at the core Commitment Existing, Existing, to high quality long-standing long-standing and top-level cooperation cooperation and reliability and common common Nordic Nordic values values Similar busine
Slide 14: Combination creates shareholder value
COMBINATION CREATES SHAREHOLDER VALUE ESTIMATED SYNERGIES • Significant cost synergies Significant ≥17 MEUR • Considerable sales synergies synergies Expected to be fully implemented by 2021 • Recurring capex savings • Significant contribution from synergies Considerable Accretive to EPS 1,2 financia
Slide 15: Nordic provider with aggregated net sales of 131 MEUR
ASIAKASTIETO AND UC FORM A NORDIC PROVIDER WITH AGGREGATED NET SALES OF 131 MEUR1 • Combined net sales: EUR 131 MEUR Key financials • Combined Adj. EBITDA: EUR 43 MEUR1,2 Combined number of employees • 479 employees (year-end 2017) Note: Please see page “Basis for preparation of selected illustrativ
Slide 16: Indicative timetable
INDICATIVE TIMETABLE 24 April 2018 May 2018 Q2 / 2018 Q3 / 2018 Announcement Asiakastieto Completion Listing of new date EGM date shares 16 Asiakastieto Group Plc 4.5.2018
Slide 17: General Data Protection Regulation (GDPR) Update
Update General Data Protection Regulation (GDPR) 17 Asiakastieto Group Plc 4.5.2018
Slide 18: GDPR compliance at Asiakastieto
GDPR*) COMPLIANCE AT ASIAKASTIETO Privacy and security has been an every day AT as a Controller / Processor topic, due to • Defining of services where AT is a processer of • Credit Information Act customers personal data • Quality system • Processor Agreements • Trustworthy brand awareness and impor
Slide 19: GDPR service
GDPR*) SERVICE CUSTOMER Customer file functionality FILE meeting the requirements of OUTSOURCING the regulation. SERVICE Extensive rights of AUTOMATED the data subjects: ORGANISATION’S Data protection documentation INQUIRY required for the maintenance of the The service GDPR INTERFACE FOR customer f
Slide 20: Overview Q1 / 2018
Overview Q1 / 2018 20 Asiakastieto Group Plc 4.5.2018
Slide 21: Overview of Q1 / 2018
OVERVIEW OF Q1 / 2018 EUR million (unless stated otherwise) Q1 / 2018 Q1 / 2017 FY 2017 ● 1 banking day less in Q1 / 2018 Net Sales 15,1 13,8 56,2 than in corresponding period. Daily Net Sales grew by 10,7%. Growth (year-on-year) 8,9 % 15,6 % 14,3 % ● The Adjusted EBITDA margin Adjusted EBITDA 6,4 6
Slide 22: Quarterly net sales
QUARTERLY NET SALES EUR million ● Net sales growth was 8,9%. ● Organic growth was particularly strong in Consumer Information (27,4%) product area. ● The net sales growth of Customer Management was impacted by acquisition of Emaileri Oy. 22 Asiakastieto Group Plc 4.5.2018
Slide 23: Net sales growth
NET SALES GROWTH Net sales growth (year-on-year) ● 1 banking day less in Q1 / 2018 than in corresponding period. ● Lesser amount of project revenue recognitions. ● Some products lacking sales resources. 23 Asiakastieto Group Plc 4.5.2018
Slide 24: Revenue by product area
REVENUE BY PRODUCT AREA EUR million ● Very strong growth in Consumer -0,5 % Information area continues. ● Business Information impacted by number of banking days and timing +27,4 % of new services. ● Net sales growth of Customer Management affected by Emaileri +21,8 % acquisition. +3,2 % 24 Asiakast
Slide 25: New services share of net sales
NEW SERVICES SHARE OF NET SALES EUR million ● Share of new services was 9,6%. ● Six new services launched during the fourth quarter. ● Calculation method has been changed. 25 Asiakastieto Group Plc 4.5.2018
Slide 26: Adjusted EBITDA growth 3,4 %
ADJUSTED EBITDA GROWTH 3,4 % EUR million 26 Asiakastieto Group Plc 4.5.2018
Slide 27: Reported adjusted EBITDA vs NRI adjusted EBITDA
REPORTED ADJUSTED EBITDA VS NRI ADJUSTED EBITDA EUR thousand 47 43 63 6 577 6 423 6 423 Non-recurring items Premises Regulatory Business Development Reported Adj EBITDA adjusted EBITDA Q1 Q1 27 Asiakastieto Group Plc 4.5.2018
Slide 28: Free cash flow
FREE CASH FLOW ● One-off fees linked to acquisition decreased the cash flow by EUR 0,5 EUR million million. 5,5 ● Income taxes were paid EUR 1,0 4,8 million (EUR 0,0 million) in the first 4,6 4,3 quarter. 4,0 3,9 3,5 ● Employees Pension act (TyEL 2,9 insurance) 2018 payment EUR 2,5 million (EUR 2,3
Slide 29: Strong key indicators
STRONG KEY INDICATORS EUR million (unless stated otherwise) Q1 / 2018 Q1 / 2017 FY 2017 ● Cash position of EUR 20,2 million. Net debt 49,6 43,8 50,9 Net debt / adjusted EBITDA 1,9x 1,8x 2,1x ● Net debt/adjusted EBITDA on low level of 1,9. Gearing, % 70,3 63,3 63,0 ● Free cash flow and thus also Cash
Slide 30: Long-term targets and guidance 2018
LONG-TERM TARGETS AND GUIDANCE 2018 Financial targets1 Growth Achieve 5 to 10 percent annual average growth in net sales Profitability Maintain profitability level of current services Balance sheet structure Maintain net debt to EBITDA of less than 3,0x while continuing to maintain an efficient capi
Slide 31: Summary Financial Statements Q1 / 2018
Summary FINANCIAL STATEMENTS Q1 / 2018 31 Asiakastieto Group Plc 4.5.2018
Slide 32: Summary income statement
SUMMARY INCOME STATEMENT EUR million Q1 / 2018 Q1 / 2017 FY 2017 Net sales 15,1 13,8 56,2 Other operating income 0,0 0,0 0,2 Materials and services -3,2 -3,0 -12,0 Personnel expenses -3,5 -3,1 -12,6 Other operating expenses -3,8 -2,1 -8,8 Work performed by the entity and capitalised 0,4 0,4 1,3 Depr
Slide 33: Summary balance sheet
SUMMARY BALANCE EUR million 31.3.2018 31.12.2017 SHEET EQUITY AND LIABILITIES Share capital 0,1 0,1 EUR million 31.3.2018 31.12.2017 Invested unrestricted equity 112,4 112,4 reserve ASSETS Accumulated losses -45,1 -47,4 Goodwill 118,4 118,4 Result for the period 3,1 16,0 Other intangible assets 11,3
Slide 34: Summary cash flow
SUMMARY CASH FLOW EUR million Q1 / 2018 Q1 / 2017 FY 2017 Cash flows from operating activities Result before income tax 3,9 5,2 20,2 Depreciation and amortisation 0,9 0,7 3,1 Finance income and expenses 0,3 0,3 1,1 Profit (-) / loss (+) on disposal of property, plant and equipment -0,1 -0,0 -0,2 Oth
Slide 35: Questions and Answers
Questions and Answers Asiakastieto Group Plc INTERIM REPORT 1.1.–31.3.2018 35 Asiakastieto Group Plc 4.5.2018