Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q3 2021 Earnings Presentation
33 slides from Enento Group Oyj's earnings presentation, Oct 29, 2021
Slide 1: CEO Jukka Ruuska and CFO Elina Stråhlman, 29 October 2021
CEO Jukka Ruuska and CFO Elina Stråhlman 29 October 2021 Enento Group Plc 29.10.2021
Slide 2: Content
Content Enento Group in brief Business Areas Nordic integration New services Q3 / 2021 Key ratios Q3 / 2021 Guidance and long-term financial targets Changes in the Management 2 Enento Group Plc 29.10.2021
Slide 3: Enento Group
ENENTO 2021 In Finland we operate under the brands Asiakastieto and Emaileri, in Sweden under UC, GROUP Allabolag and Proff and both in Norway and Building trust in the everyday. Denmark under the brand Proff. LISTED ON MARKET CAPITALISATION NASDAQ HELSINKI 30.9.2021 848 MEUR Par tners Approximately
Slide 4: Our mission
Our mission We build trust in the everyday. 4 Enento Enento Group Group Plc Plc 12.2.2021 29.4.2021 29.10.2021 Building trust in the everyday.
Slide 5: New opportunities for creating value
New business areas and New technology. models: Rise of fintech, Changes in legislation Digitalization. sharing economy and regulation. and ecosystems. Sustainability. New opportunities for creating value. Need for trust, Agility. Explosive privacy and Innovation. growth of data. control of private d
Slide 6: 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 6 Enento Grou
Slide 7: 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 • Excellence in combining • Services integrated • Advanced data • Great quality data. quality differ
Slide 8: Group Strategy 2020–2023
Group Strategy 2020–2023 We build trust in the everyday. STRATEGIC OFFERING GOALS GROWTH OPPORTNITIES 1. OWNERSHIP NEW DATA ANALYTICS PROCUREMENT API INTERFACES FRAUD HOUSING Strengthen our leading position in the credit COMPLIANCE MACHINE LEARNING SUSTAINABILITY information business. 2. Be the firs
Slide 9: Building Nordic presence
Building Nordic presence STRATEGIC AMBITION Nordic We recognize a significant Build true Nordic presence to serve value add to customers from a multilocal our Nordic customers with highest high-quality service offering quality services in each country. approach which scales across Nordics. We aim to
Slide 10: Enento's Business Areas
Enento’s Business Areas Enento’s Business Areas 1 April 2021 > BUSINESS CONSUMER DIGITAL INSIGHT INSIGHT PROCESSES 46,4%* 45,3%* 8,3%* *% of net sales Q3 / 2021 Business Insight consists of 3 business lines: Consumer Insight: Digital Processes range of services includes: • Enterprise Solutions is re
Slide 11: Nordic integration progress and business development as growth drivers
NORDIC INTEGRATION PROGRESS AND BUSINESS DEVELOPMENT AS GROWTH DRIVERS 11 Enento Group Plc 21.7.2021
Slide 12: Integration proceeding according to the plan
Integration proceeding according to the plan At the end of Q3 / 2021 we are very close to 100 % of the reported synergy benefits of EUR 17,8 million from the combination of Asiakastieto, UC and Proff. The integration has proceeded according to plan. We have now several revenue initiatives in product
Slide 13: Growth formula
NEW SERVICES NORDIC VOLUME OFFERING Growth CROSS- formula PENE- TRATION SELLING MARKET SHARE ACQUISI- PRICING TIONS 13 Enento Group Plc 29.10.2021
Slide 14: New services
New services 6 New services, % of net sales 24 New services launched Q3 / 2021 COMMENTS → Share of new services was New services 7,6 %. launched Q1-Q3 / 2020 → Six new services launched 7,6 during the third quarter. 7,4 6,8 6,9 6,3 EXAMPLES 4,9 4,4 4,4 • UC Direct API (SE) 3,4 • Nordic Growth Certif
Slide 15: Key ratios Q3 / 2021
KEY RATIOS Q3 / 2021 15 15 Enento Group Plc 29.10.2021
Slide 16: Key figures Q3 / 2021 and 2020
Key figures Q3 / 2021 and 2020 Net sales Net sales 38,6 MEUR Net debt to 151,3 MEUR adjusted Adjusted EBITDA Q1 Adjusted EBITDA EBITDA 14,5 MEUR Q3 / 2021 2,6x 54,0 MEUR Adjusted EBITDA margin Adjusted EBITDA margin 37,5 % 35,7 % 16 Enento Group Enento Group Plc Plc 29.10.2021 29.10.2021
Slide 17: Overview of Q3 / 2021
Overview of Q3 / 2021 EUR million COMMENTS (unless stated otherwise) Q3 / 2021 Q3 / 2020 FY 2020 → Net sales grew 5,2 % at reported FX Net Sales 38,6 36,7 151,3 rates and 4,0 % at comparable FX rates. Growth (year-on-year) 5,2 % 0,1 % 3,7 % → Adjusted EBITDA decreased by 2,2 % at reported FX rates a
Slide 18: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million → Q3/2021 reported Net sales 42,1 growth continued but 39,2 40,2 39,7 37,6 38,6 growth rate was 36,7 36,7 36,7 considerably more moderate than in previous quarters. Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 18 Enento
Slide 19: Net sales growth
Net sales growth PRO FORMA COMMENTS Net sales growth at reported FX, year-on-year, % Net sales growth at comparable FX, year-on-year, % → FX comparable growth rate 18,3 +4,0 % in Q3/2021. 16,8 → In Q3/2021 the number of 14,7 banking days was the same as last year. 11,0 11,4 10,3 → New services provi
Slide 20: Revenue by business area
Revenue by business area AT COMPARABLE FX RATES COMMENTS +3,8 % +3,4 % → Business Insight was able to deliver growth in Q3, especially driven by the 17,9 17,5 17,1 Freemium services as advertising market 16,7 recovered but Enterprise services for Q3 / 2020 Q3 / 2021 large customers remained on prior
Slide 21: Adjusted EBITDA
Adjusted EBITDA COMMENTS 0,0 → Negative adjusted EBITDA -0,3 development is mainly caused by expensed investments made to support future growth. Comparison -0,4 period cost levels were exceptionally low due to cost saving measures taken in the prior 1,5 year. The future growth investments together w
Slide 22: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 67,6 %. 12,5 → Cash flow from operating 11,0 activities before change in working capital was on 9,9 comparison period level. Impact 9,1 of change in the net working capital on cash flow was slightly 7,3 positive mainly due to d
Slide 23: Key indicators
Key indicators COMMENTS EUR million (unless stated otherwise) Q3 / 2021 Q3 / 2020 FY 2020 → Cash position of EUR 16,8 million Net debt 151,0 140,3 143,0 (committed EUR 20 million facility remains fully unutilized). Net debt / adjusted EBITDA 2,6 2,4 2,6 → Cash position impacted by distribution of fu
Slide 24: Net sales guidance 2021
Net sales guidance 2021 Guidance1 Released 21 July 2021, unchanged Enento Group expects its net sales growth in 2021 to be in the middle of the range of its long-term target (5-10%) Net sales compared to previous year’s net sales. EBITDA Enento Group expects its adjusted EBITDA margin to improve som
Slide 25: Long term financial targets
Long term financial targets Growth 5-10 percent annual average net sales growth. Profitability Adjusted EBITDA growth rate exceeding net sales growth rate. Balance sheet structure Net debt to Adjusted EBITDA below 3x. 25 Enento Group Plc 29.10.2021
Slide 26: Jeanette Jäger will commence as the CEO of Enento Group on 1 January 2022
Jeanette Jäger will commence as the CEO of Enento Group on 1 January 2022 ENENTO GROUP PLC, STOCK EXCHANGE RELEASE ON 15 JULY 2021 AT 9.30 A.M. EEST Jeanette Jäger has been appointed Enento Group Plc’s CEO and member of the Executive Management Team. She will start in her position on 1 January 2022.
Slide 27: Changes in the management
Changes in the management Enento Group’s CEO Jukka Ruuska gave notice of his resignation from the company on 21 April 2021. Jukka Ruuska will continue in his position until 31 October 2021. Enento Group's Board of Directors has appointed Elina Stråhlman, the Group’s CFO, as an acting CEO for the int
Slide 28: Financials summary
FINANCIALS Q3 / 2021 SUMMARY 28 Enento Group Plc 29.10.2021
Slide 29: Q3 / 2021 Income statement
Q3 / 2021 Income statement EUR million Q3 / 2021 Q3 / 2020 FY 2020 Net sales 38,6 36,7 151,3 Other operating income 0,2 0,2 0,6 Materials and services -6,6 -6,3 -25,4 Personnel expenses -8,6 -8,1 -36,8 Work performed by the entity and capitalised 0,7 0,6 2,7 Other operating expenses -9,6 -8,4 -43,3
Slide 30: Q3 / 2021 Cash flow
Q3 / 2021 Cash flow EUR million Q3 / 2021 Q3 / 2020 FY 2020 Cash flows from operating activities Cash flows before change in working capital 14,6 14,8 48,7 Change in working capital 0,3 -0,3 0,4 Net interests and other financing items -0,1 -0,1 -2,5 Income taxes paid -1,6 -1,3 -5,7 Net cash from ope
Slide 31: Business area quarterly net sales
Business area quarterly net sales AT REPORTED FX RATES MEUR Business Insight Consumer Insight Digital Processes +4,8% 20,1 20,0 +4,7% +9,9% 18,9 19,4 18,6 3,5 18,2 17,9 17,1 17,5 3,2 17,1 16,5 16,7 16,9 3,2 16,1 3,1 2,9 2,5 2,3 Q1/2020Q2/2020Q3/2020Q4/2020Q1/2021 Q2/2021 Q3/2021 Q1/2020Q2/2020Q3/202
Slide 32: Thank you! Time for Q&A
THANK YOU! Time for Q&A 32 Enento Group Plc 29.10.2021
Slide 33: Further information Enento Group Plc
Further information Enento Group Plc Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@enento.com Pia Katila Investor Relations +358 50 347 0473 pia.katila@enento.com 33 Enento Group Plc 29.10.2021