Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q4 2023 Earnings Presentation
40 slides from Enento Group Oyj's earnings presentation, Feb 9, 2024
Slide 1: Enento Group Plc Investor Presentation Q4 2023
Enento Group Plc Investor Presentation Q4 2023 Enento Group Plc – Investor Presentation Q4 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: Our Purpose: We build trust in the everyday
Our Purpose: We build trust in the everyday. We collect and transform data to intelligence and knowledge used in interactions between people, businesses and society.
Slide 4: Enento as an investment
Enento as an investment 1 Nordic presence with strong market position, trusted well-known brands and resilient, scalable business model 2 Attractive markets with strong dynamics 3 Business critical services using proprietary data 4 Diversified client base across all products and services based on st
Slide 5: Enento Group at a glance
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 31 December 2023 Building trust in the everyday. HELSINKI. 464 MEUR In Finland we operate under NET SALES 2023 ADJUSTED EBITDA 2023 the brands Asiakastieto and Emaileri, in Sweden 155,9 57,1 Partners in Europe and MEUR MEUR under UC, Allabolag
Slide 6: Executive Management Team
Executive Management Team Jeanette Jäger Elina Stråhlman Siri Hane Gabriella Göransson Andreas Darner CEO CFO Director Director Director Business Insight Consumer Insight Strategy and Transformation Business Area Business Area Karl-Johan Werner Arto Paukku Sari Ek-Petroff Daniel Ejderberg Mikko Kare
Slide 7: Strong track record of organic growth and M&A execution
Enento has a strong track record of organic growth and M&A execution 1976 2019 1905 The credit 2011 2017 Acquired Proff, an Suomen information Acquired Allabolag Acquired Emaileri, a information services Luotonantajayhdistys company UC in in Sweden 2015 Finnish provider of provider operating is foun
Slide 8: Scale through intelligent services built on data
We build scale through value-adding, intelligent services built on data collected from various sources …based on a variety Unique datasets and services… of data sources Company Advanced analytics Banks data ✓ Provides both cyclical and countercyclical products and services Decision scoring Monitorin
Slide 9: Strategic customer relationships, strong local brands set high barriers to entry
Strategic customer relationships, strong local brands, and integrated services set high barriers to entry A reputation built over decades Embedded into critical processes Long-term customer relationships and Our data and value-added services are trust in our local brands with long-standing integrate
Slide 10: Two business areas serving companies and consumers in the Nordics
Two business areas serving more than 76.000 companies and 500.000 consumers in the Nordics 1 Business Insight1 2 Consumer Insight Share of net sales 43% (YTD 2023) 57% Enterprise Solutions, Premium Solutions, Freemium Solutions Consumer Credit Information, Consumer Marketing Information, Real-estate
Slide 11: Stable net sales and improved adjusted EBITDA margin
Net sales and profitability development have been stable during the turbulent years, and adjusted EBITDA margin has improved EUR million Adjusted EBITDA % 180 168 40 164 160 151 156 39 146 134 38 140 36,6% 36,6% 37 36,2% 120 35,7% 36 35,3% 100 35 80 34 60 33 31,3% 32 40 59 61 57 31 52 54 20 42 30 0
Slide 12: 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 ✓ Growth in selected strategic growth areas, such as the ESG, compliance, master data and 11,1% real-time data, by driving innovation
Slide 13: AI has two main areas of potential application
AI has two main areas of potential application in Enento’s business Applications of AI User interfaces INNOVATIVE SERVICES Service content Data management INTERNAL EFFICIENCY Tooling 13 Enento Enento Group Plc – Investor Group Plc – 9Presentation Q4 2023 February 2024
Slide 14: Group Strategy
Group Strategy 14
Slide 15: Strategy focused on execution, growth and EBITDA margin expansion
Enento Group strategy is focused on execution to deliver consistent growth and EBITDA margin expansion Strategic goals 2024 -2026 targets Retain and strengthen our leading position in 5-10% average annual net sales growth the credit information business Around 40% Adjusted EBITDA Become the leading
Slide 16: Attractive growth dynamics in the data market
Attractive growth dynamics in the data market driven by the compelling industry trends Market drivers during the strategy period EMEA region data-as-a-service growth >8% p.a. Data and analytics as a service Tightening Global KYC and AML IT spend growth >20% p.a. Increased regulation focus on increas
Slide 17: Gaining market share in the 600 MEUR addressable market
Growing from Enento’s strong Nordic foothold to gain market share in the 600 MEUR addressable market Sweden and Finland are the largest Nordic ✓ markets, driven by data availability and overall price point Credit, Sales & Marketing and Compliance Nordic market size €600mm Enento is a leading credit
Slide 18: Road to 5-10% average annual growth
Road to 5-10% average annual growth in 2026 consists of underlying market growth, price increases, market penetration and new services Indicative 5-10% Market growth Market penetration, current offering New Services Organic growth M&A Total growth cross-sell, up-sell and pricing GDP Growth Increasin
Slide 19: Solid growth in core credit business, additional growth via ESG and compliance
Solid growth expected in the core credit business with additional growth to be prioritized through ESG, compliance and master data GROWTH OPPORTUNITIES Growth avenues Fraud PSD2 • Strong competitive position in core consumer and business credit information business in Finland and Compliance Sweden.
Slide 20: Road to margin expansion
Road to margin expansion through scalable growth, remodelled sales and distribution, Nordic consolidation of capabilities and cost efficiencies • New services in strategic growth areas and continuous enhancing of existing offerings Investing in scalable • Expansion to selected new and underdeveloped
Slide 21: Q4 2023
Q4 2023 Enento Group Plc – Investor Presentation Q4 2023
Slide 22: Key highlights Q4
Strong profitability attained with effective efficiency measures, despite sluggish Swedish consumer credit demand Key highlights Q4 Net Sales & Customer Efficiency Empowering Profitability Experience Program People Net sales declined Q4 NPS reached a Efficiency Program Employee temperature 5,5%* as
Slide 23: Key figures
Key figures Q4 / 2023 -6,5%* Net sales -5,5%** Adjusted EBITDA -13,9%* Adjusted EBITDA % Adjusted EBIT -18,7%* Net debt to adjusted EBITDA -2,8 pp-%* 38,9 13,4 34,4 10,5 2,4 0,2x MEUR MEUR % MEUR X Q4 / 2022 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 42,9 M
Slide 24: Efficiency Program: Planning for Extension and Expansion
Efficiency Program: Planning for Extension and Expansion EUR 6,3M run-rate impact achieved of initial EUR 8M target. Planning further actions to extend the program and reach benefits of EUR 10M. Impact from reduced number of FTEs in 2023 visible from Q2 2023 onwards FTE Efficiency Evaluating str
Slide 25: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES -1,1% Q4 / 2022 22,8 22,6 Q4 / 2023 COMMENTS -11,1% → Business Insight development turned into 18,4 decline, followed by challenges in 16,3 Swedish markets. Solid development in Finland, with strong growth in compliance and real estate services.
Slide 26: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA margin 34,4%, margin declined with -2,9%p y-on-y at comparable rates and -2,8%p y-on-y at reported rates. → Adjusted EBITDA decreased year-on-year due to challenging market conditions 2,7 resulting in lower revenue especially in 16,0 credit information serv
Slide 27: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion in 2023 exceeded 60% and reached 62,6% (56,0%). Adjusted 10,5 10,0 10,0 10,1 cash conversion, comparing the adjusted free cash flow to Adjusted EBITDA, also 8,9 improved to 64% (56,1%). → Free cash flow remains solid but 7,1 7,1 d
Slide 28: Key indicators
Key indicators EUR million (unless stated otherwise) Q4 / 2023 Q4 / 2022 FY 2023 FY 2022 COMMENTS Net debt 139,7 131,8 139,7 131,8 → Cash position at EUR 17,4 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,4 2,2 2,4 2,2 remains fully unutilized). → Net debt / adjusted EBITDA
Slide 29: Enento as an investment
Enento as an 1 \ investment _°, |) Le ~e be
Slide 30: Free cash flow enabling dividends and share buybacks
Strong free cash flow enabling shareholder returns through dividends and share buybacks Free cash flow Dividend payout Share buyback Dividend per share, EUR EUR million 1,00 1,00 1,00 * 35 34 0,95 0,95 0,95 32 33 32 30 30 25 24 24 24 23 23 23 20 16 15 10 5 5 0 2018 2019 2020 2021 2022 2023 2018 2019
Slide 31: Future Outlook 2024
Future Outlook 2024 The operating environment for Enento remains challenging and volatile due to the uncertainty in the general economic situation in our operating countries. This instability is expected to affect Enento’s financial performance, notably within the Swedish consumer credit information
Slide 32: Enento as an investment
Enento as an investment 1 Nordic presence with strong market position, trusted well-known brands and resilient, scalable business model 2 Attractive markets with strong dynamics 3 Business critical services using proprietary data 4 Diversified client base across all products and services based on st
Slide 33: Appendix
Appendix Enento Group Plc – Investor Presentation Q4 2023
Slide 34: Key figures full year 2023
Key figures full year 2023 Net sales -1,4%* Adjusted EBITDA -6,7% Adjusted EBITDA margin 155,9 57,1 36,6 -2,6%** -2,9%** -0,1 pp-%** MEUR MEUR % Free cash flow -5,8% Net debt to adjusted EBITDA Share of new services 32,0 2,4 9,5 4,9 pp-% MEUR X (2,2x) % Dividend of EUR 1,00*** per share proposed – r
Slide 35: Enento Group organization
Enento Group Jeanette Jäger Not in Executive CEO Management Team Legal Strategy Transformation Martin Smedberg Andreas Darner Business Insight Siri Hane Data & MarCom & Human IT & Sales Finance Analytics Customer Resources Technology Operations Mikko Elina Consumer Insight Karl-Johan Sari Daniel Kar
Slide 36: Sustainability at Enento Group
SUSTAINABILITY AT ENENTO GROUP The sustainability focus areas of Enento support Sustainable Development Goals by the United Nations Supporting our Enento Group’s Enento Group as We contribute to a customers with more sustainable environmental a sustainable sustainable economy in the decision-making
Slide 37: Financial KPIs
Financial KPIs Net sales Adjusted EBITDA Adjusted EBITDA margin % 163 168 156 59 61 57 35,3 35,7 36,2 36,6 36,6 146 151 52 54 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2 019 2 020 2 021 2 022 2 023 Free Cash Flow Adjusted EBIT margin % Dividend per share 32,1 32,6 33,9 32,0 29,2 29,7 30,0 29
Slide 38: Solid revenue and profitability development track
Solid revenue and profitability development track -6,9% 2023 -1,4% at +2,5% 2023 -2,9% at comparable FX rates comparable FX rates +3,5% +8,0% +9,5% -6,7% +8,7% 3,6% 4,9% 163 168 +22,3% 61,2 +4,1% 59,1 156 57,1 151 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 2
Slide 39: Dividend history
Dividend history Dividend per share, EUR 1,00 1,00 1,00 1,00 0,95 0,95 0,95 0,95 0,90 Distribution of funds 2023 0,50 The Board of Directors proposes 0,77 0,61 to the Annual General Meeting a dividend of EUR 0,50 per share, followed by a second instalment up to EUR 0,50 in November, 0,50 subject to
Slide 40: Enento Group Plc
Enento Group Plc Arto Paukku Investor Relations Officer +358 50 469 5380 arto.paukku@enento.com 40