Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q2 2023 Earnings Presentation
31 slides from Enento Group Oyj's earnings presentation, Jul 20, 2023
Slide 1: Enento Group Q2 2023 results webcast
CEO Jeanette Jäger, CFO Elina Stråhlman 20 July 2023 Enento Group Plc - 20 July 2023
Slide 2: Enento Group at a glance
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 30 June 2023 Building trust in the everyday. HELSINKI. 506 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 30 June 2023 30 June 2023 the brands Asiakastieto and Emaileri, in Sweden 79,6 29,2 Partners in Europe and in the N
Slide 3: Executive Management Team as of June 14th
Executive Management Team as of June 14th 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 Victoria Preger Sari Ek-Petroff Daniel
Slide 4: Quarter in brief: net sales impacted by declining Swedish consumer credit volumes
Net sales impacted by declining Swedish consumer credit volumes, while the demand for new services surged, and adjusted EBITDA margin improved Quarter in brief Key figures -3,5%** Net Sales & Profitability Merging Business Areas Net sales -1,2%* Adjusted EBITDA -2,1%** Net sales declined 1,2%* as co
Slide 5: Efficiency Program proceeding according to plans
Efficiency Program proceeding according to plans: EUR 5M run-rate impact achieved by end of Q2, equal to more than half of FY2024 targeted benefits of EUR 8M FTE Efficiency • Impact from reduced number of FTEs visible from Q2 onwards • Application service analysis pre-study completed in Sweden and t
Slide 6: Business Area Update Q2
BUSINESS AREA UPDATE Q2 6 Enento Group Plc - 20 July 2023
Slide 7: Business Insight Q2
Business Insight Q2 Business Overview Net Sales +4,2% Demand continues high in financial risk management services in Enterprise Solutions, EUR 22,8 million supported by Premium Solutions and high growth in compliance services in Finland Organic, at comparable FX rates Highlights ✓ Compliance offerin
Slide 8: Consumer Insight Q2
Consumer Insight Q2 Business Overview Net Sales -7,7% Consumer credit information services following continuing slowdown in consumer EUR 16,8 million lending volumes; weak real-estate market and mortgage volumes decline sharply in Sweden while more stable development in Finland. Organic, at comparab
Slide 9: Focus ahead
Focus ahead Building trust in the everyday Future changes in business landscape New strategy launched – Focus on implementation ✓ Governmental credit register Finland: Preparations with new ✓ Focus on strategy implementation in all units and countries solutions utilizing the data proceeding as plann
Slide 10: CFO Highlights
CFO HIGHLIGHTS 10 Enento Group Plc - 20 July 2023
Slide 11: Key figures
Key figures Q2 / 2023 -3,5%* Net sales -1,2%** Adjusted EBITDA -2,1%* Adjusted EBITDA % Adjusted EBIT -3,6%* Net debt to adjusted EBITDA 39,7 14,5 36,5 11,8 2,4 +0,5 pp-%* -0,2x MEUR MEUR % MEUR X Q2 / 2022 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 43,4 ME
Slide 12: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES -0,2% Q2 / 2022 22,9 22,8 Q2 / 2023 COMMENTS -7,7% → Business Insight growth excluding 18,2 Tambur impact* was +4,2%. Net sales 16,8 developed well in Premium, Freemium and Compliance. Enterprise performed in line with the previous year. → In Co
Slide 13: Adjusted EBITDA
Adjusted EBITDA COMMENTS 0,4 → Adjusted EBITDA margin 36,5%, margin expansion continued with +0,5%p increase y-on-y 1,1 → Adjusted EBITDA decreased year-on-year due to challenging market conditions 0,7 resulting in lower revenue especially in 1,4 credit information services. Also, discontinuation of
Slide 14: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion in H1 at 61,8%, clearly improving compared to comparative 10,5 period in prior year (47.1%) 10,0 10,0 10,1 9,9 → Free cash flow decreased compared with the corresponding quarter due to higher tax payments, partly offset by improve
Slide 15: Key indicators
Key indicators EUR million (unless stated otherwise) Q2 / 2023 Q2 / 2022 FY 2022 COMMENTS Net debt 147,7 153,4 131,8 → Cash position at EUR 5,3 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,4 2,6 2,2 remains fully unutilized). → Net debt / adjusted EBITDA at 2,4x. → Gross i
Slide 16: Strategy 2023-2026
Strategy 2023-2026 16 Enento Group Plc - 20 July 2023
Slide 17: Strategy focused on execution to deliver consistent 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 18: Road to 5-10% average annual growth in 2026
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: 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 expected growth Data and >8% p.a. analytics as a service Global KYC and AML IT spend expected growth Tightening Increased regulation >20% p.a
Slide 20: Growing from Nordic foothold 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 21: Solid growth expected in core Credit business with additional growth areas
Solid growth expected in the core Credit business with additional growth to be prioritized through ESG, Compliance and Master data Growth opportunities Fraud PSD2 Growth avenues Strong competitive position in core consumer and business Credit information business in Finland and Compliance Sweden –
Slide 22: Road to margin expansion through scalable growth and cost efficiencies
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 23: Thank you, time for Q&A
THANK YOU Time for Q&A 23 Enento Group Plc - 20 July 2023
Slide 24: Financials Q2 / 2023 Summary
FINANCIALS Q2 / 2023 SUMMARY 24 Enento Group Plc - 20 July 2023
Slide 25: Overview
Overview EUR million COMMENTS (unless stated otherwise) Q2 / 2023 Q2 / 2022 FY 2022 Net Sales 39,7 43,4 167,5 → Net sales decreased by 8,6 % at Growth (year-on-year, -3,5% +4,8% +5,1% reported FX rates and by 3,5 % comparable fx) at comparable FX rates. → Adjusted EBITDA decreased by Adjusted EBITDA
Slide 26: Income statement
Income statement EUR million Q2 / 2023 Q2 / 2022 FY 2022 Net sales 39,7 43,4 167,5 Other operating income 0,0 0,1 0,4 Materials and services -6,9 -7,3 -27,7 Personnel expenses -9,8 -10,2 -40,8 Work performed by the entity and capitalised 0,7 1,2 3,6 Other operating expenses -10,0 -11,7 -47,5 Depreci
Slide 27: Cash flow
Cash flow EUR million Q2 / 2023 Q2 / 2022 FY 2022 Cash flows from operating activities Cash flows before change in working capital 13,7 15,5 60,6 Change in working capital -0,9 -3,3 -4,0 Net interests and other financing items 0,3 -0,9 -2,3 Income taxes paid -4,2 -2,4 -9,5 Net cash from operating ac
Slide 28: Net sales by quarter
Net sales by quarter 43,1 43,4 42,9 42,1 40,7 40,5 40,0 39,7 38,6 COMMENTS → Q2/2023 reported Net sales declined in Business Insight and Consumer Insight. Excluding the impact of Tambur discontinuation, Business Insight growth continued Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Slide 29: Net sales growth
Net sales growth Net sales growth at reported FX, year-on-year, % Net sales growth at comparable FX, year-on-year, % 14,7 11,4 COMMENTS → FX comparable change -3,5 % 7,2 7,1 in Q2/2023. 6,0 5,2 4,8 4,9 4,0 4,4 4,1 → In Q2/2023 -1 business day 2,6 3,1 both in Finland and Sweden. 2,3 -0,4 -1,7 -3,5 -8
Slide 30: Future outlook and guidance 2023 (unchanged)
Future outlook and guidance 2023 (unchanged) Future Outlook1 The general macroeconomic environment remains uncertain and unpredictable and is expected to impact negatively on the growth outlook of the Group. The weakening demand for sales and marketing and direct-to-consumer services is expected to
Slide 31: Enento Group Plc
Enento Group Plc Arto Paukku IRO +358 50 469 5380 arto.paukku@enento.com Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@enento.com 31