Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — Q4 2019 Earnings Presentation
40 slides from Enento Group Oyj's earnings presentation, Feb 11, 2020
Slide 1: CEO Jukka Ruuska, 11 February 2020
CEO Jukka Ruuska 11 February 2020 1 Asiakastieto Group Oyj 11.2.2020
Slide 2: Content
Content Asiakastieto Group in brief − Asiakastieto - in business for 115 years − Nordic company with strong local brands − Four business areas − Growth formula Q4 / 2019 review − Nordic integration progress − Nordic business development − Resilience over the cycle Key ratios Q4 / 2019 2 Asiakastieto
Slide 3: A leading Nordic company in digital services and data innovation
A leading Nordic company in digital services and data innovation. Asiakastieto Group Oyj 11.2.2020
Slide 4: We provide services based on analysed and enriched data
We provide services based on analysed and enriched data so that companies, individuals and societies can make intelligent decisions. Intelligent decisions allow our customers to grow. 4 Asiakastieto Group Oyj 11.2.2020
Slide 5: Asiakastieto - in business for 115 years
Asiakastieto - in business for 115 years In 1905, Suomen Luotonantajayhdistys and in 1912 Liikemiesten Tiedonantoyhdistys (since 1933 Luottotieto ry) were founded. In 1961, Luottokontrolli Oy, a data distributor on hire purchase agreements and payment defaults, was established. In 1973, UC AB was es
Slide 6: Asiakastieto Group
Asiakastieto Group Asiakastieto and UC AB joined forces Intelligent decisions. in 2018. In Finland we operate under Bigger dreams. the brand Suomen Asiakastieto Oy and in Sweden under UC AB. Since July MARKET CAPITALISATION 2019 Proff has been part of the Group. 31.12.2019 756 MEUR LISTED ON NASDAQ
Slide 7: In the front within digitalisation and data innovation
In the front within digitalisation and data innovation 7 Asiakastieto Group Oyj 11.2.2020
Slide 8: Asiakastieto's four business areas
Asiakastieto’s four business areas DIGITAL PROCESSES CUSTOMER DATA MANAGEMENT Services and solutions Services and solutions ‒ Real estate and apartment information ‒ Target group tools for surveying ‒ Information about buildings and their valuation potential customers ‒ Solutions that help customers
Slide 9: Strategic themes 2019
Strategic themes 2019 Customer Engaged and Business Financial first competent development growth personnel Asiakastieto Group Oyj 11.2.2020
Slide 10: Key figures Q4 / 2019
Key figures Q4 / 2019 Net Sales Net sales growth at comparable FX 39,2 MEUR 11,1 % Net Debt to Number of Personnel Adjusted Adjusted Adjusted EBITDA 31.12.2019 EBITDA EBITDA Margin 2,7 X 422 13,6 MEUR 34,7 % 10 Asiakastieto Group Oyj 11.2.2020
Slide 11: Growth formula
Growth formula New services Nordic Volume offering Cross Penetration / selling Market share Acquisitions Pricing 11 Asiakastieto Group Oyj 11.2.2020
Slide 12: Long term financial targets
Long term financial targets Growth Achieve 5-10 percent average growth in Net sales. Profitability Achieve a rate of EBITDA growth that exceeds the percentage growth of Net sales. Balance sheet structure Maintain net debt to EBITDA of less than 3x while continuing to maintain an efficient capital st
Slide 13: Future outlook
Future outlook Net sales: Asiakastieto Group expects its net sales growth in 2020 to be close to the upper limit of its long-term target range (5-10 %), weighted to the first half of the year. EBITDA: Asiakastieto Group expects its adjusted EBITDA margin to grow somewhat in 2020 in comparison to pre
Slide 14: Nordic integration progress
Nordic integration progress 14 Asiakastieto Group Oyj 11.2.2020
Slide 15: Integration proceeding according to plan
Integration proceeding according to plan Half of the planned synergies realised Integration work is proceeding according to the plan. Half of the synergy benefits of EUR 17,8 million in total from the combination of Asiakastieto, UC and Proff have been realised. − Most of the cost synergies have bee
Slide 16: Nordic business development
Nordic business development Asiakastieto Group Oyj 11.2.2020
Slide 17: New services share of net sales pro forma
New services share of net sales pro forma COMMENTS → Share of new services was 4,4 %. New services, % of net sales → Eight new services 8,6 launched during the fourth 8,2 8,2 7,8 quarter. 6,7 → Net sales contribution of new services – although increasing from previous 4,4 4,4 4,0 quarters – remained
Slide 18: Examples of new services Q4 / 2019
Examples of new services Q4 / 2019 Housing Account Transaction Insight (PSD2) GDPR Service Digital Inbox Service to the Swedish Market to the Swedish to the Finnish and to the Finnish Swedish Market Market Market First transaction on 19 December 2019 • Provides access to bank data, thus • Apartment
Slide 19: Resilience over the cycle
Resilience over the cycle Risk Non-cyclical Must-have Management offering offering services • Helping customers to be • Cost savings (for example ready for the more digitalisation of the difficult economic housing market processes • Compliance services environment (For example and automatisation of
Slide 20: Key ratios Q4 / 2019
Key ratios Q4 / 2019 Asiakastieto Group Oyj 11.2.2020
Slide 21: Overview of Q4 / 2019
Overview of Q4 / 2019 EUR million COMMENTS (unless stated otherwise) Q4 / 2019 Q4 / 2018 FY 2019 FY 2018 → Net sales growth was +9,1 % at Net Sales 39,2 35,9 146,0 98,1 reported FX rates and +11,1 % at comparable FX rates. Growth (year-on-year) 9,1 % 146,4 % 48,7 % 74,6 % → Adjusted EBITDA excluding
Slide 22: Overview of FY 2019
Overview of FY 2019 EUR million FY 2019 FY 2018 COMMENTS (unless stated otherwise) actual pro forma → Net sales growth was +8,7 % at Net Sales 146,0 134,3 reported FX rates and +10,6 % Growth (year-on-year) 8,7 % 3,6 % at comparable FX rates. → Adjusted EBITDA excluding IFRS Adjusted EBITDA 51,5 42,
Slide 23: Quarterly net sales
Quarterly net sales COMMENTS Net sales, EUR million → Q4/2018 – Q4/2019 with UC AB results consolidated to 39,2 36,7 Asiakastieto Group. 35,9 35,6 34,5 31,4 → Q3/2019 – Q4/2019 with Proff companies’ results consolidated to Asiakastieto Group. 15,1 15,7 14,6 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1
Slide 24: Quarterly net sales pro forma
Quarterly net sales pro forma COMMENTS Net sales at reported FX, EUR million → Net sales growth Q4/2019 was Net sales at constant FX, EUR million +9,1 % at reported FX rates and 39,2 39,2 +11,1 % at comparable FX rates. 35,9 35,3 36,7 36,7 35,6 35,5 34,6 34,1 33,6 34,5 34,1 32,9 32,8 → The developme
Slide 25: Net sales growth
Net sales growth COMMENTS Net sales growth, year-on-year, % 146,4 → Q4/2018 – Q4/2019 with 135,4 UC AB results 128,8 126,1 consolidated to Asiakastieto Group. → Q3/2019 – Q4/2019 with Proff companies’ results consolidated to Asiakastieto Group. 15,4 16,8 8,9 8,9 9,1 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q
Slide 26: Net sales growth pro forma
Net sales growth pro forma COMMENTS Net sales growth at reported FX, year-on-year, % → FX comparable growth rate +11,1 %. Net sales growth at constant FX, year-on-year, % 18,3 → Risk Decisions consumer risk 16,8 management solutions continued their strong net sales development in the fourth quarter
Slide 27: Revenue by business area at reported FX rates
Revenue by business area at reported FX rates COMMENTS +4,0 % → Reported net sales growth negatively impacted by FX 24,1 rate changes year-on-year. 23,1 Q4/2018, EUR million at reported FX Q4/2019, EUR million at reported FX +28,7 % 10,9 8,5 +9,1 % -11,2% 2,0 2,2 2,3 2,1 Risk Decisions SME and Consu
Slide 28: Revenue by business area at constant FX rates
Revenue by business area at constant FX rates COMMENTS → Risk Decisions consumer risk +5,8 % management solutions continued their strong net sales development in the fourth quarter in Sweden. Finnish 24,1 market demand was impacted 22,8 negatively by the interest rate cap Q4/2018, EUR million at con
Slide 29: New services share of net sales pro forma
New services share of net sales pro forma COMMENTS → Share of new services was 4,4 %. New services, % of net sales → Eight new services 8,6 launched during the fourth 8,2 8,2 7,8 quarter. 6,7 → Net sales contribution of new services – although increasing from previous 4,4 4,4 4,0 quarters – remained
Slide 30: Adjusted EBITDA increased 6,6 % year-on-year in Q4 /2019
Adjusted EBITDA increased 6,6 % year-on-year in Q4 /2019 Excl. IFRS 16 impact, at reported FX 3,9 0,2 -0,5 -0,1 -2,7 0,2 -0,2 0,6 13,6 13,0 12,2 Adjusted Net sales Other Materials Personnel Other Work FX impact Adjusted IFRS 16 impact Adjusted EBITDA in operating and services expenses operating perf
Slide 31: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Free cash flow impacted by 12,5 negative net working capital development (timing) as well as high investment activity in the fourth quarter. 7,9 7,3 → Items affecting 6,9 comparability impacted the 5,3 free cash flow by EUR -0,7 million (EUR -2,6
Slide 32: Key indicators
Key indicators EUR million COMMENTS (unless stated otherwise) Q4 / 2019 Q4 / 2018 FY 2019 FY 2018 Net debt 148,1 137,0 148,1 137,0 → Cash position of EUR 20,4 million. RCF of EUR 10 Net debt / adjusted EBITDA pro forma pro forma million repaid in October 2,7 3,3 2,9 3,3 (committed EUR 20 million fac
Slide 33: Guidance 2020
Guidance 2020 Guidance1 Net sales Asiakastieto Group expects its net sales growth in 2020 to be close to the upper limit of its long-term target range (5-10 %), weighted to the first half of the year. EBITDA Asiakastieto Group expects its adjusted EBITDA margin to grow somewhat in 2020 in comparison
Slide 34: AGM 27 March 2020
AGM 27 March 2020 Matters on the Agenda among others Dividend per share, EUR 8. Resolution on the use of the profit shown on the balance sheet and the distribution of funds 1,00 0,95 0,95 0,95 0,90 The Board of Directors proposes that from the financial year ended 31 December 2019, funds be distribu
Slide 35: Financials Q4 / 2019 Summary
Financials Q4 / 2019 Summary Asiakastieto Group Oyj 11.2.2020
Slide 36: Q4 / 2019 Income statement
Q4 / 2019 Income statement EUR million Q4 / 2019 Q4 / 2018 FY 2019 FY 2018 Net sales 39,2 35,9 146,0 98,1 Other operating income 0,2 0,0 0,3 0,1 Materials and services -6,3 -5,9 -24,5 -18,3 Personnel expenses -9,5 -10,0 -38,6 -26,8 Other operating expenses -11,4 -9,1 -37,1 -28,1 Work performed by th
Slide 37: Income statement pro forma
Income statement pro forma EUR million FY 2019 FY 2018 Net sales 146,0 134,3 Other operating income 0,3 0,1 Materials and services -24,5 -22,8 Personnel expenses -38,6 -40,7 Other operating expenses -37,1 -38,2 Work performed by the entity and capitalised 2,2 2,0 Depreciation and amortisation -20,5
Slide 38: Q4 / 2019 Cash flow
Q4 / 2019 Cash flow EUR million Q4 / 2019 Q4 / 2018 FY 2019 FY 2018 Cash flows from operating activities Cash flows before change in working capital 13,0 11,5 47,8 25,0 Change in working capital -0,7 -1,8 1,6 0,2 Net interests and other financing items -1,2 -1,0 -2,6 -2,1 Income taxes paid -0,9 -0,4
Slide 39: Upcoming events
Upcoming events Week 10 27 March 2 April 8 May 2020 2020 2020 2020 Annual Report 2019 AGM Capital Markets Day Q1 / 2020 distributed online in Helsinki in Helsinki Interim Report 39 Asiakastieto Group Oyj 11.2.2020
Slide 40: Thank you!
Thank you! Further information Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@asiakastieto.fi Pia Katila Investor Relations +358 50 347 0473 pia.katila@asiakastieto.fi Asiakastieto Group Oyj 11.2.2020