Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q1 2023 Earnings Presentation
29 slides from Enento Group Oyj's earnings presentation, Apr 24, 2023
Slide 1: Q1 2023 results presentation
CEO Jeanette Jäger, CFO Elina Stråhlman 24 April 2023 1 Enento Group Plc 24.4.2023
Slide 2: Enento Group at a glance
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 31.3.2023 Building trust in the everyday. HELSINKI. 394 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 31.3.2023 31.3.2023 the brands Asiakastieto and Emaileri, in Sweden 40,0 14,7 Partners in Europe and in the Nordic reg
Slide 3: Executive Management Team as of April 1st
Executive Management Team as of April 1st Jeanette Jäger Elina Stråhlman Siri Hane Gabriella Göransson Heikki Ylipekkala CEO CFO Director Director Director Business Insight Business Area Consumer Insight Business Area Digital Processes Business Area Karl-Johan Werner Victoria Preger Sari Ek-Petroff
Slide 4: Positive start to the year with steady profitable growth trajectory continuing
Positive start to the year with steady profitable growth trajectory continuing Q1/2023 in brief Net Sales Growth Margin Improvement Efficiency Program Customer Experience +2,3%* driven by Topline growth and Program proceeding Q1 NPS of 43 from Business Insight’s efficiency measures according to plan
Slide 5: Key figures Q1/2023
Key figures Q1/2023 Net sales +2,3%* Adjusted EBITDA +12,3%* Adjusted EBITDA margin 40,0 14,7 36,8 +3,5 pp-% MEUR MEUR % Free cash flow +42,7% Net debt to adjusted EBITDA Share of new services 10,1 2,1 8,3 +2,4 pp-% MEUR X (2,3x) % * At comparable foreign exchange rates 5 Enento Group Plc 24.4.2023
Slide 6: Efficiency Program proceeding according to plans
Efficiency Program proceeding according to plans: About EUR 4M run-rate impact achieved by end of Q1, equal to around half of FY2024 targeted benefits of EUR 8M • Change negotiations completed in Finland, Sweden and FTE Efficiency Norway in mid March and as a result, total of 40 employees reduced •
Slide 7: Nordic Business Platform Update
Nordic Business Platform Update Prerequisites established by end of 2022 include modern development platform and modernized data-handling Transformation key performance indicators Q1 progress Establish Nordic Modern identity and access management solution % Number of Nordic shared capabilities avail
Slide 8: Business Area Update Q1
BUSINESS AREA UPDATE Q1 8 Enento Group Plc 24.4.2023
Slide 9: Business Insight Q1
Business Insight Q1 Business Overview Net Sales +4,7% Demand high in counter-cyclical risk management services in Enterprise EUR 19,4 million Solutions, supported by ESG services and Norway with double-digit growth. At comparable FX rates Highlights CO2 calculator in Finland ✓ Investing in intellige
Slide 10: Finnish Rating Alfa renewed to be even more accurate, includes ESG data
Finnish Rating Alfa renewed to be even more accurate, includes ESG data Highlights ✓ Best-in-class rating predictability and accuracy to allow users to do even better credit decisions. ✓ Model uses more information than older version. New data, such as ESG, utilized. ✓ New model allows users to comb
Slide 11: New APIs launched to expand customer base in Norway and Sweden
New APIs launched to expand customer base in Norway and Sweden Norwegian Credit API ✓ Gain access to company payment remarks with data from public sources and major Norwegian debt collection companies ✓ Fit-for-purpose solution to strengthen decisioning, being fully up-to- date on customer risks and
Slide 12: Consumer Insight Q1
Consumer Insight Q1 Business Overview Net Sales +2,2% Consumer credit following the macro trends; consumer lending growth in all EUR 17,6 million time low in Sweden and housing transactions declining in Sweden and Finland. Strong growth in direct-to-consumer services in Finland. At comparable FX rat
Slide 13: Digital Processes Q1
Digital Processes Q1 Business Overview Net Sales -10,8% Despite housing transaction volumes down by 30-40% in Finland and Sweden, EUR 2,9 million solid results from value-added real estate information services, supported by double-digit growth from compliance services in Finland. At comparable FX ra
Slide 14: Focus ahead
Focus ahead Building trust in the everyday Recent and upcoming changes in business landscape Execution mode: Expansion, transformation and modernization ✓ The handover of Swedish housing transaction platform Tambur ✓ Strong pipeline of new and improved services in all markets and completed on 6 Apri
Slide 15: CFO Highlights
CFO HIGHLIGHTS 15 Enento Group Plc 24.4.2023
Slide 16: Key figures Q1 / 2023
Key figures Q1 / 2023 Q1 / 2023 Net sales +2,3%* Adjusted EBITDA +12,3%* Adjusted EBITDA % Adjusted EBIT +30,2%* Net debt to adjusted EBITDA 40,0 14,7 36,8 12,0 2,1 +3,5 pp-% -0,2x MEUR MEUR % MEUR X Q1 / 2022 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 40,7
Slide 17: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES +4,7% Q1 / 2022 +2,2% Q1 / 2023 COMMENTS 19,4 18,6 17,2 17,6 → Business Insight net sales developed well in Enterprise and Freemium, while Premium was declining due to certificate delivery delay as a result of product renewal in Finland. → Consu
Slide 18: Adjusted EBITDA
Adjusted EBITDA 0,1 COMMENTS 0,5 → Adjusted EBITDA increased significantly year-on-year due 1,0 to strong sales growth in scalable services combined with successful cost 0,1 0,0 0,1 optimization and profitability improvement actions. → Successful profitability 0,9 14,7 measures leading to declining
Slide 19: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 83,5% 10,5 10,1 → Free cash flow increased mainly due to 9,9 10,0 10,0 cash flow from operations and lower tax payments. → Operating cash flow before change in 7,1 working capital increased in line with the 6,4 positive develop
Slide 20: Key indicators
Key indicators EUR million (unless stated otherwise) Q1 / 2023 Q1 / 2022 FY 2022 COMMENTS Net debt 128,7 134,5 131,8 → Cash position at EUR 27,2 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,1 2,3 2,2 remains fully unutilized). → Net debt / adjusted EBITDA at 2,1x. → Gross
Slide 21: Thank you - Time for Q&A
THANK YOU Time for Q&A 21 Enento Group Plc 24.4.2023
Slide 22: Financials Q1 / 2023 Summary
FINANCIALS Q1 / 2023 SUMMARY 22 Enento Group Plc 24.4.2023
Slide 23: Overview of Q1 / 2023
Overview of Q1 / 2023 EUR million COMMENTS (unless stated otherwise) Q1 / 2023 Q1 / 2022 FY 2022 Net Sales 40,0 40,7 167,5 → Net sales declined 1,7 % at Growth (year-on-year, +2,3% +4,4% +5,1% reported FX rates and grew 2,3 comparable fx) % at comparable FX rates. → Adjusted EBITDA increased by Adju
Slide 24: Income statement
Income statement EUR million Q1 / 2023 Q1 / 2022 FY 2022 Net sales 40,0 40,7 167,5 Other operating income 0,1 0,1 0,4 Materials and services -6,6 -6,8 -27,7 Personnel expenses -12,0 -10,9 -40,8 Work performed by the entity and capitalised 1,1 1,2 3,6 Other operating expenses -10,3 -11,1 -47,5 Deprec
Slide 25: Cash flow
Cash flow EUR million Q1 / 2023 Q1 / 2022 FY 2022 Cash flows from operating activities Cash flows before change in working capital 13,7 13,2 60,6 Change in working capital 2,8 0,5 -4,0 Net interests and other financing items -2,5 0,0 -2,3 Income taxes paid -1,7 -3,0 -9,5 Net cash from operating acti
Slide 26: Net sales by quarter
Net sales by quarter 43,1 43,4 42,9 42,1 39,7 40,7 40,5 40,0 38,6 COMMENTS → Q1/2023 reported Net sales growth continued in Consumer Insight and Business Insight while decline in Digital Processes due to Real Estate Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 26 Enento Gr
Slide 27: 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 COMMENTS 11,4 → FX comparable growth rate +2,3 % in Q1/2023. 7,2 7,1 → In Q1/2023 +1 business day 6,0 both in Finland and Sweden. 5,4 5,2 4,8 4,9 4,0 4,4 4,1 3,1 2,4 2,6 2,3 -0,4
Slide 28: 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 29: 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 29