Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — Q2 2018 Earnings Presentation
39 slides from Enento Group Oyj's earnings presentation, Aug 31, 2018
Slide 1: Half Year Financial Report 1.1.–30.6.2018
CEO Jukka Ruuska 31 August 2018 Asiakastieto Group Plc HALF YEAR FINANCIAL REPORT 1.1.–30.6.2018 1 Asiakastieto Group Oyj 3.9.2018
Slide 2: Contents
CONTENTS • Asiakastieto Group in Brief • Highlights of Q2 / 2018 • Creating Stronger Future Together • Overview of Q2 / 2018 Results • Summary of Financial Statements Q2 / 2018 2 Asiakastieto Group Oyj 3.9.2018
Slide 3: Creating Stronger Future Together
Creating Stronger FUTURE TOGETHER 3 Asiakastieto Group Oyj 3.9.2018
Slide 4: Background and History
BACKGROUND AND HISTORY ASIAKASTIETO GROUP PLC Since 1977 Since July 2018 Asiakastieto and UC is one company Since 1905 – with two strong local brands 4 Asiakastieto Group Oyj 3.9.2018
Slide 5: Asiakastieto Group Today
ASIAKASTIETO GROUP TODAY • A leading business and • Approx. 500 employees based in consumer information service Finland and Sweden provider in Finland and Sweden • Pro Forma Net Sales for 2017 was • Company brands 130 MEUR • UC in Sweden • 70 000 customers within banking, • Asiakastieto in Finland f
Slide 6: About the New Combination
ABOUT THE NEW COMBINATION 29 JUNE 2018 Joining forces to meet Engaged the changing customer needs and and competent market environment people in the core Transfer of existing services Potential for higher between the markets efficiency enabling future growth Together one of the leaders in digital se
Slide 7: Combination Benefiting Employees, Customers and Shareholders
COMBINATION BENEFITING EMPLOYEES, CUSTOMERS AND SHAREHOLDERS • A solid Group committed to invest in development and growth Employees • Unique journey to create a new Nordic company together • Inspiring, respectful and passionate working community • Competence base & resources to accelerate service d
Slide 8: Cornerstones of the Group Strategy
CORNERSTONES OF THE GROUP STRATEGY CUSTOMER FIRST EFFICIENCY Nordic offering Faster digital innovations Reliability 8 Asiakastieto Group Oyj 3.9.2018
Slide 9: Implementation of Integration
IMPLEMENTATION OF INTEGRATION 29 June 2018 1 July 2018 1 October 2018 AT + UC Combination Day1 organisation Target organisation 25 May 2018 Board of Directors supplemented by the EGM 29 June 2018 New Management Team 9 Asiakastieto Group Oyj 3.9.2018
Slide 10: Significant synergies and considerable financial benefits
• Significant cost synergies Estimated synergies Significant • Considerable sales synergies • Recurring capex savings ≥ 17 MEUR synergies Expected to be fully implemented by 2021 • Significant contribution from synergies • Significant contribution from synergies Considerable • Well positioned to tap
Slide 11: Administration and Management
ADMINISTRATION AND MANAGEMENT Asiakastieto Group Plc’s GENERAL MEETING SHAREHOLDERS elects issues an elects audit report AUDITOR PricewaterhouseCoopers Oy BOARD OF DIRECTORS APA Martin Grandell Chairman of the Board Patrick Lapveteläinen AUDIT COMMITTEE elects reports supervises controls CEO INTERNA
Slide 12: Organisation
ORGANISATION CEO Jukka Ruuska IMO Sari Metsänen Deputy CEO Anders Hugosson RISK DECISIONS Heikki Koivula CUSTOMER DATA MANAGEMENT AFFÄRS- MARKETING IT AND SALES UNITS FINANCE HR Esa Kumpu FAKTA AND COMMS TECHNOLOGY Mikko Antti Eleonor Krister Victoria Anders Karemo Hugosson Kauppila Öhlander Ahlberg
Slide 13: The Board of Directors
THE BOARD OF DIRECTORS • Significant cost synergies ≥17 MEUR • Considerable sales synergies • Recurring capex savings Patrick Petri Bo Nicklas • Significant Martin contribution from synergies Carl-Magnus Anni Lapveteläinen Carpén Harald Ilebrand Johansson Chairman of the BOD • Well positioned toMåns
Slide 14: The Executive Team
THE EXECUTIVE TEAM • Significant cost synergies ≥17 MEUR • Considerable sales Jukka Anders Antti Siri Mikko Ruuska Hugosson Kauppila Bengtsson synergies Karemo CEO Deputy CEO CFO • Recurring capex savings • Significant contribution from synergies • Well positioned to tap on the existing growth oppor
Slide 15: Nordic Product Offering
New Business Areas NORDIC PRODUCT OFFERING 15 Asiakastieto Group Oyj 3.9.2018
Slide 16: Business Areas
BUSINESS AREAS These services include real estate and apartment information, information about buildings and their valuation, Decisioning services and solutions are solutions that help customers to used for general risk management, automate their collateral credit risk management, financial manageme
Slide 17: Overview Q2 / 2018
Overview Q2 / 2018 17 Asiakastieto Group Oyj 3.9.2018
Slide 18: Overview of Q2 / 2018
OVERVIEW OF Q2 / 2018 EUR million (unless stated otherwise) Q2 / 2018 Q2 / 2017 FY 2017 • 1 banking day more in Q2 / 2018 Net Sales 15,7 14,4 56,2 than in corresponding period. Daily Growth (year-on-year) 8,9 % 12,2 % 14,3 % Net Sales grew by 7,2 %. • The adjusted EBITDA margin Adjusted EBITDA 6,6 6
Slide 19: Overview of Q2 / 2018 Pro Forma
OVERVIEW OF Q2 / 2018 PRO FORMA EUR million (unless stated otherwise) Q2 / 2018 Q2 / 2017 FY 2017 • Net sales growth was +6,8 % at Net Sales 34,1 31,9 129,6 reported FX rates and +10,6 % at comparable FX rates. Growth (year-on-year) 6,8 % n/a n/a • Adjusted EBITDA decreased by Adjusted EBITDA 9,7 10
Slide 20: Quarterly Net Sales
QUARTERLY NET SALES EUR million • Net sales growth was 8,9%. • Growth driven especially by the strong organic growth in Risk Decisions consumer risk management services. • Customer Data Management net sales growth impacted by the acquisition of Emaileri. 20 Asiakastieto Group Oyj 3.9.2018
Slide 21: Quarterly Net Sales Pro Forma
QUARTERLY NET SALES PRO FORMA EUR million • Net sales growth was +6,8 % at reported FX rates and +10,6 % at comparable FX rates. Note: constant FX rate = EUR/SEK 10,3303 (Bank of Finland, average rate 1.4.-30.6.2018) 21 Asiakastieto Group Oyj 3.9.2018
Slide 22: Net Sales Growth
NET SALES GROWTH Net sales growth • 1 banking day more in Q2 / 2018 (year-on-year) than in corresponding period. • Higher amount of project revenue recognitions. 22 Asiakastieto Group Oyj 3.9.2018
Slide 23: Net Sales Growth Pro Forma
NET SALES GROWTH PRO FORMA Net sales growth • 1 banking day more in Q2 / 2018 (year-on-year) than in corresponding period. • Double-digit net sales growth in the second quarter on comparable FX rate basis. Note: constant FX rate = EUR/SEK 10,3303 (Bank of Finland, average rate 1.4.-30.6.2018) 23 Asi
Slide 24: Revenue by Product Area
REVENUE BY PRODUCT AREA EUR million • Strong growth continues in Risk Decisions consumer risk management services. +8,2 % • Customer Data Management net sales growth impacted by the acquisition of Emaileri. +29,9 % +8,8 % +2,3 % 24 Asiakastieto Group Oyj 3.9.2018
Slide 25: Revenue by Product Area Pro Forma
REVENUE BY PRODUCT AREA PRO FORMA EUR million • Net sales growth restrained by changes in FX rates but still on a good level overall on a reported FX rate basis in the second quarter. +6,2 % • Customer Data Management decreasing is a result of disposed -3,7 % of activities. +26,0 % +8,0 % 25 Asiakas
Slide 26: Revenue by Product Area Pro Forma, FX Comparable
REVENUE BY PRODUCT AREA PRO FORMA FX COMPARABLE EUR million, at • Double-digit overall net sales comparable FX growth in the second quarter on comparable FX rate basis. +9,8 % • Customer Data Management decreasing is a result of disposed of activities. -0,3 % +28,1 % Note: constant FX rate = EUR/SEK
Slide 27: New Services Share of Net Sales
NEW SERVICES SHARE OF NET SALES % of Net Sales • Share of new services was 10,5 %. • Seven new services launched during the second quarter. 27 Asiakastieto Group Oyj 3.9.2018
Slide 28: New Services Share of Net Sales Pro Forma
NEW SERVICES SHARE OF NET SALES PRO FORMA % of Net Sales • Share of new services was 8,2 %. • Ten new services launched during the second quarter. 28 Asiakastieto Group Oyj 3.9.2018
Slide 29: Adjusted EBITDA Growth 0,6 %
ADJUSTED EBITDA GROWTH 0,6 % EUR million 29 Asiakastieto Group Oyj 3.9.2018
Slide 30: Adjusted EBITDA Decrease 4,1 % Pro Forma
ADJUSTED EBITDA DECREASE 4,1 % PRO FORMA EUR million 30 Asiakastieto Group Oyj 3.9.2018
Slide 31: Free Cash Flow
FREE CASH FLOW EUR million • M&A and integration related non- recurring expenses impacted the free cash flow by EUR -1,7 million. • Cash used in investments on a higher level than in corresponding period. 31 Asiakastieto Group Oyj 3.9.2018
Slide 32: Key Indicators
KEY INDICATORS EUR million (unless stated otherwise) Q2 / 2018 Q2 / 2017 FY 2017 • Cash position of EUR 23,0 million. Net debt 147,1 53,6 50,9 Net debt / adjusted EBITDA 3,6x * 2,0x 2,1x • Net debt / adjusted EBITDA at 3,6x *. • Free cash flow containing a EUR -1,7 Gearing, % 47,5 72,8 63,0 million
Slide 33: Long-Term Targets and Guidance 2018
LONG-TERM TARGETS AND GUIDANCE 2018 Financial targets1 Growth Achieve 5 to 10 percent annual average growth in net sales Profitability Maintain profitability level of current services Balance sheet structure Maintain net debt to EBITDA of less than 3,0x while continuing to maintain an efficient capi
Slide 34: Summary Financial Statements Q2 / 2018
Summary FINANCIAL STATEMENTS Q2 / 2018 34 Asiakastieto Group Oyj 3.9.2018
Slide 35: Summary Income Statement
SUMMARY INCOME STATEMENT EUR million Q2 / 2018 Q2 / 2017 FY 2017 Net sales 15,7 14,4 56,2 Other operating income 0,0 0,1 0,2 Materials and services -3,7 -3,1 -12,0 Personnel expenses -3,4 -3,3 -12,6 Other operating expenses -7,0 -2,0 -8,8 Work performed by the entity and capitalised 0,4 0,4 1,3 Depr
Slide 36: Summary Income Statement Pro Forma
SUMMARY INCOME STATEMENT PRO FORMA EUR million Q2 / 2018 Q2 / 2017 FY 2017 Net sales 34,1 31,9 129,6 Other operating income 0,1 0,1 0,4 Materials and services -6,0 -5,4 -21,3 Personnel expenses -10,7 -10,1 -39,1 Other operating expenses -11,0 -8,1 -37,6 Work performed by the entity and capitalised 0
Slide 37: Summary Balance Sheet
SUMMARY BALANCE EUR million 30.6.2018 31.12.2017 SHEET EQUITY AND LIABILITIES Share capital 0,1 0,1 Invested unrestricted equity reserve 352,2 112,4 EUR million 30.6.2018 31.12.2017 Accumulated losses -45,9 -47,4 ASSETS Result for the period 3,1 16,0 Goodwill 346,6 118,4 Total equity 309,5 81,1 Othe
Slide 38: Summary Cash Flow
SUMMARY CASH FLOW EUR million Q2 / 2018 Q2 / 2017 FY 2017 Cash flows from operating activities Result before income tax 0,7 5,5 20,2 Depreciation and amortisation 1,0 0,7 3,1 Finance income and expenses 0,3 0,3 1,1 Profit (-) / loss (+) on disposal of property, plant and equipment 0,0 -0,1 -0,2 Othe
Slide 39: Questions and Answers
QUESTIONS AND ANSWERS Asiakastieto Group Plc HALF YEAR FINANCIAL REPORT 1.1.–30.6.2018 39 Asiakastieto Group Oyj 3.9.2018