Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q3 2022 Earnings Presentation
32 slides from Enento Group Oyj's earnings presentation, Oct 28, 2022
Slide 1: CEO Jeanette Jäger/CFO Elina Stråhlman, October 28, 2022
CEO Jeanette Jäger/CFO Elina Stråhlman October 28, 2022 Enento Group Plc 28.10.2022
Slide 2: Agenda
Agenda Enento Group in brief Q3 / 2022 in brief Strategy update: operational excellence and profitability Opportunities for future growth New services Q3 / 2022 Key ratios Q3 / 2022 Q&A 2 Enento Enento Group Group Plc 28.10.2022 Plc 28.10.2022
Slide 3: Enento Group
ENENTO GROUP 2022 LISTED ON MARKET CAPITALISATION NASDAQ 30.9.2022 Building trust in the everyday. HELSINKI. 504 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 30.9.2022 30.9.2022 the brands Asiakastieto and Emaileri, in Sweden 124,6 45,3 Partners in Europe and in the Nordic re
Slide 4: Q3 / 2022 in brief
Q3 / 2022 IN BRIEF 4 Enento Enento Group Group Plc 28.10.2022 Plc 28.10.2022
Slide 5: Strategy update: operational excellence and profitability
STRATEGY UPDATE: OPERATIONAL EXCELLENCE AND PROFITABILITY 5 Enento Group Plc 28.10.2022
Slide 6: In uncertain times profitability needs to be secured to free up capacity for future growth
In uncertain times profitability needs to be secured to free up capacity for future growth Examples → Co-create with customers state-of-the-art Build for our analytic services based on unique insights and customers’ future data Grow business hand → Provide intelligence based on new data, big data in
Slide 7: Our strategy remains, but with a strengthened focus on execution
Our strategy remains, but with a strengthened focus on execution Profitable Strategic offering goals growth Strengthen our leading position in Adjusted New services the credit information business EBITDA growth Share of net rate exceeding Become the leading provider of sales from new net sales growt
Slide 8: Focus areas will help enforce and follow up on strategy execution
Focus areas will help enforce and follow up on strategy execution in all parts of the group Strategic focus areas Customer One Operational Empowered first Enento excellence people A learning organization with a Maximize customer value For Nordic reach Secure cost-efficient, growth mindset, crosswise
Slide 9: Opportunities for future growth
OPPORTUNITIES FOR FUTURE GROWTH 9 Enento Enento Group Group Plc 28.10.2022 Plc 28.10.2022
Slide 10: Growth formula
NEW SERVICES NORDIC VOLUME OFFERING Growth CROSS- SELLING formula PENE- TRATION MARKET SHARE ACQUISI- PRICING TIONS 10 Enento Enento Group Group Plc 28.10.2022 Plc 28.10.2022
Slide 11: ESG case: LähiTapiola and Asiakastieto collaboration
ESG CASE LähiTapiola Corporate Lending and Asiakastieto have started a collaboration to collect ESG data from LähiTapiola's corporate lending customers Interest in sustainability has grown in recent years and ESG development is one of strategic initiatives for Enento Group. Together with LähiTapiola
Slide 12: Positive Credit Register Finland
Positive Credit Register Finland Value-add from Enento Established Lending Best-in-class New Data Integrated into Differentiated Processes with Analytics Sources Workflows Offering Negative and Positive Data Typical lending Data & analytics Using our operating Our data and analytics Validity of curr
Slide 13: New services as a growth driver
NEW SERVICES AS A GROWTH DRIVER. 13 Enento Enento Group Group Plc 28.10.2022 Plc 28.10.2022
Slide 14: New services
New services 2 25 New services New services launched Q3 / 2022 COMMENTS launched → Share of new services was Q1-Q3 / 2022 4,0 %. → 2 new services launched 7,4 7,6 7,4 during the third quarter. 6,8 6,9 6,3 5,9 4,9 5,1 New services 4,0 • Forvalt Premium service with improved company rating and scoring
Slide 15: Improved company credit rating and scoring launched in Norway
Improved company credit rating and scoring launched in Norway Expansion to New service New datasets risk launched in creating value management September for with real-time services in SMEs monitoring Norway 15 Enento Group Plc 28.10.2022
Slide 16: Key ratios Q3 / 2022
KEY RATIOS Q3 / 2022 16 Enento Group Plc 28.10.2022
Slide 17: Key figures
Key figures Q3 / 2022 YTD 2022 Net sales +7,1% Net sales +5,4% 40,5 MEUR 124,6 MEUR Adjusted EBITDA +14,4% Net debt to Adjusted EBITDA +3,5% adjusted 16,2 MEUR EBITDA Q3 / 2022 2,4x 45,3 MEUR Adjusted EBITDA margin Adjusted EBITDA margin 40,1 36,3 +2,6 pp-% -0,7 pp-% % % 17 Enento Group Plc 28.10.20
Slide 18: Overview of Q3 / 2022
Overview of Q3 / 2022 EUR million COMMENTS (unless stated otherwise) Q3 / 2022 Q3 / 2021 FY 2021 Net Sales 40,5 38,6 163,5 → Net sales grew 4,9 % at reported FX rates and 7,1 % at Growth (year-on-year, comparable fx) +7,1 % +4,0 % +5,9 % comparable FX rates. → Adjusted EBITDA increased by Adjusted E
Slide 19: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES COMMENTS +5,5% +11,7% Q3 / 2021 → Business Insight net sales developed well 19,0 Q3 / 2022 in all business lines. 18,7 17,7 17,0 → Consumer Insight had a strong Q3 following the trend from previous quarters. Consumer credit services high growth
Slide 20: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Net Sales growth was driven by 0,1 continued high demand for consumer 0,3 credit services, supported by growth in 0,3 business information and compliance services 0,3 0,3 0,3 → Material and Services grew following the increase in data acquisition costs 2,7 driven by toplin
Slide 21: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 61,9% 11,0 → Operating cash flow before change in 9,9 10,0 10,0 working capital increased from 9,1 comparison period level. Impact of the change in net working capital was negative compared with the 7,1 corresponding quarter of
Slide 22: Key indicators
Key indicators EUR million COMMENTS (unless stated otherwise) Q3 / 2022 Q3 / 2021 FY 2021 Net debt 143,4 151,0 141,6 → Refinancing of 180 million euro credit facilities completed Net debt / adjusted EBITDA 2,4 2,6 2,4 → Cash position at EUR 11,0 million (committed EUR 30 million facility remains ful
Slide 23: Future outlook and guidance
FUTURE OUTLOOK AND GUIDANCE 23 Enento Group Plc 28.10.2022
Slide 24: Future outlook and guidance 2022
Future outlook and guidance 2022 Released 28 April 2022 FUTURE OUTLOOK The general macroeconomic risks are increasing due to the war in Ukraine as well as continued uncertainty from the pandemic. These developments may also have a negative impact on the demand of our services. However, the increased
Slide 25: Thank you! Time for Q&A
THANK YOU! Time for Q&A 25 Enento Group Plc 28.10.2022
Slide 26: Financials Q3 / 2022 summary
FINANCIALS Q3 / 2022 SUMMARY 26 Enento Enento Group Group Plc 21.7.2021 Plc 28.10.2022
Slide 27: Q3 / 2022 Income statement
Q3 / 2022 Income statement EUR million Q3 / 2022 Q3 / 2021 FY 2021 Net sales 40,5 38,6 163,5 Other operating income 0,1 0,2 0,7 Materials and services -6,8 -6,6 -27,6 Personnel expenses -8,9 -8,6 -39,7 Work performed by the entity and capitalised 0,9 0,7 3,9 Other operating expenses -9,8 -9,6 -42,8
Slide 28: Q3 / 2022 Cash flow
Q3 / 2022 Cash flow EUR million Q3 / 2022 Q3 / 2021 FY 2021 Cash flows from operating activities Cash flows before change in working capital 16,2 14,6 57,9 Change in working capital -1,1 0,3 -3,3 Net interests and other financing items -1,4 0,0 -2,1 Income taxes paid -2,3 -1,6 -8,5 Net cash from ope
Slide 29: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million 43,1 43,4 → Q3/2022 reported Net sales 42,1 40,2 40,7 40,5 growth continued in Consumer 39,7 38,6 Insight and Business Insight while 36,7 decline in DP due to Real Estate Sweden Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 20
Slide 30: Net sales growth
Net sales growth Net sales growth at reported FX, year-on-year, % COMMENTS Net sales growth at comparable FX, year-on-year, % → FX comparable growth rate 14,7 +7,1 % in Q3/2022. → In Q3/2022 same number of 11,4 banking days both in Finland and Sweden. 7,2 7,1 6,0 5,4 5,2 4,8 4,9 4,0 4,4 3,1 2,6 2,4
Slide 31: Long term financial targets
Long term financial targets Growth 5-10 percent annual average net sales growth. Profitability Adjusted EBITDA growth rate exceeding net sales growth rate. Balance sheet structure Net debt to Adjusted EBITDA below 3x. 31 Enento Enento Group Group Plc 28.10.2022 Plc 28.10.2022
Slide 32: Further information
Further information Enento Group Plc Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@enento.com 32 Enento Group Plc 28.10.2022