Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q3 2023 Earnings Presentation
28 slides from Enento Group Oyj's earnings presentation, Oct 27, 2023
Slide 1: Enento Group Q3 2023 results
CEO Jeanette Jäger, CFO Elina Stråhlman 27 October 2023 Enento Group Plc - 27 October 2023
Slide 2: Enento Group at a glance
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 30 September 2023 Building trust in the everyday. HELSINKI. 510 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 30 September 2023 30 September 2023 the brands Asiakastieto and Emaileri, in Sweden 117,0 43,7 Partners in Eur
Slide 3: Executive Management Team as of October 1st
Executive Management Team as of October 1st 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 Arto Paukku Sari Ek-Petroff Daniel Ej
Slide 4: Weak Swedish consumer credit demand impacts net sales, strong Business Insight
Weak Swedish consumer credit demand impacts net sales, strong performance by Business Insight in Finland and Norway Quarter in brief Key figures -2,2%** Net Sales & Profitability Customer Experience Net sales -0,9%* Adjusted EBITDA -5,5%** Net sales declined 0,9%* as consumer credit Q3 NPS of 47 fro
Slide 5: Efficiency Program proceeding according to plans
Efficiency Program proceeding according to plans: EUR 5,3M run-rate impact achieved by end of Q3, equaling to 65% of FY2024 targeted benefits of EUR 8M • Impact from reduced number of FTEs visible from Q2 2023 FTE Efficiency onwards • Application service transition in Sweden in handover phase • IT i
Slide 6: Business Area Update Q3
BUSINESS AREA UPDATE Q3 6 Enento Group Plc - 27 October 2023
Slide 7: Business Insight
Business Insight Business Overview Net Sales +4,8% Demand continues high in financial risk management services in Enterprise Solutions, supported by high growth by Compliance Services in Finland and solid performance by EUR 20,9 million Premium Solutions in Finland and Norway Organic, at comparable
Slide 8: 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 9: Targeting a leading position in the Nordic compliance services market
Targeting a leading position in the Nordic compliance services market Nordic offering roadmap Typical use cases Current offering Sanctions extended to Due Diligence All companies with a need to comply with sanctions NO market regulations (exporting/importing entities) Anti Money Laundering Political
Slide 10: KYC Monitoring benefiting our customers
KYC Monitoring benefiting our customers by automating processes around anti-money laundering, fraud, and terrorist financing Follows the UN, EU, OFAC and UK lists daily basis Screens the background persons and group structure of selected companies Flags sanctions hits and hit removals Changes in per
Slide 11: Consumer Insight
Consumer Insight Business Overview Net Sales -7,2% Consumer credit information services in Sweden declining as the weak real-estate market continues to impact mortgage loan volumes; some lenders leaving the EUR 16,5 million unsecured consumer loans market and broker channel continues to decline. Mor
Slide 12: Nordic consolidation of decisioning services: Decision Hub launched in Finland
Nordic consolidation of decisioning services proceeding: Decision Hub launched in Finland – enabling future growth and decommissioning legacy solutions 1 Decision Hub Bespoke: Fully customizable 2 Decision Hub Medium: Light configurations 3 Decision Hub Standard Services 12 Enento Group Plc - 27 Oct
Slide 13: Focus ahead
Focus ahead Strategy execution, transformation and efficiency activities expected to secure reaching our financial targets Growth avenues: Advancing in the development of roadmaps across several strategic growth themes (ESG, compliance, master data, PSD2) with stream governance models in place Optim
Slide 14: CFO Highlights
CFO HIGHLIGHTS 14 Enento Group Plc - 27 October 2023
Slide 15: Key figures
Key figures Q3 / 2023 -2,2%* Net sales -0,9%** Adjusted EBITDA -5,5%* Adjusted EBITDA % Adjusted EBIT -8,6%* Net debt to adjusted EBITDA -1,4 pp-%* 37,3 14,5 38,9 11,8 2,4 0,0x MEUR MEUR % MEUR X Q3 / 2022 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 40,5 MEU
Slide 16: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES +4,8% Q3 / 2022 20,9 Q3 / 2023 COMMENTS 19,9 -7,2% 17,8 → Business Insight growth excluding 16,5 Tambur impact* was +4,8%. Net sales developed well in Enterprise, Premium and Compliance. → In Consumer Insight, low consumer lending volumes impact
Slide 17: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA margin 38,9%, margin declined with -1,4%p y-on-y at 0,8 comparable rates and -1,2%p y-on-y at 0,1 reported rates. 0,2 0,4 → Adjusted EBITDA decreased year-on-year 0,0 0,1 due to challenging market conditions resulting in lower revenue especially in 16,2 cre
Slide 18: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Free cash flow remains strong but decreased compared with the 10,5 corresponding quarter mainly due to 10,0 10,0 10,1 9,9 decline in EBITDA and change in working capital that was partly offset by lower tax payments and lower development investmen
Slide 19: Key indicators
Key indicators EUR million (unless stated otherwise) Q3 / 2023 Q3 / 2022 FY 2022 COMMENTS Net debt 145,6 143,4 131,8 → Cash position at EUR 8,7 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,4 2,4 2,2 remains fully unutilized). → Net debt / adjusted EBITDA at 2,4x. → Gross i
Slide 20: Thank you
THANK YOU Time for Q&A 20 Enento Group Plc - 27 October 2023
Slide 21: Financials Q3 / 2023 Summary
FINANCIALS Q3 / 2023 SUMMARY 21 Enento Group Plc - 27 October 2023
Slide 22: Overview
Overview EUR million COMMENTS (unless stated otherwise) Q3 / 2023 Q3 / 2022 FY 2022 Net Sales 37,3 40,5 167,5 → Net sales decreased by 7,8 % at Change (year-on-year, -2,2% +7,1% +5,1% reported FX rates and by 2,2 % comparable fx) at comparable FX rates. → Adjusted EBITDA decreased by Adjusted EBITDA
Slide 23: Income statement
Income statement EUR million Q3 / 2023 Q3 / 2022 FY 2022 Net sales 37,3 40,5 167,5 Other operating income 0,2 0,1 0,4 Materials and services -6,5 -6,8 -27,7 Personnel expenses -8,0 -8,9 -40,8 Work performed by the entity and capitalised 0,4 0,9 3,6 Other operating expenses -9,3 -9,8 -47,5 Depreciati
Slide 24: Cash flow
Cash flow EUR million Q3 / 2023 Q3 / 2022 FY 2022 Cash flows from operating activities Cash flows before change in working capital 13,2 16,2 60,6 Change in working capital -3,6 -1,1 -4,0 Net interests and other financing items -3,5 -1,4 -2,3 Income taxes paid -1,5 -2,3 -9,5 Net cash from operating a
Slide 25: Net sales by quarter
Net sales by quarter Net sales, EUR million 43,1 43,4 42,9 40,7 40,5 40,0 39,7 38,6 37,3 COMMENTS → Q3/2023 reported Net sales declined in Business Insight and Consumer Insight. Business Insight growth excluding Tambur impact* was +4,8%. Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 202
Slide 26: Net sales growth
Net sales growth Net sales growth at reported FX, year-on-year, % Net sales growth at comparable FX, year-on-year, % 7,2 7,1 5,2 6,0 4,9 COMMENTS 4,4 4,8 4,0 4,1 3,1 → FX comparable change -2,2 % 2,6 2,3 in Q3/2023. → In Q3/2023 -1 business day both in Finland and Sweden. -0,4 -1,7 -2,2 -3,5 -7,8 -8
Slide 27: Future outlook and guidance 2023
Future outlook and guidance 2023 (updated on 9 October 2023) 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 consumer credit information services, direct-to-con
Slide 28: 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 28