Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q2 2024 Earnings Presentation
44 slides from Enento Group Oyj's earnings presentation, Jul 1, 2024
Slide 1: Enento Group Plc Investor Presentation Q2 2024
Enento Group Plc Investor Presentation Q2 2024 Enento Group Plc – Investor Presentation Q2 2024
Slide 2: Disclaimer
Disclaimer This presentation includes forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “will,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or any similar expressions identify certain of these forward-look
Slide 3: Our Purpose: We build trust in the everyday
Our Purpose: We build trust in the everyday. We collect and transform data to intelligence and knowledge used in interactions between people, businesses and society.
Slide 4: Enento as an investment
Enento as an investment Nordic presence with strong market position, trusted well-known brands and resilient, scalable business 1 model 2 Attractive markets with strong dynamics 3 Business critical services using proprietary data 4 Diversified client base across all products and services based on st
Slide 5: Enento Group: building trust in the everyday
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 31 December 2023 Building trust in the everyday. HELSINKI. 464 MEUR In Finland we operate under NET SALES 2023 ADJUSTED EBITDA 2023 the brands Asiakastieto and Emaileri, in Sweden 155,9 57,1 Partners in Europe and under UC, Allabolag MEUR MEUR
Slide 6: Executive Management Team
Executive Management Team Jeanette Jäger Elina Stråhlman Siri Hane Gabriella Göransson Mikko Karemo CEO CFO Director Director Chief Commercial Business Insight Consumer Insight Officer & Deputy CEO Business Area Business Area Karl-Johan Werner Arto Paukku Sari Ek-Petroff Daniel Ejderberg Chief Opera
Slide 7: Enento has a strong track record of organic growth and M&A execution
Enento has a strong track record of organic growth and M&A execution 1976 2019 1905 The credit 2011 2017 Acquired Proff, an Suomen information Acquired Allabolag Acquired Emaileri, a information services Luotonantajayhdistys company UC in in Sweden 2015 Finnish provider of provider operating is foun
Slide 8: We build scale through value-adding, intelligent services built on data
We build scale through value-adding, intelligent services built on data collected from various sources …based on a variety Unique datasets and services… of data sources Company Advanced analytics Banks data ü Provides both cyclical and countercyclical products and services Decision scoring Monitorin
Slide 9: Strategic customer relationships, strong local brands, and integrated services set high barriers to entry
Strategic customer relationships, strong local brands, and integrated services set high barriers to entry A reputation built over decades Embedded into critical processes Long-term customer relationships and Our data and value-added services are trust in our local brands with long-standing integrate
Slide 10: Two business areas serving more than 76.000 companies and 500.000 consumers
Two business areas serving more than 76.000 companies and 500.000 consumers in the Nordics 1 Business Insight1 2 Consumer Insight Share of net sales 43% (YTD 2023) 57% Enterprise Solutions, Premium Solutions, Freemium Solutions Consumer Credit Information, Consumer Marketing Information, Real-estate
Slide 11: Net sales and profitability development have been stable during turbulent years
Net sales and profitability development have been stable during the turbulent years, and adjusted EBITDA margin has improved EUR million Adjusted EBITDA % 180 168 40 164 160 151 156 39 146 134 38 140 36,6% 36,6% 37 36,2% 120 35,7% 36 35,3% 100 35 80 34 60 33 31,3% 32 40 59 61 57 31 52 54 20 42 30 0
Slide 12: Innovation at Enento: New and enhanced services driving growth
Innovation at Enento: New and enhanced services driving growth and increasing customer loyalty Investing in future growth Share of new services* from group net sales ü Growth in selected strategic growth areas, 14,0% 13,7% such as the ESG and compliance, by driving 12,8% innovation and developing ne
Slide 13: AI has two main areas of potential application in Enento's business
AI has two main areas of potential application in Enento’s business Applications of AI User interfaces INNOVATIVE SERVICES Service content Data management INTERNAL EFFICIENCY Tooling 13 Enento Enento Group Plc Group – Investor Plc – Investor Presentation Presentation Q2 2024Q2 2024 Building trust in
Slide 14: Sustainability at Enento Group
SUSTAINABILITY AT ENENTO GROUP The sustainability focus areas of Enento support Sustainable Development Goals by the United Nations We help our Enento Group’s Enento Group as We contribute to a customers with environmental a sustainable more sustainable sustainable impact. workplace. economy in the
Slide 15: Group Strategy
Group Strategy 15
Slide 16: Growing from strong Nordic foothold in the 600 MEUR addressable market
Growing from Enento’s strong Nordic foothold to gain market share in the 600 MEUR addressable market Sweden and Finland are the largest Nordic ü markets, driven by data availability and overall price point Credit, Sales & Marketing and Compliance Nordic market size €600mm Enento is a leading credit
Slide 17: Enento Group strategy is focused on execution to deliver consistent growth and EBITDA margin expansion
Enento Group strategy is focused on execution to deliver consistent growth and EBITDA margin expansion Strategic goals 2024 -2026 targets Retain and strengthen our leading position in 5-10% average annual net sales growth the credit information business Around 40% Adjusted EBITDA Become the leading
Slide 18: Attractive growth dynamics in the data market driven by industry trends
Attractive growth dynamics in the data market driven by the compelling industry trends Market drivers during the strategy period EMEA region data-as-a-service growth >8% p.a. Data and analytics as a service Tightening Global KYC and AML IT spend growth >20% p.a. Increased regulation focus on increas
Slide 19: Road to 5-10% average annual growth in 2026
Road to 5-10% average annual growth in 2026 consists of underlying market growth, price increases, market penetration and new services Indicative 5-10% Market growth Market penetration, current offering New Services Organic growth M&A Total growth cross-sell, up-sell and pricing GDP Growth Increasin
Slide 20: Solid growth expected in the core credit business with growth in ESG, compliance and master data
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 21: Road to margin expansion through scalable growth and cost efficiencies
Road to margin expansion through scalable growth, remodelled sales and distribution, Nordic consolidation of capabilities and cost efficiencies • New services in strategic growth areas and continuous enhancing of existing offerings Investing in scalable • Expansion to selected new and underdeveloped
Slide 22: Q2 2024
Q2 2024 Enento Group Plc – Investor Presentation Q2 2024
Slide 23: Highlights Q2 2024
HIGHLIGHTS Q2 2024 NET SALES AND PROFITABILITY • Operations in Finland, Norway and Denmark continued positive development • Net sales declined by 2,9%* due to weak consumer credit information demand in Sweden • Efficiency measures and cost control in focus leading to 36,7%* Solid performance in Adju
Slide 24: Key figures Q2 / 2024
Key figures Q2 / 2024 Q2 / 2024 Net sales -2,9%* Adjusted EBITDA -2,5%* Adjusted EBITDA % Adjusted EBIT -7,3%* Net debt to adjusted EBITDA 0,2 pp-%* 38,5 14,1 36,7 10,9 2,6 0,2x MEUR MEUR % MEUR X Q2 / 2023 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 39,7 ME
Slide 25: Over 90% of targeted 10-MEUR efficiency benefits already achieved
Over 90% of targeted 10-meur efficiency benefits already achieved FTE EFFICIENCY Ò Further FTE efficiencies realized through voluntary redundancies Ò Application maintenance and development transition in Sweden and Finland continues and further efficiencies realized during the first half of the year
Slide 26: IT infrastructure consolidation is the key initiative in enhancing security and efficiency
IT infrastructure consolidation is the key initiative in enhancing security and efficiency STRATEGIC ONE NORDIC IT PROJECT OUTCOMES OBJECTIVES ENVIRONMENT TIMELINE Positive impact on Nordic consolidation profitability and of capabilities Enentos’s risk profile, 2025: generating shareholder Full bene
Slide 27: Digitalizing the customer experience in the Nordics with generative AI
Digitalizing the customer experience in the Nordics with generative AI Applications of AI Generative AI bots deployed on all B2B and B2C websites in four countries, initially for customer service, next enhancing sales and marketing CX & INNOVATIVE SERVICES Service Content User Interfaces Data Manage
Slide 28: Business Insight
Business Insight Positive net sales development in Finland, Highlights Q2 2024 Norway, and Denmark, while Sweden faced challenges due to the macroeconomic • Net sales growth continued in compliance and enterprise services in Finland, and in real estate information services environment. in both Finla
Slide 29: Consumer Insight
Consumer Insight Successful customer integrations with the Highlights Q2 2024 Finnish governmental credit register supported performance, while demand for • Launching the new open banking (PSD2) service in consumer credit information remains low, Sweden, with real-time data creating great potential
Slide 30: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA margin was 36,7%, increase with 0,2%p y-on-y at comparable rates and 0,1%p y-on-y at 0,0 0,2 reported rates. → Adjusted EBITDA decreased year-on-year 1,2 due to challenging market conditions 0,4 resulting in lower revenue especially in consumer credit infor
Slide 31: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion in Q2 2024 was 46,2% 10,5 (42,7%). Adjusted cash conversion, 10,0 10,1 comparing the adjusted free cash flow to Adjusted EBITDA was 51,1% (45,9%). 8,9 → Free cash flow remains still solid and increased slightly compared with the 7
Slide 32: Key indicators
Key indicators EUR million (unless stated otherwise) Q2 / 2024 Q2 / 2023 YTD / 2024 YTD / 2023 FY 2023 COMMENTS Net debt 143,3 147,7 143,3 147,7 139,7 → Cash position at EUR 11,1 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,6 2,4 2,6 2,4 2,4 remains fully unutilized). → Ne
Slide 33: Enento as an investment
Enento as an investment 33
Slide 34: Strong free cash flow enabling shareholder returns through dividends and share buybacks
Strong free cash flow enabling shareholder returns through dividends and share buybacks Free cash flow Dividend payout Share buyback Dividend per share, EUR EUR million 1,00 1,00 1,00 * 35 34 0,95 0,95 0,95 32 33 32 30 30 25 24 24 24 23 23 23 20 16 15 12 10 5 5 2 0 2018 2019 2020 2021 2022 2023 2024
Slide 35: Updated Outlook and Guidance 2024
Updated Outlook and Guidance 2024 The Company’s operating environment remains challenging due to uncertainty in the general economic situation, which is expected to continue to affect Enento’s financial performance. Enento’s Swedish consumer credit information sector continues to face a challenging
Slide 36: Enento as an investment
Enento as an investment Nordic presence with strong market position, trusted well-known brands and resilient, scalable business 1 model 2 Attractive markets with strong dynamics 3 Business critical services using proprietary data 4 Diversified client base across all products and services based on st
Slide 37: Appendix
Appendix Enento Group Plc – Investor Presentation Q2 2024
Slide 38: We operate in a scalable and digital business with intelligence at the core
We operate in a scalable and digital business with intelligence at the core 38 Enento Group Plc – Investor Presentation Q2 2024
Slide 39: Key figures full year 2023
Key figures full year 2023 Net sales -1,4%* Adjusted EBITDA -6,7%* Adjusted EBITDA margin 155,9 57,1 36,6 -2,6%** -2,9%** -0,1 pp-%** MEUR MEUR % Free cash flow -5,8% Net debt to adjusted EBITDA Share of new services 32,0 2,4 9,5 4,9 pp-% MEUR X (2,2x) % Dividend of EUR 1,00*** per share proposed –
Slide 40: Enento Group organization
Enento Group Jeanette Jäger Not in Executive CEO Management Team Legal Panu Pökkylä Business Insight Data & MarCom & Human IT & Siri Hane Sales Finance Analytics Customer Resources Technology Operations Mikko Elina Consumer Insight Karl-Johan Sari Daniel Karemo Stråhlman Gabriella Göransson Werner A
Slide 41: Sustainability at Enento Group
SUSTAINABILITY AT ENENTO GROUP The sustainability focus areas of Enento support Sustainable Development Goals by the United Nations We help our Enento Group’s Enento Group as We contribute to a customers with environmental a sustainable more sustainable sustainable impact. workplace. economy in the
Slide 42: Financial KPIs
Financial KPIs Net sales Adjusted EBITDA Adjusted EBITDA margin % 163 168 156 59 61 57 35,3 35,7 36,2 36,6 36,6 146 151 52 54 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2 019 2 020 2 021 2 022 2 023 Free Cash Flow Adjusted EBIT margin % Dividend per share 32,1 32,6 33,9 32,0 29,2 29,7 30,0 29
Slide 43: Solid revenue and profitability development track
Solid revenue and profitability development track -6,9% 2023 -1,4% at +2,5% 2023 -2,9% at comparable FX rates comparable FX rates +3,5% +8,0% +9,5% -6,7% +8,7% 3,6% 4,9% 163 168 +22,3% 61,2 +4,1% 59,1 156 57,1 151 54,0 146 -2,3% 51,5 134 129 43,1 42,1 36 6,0 +14,2% +5,9% +21,0% +12,6% 24,8 56 20,5 2
Slide 44: Enento Group Plc
Enento Group Plc Arto Paukku Investor Relations Officer +358 50 469 5380 arto.paukku@enento.com 44