Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q1 2024 Earnings Presentation
27 slides from Enento Group Oyj's earnings presentation, Apr 23, 2024
Slide 1: Enento Group Plc Interim Report 1.1.2024-31.3.2024
CEO Jeanette Jäger and CFO Elina Stråhlman 23 April 2024 Enento Group Plc Interim Report 1.1.2024-31.3.2024 Enento Group Plc – 23 April 2024
Slide 2: Key figures 2024 YTD
Key figures 2024 YTD Building trust in the everyday. Share of net Sales by NET SALES Business Area 2024 YTD FROM NEW SERVICES NET SALES 31.3.2024 14,0% 31.3.2024 37,3 MEUR BUSINESS 40 % INSIGHT ADJUSTED EBITDA ADJUSTED EBITDA MARGIN 31.3.2024 60 % CONSUMER 12,4 MEUR 33,3 % INSIGHT FREE CASH FLOW MAR
Slide 3: Key figures Q1 2024
Key figures Q1 2024 NET SALES -5,2%* ADJUSTED EBITDA -15,6% ADJUSTED EBITDA MARGIN 37,3 12,4 33,3 -6,3%** -15,2%** -3,5 pp-%** MEUR MEUR % FREE CASH FLOW -31,9% NET DEBT TO ADJUSTED EBITDA SHARE OF NEW SERVICES 6,9 2,4 14,0 3,6 pp-% MEUR X (2,1x) % * Organic growth (exlc. Swedish housing transaction
Slide 4: Highlights Q1 2024
HIGHLIGHTS Q1 2024 NET SALES AND PROFITABILITY • Net sales declined by 5,2%* due to weak consumer credit information demand in Sweden and lowered demand in Finland • Successful efficiency measures and cost control leading to 33,3%** EBITDA margin Efficiency measures and EFFICIENCY PROGRAM new servic
Slide 5: Efficiency Program: Target extended to EUR 10M by the end of 2024
Efficiency Program: Target extended to EUR 10M by the end of 2024, over 70% already achieved FTE EFFICIENCY Further FTE efficiencies realized through voluntary redundancies Application maintenance and development transition to TCS continues in 2024 with further efficiencies expected during the y
Slide 6: Business Area Update
Looking Business Ahead Area Update 6 Enento Group Plc – 23 April 2024
Slide 7: Business Insight
Business Insight The business area maintained its positive Highlights Q1 2024 growth trajectory in Finland, Norway, and Denmark. In Sweden, the macroeconomic • New services driving strong net sales growth in the real estate information services in Finland and Sweden headwinds have affected the deman
Slide 8: Combining real estate and ESG data to support customers
Combining real estate and ESG data to support customers in property valuation, credit and portfolio management processes Possible climate Property Climate Risk damages for buildings Service in Sweden WIND RAIN FLOODING COMBINING PROPERTY & FIRE ESG DATA INTO DROUGHT CLIMATE RISK DATA EROSION Risk an
Slide 9: Consumer Insight
Consumer Insight Highlights Q1 2024 Consumer credit information demand • Finnish positive credit register started on 1 April 2024 continues to drop in Sweden and Finland → Our services in Finland have been integrated with amid macroeconomic challenges the new governmental credit register data → Many
Slide 10: Integration use cases with the new positive credit register in Finland
Integration use cases with the new positive credit register in Finland: Enhanced value through Enento services ENENTO SERVICES Service flow available 1st April 2024 via API & GUI Service flow available 1st April 2024 CREDIT & Future development initiative POPULATION DATA Alternative flow CCIS – CONS
Slide 11: Looking Ahead
Looking Ahead 11 Enento Group Plc – 23 April 2024
Slide 12: Clear Priorities for 2024
Clear Priorities for 2024 Growth from new services and market penetration Advancing in launching new services in several strategic growth areas and enhancing our existing core offering. Expansion to selected new customer verticals and focus on market penetration. Continued cost efficiency Achieved t
Slide 13: CFO Highlights
CFO Highlights 13 Enento Group Plc – 23 April 2024
Slide 14: Key figures Q1 / 2024
Key figures Q1 / 2024 Q1 / 2024 -6,3%* Net sales -5,2%** Adjusted EBITDA -15,2%* Adjusted EBITDA % Adjusted EBIT -21,4%* Net debt to adjusted EBITDA -3,5 pp-%* 37,3 12,4 33,3 9,4 2,4 0,3x MEUR MEUR % MEUR X Q1 / 2023 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBIT
Slide 15: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES +1,8% Q1 / 2023 22,2 Q1 / 2024 COMMENTS 21,8 * -14,0% → Business Insight development remained 17,5 stable. Strong growth in real estate services continued, thanks to new 15,1 services introduced. Also demand for premium services for SMEs support
Slide 16: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA margin 33,3%, margin declined with -3,5%p y-on-y at comparable rates and -3,5%p y-on-y at reported rates. → Adjusted EBITDA decreased year-on-year 2,5 due to challenging market conditions resulting in lower revenue especially in 14,7 consumer credit informa
Slide 17: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion in Q1 2024 was 66,3% (83,5%). Adjusted cash conversion, 10,5 10,0 10,1 comparing the adjusted free cash flow to Adjusted EBITDA was 64,7% (76,7%). 8,9 → Free cash flow remains still solid but decreased compared with the 7,1 7,1 co
Slide 18: Key indicators
Key indicators EUR million (unless stated otherwise) Q1 / 2024 Q1 / 2023 FY 2023 COMMENTS Net debt 134,2 128,7 139,7 → Cash position at EUR 18,1 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,4 2,1 2,4 remains fully unutilized). → Net debt / adjusted EBITDA at 2,4x. Gearing,
Slide 19: Thank You. Time for Q&A
Thank You. Time for Q&A 19 Enento Group Plc – 23 April 2024
Slide 20: Financials Q1 / 2024 Summary
Financials Q1 / 2024 Summary 20 Enento Group Plc – 23 April 2024
Slide 21: Overview
Overview EUR million Q1 / 2024 Q1 / 2023 FY 2023 (unless stated otherwise) Net Sales 37,3 40,0 155,9 Change (year-on-year, comparable fx) -6,3% 2,3% -2,6% Adjusted EBITDA 12,4 14,7 57,1 Change (year-on-year, comparable fx) -15,2% 12,3% -2,9% Adjusted EBITDA margin 33,3% 36,8% 36,6% Adjusted EBIT 9,4
Slide 22: Income statement
Income statement EUR million Q1 / 2024 Q1 / 2023 FY 2023 Net sales 37,3 40,0 155,9 Other operating income 0,0 0,1 0,4 Materials and services -6,8 -6,6 -26,6 Personnel expenses -11,6 -12,0 -40,1 Work performed by the entity and capitalised 1,0 1,1 3,2 Other operating expenses -9,6 -10,3 -41,7 Depreci
Slide 23: Cash flow
Cash flow EUR million Q1 / 2024 Q1 / 2023 FY 2023 Cash flows from operating activities Cash flows before change in working capital 11,5 13,7 51,2 Change in working capital 0,5 2,8 1,0 Net interests and other financing items -3,5 -2,5 -6,2 Income taxes paid -2,1 -1,7 -9,1 Net cash from operating acti
Slide 24: Net sales by quarter
Net sales by quarter 43,4 42,9 40,7 40,5 40,0 39,7 38,9 37,3 37,3 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net sales, EUR million 24 Enento Group Plc – 23 April 2024 *Growth exlc. Tambur, at comparable foreign exchange rates
Slide 25: Net sales growth
Net sales growth 7,1 4,4 4,8 4,9 4,1 2,6 3,1 2,3 -0,4 -1,7 -2,2 -3,5 -6,5 -6,8 -6,3 -7,8 -8,6 -9,3 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net sales growth at reported FX, year-on-year, % Net sales growth at comparable FX, year-on-year, % 25 Enento Group Plc – 23 Apri
Slide 26: Outlook 2024
Outlook 2024 The operating environment for Enento remains challenging and volatile due to the uncertainty in the general economic situation in our operating countries. This instability is expected to affect Enento’s financial performance, notably within the Swedish consumer credit information sector
Slide 27: 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 27