Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q4 2020 Earnings Presentation
41 slides from Enento Group Oyj's earnings presentation, Feb 12, 2021
Slide 1: CEO Jukka Ruuska and CFO Elina Stråhlman
CEO Jukka Ruuska and CFO Elina Stråhlman 12 February 2021 1 Enento Group Plc 12.2.2021
Slide 2: Content
Content Enento Group in brief Enento Group’s offering Business areas and functional units Nordic integration progress and business development Key ratios Q4 / 2020 Highlights from the Group strategy 2020 – 2023 Guidance and long-term financial targets 2 Enento Group Plc 12.2.2021
Slide 3: Enento Group
Enento Group NET SALES Q4 / 2020 We operate in Finland under the brands 40,2 MEUR Asiakastieto and Emaileri, in Sweden MARKET CAPITALISATION under the brands UC, Allabolag and 31.12.2020 Proff. In Denmark and Norway we run our business under the brand Proff. 807 MEUR LISTED ON Partners in Nordic NAS
Slide 4: We build trust in the everyday
We build trust in the everyday. 4 Enento Enento Group Group Plc Plc 12.2.2021 12.2.2021 Building trust in the everyday.
Slide 5: New opportunities for creating value
New business areas and New technology. models: Rise of fintech, Changes in legislation Digitalization. sharing economy and regulation. and ecosystems. Sustainability. New opportunities for creating value. Need for trust, Agility. Explosive privacy and Innovation. growth of data. control of private d
Slide 6: What do we offer
WHAT DO WE OFFER Enento Group Plc 12.2.2021 Building trust in the everyday.
Slide 7: Scalable and digital business with intelligence at the core
We operate in a scalable and digital business with intelligence at the core Public registers Outsourcing services Other Companies processed services Data gathering Intelligence Services Internet International services Customers Basic data Database Service expertise development Database 7 Enento Grou
Slide 8: Enento's competitive advantages
Enento’s competitive advantages Data sourcing Database Production Service Distribution • Known and reliable • Database built on • High service development and sales brand granularity availability and • Excellence in combining • Services integrated • Advanced data • Great quality data. quality differ
Slide 9: Customer needs as growth drivers
Customer needs as growth drivers Improving Digitalization quality of of data decisions. intensive processes. New data Analytics Decisioning Compliance Better data Housing Machine Learning Algorithms Procurement etc. 9 Enento Group Plc 12.2.2021 Building trust in the everyday.
Slide 10: Offering divided in four business areas
Enento’s offering is currently divided in four business areas RISK SME & DIGITAL CUSTOMER DATA DECISIONS CONSUMERS PROCESSES MANAGEMENT 61,8% of net sales 25,6% of net sales 7,2% of net sales 5,3% of net sales Q1-Q4 2020 Q1-Q4 2020 Q1-Q4 2020 Q1-Q4 2020 10 Enento Enento Group Group Plc Plc 12.2.2021
Slide 11: Business areas and functional units April 2021
Enento’s business areas and functional units 1 April 2021 BUSINESS INSIGHT SALES AND MARKETING IT & DATA & HUMAN CONSUMER INSIGHT CUSTOMER AND FINANCE TECHNO- ANALYTICS RESOURCES OPERATIONS COMMS LOGY DIGITAL PROCESSES 11 Enento Enento Group Group Plc Plc 12.2.2021 12.2.2021
Slide 12: Key figures Q4 / 2020 and 2020
Key figures Q4 / 2020 and 2020 Net sales Net sales 40,2 MEUR 151,3 MEUR % Adjusted EBITDA Net sales Adjusted EBITDA 14,4 54,0 61,8 2020 5,3 % % MEUR MEUR Risk Customer Decisions 25,6 7,2 Data % % Management Adjusted EBITDA margin Adjusted EBITDA margin 35,7 35,7 SME and Digital Consumers Processes %
Slide 13: Nordic integration progress and business development as growth drivers
NORDIC INTEGRATION PROGRESS AND BUSINESS DEVELOPMENT AS GROWTH DRIVERS Enento Group Plc 12.2.2021
Slide 14: Integration proceeding according to the plan
Integration proceeding according to the plan At the end of 2020 we have realized over 80 % of the synergy benefits of EUR 17,8 million from the combination of Asiakastieto, UC and Proff. The integration has proceeded according to plan and we are starting the final year of the communicated integratio
Slide 15: Growth formula
NEW SERVICES NORDIC VOLUME OFFERING Growth CROSS- formula PENE- TRATION SELLING MARKET SHARE ACQUISI- PRICING TIONS 15 Enento Enento Group Group Plc Plc 12.2.2021 12.2.2021
Slide 16: Economic activity and amount of transactions support growth
Economic activity and the amount of transactions support growth Net Sales Volume Combined growth from volume and new services New services GDP 0% 16 Enento Enento Group Group Plc Plc 12.2.2021 12.2.2021
Slide 17: New services
New services COMMENTS New services, % of net sales 9 Share of new services was 54 → 6,8 %. 7,8 New services launched → Nine new services launched New services Q4 / 2020 6,8 during the second quarter. launched 6,3 Q1-Q4 / 2020 → As planned, the share of 4,9 net sales from new services 4,4 4,4 4,4 inc
Slide 18: Chosen strategic initiatives in service development
Chosen strategic initiatives in service development Nordic New business sustainability Digitalization information Annualof General Meeting housing- service suite opportunities for with a comprehensive in related Helsinki range of services that are customers needed by customers for services Advanced
Slide 19: Key ratios Q4 / 2020
KEY RATIOS Q4 / 2020 Enento Group Plc 12.2.2021
Slide 20: Overview of Q4 / 2020
Overview of Q4 / 2020 EUR million COMMENTS (unless stated otherwise) Q4 / 2020 Q4 / 2019 FY 2020 FY 2019 → Net sales grew +2,6 % at Net Sales 40,2 39,2 151,3 146,0 reported FX rates and +0,9 % at comparable FX rates. Growth (year-on-year) 2,6 % 9,1 % 3,7 % 48,7 % → Adjusted EBITDA increased by +5,5
Slide 21: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million → Q3/2019 onwards with Proff 39,2 40,2 companies’ results 36,7 37,6 36,7 36,7 consolidated to Enento 35,9 35,6 34,5 Group. Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 21 Enento Group Plc 12.2.2021
Slide 22: Net sales growth
Net sales growth REPORTED AND PRO FORMA COMMENTS → Q3/2019 onwards with Net sales growth, year-on-year, reported, % Net sales growth, year-on-year, pro forma, % Proff companies’ results consolidated to Enento 146,4 Group. 16,8 128,8 126,1 9,1 9,0 5,2 3,9 4,2 3,3 2,6 16,8 9,1 9,0 3,3 0,1 2,6 0,1 Q4 Q
Slide 23: Net sales growth
Net sales growth PRO FORMA COMMENTS Net sales growth at reported FX, year-on-year, % → FX comparable growth rate Net sales growth at comparable FX, year-on-year, % +0,9 %. 18,3 16,8 → Proff companies consolidated to Group from the beginning of Q3/2019. 11,0 10,3 → Two banking days more in 9,1 9,0 Fi
Slide 24: Revenue by business area
Revenue by business area AT COMPARABLE FX RATES COMMENTS → Risk Decisions consumer risk management -1,9 % solutions market demand continued to be impacted negatively by the COVID-19 24,6 24,1 implications on consumer loan market in both Sweden and Finland. Risk Decisions net sales however supported
Slide 25: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA increased despite 14,4 0,2 modest net sales growth due to cost synergies and saving measures → Increase y-on-y +5,5 % in Q4 2020. 0,1 → FX comparable growth rate +3,7 %. 0,5 0,4 -0,0 -0,2 -0,2 13,6 Adjusted Net sales Other Materials Personnel Other Work FX
Slide 26: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 78,0 %. 12,5 → Strong cash flow from 11,0 operating activities, supported by the good 9,1 profitability development of the Group’s operations and 7,9 a positive impact from 7,3 7,3 6,9 change in NWC. 5,3 5,2 → Items affecting c
Slide 27: Key indicators
Key indicators COMMENTS EUR million (unless stated otherwise) Q4 / 2020 Q4 / 2019 FY 2020 FY 2019 → Cash position of EUR 26,2 Net debt 143,0 148,1 143,0 148,1 million (committed EUR 20 million facility remains fully Net debt / adjusted EBITDA 2,6 2,7 2,6 2,9 unutilized). → Net debt / adjusted EBITDA
Slide 28: Board of Directors' resolution on distribution of funds
Board of Directors’ resolution on distribution of funds Resolution on the use of the profit shown on the balance sheet Dividend per share, EUR and the distribution of funds 1,00 The Board of Directors proposes to the Annual General Meeting 0,95 0,95 0,95 0,95 convening on 29 March 2021 that from the
Slide 29: Guidance 2021
Guidance 2021 Guidance1 12 February 2021 Enento Group expects its net sales growth in 2021 to be in the long-term target range (5-10%) but somewhat lower than Net sales the mid-point of the target range. EBITDA Enento Group expects its adjusted EBITDA margin to improve somewhat in 2021 compared to p
Slide 30: Some highlights from Enento Group's Group strategy 2020-2023
SOME HIGHLIGHTS FROM ENENTO GROUP’S GROUP STRATEGY 2020-2023 30 Building trust in the everyday.
Slide 31: Our strategic offering goals and enablers
Our strategic offering goals and enablers 1. 2. 3. Retain and strengthen our Be the first choice in data- Become the leading leading position in the driven business processes provider of business credit information business. as a service. information. GROWTH OPPORTUNITIES Fraud Machine Learning Anal
Slide 32: Building Nordic Presence
Building Nordic Presence STRATEGIC AMBITION We recognize a significant Nordic Build true Nordic presence to serve value add to customers from a multilocal our Nordic customers with highest high-quality service offering quality services in each country. approach which scales across Nordics. We aim to
Slide 33: Platform transformation opens door to accelerate growth and increase profitability
Platform transformation opens door to accelerate growth and increase profitability Growth Current business growth rate increases Share of new services and net sales increase Profitability Enable EBITDA growth exceeding the percentage growth of respective Since 2011 net sales Since 2004 Reduce IT OPE
Slide 34: Sustainability at Enento Group
SUSTAINABILITY AT Enento Group We help our customers We contribute to make a more sustainable sustainable economy decisions. in society. Enento Group’s Enento Group as environmental a sustainable impact. workplace. 34 Enento Enento Group Group Plc Plc 12.2.2021 12.2.2021
Slide 35: 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. Enento Group Plc 12.2.2021
Slide 36: Financials Q4 / 2020 summary
FINANCIALS Q4 / 2020 SUMMARY 36 Enento Group Plc 12.2.2021
Slide 37: Q4 / 2020 Income statement
Q4 / 2020 Income statement EUR million Q4 / 2020 Q4 / 2019 FY 2020 FY 2019 Net sales 40,2 39,2 151,3 146,0 Other operating income 0,1 0,2 0,6 0,3 Materials and services -6,5 -6,3 -25,4 -24,5 Personnel expenses -9,9 -9,5 -36,8 -38,6 Work performed by the entity and capitalised 0,8 0,7 2,7 2,2 Other o
Slide 38: Q4 / 2020 Cash flow
Q4 / 2020 Cash flow EUR million Q4 / 2020 Q4 / 2019 FY 2020 FY 2019 Cash flows from operating activities Cash flows before change in working capital 11,5 13,0 48,7 47,8 Change in working capital 2,5 -0,7 0,4 1,6 Net interests and other financing items -1,2 -1,2 -2,5 -2,6 Income taxes paid -1,5 -0,9
Slide 39: Upcoming events
Upcoming events Week 10 29 March 29 April 2021 2021 2021 Annual Report and Annual General Interim Report Financial Statements Meeting Q1 / 2021 2020 39 Enento Enento Group Group Plc Plc 12.2.2021 12.2.2021
Slide 40: Thank you!
THANK YOU! Time for Q&A 40 Enento Group Plc 12.2.2021
Slide 41: Further information
Further information Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@enento.com Pia Katila Investor Relations +358 50 347 0473 pia.katila@enento.com Finland Norway Helsinki and Turku Oslo Sweden Denmark Stockholm, Gothenburg, Viborg Kalmar and Umeå