Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q2 2022 Earnings Presentation
39 slides from Enento Group Oyj's earnings presentation, Jul 21, 2022
Slide 1: CEO Jeanette Jäger and CFO Elina Stråhlman
CEO Jeanette Jäger and CFO Elina Stråhlman 21 July 2022 Enento Group Plc 21.7.2022
Slide 2: Agenda
Agenda Enento Group in brief Q2 / 2022 in brief Developing operational excellence and profitability Opportunities for future growth New services as a growth driver Green Transition Plan Key ratios Q2 / 2022 Q&A 2 Enento Group Plc 21.7.2022
Slide 3: Enento Group
ENENTO GROUP 2021 LISTED ON MARKET CAPITALISATION NASDAQ 30.6.2022 499 Building trust in the everyday. HELSINKI. MEUR NET SALES ADJUSTED EBITDA In Finland we operate 30.6.2022 30.6.2022 under the brands Asiakastieto 43,4 15,5 Partners in Europe and in the Nordic region. and Emaileri, in MEUR MEUR Sw
Slide 4: 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. We offer a broad selection of services that are based on our comprehensive database. Data is acquired from several public data sources, from companies themselves, from internet as well as through our own data gathering pro
Slide 5: Business Areas
Business Areas Since the beginning of April 2021, we have operated under three Business Areas instead of previous four. In addition, we have one new Functional unit – Data & Analytics. The reason behind this organisational change is to enable faster and smoother strategy implementation and emphasise
Slide 6: Q2 / 2022 in brief
Q2 / 2022 Enento Group Plc 21.7.2022 IN BRIEF 6
Slide 7: Executive Management Team
Executive Management Team Jeanette Jäger Elina Stråhlman Siri Hane Gabriella Göransson Heikki Ylipekkala CEO CFO Director Director Director Business Insight Business Area Consumer Insight Business Area Digital Processes Business Area Karl-Johan Werner Victoria Preger Eleanor Öhlander Daniel Ejderber
Slide 8: Developing operational excellence and profitability
DEVELOPING OPERATIONAL EXCELLENCE AND PROFITABILITY. 8
Slide 9: The current strategy 2020–2023
The current strategy 2020–2023 Strategic offering goals 1. Strengthen our leading position in the credit information business. Carbon 2. 5–10% Be the first choice in data-driven neutral Revenue business processes as a service. by 2023 growth 3. Become the leading provider of business information. Gr
Slide 10: Moving forward we need to secure profitability in order to enable future growth
Moving forward we need to secure profitability in order to enable future growth Faster and smarter • Prioritize activities and redistribute resources • Reduce complexity, simplify operating model and gain efficiencies through sourcing and vendor consolidation Secure profitability • Optimize product
Slide 11: Opportunities for future growth
OPPORTUNITIES FOR FUTURE GROWTH. 11 Enento Group Plc 21.7.2022
Slide 12: Growth formula
NEW SERVICES NORDIC VOLUME OFFERING Growth CROSS- SELLING formula PENE- TRATION MARKET SHARE ACQUISI- PRICING TIONS 12 Enento Group Enento Group Plc Plc 21.7.2022 21.7.2022
Slide 13: GOAVA strategic investment
GOAVA strategic investment Great match of strengths to create the leader in Sales Intelligence, which is an emerging offering category within Business Information. Enento increased its stake in Goava Sales Intelligence AB on 10 May 2022 by doing an Conquer additional investment of SEK 19,2 million t
Slide 14: We grow together with our customers' growing needs
We grow together with our customers’ growing needs Freemium Services Premium Services Visitors from freemium services are converted into premium services. Analytics Credit and other decisioning ESG Sales Intelligence Around 7 million General business information unique Free visitors Free Data Entry
Slide 15: Competitive advantages
COMPETITIVE ADVANTAGES. 15 Enento Enento Group Group Plc Plc 21.7.2022 21.7.2021
Slide 16: Enento's competitive advantages
Enento’s competitive advantages Data sourcing Database Production Service Distribution • Known and reliable brand • Database built on • High service availability development and sales granularity and quality • Advanced data • Excellence in combining • Services integrated into processing capabilities
Slide 17: New services as a growth driver
NEW SERVICES 17 AS A GROWTH DRIVER. Enento Group Plc 21.7.2022
Slide 18: New services
New services 15 23 New services launched Q2 / 2022 COMMENTS Share of new services was New services → launched 5,1 %. Q1-Q2 / 2022 → Fifteen new services launched during the third 7,4 7,6 7,4 quarter. 6,8 6,9 6,3 5,9 4,9 5,1 EXAMPLES • Updated online international services (FI) • Corporate PEP and Sa
Slide 19: Improved Corporate PEP and sanction Report to support in compliance needs
Improved Corporate PEP and sanction Report to support in compliance needs According to the Anti-Money Laundering Act, the reporting party must validate the PEP status of the company's management and beneficial owners and check whether the company or individuals are subject to international economic
Slide 20: Green Transition Plan
GREEN TRANSITION PLAN. Team: Fredrik, Heikki, Jenny, Karin, Pia, Riku, Victoria Enento Group Plc 21.7.2022
Slide 21: Our path towards net zero emission
Our path towards net zero emission Base year Our sustainability program includes four main areas which are connected to the UN Global Goals we have Gecided to focus on, One of the creas is the UN Gool 15, Life on Land, and is connected to our ambition to reach Net zero emission. This is our high lev
Slide 22: Sustainability at Enento Group
Enento Group’s Enento Group’s environmental product impact. development of sustainable Sustainability services. Enento Group at Enento Group. as enabler of a sustainable economy. Enento Group as a sustainable 22 Enento Group Plc 21.7.2022 workplace.
Slide 23: Key ratios Q2 / 2022
KEY RATIOS Enento Group Plc 21.7.2022 Q2 / 2022 23
Slide 24: Key figures
Key figures Q2 / 2022 2021 Net sales +4,8% Net sales +5,9% 43,4 MEUR Net debt to 163,5 MEUR adjusted Adjusted EBITDA -2,2% Adjusted EBITDA +7,8% EBITDA 15,5 MEUR Q2 / 2022 2,6x 59,1 MEUR Adjusted EBITDA margin Adjusted EBITDA margin 35,7 36,2 -2,5 pp-% +0,5 pp-% % % 24 Enento Group Plc 21.7.2022 Bui
Slide 25: Overview of Q2 / 2022
Overview of Q2 / 2022 EUR million COMMENTS (unless stated otherwise) Q2 / 2022 Q2 / 2021 FY 2021 43,4 42,1 163,5 → Net sales grew 3,1 % at reported Net Sales FX rates and 4,8 % at Growth (year-on-year, comparable fx) 4,8 % 11,4 % 5,9 % comparable FX rates. → Favorable development especially in Consu
Slide 26: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES COMMENTS +2,8% +6,8% → Business Insight net sales development 20,3 year-on-year improved compared to Q1 . 20,0 Premium and Freemium services grew 19,4 18,6 well while Enterprise services for large customers resulted in modest growth. Q2 / 2021 Q
Slide 27: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Net Sales growth stemming mostly 0,1 from Consumer Insight’s Consumer 0,5 Credit Info business line. 0,1 → Material and Services cost increase driven by topline growth most notably in Consumer Credit Info 2,0 Finland. → Investments in growth and service 1,8 development inc
Slide 28: Free cash flow
Free cash flow COMMENTS → Cash conversion at 41,5% Free cash flow, EUR million 11,0 → Operating cash flow before change in working capital increased from 9,9 10,0 comparison period level. Impact of 9,1 change in net working capital on cash flow was negative due to changes in other receivables and ot
Slide 29: Key indicators
Key indicators COMMENTS EUR million (unless stated otherwise) Q2 / 2022 Q2 / 2021 FY 2021 → Cash position at EUR 10,1 million Net debt 153,4 161,1 141,6 (committed EUR 20 million facility remains fully unutilized). Net debt / adjusted EBITDA 2,6 2,7 2,4 → Cash position impacted by dividend distribut
Slide 30: Future outlook and guidance
FUTURE OUTLOOK AND GUIDANCE. 30
Slide 31: 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 32: Thank you! Time for Q&A
THANK YOU! Time for Q&A 32 Enento Group Plc 21.7.2022
Slide 33: Financials Q2 / 2022 Summary
FINANCIALS Q2 / 2022 SUMMARY 33 Enento Group Plc 21.7.2021
Slide 34: Q2 / 2022 Income statement
Q2 / 2022 Income statement EUR million Q2 / 2022 Q2 / 2021 FY 2021 Net sales 43,4 42,1 163,5 Other operating income 0,1 0,2 0,7 Materials and services -7,3 -6,9 -27,6 Personnel expenses -10,2 -10,3 -39,7 Work performed by the entity and capitalised 1,2 1,0 3,9 Other operating expenses -11,7 -10,2 -4
Slide 35: Q2 / 2022 Cash flow
Q2 / 2022 Cash flow EUR million Q2 / 2022 Q2 / 2021 FY 2021 Cash flows from operating activities Cash flows before change in working capital 15,5 14,8 57,9 Change in working capital -3,3 -3,6 -3,3 Net interests and other financing items -0,9 -1,1 -2,1 Income taxes paid -2,4 -2,3 -8,5 Net cash from o
Slide 36: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million → Q2/2022 reported Net sales 43,1 43,4 growth continued in all business 42,1 40,2 40,7 areas. 39,7 38,6 36,7 36,7 → Successful service development investments supported the development of net sales. Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Slide 37: Net sales growth
Net sales growth COMMENTS Net sales growth at reported FX, year-on-year, % Net sales growth at comparable FX, year-on-year, % → FX comparable growth rate +3,1 % in Q2/2022. 14,7 → In Q2/2022 the number of banking days was lower by one 11,4 day in Sweden. 7,2 6,0 5,4 5,2 4,4 4,8 4,0 3,3 3,3 3,1 2,6 2
Slide 38: 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. 38 Enento Group Plc 21.7.2022
Slide 39: Further information Enento Group Plc
Further information Enento Group Plc Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@enento.com Pia Katila Investor Relations +358 50 347 0473 pia.katila@enento.com 39 Enento Group Plc 21.7.2022