Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q2 2023 Earnings Presentation
36 slides from Enento Group Oyj's earnings presentation, July 2023
Slide 1: Enento Group Plc Investor Presentation July 2023
Enento Group Plc Investor Presentation July 2023 Enento Group Plc – Investor Presentation Q2 2023
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: Enento as an investment
Enento as an investment 1 Nordic presence with strong market position, trusted well-known brands and resilient, scalable business 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 4: Enento Group at a glance
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 30 June 2023 Building trust in the everyday. HELSINKI. 506 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 30 June 2023 30 June 2023 the brands Asiakastieto and Emaileri, in Sweden 79,6 29,2 Partners in Europe and in the N
Slide 5: 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 6: 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 ✓ Provides both cyclical and countercyclical products and services Decision scoring Monitorin
Slide 7: 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 8: Strategy 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 9: Executive Management Team
Executive Management Team Jeanette Jäger Elina Stråhlman Siri Hane Gabriella Andreas Darner CEO CFO Director Göransson Director Business Insight Director Strategy and Transformation Business Area Consumer Insight Business Area Karl-Johan Werner Victoria Preger1 Sari Ek-Petroff Daniel Ejderberg Mikko
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, Real- Consumer Credit Information, Consumer Marketing Information, esta
Slide 11: Net sales and profitability development 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 39 146 134 38 140 36,6% 37 Adjusted EBITDA % 36,2% 120 35,7% 36 35,3% Net Sales 100 35 Adjusted EBITDA 80 34 60 33 31,3% 3
Slide 12: Attractive growth dynamics in the data market
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 13: 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 ✓ markets, driven by data availability and overall price point Credit, Sales & Marketing and Compliance Nordic market size €600mm Enento is a leading credit
Slide 14: 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 15: Solid growth in 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 16: 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 17: 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 ✓ Growth in selected strategic growth areas, such as the ESG and compliance, by driving 11,1% innovation and developing new services ✓
Slide 18: Strong free cash flow enabling 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 35 34 0,95 0,95 0,95 32 33 30 30 25 24 24 23 23 23 20 16 15 10 5 5 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 20
Slide 19: Q2 2023
Q2 2023 Enento Group Plc – Investor Presentation Q2 2023
Slide 20: Net sales impacted by declining Swedish consumer credit volumes
Net sales impacted by declining Swedish consumer credit volumes, while the demand for new services surged, and adjusted EBITDA margin improved Quarter in brief Key figures -3,5%** Net Sales & Profitability Merging Business Areas Net sales -1,2%* Adjusted EBITDA -2,1%** Net sales declined 1,2%* as co
Slide 21: Efficiency Program proceeding according to plans
Efficiency Program proceeding according to plans: EUR 5M run-rate impact achieved by end of Q2, equal to more than half of FY2024 targeted benefits of EUR 8M FTE Efficiency • Impact from reduced number of FTEs visible from Q2 onwards • Application service analysis pre-study completed in Sweden and t
Slide 22: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES -0,2% Q2 / 2022 22,9 22,8 Q2 / 2023 COMMENTS -7,7% → Business Insight growth excluding 18,2 Tambur impact* was +4,2%. Net sales 16,8 developed well in Premium, Freemium and Compliance. Enterprise performed in line with the previous year. → In Co
Slide 23: Adjusted EBITDA
Adjusted EBITDA COMMENTS 0,4 → Adjusted EBITDA margin 36,5%, margin expansion continued with +0,5%p increase y-on-y 1,1 → Adjusted EBITDA decreased year-on-year due to challenging market conditions 0,7 resulting in lower revenue especially in 1,4 credit information services. Also, discontinuation of
Slide 24: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion in H1 at 61,8%, clearly improving compared to comparative 10,5 period in prior year (47.1%) 10,0 10,0 10,1 9,9 → Free cash flow decreased compared with the corresponding quarter due to higher tax payments, partly offset by improve
Slide 25: Key indicators
Key indicators EUR million (unless stated otherwise) Q2 / 2023 Q2 / 2022 FY 2022 COMMENTS Net debt 147,7 153,4 131,8 → Cash position at EUR 5,3 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,4 2,6 2,2 remains fully unutilized). → Net debt / adjusted EBITDA at 2,4x. → Gross i
Slide 26: Guidance 2023
Guidance 2023 Net sales Enento Group expects net sales in 2023 to grow between 0% - 5% excluding the impact from the discontinued Tambur service at comparable exchange rates as compared to 2022. Adjusted EBITDA Enento Group expects its adjusted EBITDA margin to be in the range of 36,0% - 37,0%. 26 E
Slide 27: Enento as an investment
Enento as an investment 1 Nordic presence with strong market position, trusted well-known brands and resilient, scalable business 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 28: Appendix
Appendix Enento Group Plc – Investor Presentation Q2 2023
Slide 29: Enento Group organisation
Enento Group Jeanette Jäger Not in Executive CEO Management Team Legal Strategy Transformation Martin Smedberg Andreas Darner Business Insight MarCom & Siri Hane Data & Human IT & Sales Customer Finance Analytics Resources Technology Operations Mikko Elina Consumer Insight Karl-Johan Sari Daniel Kar
Slide 30: 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 31: Sustainability strategy 2023 status Q2 2023
Sustainability strategy 2023 Status Q2 / 2023 OUR PURPOSE WE BUILD TRUST IN THE EVERYDAY BETWEEN PEOPLE, BUSINESSES AND SOCIETY STRATEGIC SUSTAINABILITY FOCUS AREAS ENENTO GROUP AS AN ENABLER OF A ENENTO GROUP´S PRODUCT DEVELOPMENT OF ENENTO GROUP’S ENENTO GROUP AS SUSTAINABLE ECONOMY SUSTAINABLE SE
Slide 32: Financial KPIs
Financial KPIs Net sales Adjusted EBITDA Adjusted EBITDA margin % 163 168 59 61 35,3 35,7 36,2 36,6 146 151 52 54 31,3 134 42 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Free Cash Flow Adjusted EBIT Dividend per share 32,1 32,6 33,9 35,3 35,7 36,2 36,6 0,95 0,95 0,95 1
Slide 33: Solid revenue and profitability development track
Solid revenue and profitability development track 2022 +5,1% at +2,5% 2022 +5,9% at comparable FX rates comparable FX rates +3,5% +8,0% +9,5% 3,6% +8,7% 168 61,2 163 +22,3% 4,9% 59,1 +4,1% 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 21,7 49 44 98 36,1 201
Slide 34: Dividend policy and history
Dividend policy and history Dividend per share, EUR 1,00 1,00 1,00 0,95 0,95 0,95 0,95 Dividend Policy 0,90 • The Company’s dividend policy is to distribute as dividends at least 70 per cent of the Company’s net profit, whilst, taking into consideration the business development and investment needs
Slide 35: Key figures full year 2022
Key figures full year 2022 Net sales +5,1%* Adjusted EBITDA +5,9%* Adjusted EBITDA margin 167,5 61,2 36,6 +0.4 pp-% MEUR MEUR % Free cash flow +13,6% Net debt to adjusted EBITDA Share of new services 33,9 2,2 4,6 -2,7 pp-% MEUR X (2,4x) % MEUR Distribution of funds of EUR 1.00 per share proposed – r
Slide 36: Enento Group Plc
Enento Group Plc Arto Paukku Investor Relations Officer +358 50 469 5380 arto.paukku@enento.com 36