Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Asiakastieto Group — Q3 2019 Earnings Presentation
45 slides from Enento Group Oyj's earnings presentation, Nov 7, 2019
Slide 1: CEO Jukka Ruuska, 7 November 2019
CEO Jukka Ruuska 7 November 2019 1 Asiakastieto Group Oyj 7.11.2019
Slide 2: Content
Content Asiakastieto Group in brief − Nordic company with strong local brands − Business areas and Functional units − Growth formula Highlights of Q3 / 2019 − Nordic integration − Nordic business development − Enabling responsible lending − Strong sales growth Key ratios Q3 / 2019 2 Asiakastieto Gro
Slide 3: A leading Nordic company in digital services and data innovation
A leading Nordic company in digital services and data innovation. Asiakastieto Group Oyj 7.11.2019
Slide 4: We provide services based on analysed and enriched data
We provide services based on analysed and enriched data so that companies, individuals and societies can make intelligent decisions. Intelligent decisions allow our customers to grow. 4 Asiakastieto Group Oyj 7.11.2019
Slide 5: Asiakastieto Group
Asiakastieto Group Asiakastieto and UC AB joined forces Intelligent decisions. in 2018. Operations continue under Bigger dreams. strong company brands, Suomen MARKET CAPITALISATION Asiakastieto in Finland and UC in 30.9.2019 Sweden. 641 MEUR LISTED ON NASDAQ HELSINKI Partners in Nordic region and in
Slide 6: In the front within digitalisation and data innovation
In the front within digitalisation and data innovation 6 Asiakastieto Group Oyj 7.11.2019
Slide 7: Key figures Q3 / 2019
Key figures Q3 / 2019 Net Sales Net sales growth at comparable FX 36,7 MEUR 18,3 % Net Debt to Number of Personnel Adjusted Adjusted Adjusted EBITDA 30.9.2019 EBITDA EBITDA Margin 2,7 X 420 14,0 MEUR 38,1 % 7 Asiakastieto Group Oyj 7.11.2019
Slide 8: Asiakastieto's business areas and functional units
Asiakastieto’s business areas and functional units RISK DECISIONS SME AND CONSUMERS FINANCE SALES AND MARKETING IT AND AND HUMAN CUSTOMERS AND COMMS TECHNOLOGY INVESTOR RESOURCES CUSTOMER DATA MANAGEMENT RELATIONS DIGITAL PROCESSES 8 Asiakastieto Group Oyj 7.11.2019
Slide 9: Asiakastieto's four business areas
Asiakastieto’s four business areas DIGITAL PROCESSES CUSTOMER DATA MANAGEMENT Services and solutions Services and solutions ‒ Real estate and apartment information ‒ Target group tools for surveying potential ‒ Information about buildings and their valuation customers ‒ Solutions that help customers
Slide 10: Strategic themes 2019
Strategic themes 2019 Customer Engaged and Business Financial first competent development growth personnel Asiakastieto Group Oyj 7.11.2019
Slide 11: Growth formula
Growth formula New services Nordic Volume offering Cross Penetration / selling Market share Acquisitions Pricing 11 Asiakastieto Group Oyj 7.11.2019
Slide 12: Long term financial targets
Long term financial targets Growth Achieve 5-10 percent average growth in Net sales. Profitability Achieve a rate of EBITDA growth that exceeds the percentage growth of Net sales. Balance sheet structure Maintain net debt to EBITDA of less than 3x while continuing to maintain an efficient capital st
Slide 13: Full year outlook unchanged
Full year outlook unchanged Net sales: Asiakastieto Group expects its net sales growth in 2019 to be in the middle of the range of its long-term target (5–10 %), compared to the previous year’s pro forma net sales. EBITDA: Asiakastieto Group expects its adjusted EBITDA, excluding the effect of IFRS
Slide 14: Highlights
Highlights 14 Asiakastieto Group Oyj 7.11.2019
Slide 15: Highlights of Q3 / 2019
Highlights of Q3 / 2019 Nordic Nordic Enabling Very strong integration business responsible sales development lending in Q3 / 2019 • Synergy benefits updated to • Launched seven new services • Examples: • The development of net sales from include Proff • Examples: ‒ Consumer Credit Inquiry consumer-
Slide 16: Integration progress
Integration progress 16 Asiakastieto Group Oyj 7.11.2019
Slide 17: Integration proceeding according to plan
Integration proceeding according to plan Synergy benefits from the acquisition of Proff added to the total synergy benefit follow-up. Integration work is proceeding according to the plan. − Cost synergies have been realised according to the original plan − Revenue synergy initiatives (new services a
Slide 18: Nordic business development
Nordic business development Asiakastieto Group Oyj 7.11.2019
Slide 19: New services share of net sales pro forma
New services share of net sales pro forma COMMENTS → Share of new services was 3,4 %. New services, % of Net sales → Seven new services 8,6 launched during the third 8,2 8,2 7,6 7,8 quarter. 6,7 → Net sales contribution of new services remained below target level in the 4,4 4,0 third quarter. 3,4 →
Slide 20: Enabling responsible lending
Enabling responsible lending Asiakastieto Group Oyj 7.11.2019
Slide 21: Importance of positive credit information
The importance of positive credit information is supported by the efficient systems in both countries. CONSUMER CREDIT INQUIRY SYSTEM CREDIT REGISTER → Since 2013 – unique data in Finland → Since 1990 – unique data in Sweden Creditors → By consumer consent → Citizens over 16 years Banks Credit and M
Slide 22: Account Insight (PSD2) Service
Account Insight (PSD2) Service Rationale of Asiakastieto’s market presence Investigating PSD2, understanding effects on customers Customer demand in new business opportunities around PSD2 PSD2 service ’Account Insight’ launched together with 10 pilot customers New business opportunities for customer
Slide 23: Account Insight (PSD2) Service
Account Insight (PSD2) Service Account Insight is an Account Insight The service processes The service provides account data accesses account and account data by account insight for aggregator API for transaction data categorising and the purposes of Asiakastieto’s authorised by the grouping the abi
Slide 24: Account Insight (PSD2) service
Account Insight (PSD2) service End-user process Account information Bank Strong customer Data Data view service agreement selection authentication aggregation 24 Asiakastieto Group Oyj 7.11.2019
Slide 25: UC Risk Blanco
UC Risk Blanco For better risk assessment of unsecured loan Score distribution and defaults Unsecured population and Bank default 30% UC Blanco 100% A service customised for the provision of unsecured credit helps creditors make better credit decisions 90% 25% 80% 70% based on more accurate credit r
Slide 26: Enabling sustainable business for our customers
Enabling sustainable business for our customers DIRECT IMPACT SOCIETAL IMPACT INDIRECT SOCIETAL Environment IMPACT Customer Community Incorporating Personnel sustainability into our Shareholders services and solutions, Security and privacy for example: Laws and regulation ESG Positive Report Data 26
Slide 27: Key ratios Q3 / 2019
Key ratios Q3 / 2019 Asiakastieto Group Oyj 7.11.2019
Slide 28: Overview of Q3 / 2019
Overview of Q3 / 2019 EUR million COMMENTS (unless stated otherwise) Q3 / 2019 Q3 / 2018 FY 2018 36,7 31,4 98,1 → Net sales growth was +16,8 % Net Sales at reported FX rates and +18,3 Growth (year-on-year) 16,8 % 135,4 % 74,6 % % at comparable FX rates. → Adjusted EBITDA excluding Adjusted EBITDA 14
Slide 29: Q1 – Q3 / 2019 pro forma
Q1 – Q3 / 2019 pro forma EUR million 1.1. – 1.1. – COMMENTS (unless stated otherwise) 30.9.2019 30.9.2018 FY 2018 → Net sales growth was +8,6 % at Net Sales 106,8 98,4 134,3 reported FX rates and +10,4 % Growth (year-on-year) 8,6 % 3,5 % 3,6 % at comparable FX rates. → Adjusted EBITDA excluding IFRS
Slide 30: Quarterly net sales
Quarterly net sales COMMENTS Net sales, EUR million → Q3/2018 – Q3/2019 with UC AB results consolidated to 35,9 36,7 35,6 Asiakastieto Group. 34,5 31,4 15,1 15,7 14,6 13,3 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 30 Asiakastieto Group Oyj 7.11.2019
Slide 31: Quarterly net sales pro forma
Quarterly net sales pro forma COMMENTS Net sales at reported FX, EUR million → Net sales growth Q3/2019 Net sales at constant FX, EUR million was +16,8 % at reported FX 36,7 36,7 34,6 35,9 35,2 34,5 34,1 35,6 35,5 rates and +18,3 % at 34,1 33,5 32,9 32,8 comparable FX rates. 31,1 31,6 31,4 31,0 29,2
Slide 32: Net sales growth
Net sales growth COMMENTS Net sales growth, year-on-year, % → Q3/2018 – Q3/2019 with UC AB results consolidated to 146,4 Asiakastieto Group. 135,4 128,8 126,1 14,0 15,4 16,8 8,9 8,9 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 32 Asiakastieto Group Oyj 7.11.2019
Slide 33: Net sales growth pro forma
Net sales growth pro forma COMMENTS Net sales growth at reported FX, year-on-year, % → FX comparable growth rate Net sales growth at constant FX, year-on-year, % 18,3 +18,3 %. 16,8 → Risk Decisions consumer risk management solutions continued their strong net sales development in the third quarter.
Slide 34: Revenue by business area at reported FX rates
Revenue by business area at reported FX rates COMMENTS +13,0 % → Reported net sales growth negatively impacted by FX 24,1 rate changes. 21,4 Q3/2018, EUR million at reported FX Q3/2019, EUR million at reported FX +36,0 % 8,6 6,3 +12,9 % -0,9 % 1,8 2,1 1,9 1,9 Risk Decisions SME and Consumers Digital
Slide 35: Revenue by business area at constant FX rates
Revenue by business area at constant FX rates COMMENTS → Risk Decisions consumer risk +14,5 % management solutions continued strong. The transition to higher value- added services has helped accelerate 24,1 the development of net sales. Q3/2018, EUR million at constant FX 21,1 → SME and Consumers gr
Slide 36: New services share of net sales pro forma
New services share of net sales pro forma COMMENTS → Share of new services was 3,4 %. New services, % of Net sales → Seven (7) new services 8,6 launched during the third 8,2 8,2 7,6 7,8 quarter. 6,7 → Net sales contribution of new services remained below target level in the 4,4 4,0 third quarter. 3,
Slide 37: Adjusted EBITDA increased 23,2 % year-on-year
Adjusted EBITDA increased 23,2 % year-on-year Excl. IFRS 16 impact, at reported FX 5,7 0,1 -1,0 -0,3 -2,0 -0,1 0,6 14,0 0,1 13,4 10,9 Adjusted Net sales Other Materials Personnel Other Work FX impact Adjusted IFRS 16 impact Adjusted EBITDA in operating and services expenses operating performed by EB
Slide 38: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Strong cash flow from 12,5 operating activities, as business growth and profitability improved further and net working capital developed positively during the quarter (timing). 7,9 7,3 → Non-recurring M&A and 5,3 redundancy-related 4,8 payments a
Slide 39: Key indicators
Key indicators EUR million COMMENTS (unless stated otherwise) Q3 / 2019 Q3 / 2018 FY 2018 Net debt 152,7 143,4 137,0 → Cash position of EUR 24,7 million. Acquisition of Proff Net debt / adjusted EBITDA pro forma pro forma completed and paid on 1 2,7 3,5 3,3 July 2019. → Net debt / adjusted EBITDA Ge
Slide 40: Guidance 2019
Guidance 2019 Guidance1 Net sales from 1 July 2019 Asiakastieto Group expects its net sales growth in 2019 to be in the middle of the range of its long-term target (5–10 %), compared to the previous year’s pro forma net sales. Net sales (previously published) Asiakastieto Group expects its net sales
Slide 41: Financials Q3 / 2019 Summary
Financials Q3 / 2019 Summary Asiakastieto Group Oyj 7.11.2019
Slide 42: Q3 / 2019 Income statement
Q3 / 2019 Income statement EUR million Q3 / 2019 Q3 / 2018 FY 2018 Net sales 36,7 31,4 98,1 Other operating income 0,1 0,0 0,1 Materials and services -6,4 -5,5 -18,3 Personnel expenses -8,8 -9,9 -26,8 Other operating expenses -8,7 -8,2 -28,1 Work performed by the entity and capitalised 0,5 0,4 1,6 D
Slide 43: Income statement pro forma
Income statement pro forma EUR million 1.1. – 30.9.2019 1.1. – 30.9.2018 FY 2018 Net sales 106,8 98,4 134,3 Other operating income 0,1 0,1 0,1 Materials and services -18,2 -16,8 -22,8 Personnel expenses -29,1 -30,7 -40,7 Other operating expenses -25,7 -29,1 -38,2 Work performed by the entity and cap
Slide 44: Q3 / 2019 Cash flow
Q3 / 2019 Cash flow EUR million Q3 / 2019 Q3 / 2018 FY 2018 Cash flows from operating activities Cash flows before change in working capital 13,4 6,9 25,0 Change in working capital 2,3 0,2 0,2 Net interests and other financing items -0,1 -0,3 -2,1 Income taxes paid -1,0 -1,2 -3,6 Net cash from opera
Slide 45: Thank you!
Thank you! Further information Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@asiakastieto.fi Pia Katila Investor Relations +358 50 347 0473 pia.katila@asiakastieto.fi Asiakastieto Group Oyj 7.11.2019