Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q2 2021 Earnings Presentation
43 slides from Enento Group Oyj's earnings presentation, Jul 21, 2021
Slide 1: Enento Group Plc Half Year Financial Report 1.1-30.6.2021
ENENTO GROUP PLC HALF YEAR FINANCIAL REPORT 11.-30.6.2021
Slide 2: Content
Content Enento Group in brief New Business Areas Business development: Goava investment New services Q2 / 2021 Nordic Business Platform Key ratios Q2 / 2021 Guidance and long-term financial targets 2 Enento Group Plc 21.7.2021
Slide 3: Enento Group
ENENTO 2021 In Finland we operate under the brands Asiakastieto and Emaileri, in Sweden under UC, GROUP Allabolag and Proff and both in Norway and Building trust in the everyday. Denmark under the brand Proff. LISTED ON MARKET CAPITALISATION NASDAQ HELSINKI 30.6.2021 815 MEUR Par tners Approximately
Slide 4: Our mission: We build trust in the everyday
Our mission We build trust in the everyday. 4 Enento Enento Group Group Plc Plc 12.2.2021 29.4.2021 21.7.2021 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: 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 6 Enento Grou
Slide 7: 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 8: Group Strategy 2020–2023
Group Strategy 2020–2023 We build trust in the everyday. STRATEGIC OFFERING GOALS GROWTH OPPORTNITIES 1. OWNERSHIP NEW DATA ANALYTICS PROCUREMENT API INTERFACES FRAUD HOUSING Strengthen our leading position in the credit COMPLIANCE MACHINE LEARNING SUSTAINABILITY information business. 2. Be the firs
Slide 9: Building Nordic presence
Building Nordic presence STRATEGIC AMBITION Nordic We recognize a significant 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 10: Enento's Business Areas
Enento’s Business Areas Enento’s Business Areas 1 April 2021 BUSINESS CONSUMER DIGITAL INSIGHT INSIGHT PROCESSES 47,5%* 44,1%* 8,4%* *% of net sales Q2 / 2021 Business Insight consists of 3 business lines: Consumer Insight: Digital Processes range of services includes: • Enterprise Solutions is resp
Slide 11: Business development: Goava investment
BUSINESS DEVELOPMENT Goava investment strengthens Enento’s Nordic unstructured data capabilities and accelerates further Enento’s position in the fast-growing Sales Intelligence domain. 11 Enento Group Plc 21.7.2021 Building trust in the everyday.
Slide 12: Unstructured data – value proposition
Unstructured data – value proposition DEFINITION Unstructured data is information that has not been structured in a predefined manner. Unstructured data is typically textual, like information on company webpages and social media conversations, but can also be non-textual, like images, video, and aud
Slide 13: Unstructured data – our strengthened capabilities
Unstructured data – our strengthened capabilities EXAMPLES OF EXISTING USAGE OF UNSTRUCTURED DATA IN ENENTO GROUP • Growth indicator (FI) • ESG Report (FI, planned for SE) • Decision makers (FI, SE) HOW WILL GOAVA STRENGTHEN ENENTO GROUP • Own technology for crawling/scraping unstructured data • NLP
Slide 14: Goava investment as a vehicle for strategic offering goal
Goava investment as a vehicle for Enento in strategic offering goal implementation: BECOME THE LEADING PROVIDER OF BUSINESS INFORMATION GOAVA VISION Synergies with Enento Provide Sales with • Best-in-class base data intelligence on who to • Enento brands association Leader in Sales contact, when to
Slide 15: Goava deal structure
Goava deal structure aimed to optimize Nordic commercial ramp-up and unlocking of synergies Q2/2021 FY2021 – FY2024 H1/2025 1 2 3 COMMERCIAL RAMP-UP AND REALIZATION OF SYNERGIES OPTION: ENENTO 100% ENENTO 1ST INVESTMENT – aimed to gain a significant ACQUISITION – to be fully utilized on the market p
Slide 16: Nordic integration progress and business development as growth drivers
NORDIC INTEGRATION PROGRESS AND BUSINESS DEVELOPMENT AS GROWTH DRIVERS 16 Enento Group Plc 21.7.2021
Slide 17: Integration proceeding according to the plan
Integration proceeding according to the plan At the end of Q2/ 2021 we have realized over 90 % of the synergy benefits of EUR 17,8 million from the combination of Asiakastieto, UC and Proff. The integration has proceeded according to plan. We have now several revenue initiatives in production relate
Slide 18: Growth formula
NEW SERVICES NORDIC VOLUME OFFERING Growth CROSS- formula PENE- TRATION SELLING MARKET SHARE ACQUISI- PRICING TIONS 18 Enento Group Plc 21.7.2021
Slide 19: New services
New services 7 COMMENTS New services, % of net sales 18 New services launched Q2 / 2021 → Share of new services was 7,4 %. New services → Seven new services launched launched during the Q1-Q2 / 2020 7,4 6,8 6,9 second quarter. 6,3 4,9 EXAMPLES 4,4 4,4 4,0 • Corporate Radar 2.0 (FI) 3,4 • Company com
Slide 20: Technology oriented innovative company: Nordic business platform
TECHNOLOGY ORIENTED INNOVATIVE COMPANY >NORDIC BUSINESS PLATFORM 20 Enento Group Plc 21.7.2021 Building trust in the everyday.
Slide 21: Platform transformation accelerates growth and increases profitability
Platform transformation accelerates growth and increases profitability Lower IT Operational Costs • Lower maintenance costs and switch from maintenance to development • We continue providing the • More efficient operations and infrastructure existing services with cost • Benefits will start to effec
Slide 22: EUR 25-30M investment by 2025
EUR 25-30M investment by 2025 TO SCALABLE NORDIC BUSINESS PLATFORM Efficient data Business management Modern ways capabilities, of working modern technology Security & New compliance products Business Customer Support migration System Identified Nordic Nordic Ongoing Infrastructure business Business
Slide 23: Key ratios Q2 / 2021
KEY RATIOS Q2 / 2021 23 23 Enento Group Plc 21.7.2021
Slide 24: Key figures Q2 / 2021 and 2020
Key figures Q2 / 2021 and 2020 Net sales Net sales 42,1 MEUR Net debt to 151,3 MEUR adjusted Adjusted EBITDA Q1 Adjusted EBITDA EBITDA 16,1 MEUR Q2 / 2021 2,7x 54,0 MEUR Adjusted EBITDA margin Adjusted EBITDA margin 38,2 % 35,7 % 24 Enento Group Enento Group Plc Plc 21.7.2021 21.7.2021
Slide 25: Overview of Q2 / 2021
Overview of Q2 / 2021 EUR million COMMENTS (unless stated otherwise) Q2 / 2021 Q2 / 2020 FY 2020 → Net sales grew +14,7 % at Net Sales 42,1 36,7 151,3 reported FX rates and +11,4 % at comparable FX rates. Growth (year-on-year) 14,7 % 3,3 % 3,7 % → Adjusted EBITDA increased by +29,0 % at reported FX
Slide 26: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million → Q2/2021 reported Net sales 42,1 growth driven by strong 40,2 39,7 39,2 organic growth in all 36,7 37,6 36,7 36,7 35,6 business areas combined with favorable FX development. → Q3/2019 onwards with Proff companies’ results consolidated to Enento G
Slide 27: Net sales growth
Net sales growth Net sales growth, year-on-year, reported, % COMMENTS 16,8 → Q2/2021 reported Net sales growth driven by strong 14,7 organic growth in all business areas combined with favorable FX development. → Recovery of the Swedish consumer information 9,1 9,0 demand positively impacting Q2/2021
Slide 28: 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 comparable FX, year-on-year, % +11,4 % in Q2/2021. 18,3 16,8 → One banking day more year-on-year in Q2/2021. 14,7 → Recovery of the Swedish 11,0 11,4 consumer informat
Slide 29: Revenue by business area
Revenue by business area AT COMPARABLE FX RATES COMMENTS +7,4% → Business Insight was able to deliver good +11,8% growth in Q2, especially driven by the 20,0 strong development of premium services 18,6 18,6 for SMEs, while at the same time the entire Business Insight service portfolio 16,6 Q2 / 2020
Slide 30: Adjusted EBITDA
Adjusted EBITDA COMMENTS 4,3 0,0 -0,3 -0,9 → Adjusted EBITDA increased 0,3 16,1 significantly year-on-year due 0,3 to strong net sales development -0,1 with growth concentrated on the service offering of highest scalability, overall cost consciousness and prioritization, as well as realized cost syn
Slide 31: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 27,0 %. 12,5 → Cash flow from operating activities before change in working capital 11,0 developed strongly, supported by the good profitability development 9,1 of the business. Change in net working capital was negative as rev
Slide 32: Key indicators
Key indicators COMMENTS EUR million (unless stated otherwise) Q2 / 2021 Q2 / 2020 FY 2020 → Cash position of EUR 7,4 million 161,1 150,2 143,0 (committed EUR 20 million Net debt facility remains fully unutilized). Net debt / adjusted EBITDA 2,7 3.0 2,6 → Cash position impacted by distribution of fun
Slide 33: Net Sales guidance 2021 upgraded
Net Sales guidance 2021 upgraded Guidance1 21 July 2021 Enento Group expects its net sales growth in 2021 to be in the middle of the range of its long-term target (5-10%) Net sales compared to previous year’s net sales. EBITDA Enento Group expects its adjusted EBITDA margin to improve somewhat in 20
Slide 34: 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. 34 Enento Group Plc 21.7.2021
Slide 35: Jeanette Jäger will commence as the CEO of Enento Group on 1 January 2022
Jeanette Jäger will commence as the CEO of Enento Group on 1 January 2022 ENENTO GROUP PLC, STOCK EXCHANGE RELEASE ON 15 JULY 2021 AT 9.30 A.M. EEST Jeanette Jäger has been appointed Enento Group Plc’s CEO and member of the Executive Management Team. She will start in her position on 1 January 2022.
Slide 36: Changes in the management
Changes in the management Enento Group’s CEO Jukka Ruuska gave notice of his resignation from the company on 21 April 2021. Jukka Ruuska will continue in his position until 31 October 2021. Enento Group’s CIO and member of the Executive Management Team Jörgen Olofsson announced on 26 May 2021 his re
Slide 37: Sustainability Review 2020 published
Sustainability Review 2020 published Published on 14 June 2021 Enento Group’s Sustainability Review 2020 outlines the key aspects, impact and targets of the Group’s sustainability actions. Committed to Net Zero emissions by 2023! We look at sustainability through four dimensions: • Enento’s developm
Slide 38: Financials Q2 / 2021 Summary
FINANCIALS Q2 / 2021 SUMMARY 38 Enento Group Plc 21.7.2021
Slide 39: Q2 / 2021 Income statement
Q2 / 2021 Income statement EUR million Q2 / 2021 Q2 / 2020 FY 2020 Net sales 42,1 36,7 151,3 Other operating income 0,2 0,2 0,6 Materials and services -6,9 -6,5 -25,4 Personnel expenses -10,3 -9,2 -36,8 Work performed by the entity and capitalised 1,0 0,7 2,7 Other operating expenses -10,2 -11,2 -43
Slide 40: Q2 / 2021 Cash flow
Q2 / 2021 Cash flow EUR million Q2 / 2021 Q2 / 2020 FY 2020 Cash flows from operating activities Cash flows before change in working capital 14,8 10,1 48,7 Change in working capital -3,6 -1,6 0,4 Net interests and other financing items -1,1 -1,1 -2,5 Income taxes paid -2,3 -1,2 -5,7 Net cash from op
Slide 41: Business area quarterly net sales
Business area quarterly net sales AT REPORTED FX RATES MEUR Business Insight Consumer Insight Digital Processes +1 0,2% +1 5,7% +40,5% 20,1 20,0 18,6 3,5 18,9 19,4 18,2 16,7 16,9 17,1 3,2 16,5 16,1 3,1 17,1 2,9 2,5 2,3 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q
Slide 42: Thank you!
THANK YOU! Time for Q&A 42 Enento Group Plc 21.7.2021
Slide 43: 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 43 Enento Group Plc 21.7.2021