Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q1 2021 Earnings Presentation
37 slides from Enento Group Oyj's earnings presentation, Apr 29, 2021
Slide 1: CEO Jukka Ruuska and CFO Elina Stråhlman
CEO Jukka Ruuska and CFO Elina Stråhlman 29 April 2021 1 Enento Group Plc 29.4.2021
Slide 2: Content
Content Enento Group in brief New Business Areas and Functional Units Nordic integration progress and business development New services Q1 / 2021 Key ratios Q1 / 2021 Guidance and long-term financial targets 2 Enento Group Plc 29.4.2021
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 31.3.2021 843 MEUR Partners Approximately
Slide 4: Our mission
Our mission We build trust in the everyday. 4 Enento Enento Group Group Plc Plc 29.4.2021 12.2.2021 29.4.2021 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: 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 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: 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 8: 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 9: 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 10: Key figures Q1 / 2021 and 2020
Key figures Q1 / 2021 and 2020 Net sales Net sales 39,7 MEUR Net debt to 151,3 MEUR adjusted Adjusted EBITDA Q1 Adjusted EBITDA EBITDA 13,9 MEUR Q1 / 2021 2,5x 54,0 MEUR Adjusted EBITDA margin Adjusted EBITDA margin 35,2 % 35,7 % 10 Enento Enento Group Group Plc 29.4.2021 Plc 29.4.2021
Slide 11: Enento's Business Areas
Enento's Business Areas Enento Group’s offering RISK SME & DIGITAL CUSTOMER DATA DECISIONS CONSUMERS PROCESSES MANAGEMENT Q1 / 2021 was divided in four 60,6%* 26,6%* 7,8%* 5,1%* Business Areas *% of net sales 1 / 2021 Enento’s Business Areas and Functional Units 1 April 2021 11 Enento Group Plc 29.4
Slide 12: Nordic integration progress and business development as growth drivers
NORDIC INTEGRATION PROGRESS AND BUSINESS DEVELOPMENT AS GROWTH DRIVERS 12 Enento Group Plc 29.4.2021
Slide 13: Integration proceeding according to the plan
Integration proceeding according to the plan At the end of Q1 / 2021 we have realized almost 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 rel
Slide 14: Growth formula
NEW SERVICES NORDIC VOLUME OFFERING Growth CROSS- formula PENE- TRATION SELLING MARKET SHARE ACQUISI- PRICING TIONS 14 Enento Enento Group Group Plc 29.4.2021 Plc 29.4.2021
Slide 15: New services
New services 11 COMMENTS 54 New services, % of net sales → Share of new services was New services 6,9 %. launched New services Q1 / 2021 → Eleven new services launched 6,9 launched during the first 6,8 2020 6,3 quarter. 4,9 4,4 4,4 4,4 4,0 3,4 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 16: Examples of new services Q1 / 2021
Examples of new services Q1 / 2021 Business Loan Forest and Nordic Information Farmland Annual General Meeting Growth System Valuation in Helsinki Provides up to date data Certificate on applied and granted Reports To qualify for the certificate, company credits for The online reports the companies
Slide 17: Business Loan Information System
Business Loan Information System CHALLENGE Your customer portfolio − How to know what really are a company´s current overall liabilities and tietokanta Asiakas- payment terms. CONCEPT − Gathers together data of company’s applied and granted credits from corporate lenders which have joined to the dat
Slide 18: Forest and Farmland Valuation Reports
Forest and Farmland Valuation Reports The online reports provide reliable estimates on the value of the forest and farmland areas and contain maps and detail information of the facts that the valuation is based on. • FOREST VALUATION REPORT is created by adding up the values of the property’s standi
Slide 19: Nordic Growth Certificate
Nordic Growth Certificate The companies that are rewarded show growth, where parameters such as profitability and ability to pay are taken into account. To qualify for the certificate, the companies must meet criteria based on the Nordic growth model, which include: • TURNOVER LAST 2 YEARS • GROWTH
Slide 20: Key ratios Q1 / 2021
KEY RATIOS Q1 / 2021 20 20 Enento Group Plc 29.4.2021
Slide 21: Overview of Q1 / 2021
Overview of Q1 / 2021 EUR million COMMENTS (unless stated otherwise) Q1 / 2021 Q1 / 2020 FY 2020 → Net sales grew +5,4 % at Net Sales 39,7 37,6 151,3 reported FX rates and +2,4 % at comparable FX rates. Growth (year-on-year) 5,4 % 9,0 % 3,7 % → Adjusted EBITDA increased by +12,4 % at reported FX rat
Slide 22: Net sales by quarter
Net sales by quarter COMMENTS Net sales, EUR million → Q1/2021 reported Net sales 39,2 40,2 39,7 growth driven by both 36,7 37,6 36,7 36,7 favorable FX development 35,6 as well as organic growth. 34,5 → Q3/2019 onwards with Proff companies’ results consolidated to Enento Group. Q1 2019 Q2 2019 Q3 20
Slide 23: Net sales growth
Net sales growth REPORTED AND PRO FORMA COMMENTS → Q1/2021 reported Net Net sales growth, year-on-year, reported, % Net sales growth, year-on-year, pro forma, % sales growth driven by both favorable FX 128,8 126,1 development as well as 16,8 organic growth. → Q3/2019 onwards with Proff companies’ re
Slide 24: 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, % +2,4 %. 18,3 16,8 → One banking day less year- on-year in both main markets in Q1/2021. 11,0 → Proff companies 10,3 consolidated to Grou
Slide 25: Revenue by business area
Revenue by business area AT COMPARABLE FX RATES COMMENTS -1,2 % → Demand for consumer-related risk management services in the Risk Decisions business area continued to weaken moderately year-on-year, 24,3 24,0 but sales volumes for services have clearly recovered during the first quarter, despite th
Slide 26: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA increased year-on-year due to positive net 0,9 13,9 sales development of the scalable service offering, cost consciousness and prioritization, as well as realized cost synergies. → Increase y-on-y +12,4 % in Q1 2021. → FX comparable growth rate +9,9 %. 0,2
Slide 27: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 40,2 %. 12,5 → Cash flow from operating activities was supported by the 11,0 good development of the business but decreased on a 9,1 year-on-year basis mainly due to higher investments and timing of tax and other 7,3 7,3 6,9 pa
Slide 28: Key indicators
Key indicators COMMENTS EUR million (unless stated otherwise) Q1 / 2021 Q1 / 2020 FY 2020 → Cash position of EUR 31,2 Net debt 136,8 138,3 143,0 million (committed EUR 20 million facility remains fully Net debt / adjusted EBITDA 2,5 2,8 2,6 unutilized). → Net debt / adjusted EBITDA Gearing, % 46,6 4
Slide 29: Guidance 2021
Guidance 2021 Guidance1 Released 12 February 2021, unchanged 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 i
Slide 30: 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. 30 Enento Group Plc 29.4.2021
Slide 31: Changes in the management
Changes in the management ENENTO GROUP PLC, STOCK EXCHANGE RELEASE ON 21 APRIL 2021 AT 9.00 A.M. EEST Enento Group’s CEO Jukka Ruuska leaves the company Enento Group Plc’s CEO Jukka Ruuska has given notice of his resignation from the company. The Group’s Board of Directors will start the recruiting
Slide 32: Financials summary
FINANCIALS Q1 / 2021 SUMMARY 32 Enento Group Plc 29.4.2021
Slide 33: Q1 / 2021 Income statement
Q1 / 2021 Income statement EUR million Q1 / 2021 Q1 / 2020 FY 2020 Net sales 39,7 37,6 151,3 Other operating income 0,2 0,2 0,6 Materials and services -6,6 -6,1 -25,4 Personnel expenses -10,3 -9,6 -36,8 Work performed by the entity and capitalised 1,0 0,7 2,7 Other operating expenses -9,8 -10,7 -43,
Slide 34: Q1 / 2021 Cash flow
Q1 / 2021 Cash flow EUR million Q1 / 2021 Q1 / 2020 FY 2020 Cash flows from operating activities Cash flows before change in working capital 14,1 12,3 48,7 Change in working capital -1,6 -0,3 0,4 Net interests and other financing items -0,1 -0,1 -2,5 Income taxes paid -2,9 -1,7 -5,7 Net cash from op
Slide 35: Sustainability at Enento Group
Enento Group’s environmental We contribute to impact. a more sustainable economy in society. Sustainability We help our at Enento Group customers make sustainable Enento decisions. Group as a sustainable 35 Enento Group Plc 29.4.2021 workplace.
Slide 36: Thank you!
THANK YOU! Time for Q&A 36 Enento Group Plc 29.4..2021
Slide 37: 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 37 Enento Group Plc 29.4.2021