Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Investor Day (November 2020)
86 slides from Enento Group Oyj's investor day presentation, Nov 25, 2020
Slide 1: Welcome to Enento Group's Virtual Capital Markets Day
" WELCOME TO ENENTO GROUP’S VIRTUAL CAPITAL MARKETS DAY
Slide 2: CMD 2020 agenda
12.00 Opening of Enento Group’s CMD 2020 13.30 Our key focus areas in Business Processes as a Service Mikko Karemo, Director of Sales and Customer Operations Heikki Ylipekkala, Director of Digital Processes Q&A 12.05 Building trust in the everyday Jukka Ruuska, CEO 13.50 Technology oriented innovati
Slide 3: Q&A instructions
ENENTO GROUP 2020 VIRTUAL CAPITAL MARKETS DAY Q&A after each presentation and at the end of the event. Questions can be submitted through the form in the webcast window during the presentations. 3 Enento Group PLC – Capital Markets Day 2020
Slide 4: 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 5: Building trust in the everyday
Building trust in the everyday Jukka Ruuska, CEO
Slide 6: Enento Group
Enento Group NET SALES 30.9.2020 36,7 MEUR MARKET CAPITALISATION One of the leading providers of digital 30.9.2020 business and consumer information services in the Nordic countries. 816 MEUR LISTED ON Partners in Nordic NASDAQ HELSINKI region and in Europe. Since 2011 BUSINESS AREAS Approximately 5
Slide 7: In these uncertain times, trust is more relevant than ever
In these uncertain times, the trust is more relevant than ever. 7 Enento Group PLC – Capital Markets Day 2020
Slide 8: We build trust in the everyday
We build trust in the everyday. 8 Enento Group PLC – Capital Markets Day 2020
Slide 9: New opportunities for creating value
New business areas and models: Rise of fintech, Changes in legislation New technology. sharing economy and regulation. Digitalization. and ecosystems. Sustainability. New opportunities for creating value Need for trust, privacy and Agility. Explosive control of private data. Innovation. growth of da
Slide 10: New opportunities for creating value
New business areas and models: Rise of fintech, Changes in legislation New technology. sharing economy and regulation. Digitalization. and ecosystems. Sustainability. New opportunities for creating value Need for trust, privacy and Agility. Explosive control of private data. Innovation. growth of da
Slide 11: New opportunities for creating value
New business areas and models: Rise of fintech, Changes in legislation New technology. sharing economy and regulation. Digitalization. and ecosystems. Sustainability. New opportunities for creating value Need for trust, privacy and Agility. Explosive control of private data. Innovation. growth of da
Slide 12: New opportunities for creating value
New business areas and models: Rise of fintech, Changes in legislation New technology. sharing economy and regulation. Digitalization. and ecosystems. Sustainability. New opportunities for creating value Need for trust, privacy and Agility. Explosive control of private data. Innovation. growth of da
Slide 13: New opportunities for creating value
New business areas and models: Rise of fintech, Changes in legislation New technology. sharing economy and regulation. Digitalization. and ecosystems. Sustainability. New opportunities for creating value Need for trust, privacy and Agility. Explosive control of private data. Innovation. growth of da
Slide 14: New opportunities for creating value
New business areas and models: Rise of fintech, Changes in legislation New technology. sharing economy and regulation. Digitalization. and ecosystems. Sustainability. New opportunities for creating value Need for trust, privacy and Agility. Explosive control of private data. Innovation. growth of da
Slide 15: New opportunities for creating value
New business areas and models: Rise of fintech, Changes in legislation New technology. sharing economy and regulation. Digitalization. and ecosystems. Sustainability. New opportunities for creating value Need for trust, privacy and Agility. Explosive control of private data. Innovation. growth of da
Slide 16: Scalable 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 16 Enento Gro
Slide 17: 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 18: Customer needs as growth drivers
Customer needs as growth drivers Improving Digitalization quality of of data decisions. intensive processes. New data Analytics Decisioning Compliance Better data Housing Machine Learning Algorithms Procurement Etc. 18 Enento Group PLC – Capital Markets Day 2020
Slide 19: Our strategic offering goals and enablers
Our strategic offering goals and enablers 1. 2. 3. Retain and strengthen our Be the first choice in data- Become the leading leading position in the driven business processes provider of business credit information business. as a service. information. GROWTH OPPORTUNITIES Fraud Machine Learning Anal
Slide 20: Chosen strategic initiatives in service development
Chosen strategic initiatives in service development Nordic New business sustainability Digitalization information service suite of housing- opportunities for with a comprehensive related range of services that are customers needed by customers for services Advanced applications, risk management, cre
Slide 21: Economic activity and transactions support growth
Economic activity and the amount of transactions support growth Net Sales Volume Combined growth from volume and new services New services GDP 0% 21 Enento Group PLC – Capital Markets Day 2020
Slide 22: 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 23: Sustainability at Enento Group
SUSTAINABILITY AT Enento Group We help our customers We contribute to make a more sustainable sustainable economy decisions. in society. Enento Group’s Enento Group as environmental a sustainable impact. workplace. 23 Enento Group PLC – Capital Markets Day 2020
Slide 24: Thank you! Time for Q&A
THANK YOU! Time for Q&A 24 Enento Group PLC – Capital Markets Day 2020
Slide 25: Preferred partner in credit information
Preferred partner in credit information Heikki Koivula, Director of Risk Decisions & Eero Arvonen, Solution Architect
Slide 26: Credit information services are at the core of Enento business
Credit information services are at the core of Enento business. In the Nordic market, we are the preferred partner of our customers and have a key societal role in the prevention of over-indebtedness. Our unique data capabilities, operational and regulatory excellence and focus on real-time data and
Slide 27: Strong position with mission-critical services
Strong position with mission-critical services Mission-critical services for Information quality is key High barriers to entry General risk management Attributes that customers consider important Long-term customer relationships Credit risk management Data Financial management accuracy 93% D
Slide 28: Long-term customer relationships with high integration and strong brand
Long-term customer relationships with high integration and strong brand Strong loyalty among all our Strong brand built on high reliability B2B customers on a Nordic level High perceived reliability Net Promoter Score (NPS) 3 4 2 4.3 1 5 28 Enento Group PLC – Capital Markets Day 2020
Slide 29: Retain and strengthen leading position in credit information
Retain and Strengthen our leading position within our credit information business STRATEGIC GROWTH OPPORTUNITIES Fraud Sustainability Regulation Analytics Over-indebtedness Leading Artificial New Customer Verticals Intelligence & Machine Preferred Partner Operational and & New Use Cases Learning in
Slide 30: Opportunity in Sustainability
Opportunity in Sustainability How are consumers´ sustainability expectations driving change in society? Source: Cone Communications CSR Study 2017 30 Enento Group PLC – Capital Markets Day 2020
Slide 31: Opportunity in Sustainability
Opportunity in Sustainability How to manage Sustainability requirements in SME lending efficiently? How to set and incorporate ESG factors into credit decision making in relation to >500 000 active SME´s in the market? How to manage the credit risk frameworks and policies with increased sustainabili
Slide 32: Validated customer needs
Validated customer needs Integrated Credit & ESG services – for sustainable lending use case “Sustainability helps us to better understand the customers future debt paying capability. Companies that prove themselves to be sustainable will get better loan margins because of the reduced risks.” “Posit
Slide 33: MELEX program
MELEX program How to become the leader in Machine Learning in Credit Risk Management Traditional approach • Use of logistic regression to predict probability of default = score • Mainstream across lending since 1980s • Provides easy interpretation on what is driving the risk up and down • Transparen
Slide 34: MELEX program
MELEX program How to become the leader in Machine Learning in Credit Risk Management MELEX program roadmap • Banking authorities will release new guidelines for use of Machine Learning in Credit Risk Management within foreseeable future • The program explores and builds regulation compliant models f
Slide 35: Opportunity in Regulation
Opportunity in Regulation EBA Guidelines in loan origination and monitoring 2021 drives the need for new services European Banking Authority Guidelines with a comprehensive scope covering full lifecycle process of loans Guidelines will be sequentially implemented from 30th of June 2021 Enento will s
Slide 36: Opportunity in Open Banking
Opportunity in Open Banking Account Insight (PSD2) Service Account Insight can access account Account Insight is an account data and transaction data with the aggregator API for customers. authorization of the end-user (consumer or company) Account Insight categorizes and Account Insight calculates
Slide 37: Demo
Demo 37 Enento Group PLC – Capital Markets Day 2020
Slide 38: Thank you! Time for Q&A
THANK YOU! Time for Q&A 38 Enento Group PLC – Capital Markets Day 2020
Slide 39: Business Information as an enabler in today's business environment
Business Information as an enabler in today’s business environment Karl-Johan Werner, Director of Customer Data Management
Slide 40: New innovations mean new business opportunities for customers
New innovations mean new business opportunities for our customers Advanced applications Sophisticated techniques New ways of working Machine learning Customer journeys Artificial intelligence / Deep learning / Neural networks Customer Lifecycle Management Text mining Natural Language Processing Auto
Slide 41: Access to data is a prerequisite
Access to data is a prerequisite to utilize all these new opportunities! Quality is a big Anything digital Data is key but issue in the market need data to work! quality matters! today but also a great opportunity! ”Poor data quality can have grave consequences, from strategic decisions that can lea
Slide 42: Demand for 3rd party customer data is huge and increasing
The demand for 3rd party customer data and information service is huge and increasing >300 MEUR >100 USE CASES >100 PLAYERS MARKET 42 Enento Group PLC – Capital Markets Day 2020
Slide 43: A clear market leader in Finland, strong in Sweden and Norway
A clear market leader in Finland and strong positions in Sweden and Norway… …and we target to be the leader in the Nordics. Since 2011 Since 2004 Since 1977 Since 1905 Since 2006 Since 2007 43 Enento Group PLC – Capital Markets Day 2020 Since 2011
Slide 44: The right strengths to consolidate the market leader position
The right strengths needed to consolidate and strengthen the position as the market leader 1 2 3 Deep knowledge of Built for scalability – easy Already supporting developing high quality to add and monetize customers with a majority data, insights & solutions from new use cases of existing use cases
Slide 45: High quality is key but other aspects matter too
High quality is key but there are other important aspects as well for our customers! High Quality & Value added High User Coverage Insights Availability Experience FOCUS AREAS 2020-2023 Great quality Great refined data Great integrations Great interfaces data services Dedicated Resources & Clear Res
Slide 46: Customer use cases to drive development of core capabilities
Customer use cases to drive the development of our core capabilities THE STORY Current business Use case 1 Use case 2 Use case 3 Quality data Coherent customer experience Refined data services Integrators Efficient Interfaces 46
Slide 47: Prioritized use cases 2021
Prioritized use cases 2021 The best user-interface The most The most to multiple data and comprehensive comprehensive information sources, information services database with the for correct and easy with easy integrations highest quality about look-up & research of for updating & decision makers in
Slide 48: Supporting better use of marketing automation
How we support better utilization of marketing automation functionality – An example Customers External digital Customer Webb/app Email/text Postal Office channels Service Outbound communication Inbound communication Customer journeys Triggers, classifications, models & lists 1st Party Data 2nd Part
Slide 49: On the way to leading business information provider in the Nordics
We are already on the way to become the leading provider of business information in the Nordics 49
Slide 50: Thank you! Time for Q&A
THANK YOU! Time for Q&A 50 Enento Group PLC – Capital Markets Day 2020
Slide 51: Break
Break
Slide 52: Our key focus areas in Business Processes as a Service
Our key focus areas in Business Processes as a Service Heikki Ylipekkala, Director of Digital Processes
Slide 53: Dispersed processes with non-standardized information exchange
Many processes are currently dispersed, involving several parties, and using various non-standardized ways to exchange information. We help our customers to digitalise and automate those processes and connect between various parties. We can provide our customers true process automation with greater
Slide 54: Key focus areas in Business Processes as a Service
Our key focus areas in Business Processes as a Service Discovering opportunities: Housing E-ID, DLT and Transaction other relevant Collateral developing processes Management areas processes Compliance related processes 54 Enento Group PLC – Capital Markets Day 2020
Slide 55: No 1 Choice in data-driven Business Processes as a Service
No 1 Choice in data-driven Business Processes as a Service Our goal is to be No 1 in Real Estate and Apartment transaction processes and related information services and we provide the best quality Compliance and other process related solutions in the Nordics. Furthermore, we continuously look new a
Slide 56: Streamlining our customer's business processes
Streamlining our customer’s business processes Example: Housing related services for financial sector Financial sector business processes Collateral Loan lifecycle: Object Transaction management: Loan changes information and process Ownership and valuation registrations and collateral pledgings. mon
Slide 57: Case BRF Hub
Case BRF Hub* Streamlining processes for Real Estate Brokers, Banks and Housing Associations in Sweden *Brf=Bostadsrättsförening 57 Enento Group PLC – Capital Markets Day 2020
Slide 58: Challenge
Challenge There is no central register for Housing Associations (Brf) in Sweden. Responsibility lies with each Brf Board to maintain and update their registers. By law each Brf Board is required to keep three registers: members, Lien = Pledge apartments and liens. Brf Boards can outsource the task o
Slide 59: Solution
Solution* Digital hub for interaction between three main blocks of players: 1) Brf Boards and their appointed Administrators as well as Brf Members, 2) Real Estate Brokers and 3) Banks. Requisite Brf registers would be part of the hub, thereby making it possible to digitalize and automate the proces
Slide 60: Solution
Solution* Brf Brf Brf Broker Administrator Board Member UC Brf Registers in UC Information Connectivity & HUB standardised • Brfs Usability • Annual Reports formats • Apartment IDs • Members • Buildings • Apartments • Land • Liens • Valuations Seller Bank Information Buyer Bank * Project started in
Slide 61: Other key priorities
Other key priorities Nordic Compliance Services Beneficial Owner Information PEP and Sanction List services Discovering new opportunities E-ID (Electronic Identification) , DLT (Distributed Ledger Technology) and other relevant developing areas Co-operation with our customers and other key stakehold
Slide 62: Thank you! Time for Q&A
THANK YOU! Time for Q&A 62 Enento Group PLC – Capital Markets Day 2020
Slide 63: Technology oriented innovative company: Nordic Future Platform
Technology oriented innovative company: Nordic Future Platform Jörgen Olofsson, CIO
Slide 64: Background – Potential in breaking the silos
Background – Potential in breaking the silos Customer Customer Customer Customer Customer Sales Channels Sales Channels Sales Channels Sales Channels Sales Channels Delivery Delivery Delivery Delivery Delivery Products & Products & Products & Products & Products & Services Services Services Services
Slide 65: Enento will invest 25-30M EUR by 2025 in Nordic IT platform
Enento will invest 25-30M EUR by 2025 to scalable Nordic IT platform New and renewed Business First products & Principle services Integrate data Consolidate sources On-board Develop Nordic customers capabilities 65 65 Enento Group PLC – Capital Markets Day 2020
Slide 66: Platform transformation opens door to accelerate growth
Platform transformation opens door to accelerate growth and increase profitability Growth Current business growth rate increases Share of new services and net sales increase Profitability Enable EBITDA growth exceeding the percentage growth of respective Since 2011 net sales Since 2004 Reduce IT OPE
Slide 67: Transformation from siloes into Nordic Platforms
Transformation from siloes into Nordic Platforms Current state Vision of target state Customer Customer Customer Customer Customer Customer Customer Customer Sales Sales Sales Sales Sales Sales Sales Sales Channels Channels Channels Channels Channels Channels Channels Channels Delivery Delivery Deli
Slide 68: Nordic User Experience
Nordic User Experience New nordic front-end Business capabilities API based integration layer 68 68 Enento Group PLC – Capital Markets Day 2020
Slide 69: This is a business transformation
This is a business transformation Efficient data management Business Modern ways capabilities, of working modern technology Security & New products compliance Business Customer Support System migration Nordic Nordic business Infrastructure architecture Future consolidation Platform 69 69 Enento Grou
Slide 70: Nordic Future Platform will enable better customer value
Nordic Future Platform will enable better customer value Efficiency Cross market synergies Customer Value Grow in Nordic markets Nordic Future Platform Strengthen business offering 70 Enento Group PLC – Capital Markets Day 2020
Slide 71: Significant benefits expected from 2024 onwards
We expect to see significant benefits from 2024 onwards. Benefits will start to accumulate gradually along with customer migrations and decommissioning of legacy systems Lower IT Operational Costs • Lower maintenance costs & switch from maintenance to development • More efficient operations and infr
Slide 72: Summary
Summary We invest in our future by doing a business transformation It will be business driven We will be more efficient and faster We will have a new technology platform to accelerate growth We will go for Nordic products and services 72 Enento Group PLC – Capital Markets Day 2020
Slide 73: Thank you! Time for Q&A
THANK YOU! Time for Q&A 73 Enento Group PLC – Capital Markets Day 2020
Slide 74: Delivering shareholder value: growth and resilience
Delivering shareholder value: growth and resilience Elina Stråhlman, CFO
Slide 75: Nordic Growth Story – Solid track in shareholder value creation
Nordic Growth Story – Solid track in shareholder value creation We’ve built a strong Nordic presence and are well-positioned We have delivered consistent growth to deliver long-term growth & value since going public We have a proven track record of We have considerable opportunities leveraging M&A t
Slide 76: Solid Revenue & Profitability track since IPO
Solid Revenue & Profitability track since IPO NET SALES MORE THAN TRIPLED SINCE IPO ADJUSTED EBITDA MORE THAN DOUBLED +8,7% +22,3% +4,1% 146 51,5 134 129 -2,3% 43,1 42,1 36 6,0 +5,9% +21,0% +14,2% 24,8 +12,6% 21,7 56 20,5 49 44 98 36,1 2 015 2 016 2 017 2 018 2 019 2015 2016 2017 2018 2019 Net Sales
Slide 77: Profitability trending positive, growth realizing with high margins
Profitability trending positive, and growth realizing with high margins ROLLING NET SALES & ADJ. ROLLING ADJUSTED EBITDA & EBITDA MARGIN (LTM*) GROWTH LEVERAGE (LTM*) 52,2 52,5 53,3 42 51,5 50,2 149,1 150,2 150,3 40 146,0 47,0 142,7 38 Net Sales LTM Adjusted EBITDA LTM 44,5 Adjusted EBITDA Margin, L
Slide 78: Reaching strategic goals
Reaching strategic goals WILL KEEP US ON GROWTH AND PROFITABILITY TRACK AMBITIONS ENABLERS New services Net Debt to Share of net sales 5–10% Adjusted EBITDA from new Strengthen our leading position within our credit information Revenue growth services growing business. Future fit & annually Strategi
Slide 79: Optimized capital allocation
With Optimized capital allocation, WE CONTINUE TO DRIVE GROWTH AND DELIVER SHAREHOLDER VALUE Innovation We drive long-term growth through internal innovation ~10% - New services - Nordic Offering CAPEX of revenue - Platform transformation Net Debt Add-on to Adjusted acquisitions We accelerate growth
Slide 80: Our business model supports healthy growth
Our business model supports healthy growth: Value creation through continuous and defensive revenue, constantly complemented by new scalable services 5% Other 95% continuous revenue, Fixed fees& 20% of which ~ 20% fixed subscriptions >50% of revenue generated from services integrated into customers.
Slide 81: Scalable business model and operating leverage
… and our scalable business model and operating leverage ensures that we can generate profitable growth Other 5% Adjusted Fixed fees& High operating leverage with ~75% fixed 20% EBITDA subscriptions costs margin 35% Variable 25% Data-acquisition costs Scalable, high-quality data assets with a and sa
Slide 82: Multiple growth drivers to build future growth on
We have multiple growth drivers to build our future growth on Service Development and Organic growth Strategic Initiatives Selective M&A Innovation • Transaction volumes • Incremental, scalable new • Strengthening leading • Acquiring businesses that • Cross-Selling services position in credit have a
Slide 83: After strategy period: profitability step-up through Nordic platform
And after strategy period… Increased scalability through Nordic platform transformation will enable profitability step-up 0.000 Growth 48 0.000 Revenue Nordic Platform transformation will +5-10% 46 increase scalability and efficiency in service 0.000 Adj. EBITDA Margin 0.000 44 development and maint
Slide 84: Enento is a great long-term investment
Enento is a great long-term investment 1 • Unique and extensive data assets & knowhow High barriers of entry • Long-term customer relationships with high switch costs • High quality, reliable services & customer-centric development Stable resilient • High need for risk management services in recessi
Slide 85: Thank you! Time for Q&A
THANK YOU! Time for Q&A 85 Enento Group PLC – Capital Markets Day 2020
Slide 86: Q&A
Q&A