Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q4 2022 Earnings Presentation
30 slides from Enento Group Oyj's earnings presentation, Feb 13, 2023
Slide 1: CEO Jeanette Jäger / CFO Elina Stråhlman, February 13, 2023
CEO Jeanette Jäger / CFO Elina Stråhlman February 13, 2023 Enento Group Plc 13.2.2023
Slide 2: Enento Group
ENENTO GROUP 2022 LISTED ON MARKET CAPITALISATION NASDAQ 31.12.2022 Building trust in the everyday. HELSINKI. 514 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 31.12.2022 31.12.2022 the brands Asiakastieto and Emaileri, in Sweden 167,5 61,2 Partners in Europe and in the Nordic
Slide 3: Year ending with continued positive profitability development
Year ending with continued positive profitability development Q4/2022 in brief Net sales grew by Continued IT incident in Sweden Efficiency program Write-down of EUR 4,1%*. Growth driven improvement in affected some of our announced on 26 10,9 million of platform by Consumer Insight profitability wi
Slide 4: 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 5: Key highlights 2022
Key highlights 2022 Profitable Growth • Profitability started improving according to plans from Agenda Materializing Q3, and we have proactively acted to secure and improve our profitability Customers are our • Enento B2B NPS score outperforms finance industry highest priority peers: Business NPS 48
Slide 6: Efficiency program launched to secure profitable growth in the coming years
Efficiency program launched to secure profitable growth in the coming years Targeting EUR 8 million annualized benefits • Full free cash flow impact from 2025 onwards • More than half of benefits as permanent improvement in the adj. EBITDA • Main drivers IT efficiencies, reduction of no of employees
Slide 7: Reshaped Nordic Business Platform
Reshaped Nordic Business Platform 7 Enento Group Plc 13.2.2023 Building trust in the everyday.
Slide 8: Our long-term target state is a scalable business with intelligence at the core
Our long-term target state is a scalable 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 8 Enento
Slide 9: Transformation from siloes to a common Nordic production facility is still the strategic vision
Transformation from siloes to a common Nordic production facility is still the strategic vision Current state 2020 Our vision Customer Customer Customer Customer Customer Customer Customer Customer Sales Channels Sales Channels Sales Channels Sales Channels Sales Channels Sales Channels Sales Channe
Slide 10: New capabilities enabling service modernization while having consolidation focus in the mid-term
New capabilities enabling service modernization while having consolidation focus in the mid-term Mid-term 2020-2022 Long-term 2023-2026 Establish Nordic shared capabilities Mobilize change Transform products and services and Target establish state prerequisites Migrate customers Decommission legacy
Slide 11: A reshaped, business-driven approach is expected to yield better results going forward
A reshaped, business-driven approach is expected to yield better results going forward Identified NBP challenges Reshaped NBP – what will we do differently Expected results Transformation complexity Business-driven transformation Profitable growth Pace investment roadmap with agile product moderniza
Slide 12: Progress and benefit realization will be followed on stream level
Progress and benefit realization will be followed on stream level Prerequisites established by end of 2022 include new platform and modernized data-handling Future Transformation – NBP metrics Current Targets 2026 Establish Nordic % Nordic shared capabilities available TBD shared capabilities Transf
Slide 13: CFO Highlights
CFO HIGHLIGHTS 13 Enento Enento Group Group Plc 13.2.2023 Plc 13.2.2023
Slide 14: Key figures Q4 / 2022
Key figures Q4 / 2022 Q4 / 2022 2022 Net sales +4.1% Net sales +5,1% 42,9 MEUR Net debt to 167,5 MEUR adjusted Adjusted EBITDA +13,4% Adjusted EBITDA +5,9% EBITDA 16,0 MEUR Q4 / 2022 2,2x 61,2 MEUR Adjusted EBITDA margin Adjusted EBITDA margin 37,2 36,6 +3,1 pp-% +0,4 pp-% % % 14 Enento Group Plc 13
Slide 15: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES COMMENTS +4,2% Q4 / 2021 +7,1% → Business Insight net sales developed well 21,2 Q4 / 2022 in all business lines. 20,3 19,0 → Consumer Insight had a strong Q4 17,7 following the trend from previous quarters. Consumer credit services high growth c
Slide 16: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA increased significantly year-on-year due to 0,4 0,0 strong sales growth in scalable 0,7 services combined with successful 0,0 0,4 cost optimization and profitability 0,6 improvement actions. → Successful profitability measures leading to declining other ope
Slide 17: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion at 56,0%* 10,5 → Free cash flow increased mainly due to 9,9 10,0 10,0 lower development investments, while 9,1 impact of operating cash flow was close to flat. → Operating cash flow before change in 7,1 working capital increased i
Slide 18: Key indicators
Key indicators EUR million (unless stated otherwise) Q4 / 2022 Q4 / 2021 FY 2022 FY 2021 COMMENTS Net debt 131,8 141,6 131,8 141,6 → Cash position at EUR 20,8 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,2 2,4 2,2 2,4 remains fully unutilized). → Net debt / adjusted EBITDA
Slide 19: Way forward and 2023 guidance
WAY FORWARD AND 2023 GUIDANCE 19 Enento Group Plc 13.2.2023
Slide 20: Future outlook and guidance 2023
Future outlook and guidance 2023 Future Outlook1 The general macroeconomic environment remains uncertain and unpredictable and is expected to impact negatively on the growth outlook of the Group. The weakening demand for sales and marketing and direct-to-consumer services is expected to negatively i
Slide 21: Board of Directors' proposal on distribution of funds
Board of Directors’ proposal on distribution of funds Dividend per share, EUR 1,00 1,00 1,00 0,95 0,95 0,95 0,95 0,90 The Board of Directors proposes to the Annual General Meeting convening on 28 March 2023 that from the financial year ended 31 December 2022, funds be distributed as equity 0,77 0,61
Slide 22: Exciting year ahead
Exciting year ahead Building trust in the everyday Customer First Operational Excellence One Enento Empowered People Maximizing customer value Efficiency program and Synergy benefits and Ensuring we have a as we aim for a superior reshaped NBP striving for scaling on a Nordic level as learning organ
Slide 23: Thank you! Time for Q&A
THANK YOU! Time for Q&A 23 Enento Group Plc 13.2.2023 Building trust in the everyday.
Slide 24: Financials Q4 / 2022 Summary
FINANCIALS Q4 / 2022 SUMMARY 24 Enento Group Plc 13.2.2023
Slide 25: Overview of Q4 / 2022
Overview of Q4 / 2022 EUR million COMMENTS (unless stated otherwise) Q4 / 2022 Q4 / 2021 FY 2022 FY 2021 Net Sales 42,9 43,1 167,5 163,5 → Net sales declined 0,4 % at Growth (year-on-year, +4,1 % +6,0 % +5,1 % +5,9 % reported FX rates and grew 4,1 comparable fx) % at comparable FX rates. → Adjusted
Slide 26: Income statement
Income statement EUR million Q4 / 2022 Q4 / 2021 FY 2022 FY 2021 Net sales 42,9 43,1 167,5 163,5 Other operating income 0,1 0,1 0,4 0,7 Materials and services -6,8 -7,4 -27,7 -27,6 Personnel expenses -10,8 -10,5 -40,1 -39,7 Work performed by the entity and capitalised 0,3 1,3 3,6 3,9 Other operating
Slide 27: Cash flow
Cash flow EUR million Q4 / 2022 Q4 / 2021 FY 2022 FY 2021 Cash flows from operating activities Cash flows before change in working capital 15,7 14,4 60,6 57,9 Change in working capital -0,1 1,6 -4,0 -3,3 Net interests and other financing items 0,0 -1,0 -2,3 -2,1 Income taxes paid -1,7 -1,7 -9,5 -8,5
Slide 28: Net sales by quarter
Net sales by quarter COMMENTS 43,1 43,4 42,9 42,1 40,2 39,7 40,7 40,5 → Q4/2022 reported Net sales 38,6 growth continued in Consumer Insight and Business Insight while decline in Digital Processes due to Real Estate Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 28 Enento Gr
Slide 29: Net sales growth
Net sales growth Net sales growth at reported FX, year-on-year, % COMMENTS Net sales growth at comparable FX, year-on-year, % 14,7 → FX comparable growth rate +4,1 % in Q4/2022. → In Q4/2022 same number of 11,4 banking days both in Finland and Sweden. 7,2 7,1 6,0 5,4 5,2 4,8 4,9 4,0 4,4 4,1 3,1 2,6
Slide 30: Enento Group Plc
Enento Group Plc Arto Paukku IRO +358 50 469 5380 arto.paukku@enento.com Elina Stråhlman CFO +358 40 564 7877 elina.strahlman@enento.com 30 Enento Group Plc 13.2.2023