Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q3 2023 Earnings Presentation
39 slides from Enento Group Oyj's earnings presentation, Oct 27, 2023
Slide 1: Enento Group Plc Investor Presentation October 2023
Enento Group Plc Investor Presentation October 2023 Enento Group Plc – Investor Presentation Q3 2023
Slide 2: 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 3: Our Purpose: We build trust in the everyday
Our Purpose: We build trust in the everyday. We collect and transform data to intelligence and knowledge used in interactions between people, businesses and society.
Slide 4: Enento as an investment
Enento as an investment 1 Nordic presence with strong market position, trusted well-known brands and resilient, scalable business model 2 Attractive markets with strong dynamics 3 Business critical services using proprietary data 4 Diversified client base across all products and services based on st
Slide 5: Enento Group at a glance
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 30 September 2023 Building trust in the everyday. HELSINKI. 510 MEUR NET SALES, YTD ADJUSTED EBITDA, YTD In Finland we operate under 30 September 2023 30 September 2023 the brands Asiakastieto and Emaileri, in Sweden 117,0 43,7 Partners in Eur
Slide 6: Executive Management Team
Executive Management Team Jeanette Jäger Elina Stråhlman Siri Hane Gabriella Göransson Andreas Darner CEO CFO Director Director Director Business Insight Consumer Insight Strategy and Transformation Business Area Business Area Karl-Johan Werner Arto Paukku Sari Ek-Petroff Daniel Ejderberg Mikko Kare
Slide 7: Strong track record of organic growth and M&A execution
Enento has a strong track record of organic growth and M&A execution 1976 2019 1905 The credit 2011 2017 Acquired Proff, an Suomen information Acquired Allabolag Acquired Emaileri, a information services Luotonantajayhdistys company UC in in Sweden 2015 Finnish provider of provider operating is foun
Slide 8: Scale through value-adding, intelligent services built on data
We build scale through value-adding, intelligent services built on data collected from various sources …based on a variety Unique datasets and services… of data sources Company Advanced analytics Banks data ✓ Provides both cyclical and countercyclical products and services Decision scoring Monitorin
Slide 9: Strategic customer relationships, strong local brands set high barriers to entry
Strategic customer relationships, strong local brands, and integrated services set high barriers to entry A reputation built over decades Embedded into critical processes Long-term customer relationships and Our data and value-added services are trust in our local brands with long-standing integrate
Slide 10: Two business areas serving companies and consumers in the Nordics
Two business areas serving more than 76.000 companies and 500.000 consumers in the Nordics 1 Business Insight1 2 Consumer Insight Share of net sales 43% (YTD 2023) 57% Enterprise Solutions, Premium Solutions, Freemium Solutions Consumer Credit Information, Consumer Marketing Information, Real-estate
Slide 11: Stable net sales and profitability; adjusted EBITDA margin improved
Net sales and profitability development have been stable during the turbulent years, and adjusted EBITDA margin has improved EUR million Adjusted EBITDA % 180 168 40 164 160 151 39 146 134 38 140 36,6% 37 Adjusted EBITDA % 36,2% 120 35,7% 36 35,3% Net Sales 100 35 Adjusted EBITDA 80 34 60 33 31,3% 3
Slide 12: Innovation at Enento: new and enhanced services
Innovation at Enento: New and enhanced services driving growth and increasing customer loyalty Investing in future growth Share of new services* from group net sales ✓ Growth in selected strategic growth areas, such as the ESG and compliance, by driving 11,1% innovation and developing new services 1
Slide 13: Group Strategy
Group Strategy 13
Slide 14: Strategy focused on execution for growth and EBITDA margin expansion
Enento Group strategy is focused on execution to deliver consistent growth and EBITDA margin expansion Strategic goals 2024 -2026 targets Retain and strengthen our leading position in 5-10% average annual net sales growth the credit information business Around 40% Adjusted EBITDA Become the leading
Slide 15: Attractive growth dynamics in the data market
Attractive growth dynamics in the data market driven by the compelling industry trends Market drivers during the strategy period EMEA region data-as-a-service growth >8% p.a. Data and analytics as a service Tightening Global KYC and AML IT spend growth >20% p.a. Increased regulation focus on increas
Slide 16: Gaining market share in the 600 MEUR addressable market
Growing from Enento’s strong Nordic foothold to gain market share in the 600 MEUR addressable market Sweden and Finland are the largest Nordic ✓ markets, driven by data availability and overall price point Credit, Sales & Marketing and Compliance Nordic market size €600mm Enento is a leading credit
Slide 17: Road to 5-10% average annual growth
Road to 5-10% average annual growth in 2026 consists of underlying market growth, price increases, market penetration and new services Indicative 5-10% Market growth Market penetration, current offering New Services Organic growth M&A Total growth cross-sell, up-sell and pricing GDP Growth Increasin
Slide 18: Solid core credit growth with ESG, compliance and master data
Solid growth expected in the core credit business with additional growth to be prioritized through ESG, compliance and master data GROWTH OPPORTUNITIES Growth avenues Fraud PSD2 • Strong competitive position in core consumer and business credit information business in Finland and Compliance Sweden.
Slide 19: Road to margin expansion through scalable growth
Road to margin expansion through scalable growth, remodelled sales and distribution, Nordic consolidation of capabilities and cost efficiencies • New services in strategic growth areas and continuous enhancing of existing offerings Investing in scalable • Expansion to selected new and underdeveloped
Slide 20: Q3 2023
Q3 2023 Enento Group Plc – Investor Presentation Q3 2023
Slide 21: Weak Swedish consumer credit demand impacts net sales
Weak Swedish consumer credit demand impacts net sales, strong performance by Business Insight in Finland and Norway Quarter in brief Key figures -2,2%** Net Sales & Profitability Customer Experience Net sales -0,9%* Adjusted EBITDA -5,5%** Net sales declined 0,9%* as consumer credit Q3 NPS of 47 fro
Slide 22: Efficiency Program proceeding according to plans
Efficiency Program proceeding according to plans: EUR 5,3M run-rate impact achieved by end of Q3, equaling to 65% of FY2024 targeted benefits of EUR 8M • Impact from reduced number of FTEs visible from Q2 2023 FTE Efficiency onwards • Application service transition in Sweden in handover phase • IT i
Slide 23: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES +4,8% Q3 / 2022 20,9 Q3 / 2023 COMMENTS 19,9 -7,2% 17,8 → Business Insight growth excluding 16,5 Tambur impact* was +4,8%. Net sales developed well in Enterprise, Premium and Compliance. → In Consumer Insight, low consumer lending volumes impact
Slide 24: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA margin 38,9%, margin declined with -1,4%p y-on-y at 0,8 comparable rates and -1,2%p y-on-y at 0,1 reported rates. 0,2 0,4 → Adjusted EBITDA decreased year-on-year 0,0 0,1 due to challenging market conditions resulting in lower revenue especially in 16,2 cre
Slide 25: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Free cash flow remains strong but decreased compared with the 10,5 corresponding quarter mainly due to 10,0 10,0 10,1 9,9 decline in EBITDA and change in working capital that was partly offset by lower tax payments and lower development investmen
Slide 26: Key indicators
Key indicators EUR million (unless stated otherwise) Q3 / 2023 Q3 / 2022 FY 2022 COMMENTS Net debt 145,6 143,4 131,8 → Cash position at EUR 8,7 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,4 2,4 2,2 remains fully unutilized). → Net debt / adjusted EBITDA at 2,4x. → Gross i
Slide 27: Enento as an investment
Enento as an 1 n investment _°.,/) Le, ~~. S sail
Slide 28: Strong free cash flow enabling shareholder returns
Strong free cash flow enabling shareholder returns through dividends and share buybacks Free cash flow Dividend payout Share buyback Dividend per share, EUR EUR million 1,00 1,00 35 34 0,95 0,95 0,95 32 33 30 30 25 24 24 23 23 23 20 16 15 10 5 5 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 20
Slide 29: Guidance 2023
Guidance 2023 (Updated 9 October 2023) Net sales Enento Group expects net sales in 2023 to decline between 0% - 1,5% excluding the impact from the discontinued Tambur service at comparable exchange rates as compared to 2022. Adjusted EBITDA Enento Group expects its adjusted EBITDA margin to be in th
Slide 30: Enento as an investment
Enento as an investment 1 Nordic presence with strong market position, trusted well-known brands and resilient, scalable business model 2 Attractive markets with strong dynamics 3 Business critical services using proprietary data 4 Diversified client base across all products and services based on st
Slide 31: Appendix
Appendix Enento Group Plc – Investor Presentation Q3 2023
Slide 32: Enento Group organization
Enento Group Jeanette Jäger Not in Executive CEO Management Team Legal Strategy Transformation Martin Smedberg Andreas Darner Business Insight Siri Hane Data & MarCom & Human IT & Sales Finance Analytics Customer Resources Technology Operations Mikko Elina Consumer Insight Karl-Johan Sari Daniel Kar
Slide 33: Sustainability at Enento Group
SUSTAINABILITY AT ENENTO GROUP The sustainability focus areas of Enento support Sustainable Development Goals by the United Nations We help our Enento Group’s Enento Group as We contribute to a customers with environmental a sustainable more sustainable sustainable impact. workplace. economy in the
Slide 34: Sustainability strategy 2023 status H1 2023
Sustainability strategy 2023 Status H1 / 2023 OUR PURPOSE WE BUILD TRUST IN THE EVERYDAY BETWEEN PEOPLE, BUSINESSES AND SOCIETY STRATEGIC SUSTAINABILITY FOCUS AREAS ENENTO GROUP AS AN ENABLER OF A ENENTO GROUP´S PRODUCT DEVELOPMENT OF ENENTO GROUP’S ENENTO GROUP AS SUSTAINABLE ECONOMY SUSTAINABLE SE
Slide 35: Financial KPIs
Financial KPIs Net sales Adjusted EBITDA Adjusted EBITDA margin % 163 168 59 61 35,3 35,7 36,2 36,6 146 151 52 54 31,3 134 42 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Free Cash Flow Adjusted EBIT Dividend per share 32,1 32,6 33,9 35,3 35,7 36,2 36,6 0,95 0,95 0,95 1
Slide 36: Solid revenue and profitability development track
Solid revenue and profitability development track 2022 +5,1% at +2,5% 2022 +5,9% at comparable FX rates comparable FX rates +3,5% +8,0% +9,5% 3,6% +8,7% 168 61,2 163 +22,3% 4,9% 59,1 +4,1% 151 54,0 146 -2,3% 51,5 134 129 43,1 42,1 36 6,0 +14,2% +5,9% +21,0% +12,6% 24,8 56 20,5 21,7 49 44 98 36,1 201
Slide 37: 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 38: Dividend policy and history
Dividend policy and history Dividend per share, EUR 1,00 1,00 1,00 0,95 0,95 0,95 0,95 Dividend Policy 0,90 • The Company’s dividend policy is to distribute as dividends at least 70 per cent of the Company’s net profit, taking into consideration the business development and investment needs of the G
Slide 39: Enento Group Plc
Enento Group Plc Arto Paukku Investor Relations Officer +358 50 469 5380 arto.paukku@enento.com 39