Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — H1 2024 Earnings Presentation
21 slides from Enento Group Oyj's earnings presentation, Jul 16, 2024
Slide 1: Enento Group Plc Half Year Financial Report
CEO Jeanette Jäger and CFO Elina Stråhlman 16 July 2024 Enento Group Plc Half Year Financial Report 1.1.2024-30.6.2024 Enento Group Plc – 16 July 2024
Slide 2: Key figures 2024 YTD
Key figures 2024 YTD Building trust in the everyday. Share of net Sales by NET SALES Business Area 2024 YTD FROM NEW SERVICES NET SALES 30.6.2024 14,7% 30.6.2024 75,7 MEUR BUSINESS 40 % INSIGHT ADJUSTED EBITDA 30.6.2024 ADJUSTED EBITDA MARGIN 30.6.2024 CONSUMER 60 % 26,5 MEUR 35,0 % INSIGHT FREE CAS
Slide 3: Key figures Q2 2024
Key figures Q2 2024 NET SALES -2,9%* ADJUSTED EBITDA -2,6% ADJUSTED EBITDA MARGIN 38,5 14,1 36,7 -2,5%* 0,2 pp-%* MEUR MEUR % FREE CASH FLOW 3,4% NET DEBT TO ADJUSTED EBITDA SHARE OF NEW SERVICES 6,1 2,6 15,3 1,6 pp-% MEUR X (2,4x) % * At comparable foreign exchange rates 3 Enento Group Plc – 16 Jul
Slide 4: Highlights Q2 2024
HIGHLIGHTS Q2 2024 NET SALES AND PROFITABILITY • Operations in Finland, Norway and Denmark continued positive development • Net sales declined by 2,9%* due to weak consumer credit information demand in Sweden • Efficiency measures and cost control in focus leading to 36,7%* Solid performance in Adju
Slide 5: Over 90% of targeted 10-MEUR efficiency benefits already achieved
Over 90% of targeted 10-meur efficiency benefits already achieved FTE EFFICIENCY Ò Further FTE efficiencies realized through voluntary redundancies Ò Application maintenance and development transition in Sweden and Finland continues and further efficiencies realized during the first half of the year
Slide 6: IT infrastructure consolidation is the key initiative in enhancing security and efficiency
IT infrastructure consolidation is the key initiative in enhancing security and efficiency STRATEGIC ONE NORDIC IT PROJECT OUTCOMES OBJECTIVES ENVIRONMENT TIMELINE Positive impact on Nordic consolidation profitability and of capabilities Enentos’s risk profile, 2025: generating shareholder Full bene
Slide 7: Digitalizing the customer experience in the Nordics with generative AI
Digitalizing the customer experience in the Nordics with generative AI Applications of AI Generative AI bots deployed on all B2B and B2C websites in four countries, initially for customer service, next enhancing sales and marketing CX & INNOVATIVE SERVICES Service Content User Interfaces Data Manage
Slide 8: Business Area Update
Looking Business Ahead Area Update 8 Enento Group Plc – 16 July 2024
Slide 9: Business Insight
Business Insight Positive net sales development in Finland, Highlights Q2 2024 Norway, and Denmark, while Sweden faced challenges due to the macroeconomic • Net sales growth continued in compliance and enterprise services in Finland, and in real estate information services environment. in both Finla
Slide 10: Consumer Insight
Consumer Insight Successful customer integrations with the Highlights Q2 2024 Finnish governmental credit register supported performance, while demand for • Launching the new open banking (PSD2) service in consumer credit information remains low, Sweden, with real-time data creating great potential
Slide 11: Looking Ahead
Looking Ahead 11 Enento Group Plc – 16 July 2024
Slide 12: Clear Priorities for 2024
Clear Priorities for 2024 Growth from own actions Advancing in the development and commercialization of new services in several strategic growth areas. Expanding into selected new customer verticals with a focus on market penetration. Continued cost control & progress in IT consolidation Achieved th
Slide 13: CFO Highlights
CFO Highlights 13 Enento Group Plc – 16 July 2024
Slide 14: Key figures Q2 / 2024
Key figures Q2 / 2024 Q2 / 2024 Net sales -2,9%* Adjusted EBITDA -2,5%* Adjusted EBITDA % Adjusted EBIT -7,3%* Net debt to adjusted EBITDA 0,2 pp-%* 38,5 14,1 36,7 10,9 2,6 0,2x MEUR MEUR % MEUR X Q2 / 2023 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 39,7 ME
Slide 15: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES +0,9% Q2 / 2023 22,8 23,0 Q2 / 2024 COMMENTS → Business Insight development remained -8,0% stable. Strong growth in real estate 16,8 services continued, thanks to new 15,4 services introduced. Continuing strong performance in Norway supported th
Slide 16: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA margin was 36,7%, increase with 0,2%p y-on-y at comparable rates and 0,1%p y-on-y at 0,0 0,2 reported rates. → Adjusted EBITDA decreased year-on-year 1,2 due to challenging market conditions 0,4 resulting in lower revenue especially in consumer credit infor
Slide 17: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion in Q2 2024 was 46,2% 10,5 (42,7%). Adjusted cash conversion, 10,0 10,1 comparing the adjusted free cash flow to Adjusted EBITDA was 51,1% (45,9%). 8,9 → Free cash flow remains still solid and increased slightly compared with the 7
Slide 18: Key indicators
Key indicators EUR million (unless stated otherwise) Q2 / 2024 Q2 / 2023 YTD / 2024 YTD / 2023 FY 2023 COMMENTS Net debt 143,3 147,7 143,3 147,7 139,7 → Cash position at EUR 11,1 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,6 2,4 2,6 2,4 2,4 remains fully unutilized). → Ne
Slide 19: Updated Outlook and Guidance 2024
Updated Outlook and Guidance 2024 The Company’s operating environment remains challenging due to uncertainty in the general economic situation, which is expected to continue to affect Enento’s financial performance. Enento’s Swedish consumer credit information sector continues to face a challenging
Slide 20: Thank You. Time for Q&A
Thank You. Time for Q&A 20 Enento Group Plc – 16 July 2024
Slide 21: 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 21