Enento Group Oyj · OMXHEX:ENENTO
Enento Group Oyj — Q4 2023 Earnings Presentation
30 slides from Enento Group Oyj's earnings presentation, Feb 9, 2024
Slide 1: CEO Jeanette Jäger, CFO Elina Stråhlman, 9 February 2024
CEO Jeanette Jäger, CFO Elina Stråhlman 9 February 2024 Enento Group Plc – 9 February 2024
Slide 2: Enento Group overview
ENENTO GROUP 2023 LISTED ON MARKET CAPITALISATION NASDAQ 31 December 2023 Building trust in the everyday. HELSINKI. 464 MEUR In Finland we operate under NET SALES 2023 ADJUSTED EBITDA 2023 the brands Asiakastieto and Emaileri, in Sweden 155,9 57,1 Partners in Europe and MEUR MEUR under UC, Allabolag
Slide 3: Strong profitability attained despite sluggish Swedish consumer credit demand
Strong profitability attained with effective efficiency measures, despite sluggish Swedish consumer credit demand Key highlights Q4 Net Sales & Customer Efficiency Empowering Profitability Experience Program People Net sales declined Q4 NPS reached a Efficiency Program Employee temperature 5,5%* as
Slide 4: Key figures full year 2023
Key figures full year 2023 Net sales -1,4%* Adjusted EBITDA -6,7% Adjusted EBITDA margin 155,9 57,1 36,6 -2,6%** -2,9%** -0,1 pp-%** MEUR MEUR % Free cash flow -5,8% Net debt to adjusted EBITDA Share of new services 32,0 2,4 9,5 4,9 pp-% MEUR X (2,2x) % Dividend of EUR 1,00*** per share proposed – r
Slide 5: Nordic integration and platform modernization remain relevant, adjusting pace
Nordic integration and platform modernization remain relevant, but adjusting the pace to prioritize efficiency and growth A declining market requires us to Main potential found in IT delivery We are executing on changes in our balance the modernization pace model, vendor consolidation and Nord
Slide 6: Efficiency Program: Planning for Extension and Expansion
Efficiency Program: Planning for Extension and Expansion EUR 6,3M run-rate impact achieved of initial EUR 8M target. Planning further actions to extend the program and reach benefits of EUR 10M. Impact from reduced number of FTEs in 2023 visible from Q2 2023 onwards FTE Efficiency Evaluating str
Slide 7: Services for sustainable lending and decision making are at the heart of our operations
Services for sustainable lending and decision making are at the heart of our operations Enento adheres to the principles of the UN Global Compact initiative We help our customers in Enento Group’s Enento Group as An enabler of environmental a sustainable sustainable sustainable impact workplace soci
Slide 8: Business Area Update Q4
BUSINESS AREA UPDATE Q4 8 Enento Group Plc – 9 February 2024
Slide 9: Strategy 2024-2026: Solid growth in core credit business
Strategy 2024-2026: Solid growth expected in the core credit business with additional growth to be prioritized through ESG, compliance and master data GROWTH OPPORTUNITIES Fraud PSD2 Growth avenues • Strong competitive position in core consumer and business credit information business in Finland and
Slide 10: Business Insight
Business Insight Business Overview Net Sales -1,1% The business area maintained its positive growth trajectory in Finland, Norway, and Denmark. However, in Sweden, macroeconomic headwinds have affected the demand EUR 22,6 million for Enento’s business information services. Organic, at comparable FX
Slide 11: Consumer Insight
Consumer Insight Business Overview Net Sales -11,1% Consumer Insight maintained stability in Finland throughout the fourth quarter, but encountered significant challenges in Sweden, where the decline accelerated as a result EUR 16,3 million of decreased demand for consumer credit information service
Slide 12: AI has two main areas of potential application in Enento's business
AI has two main areas of potential application in Enento’s business Applications of AI User interfaces INNOVATIVE SERVICES Service content Data management INTERNAL EFFICIENCY Tooling 12 Enento Group Plc – 9 February 2024
Slide 13: CFO Highlights
CFO HIGHLIGHTS 13 Enento Group Plc – 9 February 2024
Slide 14: Key figures
Key figures Q4 / 2023 -6,5%* Net sales -5,5%** Adjusted EBITDA -13,9%* Adjusted EBITDA % Adjusted EBIT -18,7%* Net debt to adjusted EBITDA -2,9 pp-%* 38,9 13,4 34,4 10,5 2,4 0,2x MEUR MEUR % MEUR X Q4 / 2022 Net sales Adjusted EBITDA Adjusted EBITDA % Adjusted EBIT Net debt to adjusted EBITDA 42,9 M
Slide 15: Revenue by business area
Revenue by business area GROWTH AT COMPARABLE FX RATES -1,1% Q4 / 2022 22,8 22,6 Q4 / 2023 COMMENTS -11,1% → Business Insight development turned into 18,4 decline, followed by challenges in 16,3 Swedish markets. Solid development in Finland, with strong growth in compliance and real estate services.
Slide 16: Adjusted EBITDA
Adjusted EBITDA COMMENTS → Adjusted EBITDA margin 34,4%, margin declined with -2,9%p y-on-y at comparable rates and -2,8%p y-on-y at reported rates. → Adjusted EBITDA decreased year-on-year due to challenging market conditions 2,7 resulting in lower revenue especially in 16,0 credit information serv
Slide 17: Free cash flow
Free cash flow COMMENTS Free cash flow, EUR million → Cash conversion in 2023 exceeded 60% and reached 62,6% (56,0%). Adjusted 10,5 10,0 10,0 10,1 cash conversion, comparing the adjusted free cash flow to Adjusted EBITDA, also 8,9 improved to 64% (56,1%). → Free cash flow remains solid but 7,1 7,1 d
Slide 18: Key indicators
Key indicators EUR million (unless stated otherwise) Q4 / 2023 Q4 / 2022 FY 2023 FY 2022 COMMENTS Net debt 139,7 131,8 139,7 131,8 → Cash position at EUR 17,4 million (committed EUR 30 million facility Net debt / adjusted EBITDA 2,4 2,2 2,4 2,2 remains fully unutilized). → Net debt / adjusted EBITDA
Slide 19: Dividend and 2024 Guidance
DIVIDEND AND 2024 GUIDANCE 19 Enento Group Plc – 9 February 2024
Slide 20: 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 1,00 0,95 0,95 0,95 0,95 0,90 Distribution of funds 2023 0,50 The Board of Directors proposes 0,77 0,61 to the Annual General Meeting a dividend of EUR 0,50 per share, followed by a second instalment up to E
Slide 21: Future Outlook 2024
Future Outlook 2024 The operating environment for Enento remains challenging and volatile due to the uncertainty in the general economic situation in our operating countries. This instability is expected to affect Enento’s financial performance, notably within the Swedish consumer credit information
Slide 22: 2024 Focus: Strategic Execution, Operational Efficiency, and Scalable Growth Initiatives
2024 Focus: Strategic Execution, Operational Efficiency, and Scalable Growth Initiatives Cost synergies achieved through continuous focus on efficiency activities, with progress being made towards further efficiencies in IT, digitalization of sales and marketing and other identified areas Growth fro
Slide 23: Thank you, Time for Q&A
THANK YOU Time for Q&A 23 Enento Group Plc – 9 February 2024
Slide 24: Financials Q4/2023 Summary
FINANCIALS Q4 / 2023 SUMMARY 24 Enento Group Plc – 9 February 2024
Slide 25: Overview
Overview EUR million Q4 / COMMENTS (unless stated otherwise) 2023 Q4 / 2022 FY 2023 FY 2022 Net Sales 38,9 42,9 155,9 167,5 → Net sales decreased by 9,3 % at Change (year-on-year, -6,5% 4,1% -2,6% +5,1% reported FX rates and by 6,5 % comparable fx) at comparable FX rates. → Adjusted EBITDA decreased
Slide 26: Income statement
Income statement EUR million Q4 / 2023 Q4 / 2022 FY 2023 FY 2022 Net sales 38,9 42,9 155,9 167,5 Other operating income 0,1 0,1 0,4 0,4 Materials and services -6,6 -6,8 -26,6 -27,7 Personnel expenses -10,3 -10,8 -40,1 -40,8 Work performed by the entity and capitalised 1,0 0,3 3,2 3,6 Other operating
Slide 27: Cash flow
Cash flow EUR million Q4 / 2023 Q4 / 2022 FY 2023 FY 2022 Cash flows from operating activities Cash flows before change in working capital 10,5 15,7 51,2 60,6 Change in working capital 2,7 -0,1 1,0 -4,0 Net interests and other financing items -0,5 0,0 -6,2 -2,3 Income taxes paid -1,6 -1,7 -9,1 -9,5
Slide 28: Net sales by quarter
Net sales by quarter Net sales, EUR million 43,1 43,4 42,9 40,7 40,5 40,0 39,7 37,3 38,9 COMMENTS → Q4/2023 reported Net sales declined in Business Insight and Consumer Insight. Business Insight declined by 1,1% excluding Tambur’s impact* Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 20
Slide 29: Net sales growth
Net sales growth Net sales growth at reported FX, year-on-year, % Net sales growth at comparable FX, year-on-year, % 7,2 7,1 6,0 4,8 4,9 COMMENTS 4,4 4,1 3,1 FX comparable change -6,5 % 2,6 2,3 → in Q4/2023. → In Q4/2023 -1 business day -0,4 both in Finland and Sweden. -1,7 -2,2 -3,5 -6,5 -7,8 -8,6
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