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Enento Group Oyj Audit Report / Information 2020
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Audit Report / Information
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Enento Group
Annual Review
2020
Building trust in the everyday.
YEAR IN BRIEF
CEO'S REVIEW
EMENTO GROUP
STRATEGY
BUSINESS OPERATIONS
RESPONSIBILITY
PERSONNEL
Contents
Enento Group's Annual Review
- Year in brief ... 3
- CEO's review ... 4
- Enento Group in figures ... 6
- Asiakastieto is now Enento Group ... 7
- Strategy 2020–2023 ... 8
- Nordic presence ... 9
- Business model ... 10
- Business areas ... 11
- Risk Decisions ... 12
- Digital Processes ... 14
- SME and Consumers ... 15
- Customer Data Management ... 16
- Sustainability ... 17
- Personnel ... 19
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Service development on the path of growth in spite of the unusual year
IN LINE WITH OUR NEW STRATEGY PUBLISHED IN MAY 2020, we have focused on the development of services that are based on new data elements, assisting our clients in digitalising their processes and enhancing their ability to respond to the changing challenges in the operating environment. In spite of the pandemic, we made progress in line with our targets with regard to the launch of new services and remained on the path of growth. The year 2020 showed that we at Enento have a strong capacity to adapt to changing circumstances and to work towards our common goals. Our strong commitment to growth as a Nordic operator will drive us in the right direction.
NET SALES 2015–2020
- Reported, EUR million
- Pro forma, EUR million
ADJUSTED EBITDA 2015–2020
- Reported, EUR million
- Pro forma, EUR million
NEW SERVICES’ SHARE OF NET SALES 2015–2020
- Reported, EUR million
- Pro forma, EUR million
NET SALES 151,3 EUR MILLION
The method for calculating the share of new products and services has been changed from the financial year 2017 onwards so that the total sales of products launched during the past 24 months are included in the shares. For the financial years 2015–2016, the share was calculated as the net sales of products and services launched during the past 12 months added by the change in net sales for products and services launched during the preceding 12 months.
3,7% NET SALES GROWTH
PERSONNEL 425 31.12.2020
ADJUSTED EBITDA 54,0 EUR MILLION
Year 2020
| MARCH | MAY | JUNE | JUNE | AUGUST | NOVEMBER | NOVEMBER |
|---|---|---|---|---|---|---|
| Financial guidance for 2020 cancelled (COVID-19) | New strategy and financial targets 2020–2023 | Annual General Meeting | Distribution of funds EUR 0.61 per share | New financial guidance for 2020 | Capital Markets Day | Distribution of funds EUR 0.34 per share |
| 27.3. | 8.5. | 12.6. | 25.6. | 6.8. | 25.11. | 26.11. |
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BUSINESS OPERATIONS
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PERSONNEL
An eventful year with good results
The new decade began in an unprecedented way as COVID-19 grew into a global pandemic early in the year. This led to a situation that hardly anyone was prepared for. Nevertheless, we were able to quickly establish new practices to keep our operations going and also take into account the resulting changes in customer needs.
IN SPITE OF THE UNEXPECTED START, it turned out to be a good year for Enento in many ways. We were able to safeguard the health of our employees, while our services helped secure our customers' key business processes and our favourable financial development continued.
Enento's net sales amounted to EUR 151,3 million, representing growth of 3,7 per cent. Our Adjusted EBITDA rose to EUR 54,0 million, an increase of 4,8 per cent. Adjusted EBIT came to EUR 45,0 million, up 5,5 per cent. The rate of development of new products and services was also faster than in the previous year. Their share grew to 5,6 per cent of net sales.
The impacts of COVID-19 varied
The COVID-19 pandemic affected the demand for our services in various ways. Consumer behaviour changed – quite radically in some respects – due to various restrictions, which reduced the need for consumer-related risk management services and consumer marketing. At the same time, the accelerating transition to online service consumption and e-commerce increased the demand for online consumer services and electronic processes. For example, housing and property transactions could be completed largely without face-to-face interaction. Our significant investments in the digitalisation of services and processes over the past
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GEOGRAPHY
ENCENTO GROUP
STRATEGY
BUSINESS OPERATIONS
RESPONSIBILITY
PERSONNEL
several years proved to be appropriate and we took advantage of our capacity to create new digital solutions in response to the needs arising from the pandemic.
Although we haven't been able to meet with our customers and colleagues face to face, cooperation at Enento has remained at least as active as before. We received high scores in our NPS index, which is an indicator of the customer experience. The results of our personnel survey also improved, which showed that we have been able to maintain a strong team spirit in spite of having to resort to unusual working methods. Our aim has been to ensure that we maintain communication despite the fact that we've had to put physical encounters on hold. Even during the twists and turns in the spring, we were able to maintain our expertise and ensure that all of our employees could continue their work in spite of the changed circumstances.
Focus on sustainability
The global pandemic also gave us new ideas regarding the development of the sustainability of our business. COVID-19 highlighted the growing interdependence of our world. Events that take place far away can impact all of our lives. Operating responsibly and sustainably is the only way to promote our interests and the public interest in the long run. At Enento, we also strive to create services that enable our customers to prevent risks and potential criminal activities as well as make responsible decisions. Several incidents of data protection violations made the headlines in Finland in 2020, with the Vastaamo case being the most prominent among them. In response to the Vastaamo data breach, we provided our services to both the company and its customers whose personal data had ended up in the hands of criminals. The number of these types of data breaches is growing, which is cause for concern.
From Asiakastieto to Enento
We made rapid progress in our development projects. The most visible of these from the outside was the change of the Group's name from Asiakastieto to Enento and the finalisation of our strategy process. The name Enento Group was adopted by a resolution of the Annual General Meeting held in June. The reason for the change of name was the expansion of the Group's business operations from Finland to the Nordic region. Enento comes from the Latin word nento, which means "to entwine". At Enento, we do this every day by collecting and transforming data into intelligence and knowledge used in interactions between people, businesses and society. This is also reflected in our growth, which has been accelerated as a number of different companies have been integrated into our Group.
In May, we adopted a new strategy that was created by an exceptionally large amount of employees. Most of Enento's employees participated in the process of creating the new strategy. Our objectives are to strengthen our leading position in credit information, be the preferred choice in data-driven business service processes and be a leading provider of business information. To achieve these objectives, we will focus on building an innovative and future-fit organisation and Nordic platforms for the future. The implementation of the new strategy is already under way, and we have quickly promoted the adoption of shared technical platforms, for example.
The year that has just begun is very interesting from a macroeconomic standpoint. COVID-19 has posed significant challenges to many businesses, but government's support and temporary legislation have helped them get through the worst of it. Central banks have engaged in considerable stimulus measures around the world. At the same time, households have accumulated savings as the restrictions on movement have reduced consumption. Sweden and Finland have had clearly different COVID-19 strategies, which has also been reflected in the economic development of the two countries. Hopefully, it will be possible to finally lift the COVID-19 restrictions this year to return the economy to the path of growth.
Confidence in the future
The outlook for the new year remains highly uncertain. Making predictions regarding the Group's business is difficult due to the exceptionally large number of variable factors. Nevertheless, I'm confident that our strong commitment to growth as a Nordic operator will drive us in the right direction. We will remain active, look after each other and our customers and continue to execute our strategy. The past year has shown that we at Enento have a strong capacity to adapt to changing circumstances and to work towards our common goals. I want to take this opportunity to thank all of our personnel for their strong contribution and cooperation during the year. I also want to thank our customers, shareholders and partners who went through 2020, the year of the coronavirus, with us.
Jukka Ruuska,
CEO
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GEOTE REVIEW
EVENTS GROUP
STRATEGY
BUSINESS OPERATIONS
PERSONNEL
ENENTO GROUP 2020
Building trust in the everyday.
In Finland we operate under the brands Asiakastieto and Emaileri, in Sweden under UC, Allabolag and Proff and both in Norway and Denmark under the brand Proff.
LISTED ON NASDAQ HELSINKI
MARKET CAPITALISATION
31.12.2020
807 MEUR
Partners in Nordic region and in Europe.
Approximately 55,000 corporate customers within banking, finance, retail, public sector and small companies.
NUMBER OF EMPLOYEES
31.12.2020
FINLAND
SWEDEN
NORWAY AND DENMARK
NORWAY AND DENMARK
BUSINESS AREAS
31.12.2020
RISK DECISIONS
SME & CONSUMERS
DIGITAL PROCESSES
CUSTOMER DATA MANAGEMENT
ALMOST
500,000
consumer customers
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Asiakastieto Group is now Enento Group
- The Annual General Meeting of Asiakastieto Group Plc held on 12 June 2020 decided to change the name of the company to Enento Group Plc. The name change has registered in the Trade Register on 15 June 2020.
- The company name Enento comes from the Latin word nento, which means to entwine. We do this on a daily basis by collecting, combining and refining data.
- Enento Group is a Nordic knowledge company powering society with intelligence. Since 1905, we have ensured that important decisions in your everyday life, like buying a home or growing a business, can be based on trusted data. We collect and transform data into intelligence and knowledge used in interactions between people, businesses and societies.
- Our digital services, data and information empower both companies and consumers in their daily decision making processes, as well as financial processes and sales and marketing processes. We help people, businesses and the society to build trust in the everyday.
- Enento has a strong Nordic presence in all four countries. Our brands in Finland are Asiakastieto and Emaileri, in Sweden UC, Proff and Allabolag and in Norway and Denmark Proff.
Growth formula
- New services
- Nordic offering
- Market share
- Pricing
- Acquisitions
- Cross selling
- Volume
The Nordic growth story
ASIAKASTIETO AND UC AB
MERGED 29.6.2018
SOLIDINFO.SE CORPORATE
ACQUISITION 28.2.2019
PROFF COMPANIES CORPORATE
ACQUISITION 2.9.2019
AT THE END OF 2020 WE HAVE REALISED
OVER 80% OF THE SYNERGY BENEFITS OF
EUR TAX MILLION FROM THE COMBINATION
OF ASIAKASTIETO, UC AND PROFF.
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Strategy 2020–2023
We build trust in the everyday.
ENENTO GROUP'S BOARD OF DIRECTORS approved the Group's new strategy for 2020–2023 on 8 May 2020. The Group aims for growth and increased profitability by strengthening its current position and seizing new opportunities within credit information, business information and the digitalisation of data-related processes. Focusing on innovation, building a future-fit innovative organisation and developing a Nordic platform will enable Enento to achieve these goals.
Enento has three main goals for the strategy period: to strengthen its leading position in the credit information business, to become the number-one choice in data-driven business processes as a service, and to become the leader in business information.
Sustainability is at the core of Enento's business. The Group contributes to sustainability in society by, for example, preventing over-indebtedness and helping customers make responsible and sustainable decisions. The aim is to create a broad Nordic offering of sustainability services to support customers' decision-making. Enento has set a group-level target of zero net emissions by 2023.
> As the Nordic knowledge company we power society with intelligence.
Long-term financial targets
An annual average net sales growth of 5–10%.
Adjusted EBITDA growth rate exceeding net sales growth rate.
Net debt to Adjusted EBITDA at or below 3x.
Strategic offering goals and enablers
Growth Opportunities
- OWNERSHIP: NEW DATA ANALYTICS PROCUREMENT
- API INTERFACES: FRAUD HOUSING COMPLIANCE
- MACHINE LEARNING: SUSTAINABILITY
Enablers
- FUTURE-FIT AND INNOVATIVE ORGANISATION
- NORDIC FUTURE PLATFORM
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GRATIS
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Building Nordic Presence
We recognise a significant value add to customers from a high-quality service offering which scales across Nordics. We aim to have the leading local offering in each country combined with the ability to create customer value through Nordic level core services.
STRATEGIC AMBITION
NORDIC MULTILOCAL APPROACH
Build true Nordic presence to serve our Nordic customers with highest quality services in each country.
UNIQUE OFFERING
Broadening our presence in the Nordics will be built on unique offering development, such as sustainability and open banking.
NORDIC PLATFORM CAPABILITIES
Our platform transformation will enable the scaling of our core service capabilities to a Nordic level.
NORDIC ACQUISITIONS
We aim to strengthen and expand our Nordic presence through targeted acquisitions which accelerate customer value creation in combination with Enento's capabilities.
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We operate in a scalable and digital business with intelligence at the core.
We offer a broad selection of services that are based on our comprehensive database. Data is acquired from several public data sources, from companies themselves, from internet as well as through our own data gathering processes. Once saved, data can be refined several times without additional costs. The database is at the core of our business.
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Enento's business areas
We announced on 14 January 2021 the plan of changing the Business Area structure and creating a new Data and Analytics Unit. The reason behind this organisational change is to enable faster and smoother strategy implementation and highlight the importance of data and analytics.
ENENTO GROUP CURRENTLY HAS four Business Areas: Risk Decisions, SME & Consumers, Digital Processes and Customer Data Management.
The new organisational structure includes only three Business Areas which are Business Insight, Consumer Insight and Digital Processes. These new Business Areas replace the current ones. The Business Area Digital Processes remains unchanged.
-
Business Insight business area:
customer-driven business information services and solutions -
Consumer Insight business area:
customer-driven consumer information services and solutions -
Digital Processes business area
will continue as it is, focusing on real estate and apartment information, information on buildings and their valuation, compliance services and digitalisation of housing transactions, among others.
ENENTO'S OFFERING IS CURRENTLY DIVIDED IN FOUR BUSINESS AREAS
ENENTO'S BUSINESS AREAS AND FUNCTIONAL UNITS 1 APRIL 2021
| 1 | NEW UNIT
DATA & ANALYTICS |
| --- | --- |
| | SALES AND CUSTOMER OPERATIONS |
| | MARKETING AND COMMUNICATIONS |
| | FINANCE |
| | HUMAN RESOURCES |
| | IT & TECHNOLOGY |
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RISK DECISIONS BUSINESS AREA
Continuing development work in a changing operating environment
Companies engaging in corporate and consumer business use decision services and solutions for general risk management, credit risk management, financial management, customer acquisition, sustainable decision making, fraud and credit loss prevention as well as for gaining knowledge of and identifying their customers.
IN 2020, THE RAPIDLY CHANGING business environment created new challenges for customers and was also reflected in the development of the Risk Decisions business area. Consumer uncertainty and temporary changes to legislation had a particularly significant impact on the consumer credit market and decreased demand for personal credit information services. However, operations continued strong under the new circumstances and the operating model proved its resilience to pressure. Development work on new services and products continued and there were significant victories in customer work. The net sales of the business area decreased by 2,6 per cent to EUR 93,5 million (EUR 95,5 million, 2019) at comparable exchange rates.
There were no significant differences in business development over the year between Finland and Sweden. New products' and services' share of the net sales continued to grow. Development work on
systems providing positive consumer credit information continued in both Finland and Sweden. For example, a new classification model that predicts credit risk for consumers was launched for the Finnish market. In Sweden, student loan information was compiled into a positive credit register for customer use. Along with these new developments, Enento was working on a similar service for assessing business credit.
As the demands of the customers changed and regulations became stricter, Enento also invested in developing services related to corporate responsibility. It became the first company in the world to collect and produce a responsibility report on unlisted companies. The comprehensive information register and services provide a cross-section of a company's corporate responsibility status and assist in all daily decisions, such as credit decisions and procurement decisions. The MELEX project focuses on finding ways
to utilise machine learning technology in credit risk management.
New services to meet customer demands
In 2021, the challenges related to the operating environment and business operations of customers continue. The interest rate cap regulations for consumer credit will remain in effect at least until autumn, while the demand for risk management services is expected to grow. Enento will continue to implement its current strategy and keep up its strong development in the year ahead. Significant new customer demands have arisen in the market, and solving them will become more of a priority. In addition to customer demands related to corporate responsibility, the stricter regulation will also bring new opportunities for Enento to provide support services for its customers as they take measures to meet these new requirements. Services related to positive credit
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information of consumers and businesses also have significant growth potential in Finland and Sweden alike. The new services will also help customers adjust to the changes in their operating environment.
CASE AKTIA
DATA AT THE CENTER OF CUSTOMER UNDERSTANDING AND AUTOMATISATION
Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and well-being for 200 years. Aktia utilises Asiakastieto's services in both its private and corporate banking in handling loan offers, managing the customers' collaterals and supporting customer understanding.
"Thanks to the services of Asiakastieto, we are able to increase our own customer understanding and handle customers' needs with greater quality and speed. When customer relationships are led with data, the quality of the service increases and needs can be predicted better," says Aktia's Head of Lending Pia Wikgren.
Aktia and Asiakastieto's long-standing cooperation has expanded over the years along with the development of new services.
"Asiakastieto understands our business activity, listens to our opinions and generates new ideas for new services together with us. We have also participated closely in further development of the existing services. PSD2 account information is an example of an interesting opportunity for us in the future," Pia Wikgren says.
CASE ADVISA
TRUSTED PARTNER IN ADVISA'S DIGITALISATION AND EXPANSION
Advisa has helped its customers to achieve better loan terms since 2011. When expanding to a new geographic market, finding a partner who was able to provide the same accurate information that Advisa has been getting in Sweden was simple. It was obvious that UC was the supplier that had the broadest product offering in the Nordic region. UC has facilitated the effectiveness of Advisa's services so that even more customers can receive even better loan terms.
"Advisa's digital product requires digital suppliers, and UC was a perfect fit for us. Since transitioning to this new business model, we grew 100% year-on-year by helping many more customers to obtain better loans, and UC has been alongside us all the way," says Advisa's CEO Jonathan Bollman.
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DIGITAL PROCESSES BUSINESS AREA
Increasing demand resulted in a successful year
Business area's range of services includes real estate and apartment information, information about buildings and their valuation as well as solutions to automate collateral management processes and digitalise administration of housing purchases. In addition, compliance services to identify companies' beneficial owners and politically exposed persons.
THE GROWTH OF THE DIGITAL PROCESSES business was accelerated by the increased need for secure, high-quality digital services, following the COVID-19 pandemic. Growth was also strengthened by successful investments in service development and new services launched. The business area's net sales increased by 29.2 per cent to EUR 10.9 million (EUR 8.4 million, 2019) calculated based on comparable currency rates.
The estimate in spring 2020 was that housing transaction volumes would decrease due to COVID-19, but the transfer to home offices resulted in many people reconsidering their housing situation from a new perspective. Even though the restrictions related to the pandemic were different in Finland and Sweden, the effects seem to have been mainly the same. New ways of working reflected in increasing demand for digital services. Tambur housing transaction service for banks and realtors strengthened its position in Sweden and towards the end of 2020 it was already used in almost all housing transactions in which a realtor was involved.
In Finland, a similar service, Asuntokauppapalvelu was launched, and we believe that during 2021, demand for the service will increase as well. Furthermore, a new housing valuation service aimed especially at banks was launched in Finland, which also covers, for example, forests and cultivation areas.
Compliance services for companies bring relief
Strong demand also continued for compliance services related to obligations imposed through regulation. The need and demand for Know Your Customer (KYC) services have increased. In particular, it is laborious to establish beneficial owners or Politically Exposed Persons (PEP) through manual methods, and the business area continues to focus on the digitalisation of these processes in 2021.
In cooperation with our customers, we continue to invest strongly in services for housing transactions and in services that are related to our customers' obligations stemming from the increasing regulation. Together with our customers, we also constantly search for new areas in which business processes can be further digitalised.
CASE SP-KOTI URBAANIT
REAL ESTATE INFORMATION SERVICES ENHANCE DIGITAL PROPERTY
TRANSACTIONS
Sp-Koti Urbaanit is a chain of real estate agencies that operates under the franchising model. It focuses on services related to home selling and buying for individual consumers as well as related appraisal activities. The COVID-19 pandemic in 2020 brought changes to the way real estate transactions are carried out: instead of the sellers and buyers of homes, summer cottages and forest properties getting together in meeting rooms, real estate now changes hands through digital processes.
When Sp-Koti Urbaanit first adopted digital real estate transactions, there were a lot of questions about the process. Asiakastieto's digital real estate information services have made the transition easier. The real estate information services make it easy to find the register data, certificates and other documentation concerning properties in one place. Real estate agents are now happy to complete transactions using digital tools.
"All of the information you need is available in convenient and affordable packages. The service and assistance we have received from Asiakastieto have been exceptionally good," says Anna-Maija Kuosmanen, Managing Director at Sp-Koti Urbaanit.
While safety-related considerations have increased the popularity of digital property transactions, the most important reason for the change is customer satisfaction.
"Customers have been very pleased to have the option of conducting transactions remotely. Whereas finding the time to complete transactions at banks has sometimes been difficult, people can now carry them out quickly from home or even while they are abroad," Kuosmanen adds.
2020 Enento Group ANNUAL REVIEW
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CEO'S REVIEW
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SME AND CONSUMERS BUSINESS AREA
Growth increased through service development
Digital services for small and micro companies. Easy-to-use applications and user interfaces for the evaluation of risks and sales potential on customers and business partners. Services for consumers help consumers to understand and better manage their own finances and protecting them from identity theft and fraud.
THE STRONG DEVELOPMENT of the SME and Consumers business was driven by both growth in demand for services, efforts made to develop and market these services, as well as by the successful integration of Proff's operations. The business area's net sales increased by 14,3 percent to EUR 38,8 million (EUR 33,9 million, 2019) at comparable exchange rates.
The strongest growth was seen in Sweden, where sales of both direct to consumer and business information services developed positively. Likewise in Finland, demand for consumer information grew strongly, as did the demand for certificates and reports. In Norway, sales of advertising products exceeded expectations.
Investments made over the past years to develop the online channels have paid off, as demand has clearly shifted toward online services in all market areas. This development was further accelerated by the general growth in online sales caused by the Covid-19 pandemic.
Development of services continued actively, the most significant development project being a new Nordic platform for the freemium-model business information websites allabolag.se and proff.no/dk. The new platform aims to provide a better user experience and facilitate future service development. As a provider of free business information, Enento is the market leader in Sweden, Norway, and Denmark, with around 6.5 million monthly visitors in its sites.
Service development remains at the heart of our operations
We are heading into 2021 with positive expectations and a strong position. Enento's service portfolio is competitive. The aim is to offer tried-and-tested services to different market areas. The strategy also focuses on catering to companies in the SME sector, and take advantage of this freemium traffic in the sale of paid services, as well as strengthening and continue to invest in our own marketing to directly tap into the consumer market.
CASE VASTAAMO
GIVING BACK TO THE SOCIETY On 2020
the Finnish society faced one of its
biggest and most sensitive data leaks as
psychotherapy center Vastaamo got hacked. Very sensitive patient data about altogether 36.000 Vastaamo customers was stolen or hacked. Exceptionally, the hackers tried to blackmail both Vastaamo and its customers. The threat of identity theft and misuse of the victims' personal data was real.
Fortunately, Asiakastieto (part of Enento Group) has some intelligent services to protect the consumer customers. Immediately, Asiakastieto established a cross-functional team (SMEC, Sales, Customer Service, IT, Communications) to help them. In strong and proactive co-operation with Vastaamo we quickly closed a generous deal to provide the victims a tailored combination of our Omatieto services to prevent the misuse of their data for frauds.
"I see the case Vastaamo as a strong evidence of Asiakastieto living by its values and being able to give something back for the society. Services could be immediately offered to impacted victims, which hopefully alleviated their worries. Our services not only make business possible but may guard and help the innocent victims of this kind of terrible crime as well", Jukka Ruuska, CEO of Enento Group says.
Media proactively published todo-lists and articles where Asiakastieto's Credit Ban was stressed and linked for the victims to buy for guarding themselves against the misuse of their personal data.
"This case also opened some great sales opportunities as many B2C-companies now better understand the risk of not-knowing your customer", Jukka Ruuska says.
2020 Enento Group ANNUAL REVIEW
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CEO'S REVIEW
EMENTO GROUP
STRATEGY
BUSINESS OPERATIONS
RESPONSIBILITY
PERSONNEL
CUSTOMER DATA MANAGEMENT BUSINESS AREA
Potential for expanding services
Customer data management services help sales and marketing professionals improve the efficiency of their work and increase sales by providing tools and services for surveying current and potential customers, manage and maintain up-to-date registers, and perform various target group extractions. The customers of this business area are companies from various industries involved in consumer and corporate marketing.
THE EXCEPTIONAL NATURE OF THIS YEAR is evident from the rather uneven development in product demand and the market areas. The onset of the COVID-19 pandemic reduced customer investments in corporate marketing and particularly in new customers acquisition during the spring. The second half of the year saw a recovery in demand, especially through increased interest in subscription-based products. On the other hand, active marketing efforts improved the sale of consumer marketing services offered in Finland, which developed excellently. The business area's net sales decreased slightly by 1,1 percent to EUR 8,1 million (EUR 8.1 million, 2019) at comparable exchange rates.
In addition to marketing and sales development, Enento invested in improving the services offered in the business area. Business Development Compass, which allows municipalities to support the growth of local companies, and Decision Makers Database, which contains contact information for more than
100,000 company decision-makers, were both introduced as new services to the Swedish market.
Correspondingly, the Customer Pro service for utilising consumer target groups in sales and marketing was launched in Finland. In addition, the Emaileri service was refreshed, with updates such as a modernised platform and automated functions.
The business area's strong market position and comprehensive services provide a firm starting point for the coming year. In the Swedish market, the introduction of the B2C services already on offer in Finland will create significant potential for increasing sales. Furthermore, Enento aims to continue developing subscription-based business information services and the database of decision-makers for both markets as well as value-added services for B2C services in Finland. We also focus on developing modern APIs and connectors to support easy access to our services via customers' own systems and applications. We are constantly looking into how we can bring more
CASE TELIA
QUICK DATA HELPS TELIA REACH CUSTOMERS AT THE RIGHT TIME
Telia has grown from a telecommunications operator into a modern technology and media company that provides a wide range of telecommunication, IT and digital services to millions of consumers and corporate clients. One key customer group is people moving to a new home who need broadband services at their new address. Telia uses Asiakastieto's customer management services to reach this audience.
"Regarding the target group of movers, it is essential that Asiakastieto provides us with the information quickly and we get to offer our services to potential customers at the right time. Sometimes, people submit the notification of their move just before the moving date, so we often call them right as they are carrying their boxes and furniture into their new home," says Satu Rissanen, who works in Telia Finland's broadband services. Establishing contact at the right time serves both Telia and its customers.
The smooth flow of information and active communication are the foundation for the long-term cooperation between Telia and Asiakastieto. Continuous dialogue supports service development and the improvement of data quality.
"There's a strong atmosphere of trust, and Asiakastieto understands our operations to the extent that when we work on something new, we can focus on developing and improving the existing processes instead of starting from square one," Rissanen explains.
value to the customers by even more refined data and insights such as more unstructured data and new predictions and scores.
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CEO'S REVIEW
ENENTO GROUP
STRATEGY
BUSINESS OPERATIONS
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PERSONNEL
We promote economic sustainability in society
Sustainability is at our core. We contribute to sustainability in society by, for example, preventing over-indebtedness and helping our customers make sustainable decisions. Our aim is to provide a comprehensive Nordic offering of sustainability services for our customers. At the Group level, we aim to reduce our net emissions to zero by 2023.
THE SIGNIFICANCE OF SUSTAINABILITY in the operations of Enento Group and its customers is constantly growing. The Group's mission is to maintain and create trust in the markets: in trading and the concluding of agreements between companies as well as between companies and private parties. Trust is created through the provision of services that help companies verify the reliability of their contractual counterparties. The foundation for these services consists of Enento's Nordic databases of up-to-date information on companies and consumers. The digital services refined from this data improve the efficiency of customers' operations, increase responsibility and reduce the Group's carbon footprint.
Enento Group's strategy 2020–2023 and sustainability
Enento Group's Board of Directors approved the Group's new strategy for 2020–2023 on 8 May 2020. The Group aims for growth and increased profitability by strengthening its current position and seizing new opportunities within credit information, business information and the digitalisation of data-related processes. The Group-level target is zero net emissions by 2023.
The strategy implementation process was divided between five working groups, one of which focuses on sustainability. The work continues and Enento looks at sustainability in four dimensions:
1. Enento's services help customers make sustainable decisions
Enento Group develops its services and their usability and availability with a customer-oriented approach. Launching new services in the Nordic markets is at the core of Enento's operations. There is a particularly significant need to quickly introduce innovations based on digitality and automation, as they help enhance the efficiency of customers' processes and reduce the carbon footprint. Enento's future service
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development will be focused on, for example, the development of Nordic sustainability services with the aim of helping customers make sustainable decisions. Enento wants to be a leading provider of ESG services with a comprehensive range of sustainability services that are needed by customers for risk management, credit processes, procurement and customer management.
2. Enento's environmental impact
The carbon footprint of Enento Group's own operations is low. The Group's overall impact on society is very positive. The strategic Group-level target is zero net emissions by 2023. The COVID-19 pandemic reduced air travel during the year and travel will also decrease in the future due to the use of technology that enables remote work as well as negotiations via videoconferencing and other online tools.
3. Enento as a sustainable workplace
The most recent Trust Index survey results showed that being a friendly workplace is one of Enento Group's biggest strengths. Suomen Asiakastieto Oy and UC AB were awarded Great Place to Work certification in September 2020. The Nordic Activity Group supports a strong sense of community within Enento. It consists of active volunteer employees who plan and implement activities that promote team spirit and well-being at work throughout the year. Quality, competence and learning are high priorities for Enento. The quality management system of Suomen Asiakastieto Oy has been certified since 2015 and the certificate has been subsequently renewed in 2018 and January 2021.
4. Enento's impact on economic sustainability in society
Enento Group helps companies enhance their decision-making processes and customer relationship management by providing automated business and credit information solutions that promote transparency between parties in business transactions, increase trust and promote commercial activity. The Group's service solutions make it possible for all parties to trust each other, trade on credit and ensure that the counterparty fulfils their obligations. For this to happen, the services provided by Enento must be efficient and their production must be smooth and free of disruptions. The data that underpins the services must be up-to-date and comprehensive. Enento also strives to support society by disseminating information on how to manage personal finances. A training programme on personal finance, aimed at young people, was launched in Finland in 2011 under the name TarkkaFyrkka and subsequently in Sweden under the name The Bill.
The impacts of the Group's own operations are minor
The Group's emission target is ambitious and it can only be achieved by comprehensively specifying and calculating the Group's total carbon footprint. Carbon footprint calculations provide an understanding of the Group's emission sources and amounts. Based on the calculation, practical measures are selected to achieve the zero emission target and monitor progress. The specification and calculation effort began at the turn of the year in partnership with the Swedish consulting company GoClimate.
Enento Group's total carbon footprint in 2019 amounted to 2 572 tonnes (CO₂e), calculated using the market-based method. Business travel accounts for 66 % of the total emissions, commuting for 13,3 % and IT and hosting services 7,7 %.
Business travel decreased due to the COVID-19 pandemic, which is directly reflected in the statistics. In 2019, the carbon footprint of air travel was 1,737 tonnes (CO₂e). In 2020, the corresponding figure was only 301 tonnes, representing a carbon footprint reduction of 1,436 tonnes.
The Group's largest offices are located in Helsinki (headquarters) and Stockholm. Both are in locations with good public transport connections. They are modern activity-based offices in which fewer heated square metres per employee are needed. The lessors of both of the premises monitor electricity consumption, the use of warm and cold water, district heating, district cooling and waste management on a monthly basis.
Due to the nature of Enento's digital service production, data processing accounts for part of the Group's overall emissions. The equipment in the data centre environment in Finland are mainly virtualised and placed in a large data centre complex, which makes it possible to minimise the overall energy consumption. The data centre complex in Finland switched to renewable energy at the beginning of 2021. All three of the Group's data centres in Sweden also use renewable energy, which means that their carbon dioxide (CO₂) emissions are zero.
Enento will publish a separate Sustainability Review 2020 by the end of the second quarter of the year.
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The development of Enento's company culture led to Great Place to Work certification
Enento Group's Suomen Asiakastieto Oy and the Swedish subsidiary UC AB were awarded Great Place To Work certification in September 2020. Since Asiakastieto and UC merged in 2018, Enento has engaged in purposeful efforts to create a coherent company culture. We have built a new Nordic company culture that reflects our shared strengths without being burdened by old ways of working.
THE QUALITY OF MANAGEMENT, experience in the work community, clear work objectives and competence are the key factors influencing the employees' commitment to work and well-being at work. Enento Group continued its Nordic training programme for managers. Grow Talk discussions between managers and employees are an important part of management and Enento's collective success. Grow Talk discussions start with an annual personal target-setting discussion held at the beginning of the year. The target-setting discussion is followed by monthly follow-up discussions and more extensive evaluation discussions held twice a year. The purpose of the
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discussions is to create commitment and build an understanding of how each employee contributes to the achievement of the shared goals. A further goal of the discussions is to ensure each employee's well-being and development in their work.
The Group also launched Leading eEnento Group, a new management programme aimed at specialists. Following positive feedback from the participants, the programme will continue with the aim of having two groups of participants per year. The programme is focused on learning influence skills and self-awareness for employees in demanding specialist positions and taking the first steps towards a coaching style of management.
The Plaza Academy learning environment is accessible to all employees
In 2020, eLearning courses continued to be offered via the Plaza Academy, a digital forum for company-level internal training that is accessible to all employees. All of Enento's internal courses and lectures are available on Plaza Academy. It is an excellent learning environment that helps maintain awareness throughout the Group's personnel regarding topics such as safety, data security, compliance, company practices and services. The latest eLearning course focuses on the topic of sustainability.
Strategy and values were shaped through a collective process
Enento Group's Board of Directors approved the Group's new strategy for 2020-2023 on 8 May 2020. To ensure that the strategy will be effective and successful, the development of the strategy was based on diverse information. A large group of Enento employees participated in the strategy working groups. The key principles of the strategy process were cooperation throughout the organisation, seeking new ideas, perspectives and inspiration outside the organisation, questioning established ways of working and the transparency of the entire process. Everyone at Enento had the opportunity to influence the organisation's shared values and new strategy. Enento's internal values emphasise trust (We Build Trust), growth (We Grow Together) caring and courage (We Care and Dare).
Great Place to Work
In late 2018, we started working together with the Great Place to Work® institute, which led to Great Place to Work certification in September 2020. The most recent Trust Index survey results showed that being a friendly workplace is one of Enento Group's biggest strengths. Great Place to Work certification is based on Trust Index® surveys, which measure the organisation's starting point and help identify its strengths and development areas. If the Trust Index score is 70% or higher, the organisation is awarded the international Great Place to Work® certificate. In addition to the Trust Index® survey, a Culture Audit is conducted to describe Enento's culture in nine areas: hiring, inspiring, speaking, listening, thanking, developing, caring, celebrating and sharing.
Enento employees' Nordic Activity Group
The Nordic Activity Group established to support a strong sense of community within Enento Group continued to operate in 2020. The Group is open to all Enento employees and consists of active employees who plan and implement activities that promote team spirit and well-being at work throughout the year. While the COVID-19 pandemic meant that the Nordic Activity Group engaged in digital activities instead of face-to-face meetings and events in 2020, new and inspiring forms of interaction were found during the year.
Personnel 2020
The average number of personnel employed by Enento Group during the final quarter of the year was 425 (399). At the end of the financial year, the number of people employed by Enento Group was 425 (422), of whom 173 (172) worked in the Finnish companies, 205 (210) in the Swedish companies, 45 (39) in the Norwegian company and 2 (1) in the Danish company. The health and safety of employees is Enento's highest priority. Starting from mid-March, the employees of all of the Enento's offices have worked remotely if their duties allow it. During the exceptional year of remote work, the focus was on the development of virtual working methods and cooperation skills. During the spring, a series of online seminars helped employees develop their MS Teams skills to enable more efficient meeting practices and the sharing of information. In the autumn, the focus was on maintaining psychological well-being and productivity in the context of remote work. Enento Group's subsidiary UC AB was recognised for its purposeful efforts to build a strong employer image during the year. In November 2020, the Swedish company Universum selected HR Director Eleonor Öhlander as 'HR Director of the Year' in the employer image category.
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Enento as an investment
Resilience in economic cycles
Enento Group's services are needed in both good times and bad.
Growth
New services and the digitalisation of the processes create growth.
Dividend yield
Strong cash flow enables good dividend yield.
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Enento Group
Enento Group Plc
Tel. 010 270 7200
Hermannin rantatie 6
PO Box 16, FI-00580 Helsinki
Business ID 2194007-7
enento.com/investors