Enea AB · OMXSTO:ENEA
Enea AB — Q4 2013 Earnings Presentation
24 slides from Enea AB's earnings presentation, Feb 11, 2014
Slide 1: Financial result Q4 & FY 2013
Financial result Q4 & FY 2013 Anders Lidbeck, President and CEO Feb 11, 2014
Slide 2: Agenda
Agenda Enea intro Enea Q413 and FY13 financials New opportunities Outlook Enea is Powering the Wireless Broadband 2
Slide 3: Powering the Wireless Broadband
Powering the Wireless Broadband (2013 numbers) The market for wireless communication is expanding rapidly. R&D REVENUE INVESTMENT Enea is global software company with high 22.1 408.5 operating profit margins and a large R&D MSEK PERCENT investment. Enea already holds a world-leading position N
Slide 4: Strength developed with our Customers
Strength developed with our Customers 4
Slide 5: Q413 & FY13 Financials
Q413 & FY13 Financials 5
Slide 6: Over 20% Operating Margin
Over 20% Operating Margin Q4/13 Q4/12 Operating margin % EBIT (MSEK): 25.3 20.4 Operating margin (%) 23.6 16.7 Earnings per share (SEK) 1.18 0.88 FY/13 FY/12 EBIT (MSEK): 82.1 72.5 Operating margin (%) 20.1 15.5 Earnings per share (SEK) 3.83 3.18 1/12 2/12 3/12 4/12 1/13 2/13 3/13 4/13 6
Slide 7: Record Operating margins
Record Operating margins Operating profit and margin MSEK % 2009 2010 2011 2012 2013 Revenue (MSEK): 777.7 726.1 721.5 467.8 408.5 Operating profit (MSEK): -4.1 67.4 2.5 75.2 82.1 Operating margin (%) -0.5 9.3 0.3 15.5 20.1 Not. 2009-2011 incl. divested business. 7
Slide 8: 2013 Revenues
2013 Revenues Q4/13 Q4/12 Revenue MSEK Revenue (MSEK): 106.4 122.5 Growth (%) -13.2 -1.7 Growth (%) (excl. currency effects) -12.2 -0.5 FY/13 FY/12 Revenue (MSEK): 408.5 467.8 Growth (%) -12.7 4.7 Growth (%) (excl. currency effects) -11.0 3.6 1/12 2/12 3/12 4/12 1/13 2/13 3/13 4/13 8
Slide 9: Global Business
Global Business Revenue per geography (FY 2013) Europe: Solid development of the customer base in Europe with improved profitability. North America: Sales of services and sales of software were lower than last year. Hit by Government budget cuts – growth in Bridge Services Revenues. Asia: Six
Slide 10: Revenue Split
Revenue Split Revenue per product (FY 2013) 62% Operating systems 7% Middleware 27% Services 4% Others 10
Slide 11: Recurring SW Revenue Base Growing
Recurring SW Revenue Base Growing 94% of 2013 software revenues – base Type of Revenue MSEK for recurring revenues (82% end 2012). Focus to grow rentals incl. support and maintenance is important long-term, is affecting revenue short-term. Customers are reporting higher production volumes, res
Slide 12: Sequential Growth Q/Q in Services Revenues
Sequential Growth Q/Q in Services Revenues Reduced funding from the US State budget Service revenues MSEK has affected our costumers projects. Growth in Bridge Services, two significant new customers in the US. Solid margins in Bridge Services. Sequential revenue growth Q4/Q3. 1/11 2/11 3/11
Slide 13: Success in Different Segments
Success in Different Segments Revenue per segment (FY 2013) New OSE-licensing agreement signed in Sweden with a global vehicle manufacturer worth estimated 4 MSEK per year. Service contract worth 4 MSEK signed with a global silicon company in Romania. Licensing agreement was renewed with a exi
Slide 14: Strong Financial Position
Strong Financial Position Cash flow Cash flow from operations amounted to (from operations) MSEK 13.6 (20.1) MSEK for Q4 and to 76.6 (80.1) MSEK for the full year. Cash and cash equivalents at the end of the year were 163.6 (146.7) MSEK. On July 25, SEK 3.00 (8.00) per share was paid out via a
Slide 15: Dividend
Dividend At least 30 percent of profit after tax should be transferred to shareholders. The Board proposes transferring an amount equivalent to SEK 3.00 (3.00) per share to shareholders. This is equivalent to a transfer amounting to SEK 49.2 (49.5) million. The Board proposes that the divide
Slide 16: New Opportunities
New Opportunities 16
Slide 17: New Opportunies
New Opportunies • Linaro – Enea Linux the choice when going for ARM architecture • System on Chip – Enea has a unique solution • SDN – Software defined servers for NFV workloads • Element on HP Moonshot – Live Moonshot demo at Mobile World Congress 17
Slide 18: Linaro Engagement
Linaro Engagement Enea is working with Linaro Networking Group (LNG) to provide efficient solutions for the Linux on ARM networking ecosystem Linaro is an investment in our commitment to Linux and Enea is proud to announce that an Enea employee is now the LNG kernel maintainer A key LNG develo
Slide 19: Unique System on Chip solutions
Unique System on Chip solutions • Form-factor, cost and power is driving on-chip integration of functional hardware, and System on Chip (SoC) now see use an increasing number of areas – Wireless BaseStation Applications – Media processing (transcoding) – Radar and Sonar Applications – Medical Imagin
Slide 20: Software Defined Servers for NFV workloads
Software Defined Servers for NFV workloads - it all is coming together - • Enea working with HP, Texas Instruments (TI) and ARM to demonstrate a Telco grade platform offering optimum power/performance for NFV optimized workloads • The platform includes an evolved version of the Enea Element software
Slide 21: Mobile World Congress 2014
Mobile World Congress 2014 • HP Moonshot with TI processor cartridges running Enea Element (demonstrate Cloud middleware) – The (only) Moonshot that will be running live at MWC • Enea will be present with select technology in the ARM booth and in HP’s SDN/NFV area 21
Slide 22: Long Term Ambition
Long Term Ambition Enea’s ambition during five years, starting 2012, is to create a global software company with significantly higher revenues, high profitability, good cash flows and a large proportion of recurring revenues. Enea will be focusing on organic growth, but both strategic and comple
Slide 23: Market Outlook
Market Outlook Outlook for 2014 We are prepared for continued soft demand and assess that the first quarter might be slightly weak. Our assessment for full year 2014 is that profit per share will be improved compared with previous year. 23
Slide 24: Thank You!
Thank You! For further information, please contact: Anders Lidbeck, CEO, anders.lidbeck@enea.com Håkan Rippe, CFO hakan.rippe@enea.com Phone: +46 8 507 140 00 Enea is Powering the Wireless Broadband