Enea AB · OMXSTO:ENEA
Enea AB — Q3 2013 Earnings Presentation
18 slides from Enea AB's earnings presentation, Oct 24, 2013
Slide 1: Financial result Q3 2013
Financial result Q3 2013 Anders Lidbeck, President and CEO October 24, 2013
Slide 2: Agenda
Agenda Enea intro Enea financials Way forward & Outlook Enea is Powering the Wireless Broadband 2
Slide 3: Powering the Wireless Broadband
Powering the Wireless Broadband Numbers for 2012 The market for wireless communication is expanding rapidly. TEN OFFICES REVENUE IN NORTH Enea is global software company showing AMERICA, EUROPE AND 467.8 revenue growth and high operating profit ASIA MSEK margins. Enea already holds a world-lea
Slide 4: Customer Trust
| ENEA Customer Trust ERICSSON 2 = I m8 Honeywell Nokia Siemens Networks ~, 2, @ MOTOROLA @ Alcatel-Lucent VOLVO FUJITSU “Thising gem @ YAMAHA Electrolux HUGHES.
Slide 5: Q3 2013
Q3 2013 5
Slide 6: Over 20% operating margin two consecutive quarters
Over 20% operating margin two consecutive quarters Q3/13 Q3/12 Operating margin % EBIT (MSEK): 21.0 18.0 Operating margin (%) 21.6 16.8 Earnings per share (SEK) 0.92 0.77 9M/13 9M/12 FY/12 EBIT (MSEK): 57.0 52.1 72.5 Operating margin (%) 18.9 15.1 15.5 Earnings per share (SEK) 2.66 2.31 3.18 1/12 2/
Slide 7: Q3/13 Revenues
Q3/13 Revenues Q3/13 Q3/12 Revenue MSEK Revenue (MSEK): 97.1 107.3 Growth (%) -9.5 6.1 Growth (%) (excl. currency effects) -8.4 5.8 9M/13 9M/12 FY/12 Revenue (MSEK): 302.1 345.3 467.8 Growth (%) -12.5 7.2 4.7 Growth (%) (excl. currency effects) -10.6 5.2 3.6 1/12 2/12 3/12 4/12 1/13 2/13 3/13 7
Slide 8: Product Sales – Increase of Software Sales
Product Sales – Increase of Software Sales Type of Revenue Rentals are flat while perpetual licenses MSEK decreased. More rental than perpetual licenses is good long-term but is affecting revenue short-term. Customers are reporting higher production volumes, resulting in higher royalty revenue i
Slide 9: Services Revenue Drop
Services Revenue Drop Government and Defense industry in the US Revenue per product (Q3 2013) are affected by the political debate on government spending, resulting in lower 59% Operating systems investments. 7% Middleware - 85% of total service revenue originates from the US. 4% Tools 26% Service
Slide 10: Revenue Down – Margin up
Revenue Down – Margin up Europe: Revenue improved, margins kept on Revenue per geography (Q3 2013) same level. Sales to key customers and software sales to other customers in Europe increased. Service sales in Romania decreased North America: Sales of services and sales of software were lower th
Slide 11: Important Wins in a Soft Market
Important Wins in a Soft Market Electrolux Small Appliances choose Enea Linux v3.0 in the Revenue per segment (Q3 2013) second quarter. During the third quarter, Electrolux has placed follow up orders for Linux related services. A leading European medical company has selected Enea’s real- time o
Slide 12: Strong Financial Position
Strong Financial Position Cash flow (from operations) Cash flow from operations amounted to MSEK 38.3 (26.6) MSEK for Q3. Cash and cash equivalents at the end of the period were 156.4 (134.6) MSEK. On July 25, SEK 3.00 (8.00) per share was paid out via a redemption program, equivalent to a tra
Slide 13: Way Forward & Outlook
Way Forward & Outlook 13
Slide 14: Investments in Growth Areas 2013
Investments in Growth Areas 2013 Real-time Operating Systems Solutions (Rtos and Linux) Recruitment of Linux expertise in R&D and Sales. Linaro membership with the ambition to become #1 on Linux for ARM. Partnership and collaboration with Xilinx. Currently 2-3 hot Linux prospects. Middleware
Slide 15: 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 supple
Slide 16: Booming Data Traffic – Challenging Prices
Booming Data Traffic – Challenging Prices 40% of the world's mobile traffic is handled through equipment supplied by Ericsson. Mobile data traffic doubled, according to Ericsson in 2012. But the company's revenue during the same period didn’t increase. From TeliaSonera's Annual Report: "The year was
Slide 17: Market Outlook
Market Outlook Outlook for 2013 We reiterate our outlook for 2013: Even if demand will remain low during the year, our assessment is that we will improve both our operating margin and our earnings per share over the full year. 17
Slide 18: Thank You!
Thank You! For further information, please contact: Anders Lidbeck, CEO, anders.lidbeck@enea.com Håkan Rippe, CFO hakan.rippe@enea.com Catharina Paulcén, SVP Marketing & Communications catharina.paulcen@enea.com Phone: +46 8 507 140 00 Enea is Powering the Wireless Broadband