Enea AB · OMXSTO:ENEA
Enea AB — Q3 2014 Earnings Presentation
21 slides from Enea AB's earnings presentation, Oct 23, 2014
Slide 1: Financial results Q314
Financial results Q314 Anders Lidbeck, President & CEO October 23, 2014
Slide 2: Agenda
Agenda Enea Intro Enea Financials Q314 Way Forward & Outlook Enea is Powering the Wireless 2 Broadband
Slide 3: Powering the Wireless Broadband
Powering the Wireless Broadband (2013 numbers) The market for wireless communication is R&D OPEX REVENUE expanding rapidly. INVESTMENT Enea is global software company with high 22.1 408.5 MSEK operating profit margins and a large R&D PERCENT investment. Enea already holds a world-leading posit
Slide 4: Leading Customers
Leading Customers . Zs )] mal e vole: ERICSSON NOKIA Honeywell @ MOTOROLA VOLVO Alcatel-Lucent @ FUJITSU une @YAMAHA Electrolux HUGHES,
Slide 5: Q314 Financials
Q314 Financials 5
Slide 6: Yet Another Record EBIT & EPS
Yet Another Record EBIT & EPS Q314 Q313 EBIT (MSEK): 23.9 21.0 Operating margin (%) 22.8 21.6 Earnings per share (SEK) 1.16 0.92 1H14 1H13 EBIT (MSEK): 64.6 57.0 Operating margin (%) 20.8 18.9 Earnings per share (SEK) 3.13 2.66 6
Slide 7: Back to Revenue Growth
Back to Revenue Growth Q314 Q313 Revenue (MSEK): 105.0 97.1 Growth (%) 8 -10 Growth (%) (excl. currency effects) 6 -8 1H14 1H13 Revenue (MSEK): 310.0 302.1 Growth (%) 3 -12 Growth (%) (excl. currency effects) 2 -11 7
Slide 8: Development of License Revenue Types
Development of License Revenue Types Revenues from term-based development licenses, including support and maintenance was flat compared with the same quarter last year. Revenues from perpetual licenses down slightly. Revenues from production licenses (royalties), outside the major accounts, in
Slide 9: New Important Contracts Signed
New Important Contracts Signed In Europe, a Linux deal was signed with a major customer in the automotive industry. The contract is one year term based and the client will run Enea Linux 4.0 in a business-critical system with extremely high demands for reliability. An important contract with a n
Slide 10: Asia – Small for Enea but Growing
Asia – Small for Enea but Growing 10
Slide 11: Good Revenue Mix
11 Good Revenue MIx Revenue per product (Jul-Sep) HM s38% Operating systems incl. tools 9% Middleware ao 31% Services Oo 2% Other
Slide 12: Double Digit Growth in Global Services
Double Digit Growth in Global Services Second consecutive quarter with good growth in Global Services. Over last few quarters we have won several large contracts in the sector, both in US and in Europe, which are now in full delivery mode. Ambition to continue is to expand this business. 12
Slide 13: Strong Financial Position
Strong Financial Position Cash flow from operations was 17.9 (20.3) MSEK. Cash and cash equivalents and financial investments at the end of the quarter were 184.7 (156.4) MSEK. Enea has unused credits of 15 MSEK. The equity ratio was 81.0 (81.8)%. 13
Slide 14: Way Forward & Outlook
Way Forward & Outlook 14
Slide 15: Continued Significant Investment in R&D
Continued Significant Investment in R&D • Enea’s continued 20% investment in R&D builds the foundation for new and evolving business moving forward • Enea’s business is embedded software at a broad scale – both as products and as services • We believe that the number of embedded systems and the dema
Slide 16: Our Product Portfolio is Evolving
Our Product Portfolio is Evolving • The telecom infrastructure market is our home turf • This quarter we announced a joint initiative together with HP targeting the “Moonshot” system and the new HP ProLiant m800 server board • This initiative represents both a new target market and a new kind of par
Slide 17: Network Function Virtualization – NFV
Network Function Virtualization – NFV Telecom and networking applications have been traditionally provided as vertically integrated solutions with dedicated hardware and tightly integrated software solutions The traffic generated by 10 billion devices today and 50 billion tomorrow will drive power,
Slide 18: The Solution Stack
The Solution Stack Telco Development Platform: A fully-integrated and tested Application Development Environment for the m800 cartridge Includes all software components and tools (OS, IPC, middleware) Develop, port and test network functions in record time HP ProLiant m800: A cartridge manufactured
Slide 19: 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 20: Market Outlook
Market Outlook Outlook Q314 We continue to be prepared for ongoing soft demand, but maintain our forecast for the year. Our estimate for the full year 2014 is that earnings per share will be improved compared with the previous year. 20
Slide 21: 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 21