Enea AB · OMXSTO:ENEA
Enea AB — Q4 2020 Earnings Presentation
20 slides from Enea AB's earnings presentation, Jan 29, 2021
Slide 1: Q4 2020 Financial Results
Q4 2020 Financial Results Jan Häglund, President and CEO Björn Westberg, CFO January 29, 2021
Slide 2: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 2
Slide 3: Summary of Q4 2020
Summary of Q4 2020 Oct-Dec 2020 Jan-Dec 2020 OPERATING NET DEBT TO OPERATING HEAD NET SALES NET SALES MARGIN 1/ EBITDA MARGIN 1/ QUARTER KISTA, SWEDEN 248 29.5 0.81 915 24.2 SEK m SEK m PERCENT PERCENT EARNINGS PER OPERATING EARNINGS PER OPERATING LISTED R&D 2/ SHARE CASH FLOW SHARE CASH FLOW NASDAQ
Slide 4: Impact from Corona Pandemic in Q4
Impact from Corona Pandemic in Q4 Market Conditions Enea Response and Position Delays in customer investments, which The majority of our business is stable, means that certain projects (e.g. 5G) supported by a high degree of recurring and software upgrades are postponed revenue Lower demand fo
Slide 5: Key Events for Enea During the Fourth Quarter
Key Events for Enea During the Fourth Quarter 4G and 5G mobile video traffic management contract worth Traffic management USD 4.1 million with North American service provider Data management contract worth EUR 1.9 million with a Data management European subsidiary of UK-based Tier 1 service provider
Slide 6: Traffic Management Upgrade with Total Contract Value of USD 4.1 million
Traffic Management Upgrade with Total Contract Value of USD 4.1 million 4G and 5G mobile video traffic management contract with North American service provider Enea’s mobile video traffic management solution: - Alleviates radio network congestion - Accelerates video delivery - Improves subscribe
Slide 7: Cloud Data Management Contract with Total Contract Value of EUR 1.9 Million
Cloud Data Management Contract with Total Contract Value of EUR 1.9 Million Upgrade of the data management platform at a European subsidiary of a UK-based Tier 1 operator Enea’s cloud data management solution: - Provides unique flexibility and openness for multi-vendor applications and cloud pla
Slide 8: Aptilo Gets Off to a Good Start as Part of Enea
Aptilo Gets Off to a Good Start as Part of Enea Part of Enea from 1 October 2020, fully consolidated in the 4th quarter Contributed SEK 21.6 million in net sales in Q420, above expectations High proportion of recurring revenues and growing capacity needs New frame contract with an EU-authori
Slide 9: Partnership with MATRIXX to Accelerate 5G Monetization
Partnership with MATRIXX to Accelerate 5G Monetization 4G/5G The combination of Enea Policy Manager and MATRIXX Charging System provides a turnkey policy and charging solution Benefits for operators: - Simplified and cost-effective solution, applicable for both 4G and 5G - Improved revenue strea
Slide 10: Enea as a Disruptor in 5G
Enea as a Disruptor in 5G 5G trend Enea disruption Data to be critical Enea first vendor to launch 5G Data for operators’ future Management portfolio 5G revenues Operators opting Enea secured 5G Core deals with Tier 1 for “multivendor” operators in North America and Europe 5G software core Video to
Slide 11: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 11
Slide 12: Net sales increased by 1% (currency adjusted)
Net sales increased by 1% (currency adjusted) 2020 2019 2020 2019 Q4 Q4 FY FY Net sales (SEK m) 300 Net sales (SEK m) 248 258 915 994 1/ Growth (%) -4 10 -8 21 250 Growth (%, currency adjusted) 1 6 -7 16 200 1/ the acquired Policy and Access Control business included from 1 March 2019. The acquired
Slide 13: Network Solutions represent 70% of Total Net sales
Network Solutions represent 70% of Total Net sales Net Sales per Product group (MSEK) Network Solutions 250 Net sales increased by 8 percent, mainly driven by the acquired Aptilo business. Organic growth was 1% (fixed currencies). 200 70% Stable recurring revenues and some 62% 55% 70% large orders
Slide 14: 29 percent EBIT margin in Q4
29 percent EBIT margin in Q4 (excl NRI) 2020 2019 2020 2019 Operating profit excluding NRI (SEK m) Q4 Q4 FY FY EBIT excl. non-recurring items, SEK m 73.1 57.0 221.5 258.4 80 EBIT, SEK m 64.2 57.0 188.6 254.7 60 EBIT margin excl. non-recurring items, % 29.5 22.1 24.2 26.0 EBIT margin, % 25.9 22.1 20.
Slide 15: Solid Financial Position
Solid Financial Position • Q4 cash flow before changes in WC amounted to SEK 80.8 m (68.8) Stable cash flow FY amounted to SEK 279.9m (288.3) generation • Q4 cash flow from operations amounted to SEK 61.5m (48.6) FY amounted to SEK 274.2m (245.2) • Interest bearing bank loans amounted to SEK 433.9 m
Slide 16: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 16
Slide 17: 2020: Year in Review
2020: Year in Review Market Dynamics Strategy Execution • Pandemic caused delays in customer • Continued to invest in 5G data management, investments, which means that certain 5G core applications, and virtualization projects (e.g. 5G) and software upgrades platforms were postponed • Acquired Aptilo
Slide 18: Outlook 2021
Outlook 2021 2021 Market Uncertainty in the short to medium term is substantial because of the corona pandemic. Dynamics Its consequences will probably cause further delays in customer projects, and other negative effects on our businesses, risking impacting earnings through coming quarters. Our Tar
Slide 19: Outlook Longer Term
Outlook Longer Term Longer Term Market The market for data management in 5G, virtualization, and advanced cybersecurity is Dynamics entering an exciting phase, where we can challenge established competitors and win market shares with innovative products and new business models. Our Targets Our ambit
Slide 20: Thank you!
Thank you! www.enea.com