Enea AB · OMXSTO:ENEA
Enea AB — Q1 2019 Earnings Presentation
23 slides from Enea AB's earnings presentation, Apr 24, 2019
Slide 1: Q119 The Enea Edge
Q119 Presentation by Anders Lidbeck President & CEO 24 April 2019 The Enea Edge
Slide 2: Agenda
Agenda Intro Financials Q119 Way Forward & Outlook
Slide 3: Intro
ENEA Intro
Slide 4: Enea at a glance: Q1 2019 and FY 2018
FY 2018 Q1 2019 OPERATING OPERATING HEAD REVENUE MARGIN* REVENUE MARGIN* QUARTER KISTA, SWEDEN 830.3 23.2 240.9 27.3 MSEK PERCENT MSEK PERCENT LISTED NO. OF R&D OPEX NO. OF R&D OPEX NASDAQ EMPLOYEES INVESTMENT EMPLOYEES INVESTMENT STOCKHOLM (MID CAP) 571 16 640 16 PERCENT PERCENT *Excluding non-recu
Slide 5: Global Presence
Global Presence Belfast Bristol Stockholm (HQ) Berlin Tokyo Redwood City Vienna Osijek Shanghai Pune Phoenix Paris Bucharest Boston Iasi Munich Craiova 5
Slide 6: Enea's software connects calls and mobile devices
Did you bring your mobile phone? Have you checked your email yet? Have you watched a streamed video today? Every day, more than 3 billion people rely on Enea’s software to connect a call or to use their mobile device to get online 6
Slide 7: Our Mission
Our Mission We provide the network software platform and expert services our customers need to enable today’s and tomorrow’s connected society 7
Slide 8: Financials Q119
ENEA Financials Q119
Slide 9: Record Q1 Revenue Growth
Record Q1 Revenue Growth Q119 Q118 Revenue (MSEK) 240.9 170.3 Revenue growth (%) 41 19 Revenue growth (%, currency adjusted) 34 21 Highest Q1 revenue ever Highest quarterly revenue growth number on record 30 percent revenue growth excluding settlement 9
Slide 10: Record Quarterly Operating Profit
Record Quarterly Operating Profit Q119 Q118 Operating profit excl. non-recurring items, MSEK 65.7 35.1 Operating profit, MSEK 62.2 27.0 Operating margin excl. non-recurring items, % 27.3 20.6 Operating margin, % 25.8 15.9 Earnings per share, SEK 2.14 0.94 87 percent operating profit growth (excl.
Slide 11: Settlement Agreement with Large Customer
Settlement Agreement with Large Customer The settlement follows the arbitral award from January 2018, and covers historic royalty “We are happy to have come to this shipments up to 2018 settlement and expect that this Marks the end and full closure of a multi-year discussion with the customer ag
Slide 12: Significant Growth in Revenues from New Customers
Significant Growth in Revenues from New Customers Revenue per Business Area (MSEK) 300 World Wide Software Sales include all 250 54% software sales outside key accounts, and grew 75 percent year-over-year. 200 54% 150 43% 33% Key Accounts include software sales to major 100 19% telecom equipment
Slide 13: Significant Growth in Revenues from New Products
Significant Growth in Revenues from New Products Revenue per Product Group (MSEK) 300 Network Solutions Sales increased 54% significantly in the quarter due to the 250 acquisition of Openwave Mobility. This product group almost doubled over Q118. 200 54% 150 30% 25% 100 8% Operating System Solut
Slide 14: Accelerated Software Growth in the US and Asia
Accelerated Software Growth in the US and Asia EMEA Revenue in EMEA increased by 22 percent in the quarter year over year. The increase is related to World Wide Software Sales, where the acquisitions and the settlement are contributors. Global Services had a slow development in the quarter, mainly
Slide 15: Financial Position
Financial Position Cash flow from operations 93.3 (8.0) MSEK for the quarter. Cash flow before change in working capital 66.9 (21.1) MSEK for the quarter. Cash, cash equivalents at the end of the quarter were 142.7 (140.6) MSEK. Total interest-bearing liabilities at the end of the quarter am
Slide 16: Way Forward & Outlook
ENEA Way Forward & Outlook
Slide 17: Our Evolved Business Q119
Our Evolved Business Q119 31% Operating System Solutions 54% Network Solutions 14% Global Services 17
Slide 18: Our New Expanded Portfolio
Our New Expanded Portfolio Software that adds “intelligence” to the In a situation where operating systems network and other low-level software are encountering a growing presence of Enea Today open source, it will be easier for us to find growth with good margins higher More focus on Traffic Mana
Slide 19: The Latest Addition to our Portfolio
The Latest Addition to our Portfolio Move up This acquisition brings several new applications for the More focus on software at the in the 4G/5G core network, functional blocks that sits side-by-side application level software with products that we previously acquired through Openwave stack Mobility
Slide 20: 5G as a Business Driver
5G as a Business Driver Open user plane Traffic management and optimization Extreme Mobile Broadband Shared data layer Cloud Data Management 5G Control plane Real-Time Policy and Access control Gaming New requirements on latency, scalability, Traffic classification flexibility, and virtualizat
Slide 21: Award Winning Portfolio
Award Winning Portfolio Gold for Product Excellence of the Year In the Forensics category of the 15th Annual 2019 Info Security PG’s Global Excellence Awards Gold Winner in “Network Traffic Analysis” 2019 Cybersecurity Excellence Awards Best New NFVi Platform Enea NFV Access as a foundation fo
Slide 22: Market Outlook 2019
Market Outlook 2019 Our objective for the full year 2019 is to achieve revenue growth over 2018 and an operating margin exceeding 20 percent The Enea Edge
Slide 23: Thank You
The Enea Edge THANK YOU www.enea.com