Enea AB · OMXSTO:ENEA
Enea AB — Q1 2013 Earnings Presentation
20 slides from Enea AB's earnings presentation, Apr 25, 2013
Slide 1: Financial result Q1 2013
Financial result Q1 2013 Anders Lidbeck, President and CEO April 25, 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
Customer Trust ERICSSON Z walle Honeywell ep ERICSSON @ mororoia @ VOLVO FUJITSU
Slide 5: Q1 2013
BR axe, -_ Q1 2013
Slide 6: Slow Q113 Revenues
Slow Q113 Revenues Q1/13 Q1/12 Revenue MSEK Revenue (MSEK): 99.3 117.3 Growth (%) -15.3 3.3 Growth (%) (excl. currency effects) -13.4 1.8 FY/12 FY/11 Revenue (MSEK): 467.8 446.7 Growth (%) 4.7 0.0 Growth (%) (excl. currency effects) 3.6 1.5 1/12 2/12 3/12 4/12 1/13 6
Slide 7: Service Sales – US Stable but not Growing
Service Sales – US Stable but not Growing Close down of our Chinese services Revenue per product (Q1 2013) business. 55% Operating systems Government and Defense industry in the 7% Middleware US are affected by the political debate 4% Tools on government spending, resulting in 30% Services 4% Ot
Slide 8: Product Sales Down Q113
Product Sales Down Q113 Type of Revenue Customers are reporting lower MSEK production volumes, resulting in lower royalty revenue. Price pressure, more infrastructure capacity needed but operators cannot charge end customers, resulting in fewer or delayed new projects. One major deal lost, one
Slide 9: Small but New Wins in a Soft Market
Small but New Wins in a Soft Market US manufacturing company. 100 kUSD for a three year term. Revenue per segment (Q1 2013) Will use the database Polyhedra for process control equipment. Asian defense customer. 50 KUSD for perpetual development licenses and some services. Will use the operating
Slide 10: Revenue Down – Margin up
Revenue Down – Margin up Revenue per geography (Q1 2013) Europe: Revenue decreased but margins improved. Sales to key customers and service sales in Romania decreased, software sales to other customers in Europe increased. North America: Sales of services and sales of software were lower than la
Slide 11: Improved Operating Margin and EPS
Improved Operating Margin and EPS Q1/13 Q1/12 Operating margin % EBIT (MSEK) 14.0 15.6 Operating margin (%) 14.1 13.3 Earnings per share (SEK) 0.70 0.65 FY/12 FY/11 EBIT (MSEK) 72.5 2.2 1/12 2/12 3/12 4/12 1/13 Operating margin (%) 15.5 0.5 Earnings per share (SEK) 3.18 -0.06* All numbers excluding
Slide 12: Continued Strong Financial Position
Continued Strong Financial Position Cash flow (from operations) MSEK Cash flow from operations amounted to 6.5 (6.1) MSEK for Q1. Cash and cash equivalents at the end of the period were 143.3 (236.5) MSEK Enea has unused credits amounting to 92 MSEK The equity/assets ratio was 79.9 (82.4)% 1
Slide 13: Dividend
Dividend At least 30 percent of profit after tax should be transferred to shareholders. The annual general meeting decided to transfer an amount equivalent to SEK 3.00 (8.00) per share to shareholders. This is equivalent to a transfer amounting to SEK 49.4 (135.2) million. The annual general
Slide 14: Way Forward & Outlook
Way Forward & Outlook 14
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: More Capacity at Lower Prices
More Capacity at Lower 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 characteriz
Slide 17: Continued New Investments in Identified Growth Areas
Continued New Investments in Identified Growth Areas Linux Recruitment of Linux expertise in R&D and Sales. Appointed new General Director of Linux business world wide. Linaro membership with the ambition to become #1 on Linux for ARM. Two engineers engaged in the Linaro organization. Part
Slide 18: High Marketing Activity Q113
High Marketing Activity Q113
Slide 19: Market Outlook
Market Outlook Outlook for 2013 We are experiencing a soft market and at present there is little indication of when the situation will improve. Even if demand will remain low during the year, our assessment is that we will improve both our operating margin and our profit per share over the full year
Slide 20: 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