Enea Ab · OMXSTO:ENEA
Enea Ab — FY2010 Earnings Presentation
26 slides from Enea Ab's earnings presentation, Feb 3, 2011
Slide 1: Financial Result 2010
Enea Fi Financial i l Result R lt 2010 Per Åkerberg, President and CEO F b February 3 3, 2011
Slide 2: Agenda
Agenda Intro Q4 & FY 2010 Way forward Outlook & dividend 2
Slide 3: Leader in Communications Software & Services
Leader in Communications Software & Services Revenue per segment (2010) Enea Consulting Global software and F ll product Full d t lif life cycle l Other services company 21% software development focused on solutions for Outsourcing capabilities Training communication-driven communication driven Aero
Slide 4: Global Footprint – Global Customers
Global Footprint – Global Customers 4
Slide 5: Fourth quarter & full year 2010
Fourth quarter & full year 2010 5
Slide 6: Revenues are stabilizing
Revenues are stabilizing MSEK Revenue Revenue per customer segment 52% Telecom infrastructure 18% Wireless devices 9% Aero/Defense 21% Other 1/09 2/09 3/09 4/09 1/10 2/10 3/10 4/10 Q4/10 Q4/09 FY/10 FY/09 Revenue (MSEK): 181.1 195.1 726.1 777.7 Growth (%) -7.2 -22.6 -6.6 -15.2 Growth (%) (excl. curr
Slide 7: Profit continues to improve
Profit continues to improve Operating profit Earnings and Equity per Share (before non-recurring items) MSEK Earnings/share, SEK Eq/share, SEK Earnings per share Equity per share 1/09 2/09 3/09 4/09 1/10 2/10 3/10 4/10 1/09 2/09 3/09 4/09 1/10 2/10 3/10 4/10 Q4/10 Q4/09 FY/10 FY/09 Operating profit
Slide 8: Software: stable revenue and improved margins
Software: stable revenue and improved margins Type of revenue Software accounted for 48% of the total MSEK revenue for 2010 2010. Revenue of 347.1 MSEK in 2010 resulting Other Royalty in 2.2% growth. License sales License and royalty sales decrease slightly during 2010 Growth in France, Germ
Slide 9: Software: Sales Distribution
Software: Sales Distribution Revenue per geography Revenue per product 65% Real time operating systems 80% EMEA 10% Middleware 13% North America 17% P Product d t related l t d services i 7% Asia 8% Other Revenue per customer segment 66% Telecom infrastructure 20% Wireless devices 14% Other 9 All nu
Slide 10: Software: Business highlights 2010
Software: Business highlights 2010 Closed 70 software design-wins. Strategic partnerships with Freescale and NetLogic. Enea and Freescale are cooperating on future product plans, as well as marketing and customer development. de elopment The agreement with ith NetLogic incl includes des cooperat
Slide 11: Consulting: Significantly improved margins
Consulting: Significantly improved margins Revenue Consulting accounted for 52% of the total MSEK revenue for 2010 2010. Revenue of 434.7 MSEK in 2010 resulting in a 10.9% decline. Nordic Consulting have showed a positive trend over the year with improved profit margins. g In Öresund the marke
Slide 12: Consulting: Sales Distribution
Consulting: Sales Distribution Revenue per geography Revenue per customer segment 71% Nordic 33% Telecom infrastructure 10% Romania 14% Wireless devices 19% North America 16% Aero/Defense 13% Group internal 24% Other 12 All numbers or 2010, Consulting
Slide 13: Consulting: Business highlights 2010
Consulting: Business highlights 2010 The extensive p project j taking g place p within American consultancy y operations has developed well over the year and has also resulted in an additional order. Enea has opened a competence center in Linköping in order to take full advantage of the opportun
Slide 14: Continued Strong Financial Position
Continued Strong Financial Position C Cashh flflow ffrom operations ti amounted t d tto C h flflow Cash 76.1 MSEK for 2010. (from operations) MSEK Cash and cash equivalents at the end of the period were 176.5 MSEK Enea has unused credits amounting to 100 MSEK The equity/assets ratio was 77.6
Slide 15: Way Forward
Way Forward 15 ENEA
Slide 16: Technology Development Drives Demand
Technology Development Drives Demand • Ericsson predicts 50 billion connected devices by 2020 • Cisco believes mobile data traffic will increase 39 times through 2014, thus requiring major investments in infrastructure 16
Slide 17: Enea's market opportunity
Enea’s Enea s market opportunity • The technology answer to the increased complexity spells multicore, a technology shift that is redefining the market • Today approximately 10-15% 10 15% of all projects are using multicore. In two years it’s expected to grow to 40% usage • The Th world ld wide id s
Slide 18: Software Strategy
Software Strategy Offer operating systems used for embedded development App. 30% will use a Customers are asking for both a real- commercial OS and 40% an open souce OS time operating system (RTOS), such as in their next embedded Enea OSE, and Linux. project. Enea will also start packaging its poi
Slide 19: Software Strategy cont.
Software Strategy cont cont. Continued focus on telecom, with emphasis on the networking segment Telecom T l iis th the market k t where h Leverage our strong position within multicore is most widely telecom and use it as a beach head for used. And the multicore long term expansion into other long
Slide 20: Software Strategy cont.
Software Strategy cont cont. Strong partnerships with chip manufacturers Customers C t are often ft To get full performance out of the hardware, selecting the processor the operating system needs to support the before the operating specific processor. processor Strong partnerships will system syst
Slide 21: Consulting Strategy
Consulting Strategy Regional strategies based on the core competences The Nordic, Th N di US and d Leverage the strong customer relationships Romanian and the strong skill set for each region. operations have different profiles both in regards to Create competence centers for growth areas custom
Slide 22: Strategy cont.
Strategy cont cont. Develop the organization’s productivity with focus on finding growth During the year Enea will continue to ramp up its efficiency and productivity to improve those processes that facilitate growth. Attract Att t and dddevelop l iindividuals di id l withith exceptional ti l at
Slide 23: Market Outlook & Dividend Proposal
Market Outlook & Dividend Proposal 23
Slide 24: Market Outlook
Market Outlook Software: - The underlying demand for Enea products and services remains good - Technology development means major, long-term investments for Enea's customers Consulting: - Demand is increasing in 2011 Financial outlook for 2011: - net sales will continue to increase compared wi
Slide 25: Dividend proposal
Dividend proposal Enea has a strong financial position with cash and cash equivalents amounting ti to t 176.5 176 5 MSEK b by th the endd off th the year At least 30 percent of the income after tax should be transferred to the shareholders Dividend in the form of a redemption program Value c
Slide 26: THANK YOU!
THANK YOU! For further information, please contact: Per Åkerberg Åkerberg, CEO, CEO per.akerberg@enea.com per akerberg@enea com Lars Kevsjö, CFO, lars.kevsjo@enea.com Catharina Paulcén, VP CorpComm catharina.paulcen@enea.com Phone: +46 8 507 140 00