Enea AB · OMXSTO:ENEA
Enea AB — Q3 2016 Earnings Presentation
28 slides from Enea AB's earnings presentation, Oct 26, 2016
Slide 1: Anders Lidbeck, President & CEO
Anders Lidbeck, President & CEO October 26, 2016
Slide 2: Agenda
Agenda Enea Intro Enea Financials Q316 Technology & Corporate Development Outlook
Slide 3: A Catalyst for the Connected Society
A Catalyst for the Connected Society OPERATING HEAD REVENUE MARGIN 481.5 22.9 QUARTER KISTA, SWEDEN MSEK PERCENT NO. OF R&D OPEX INVESTMENT LISTED EMPLOYEES NASDAQ 403 19 STOCKHOLM PERCENT Numbers for 2015
Slide 4: Our Vision
Our Vision Our software and expertise help you develop amazing functions in a connected society More than 3 billion people rely on Enea software every day, to connect a call or use their mobile phone to get online.
Slide 5: Our Business
Our Business Software Products for embedded applications Maintenance, Support, and Product Services focused on communication solutions Related to our own product portfolio Operating Systems For Open Source based solutions Network Operating Systems for NFV For integrated solutions incl.
Slide 6: Leading Customers
Leading Customers sg ce NOKIA encsson worn VOLVO @ woronors Honeywell oO oe FUfiTsu @ YAMAHA HUGHES,
Slide 7: Record Q3 EBIT & Operating Margin
Record Q3 EBIT & Operating Margin Q316 Q315 EBIT (MSEK) 29.6 27.9 Operating margin (%) 24.5 23.7 Earnings per share (SEK) 1.42 1.29 FY15 EBIT (MSEK) 110.0 Operating margin (%) 22.9 Earnings per share (SEK) 5.49 • 14th consecutive quarter of y-o-y EBIT growth • 20th consecutive quarter of y-o-y Opera
Slide 8: Record Q3 Revenues
Record Q3 Revenues Q316 Q315 Revenue (MSEK) 120.7 117.7 Revenue growth (%) 3 12 Revenue growth (%) (currency adjusted) 1 6 FY15 Revenue (MSEK) 481.5 Revenue growth (%) 12 Revenue growth (%) (currency adjusted) 5 • 9th consecutive quarter of y-o-y revenue growth
Slide 9: Revenue Split per Region
Revenue Split per Region Asia Sales increased significantly compared with the same period last year. Growth in Asia can be attributed to a number of small deals and one larger deal in with a global information and communications technology company. Americas Sales increased compared to the same q
Slide 10: Strong Continued Growth in Worldwide Sales
Strong Continued Growth in Worldwide Sales World-wide software sales continues to grow and now represents 20% of total Q3 revenues compared to 15% two years ago (Q314) Revenues from Key Accounts decreased compared to the same quarter last year both in absolute numbers and in percent – representi
Slide 11: Good Quarter in Global Services
Good Quarter in Global Services 3% y-o-y revenue growth in the quarter with growth both in the US and in Europe The Bridge Services deal in the US, closed in Q216 continued to be important • Rolling 12 Months revenue growth: +5% • Highest Global Services revenue on record
Slide 12: Strong Financial Position
Strong Financial Position Q316 cash flow from operations 20.7 (17.5) MSEK Q316 cash flow before change in working capital 29.0 (30.6) MSEK Cash, cash equivalents and financial investments at the end of the quarter were 215.8 (193.4) MSEK with no debt and unused credits of 15 MSEK The equity
Slide 13: Technology & Corporate Development
Technology & Corporate Development
Slide 14: Open Source Will Impact Us
Open Source Will Impact Us Taking the role of a truly independent software vendor Leveraging both multi-vendor hardware and software Engaging with both end users and hardware vendors (both ARM and Intel) NFV infrastructure fully aligned with the open source community Extending the OPNFV projec
Slide 15: Acquisition of Qosmos
Acquisition of Qosmos Enea has signed an agreement to acquire “I am proud to announce this highly complementary Qosmos – a leading supplier of Network acquisition, which provides a significant and attractive Intelligence software based on Deep Packet extension of our portfolio. The combination of ou
Slide 16: Qosmos
Qosmos Paris Santa Clara Tokyo Singapore Headquartered in Paris, with major offices in the US and APAC Privately held, founded 2000, 90 employees, revenue 14.2 MEUR (2016 est.) Customer types: vendors in the telecom, networking and security industries 100+ telecom networks worldwide use prod
Slide 17: What is DPI?
What is DPI? DPI stands for Deep Packet Inspection Use Cases Technology that scans network traffic in real Include time Traffic Shaping Enables users to make automated decisions about what to do with the traffic Cyber Security Makes it possible to find, identify, classify, Value Added
Slide 18: Network Intelligence to Optimize, Monetize and Protect
Network Intelligence to Optimize, Monetize and Protect Optimize Monetize Protect Policy Control, QoS, … Analytics, vCPE, … NG Firewall, SIEM, … Visibility on thousands of application protocols Extraction of 4,300+ Metadata Caller, called party, jitter, packet loss, latency, call duration, setup time
Slide 19: In the Old World…
In the Old World… Old Monolithic Architecture Enea is a leading vendor of embedded operating systems and middleware solutions and services DPI OEM component Qosmos is a leading vendor of embedded DPI from Qosmos solutions for classification and data extraction OS Solutions and The end product
Slide 20: In the New SDN/NFV World…
In the New SDN/NFV World… Enea provides NFV infrastructure, management New Component-Based Architecture and orchestration solutions, as well as specific VNF components and expert services Classifier Qosmos provides application aware network VNF Mgmt intelligence for analytics, micro-segmentation
Slide 21: Enea and Qosmos in 2015
Enea and Qosmos in 2015 Joint demo at the ARM Partner Meeting 2015 A multi-vendor NFV solution, implementing quality-of- service and firewall functionality for a video streaming application
Slide 22: Enea and Qosmos and Partners in 2016
Enea and Qosmos and Partners in 2016
Slide 23: Together We become Bigger and Stronger
Together We become Bigger and Stronger TEMs and NEPs are main customers today, similar dialogues with customers in the SDN/NFV domain Market Well established in the ARM & Intel ecosystem Together stronger coverage in community projects and industry consortiums Similar go-to-market models Bus
Slide 24: Price & Financing
Price & Financing Financing MEUR MSEK Of the total 52.7 MEUR purchase price, approximately 16.3 MEUR is related to net cash Cash at hand 25.7 249.2 and cash equivalents, leaving 36.4 MEUR as the enterprise value Bank loan 17.0 165.0 The acquisition will be financed by cash-on-hand and a 165 MSEK
Slide 25: Net Cash Balance
Net Cash Balance Indicative post-deal net cash balance, MSEK Enea Q Adj. E+Q Cash 216 157 -276 97 Bank loan 0 27 138 165 Net cash 216 130 -414 -68 The combination of reduced return on cash and the interest rate on the bank loan will amount to less the 5 MSEK per year
Slide 26: Long Term Ambition
Long Term Ambition Our Vision is that our software and expertise will help you develop amazing functions in a connected society. Our Mission is to provide the network software platform and expert services our customers need to enable today’s and tomorrow’s connected society. Our Ambition over a peri
Slide 27: Market Outlook
Market Outlook Outlook 2016 Our objective for the full year 2016 to achieve revenue growth and our assessment that earnings per share will improve compared with 2015, is unchanged.
Slide 28: Thank You!
Thank You! For additional information on Enea, please contact: Anders Lidbeck , President & CEO anders.lidbeck@enea.com Håkan Rippe, CFO hakan.rippe@enea.com Julia Steffensen, Executive Assistant julia.steffensen@enea.com Phone: +46 8 507 140 00