Enea Ab · OMXSTO:ENEA

Enea Ab — Q1 2025 Earnings Presentation

28 slides from Enea Ab's earnings presentation, Apr 24, 2025

  1. Slide 1: Investor call Q1 2025

    24-04-2025 Investor call Q1 2025 TEEMU SALMI, CEO ULF STIGBERG, CFO

  2. Slide 2: Agenda

    Agenda • Intro • Financial Results • Way Forward & Outlook Investor call Q1 2025 Public Information 2

  3. Slide 3: Teemu Salmi: Introducing new CEO

    Teemu Salmi INTRODUCING NEW CEO • Nixu, Stora Enso, Ericsson, Cap Gemini • Nordics, Europe, Middle East, and Africa • 30 years of experience from o IT o Telco o Forestry o Cybersecurity • Focus on driving a profitable growth agenda Investor call Q1 2025 Public Information 3

  4. Slide 4: We make the world's communications safer and more efficient

    tificial Intelligen Ar ce – ce –R len We make the world’s es our ware excel communications ces & Do safer and more t efficient. of m S a d in e liz ex ia pe c rtis Spe e Investor call Q1 2025 Public Information 4

  5. Slide 5: Enea in brief

    Enea in brief WORLD LEADING SPECIALIST IN SOFTWARE FOR TELECOMMUNICATIONS AND CYBERSECURITY Nasdaq 3 Bn 99 1 60 + 7 0+ Publicly Listed People rely on Countries, Communication Cybersecurity & at Nasdaq Enea technologies Enea software is Service Providers Networking Solution Stockholm every day servin

  6. Slide 6: Enea in brief

    Enea in brief WORLD LEADING SPECIALIST IN SOFTWARE FOR TELECOMMUNICATIONS AND CYBERSECURITY Nasdaq Publicly Listed at Nasdaq Stockholm 100 3 Bn Enea People rely on Enea technologies every day Countries, software is customers serving 1 60 + Communication Service Providers CSPs 7 0+ Cybersecurity & Ne

  7. Slide 7: Mobile World Congress

    Mobile World Congress BARCELONA MARCH, 3-6 2025 • Increased customer meetings • Sharing thought leadership in Messaging ecosystem forum (MEF) • New wins © 2 025 GS MA / M WC Investor call Q1 2025 Public Information 7

  8. Slide 8: Why Extreme Networks Chose Enea for Their Next-Gen SD-WAN

    Why Extreme Networks Chose Enea for Their Next-Gen SD-WAN Extreme Networks will integrate Enea’s embedded Deep Packet Inspection engine, the Enea Qosmos ixEngine®, within its Extreme SD- WAN solution. This integration will help to improve security by enabling precise application-specific rules, encr

  9. Slide 9: Beyond ONE Partners with Enea to deliver user centric services to Virgin Mobile

    Beyond ONE Partners with Enea to deliver user centric services to Virgin Mobile in Latin America Beyond ONE, the global digital services provider and owner of Virgin Mobile operations across Latin America and the Middle East, has deployed Enea’s cutting-edge Integra Traffic Management solution to fu

  10. Slide 10: stc Achieves 100% Compliance to GSMA Signaling

    stc Achieves 100% Compliance to GSMA Signaling to Protect Subscribers and Critical Infrastructure stc, the largest mobile network operator in Saudi Arabia, has become one of the few telecom operators worldwide to achieve 100% compliance using Enea Adaptive Signaling Firewall powered by our AI-powere

  11. Slide 11: The World We Operate In

    The World We Operate In • Challenging global macro-economic environment • Currency fluctuations impacting financial results • Volatile geopolitical environment fuels needs for our solutions • Underlying demand in telecom and cybersecurity support continued growth Investor call Q1 2025 Public Informa

  12. Slide 12: Continued Growth In Networks Business

    Continued Growth In Networks Business Q125 104 89 89 91 Security Product area • Security solutions for Network Operators Security Growth show growth in the quarter 0% • The solid customer base continue to order capacity and functionality upgrades • High share of recuring revenue give stable Network

  13. Slide 13: Agenda

    Agenda • Intro • Financial Results • Way Forward & Outlook Investor call Q1 2025 Public Information 13

  14. Slide 14: Key Numbers Q125

    Key Numbers Q125 JANUARY–MARCH 2025 JANUARY–MARCH 2025 NET SALES EBITDA NET DEBT HEAD MARGIN 2/ QUARTER KISTA, 214 25 145 SWEDEN MSEK PERCENT MSEK EARNINGS OPERATING R&D 1/ LISTED PER SHARE CASH FLOW 27 NASDAQ STOCKHOLM (MID CAP) -0.94 36 PERCENT SEK MSEK 1/ (OPEX less D&A plus Capitalized R&D)/(Net

  15. Slide 15: Net Sales Q125

    Net Sales Q125 Net Sales (SEK m) 2025 2024 Q1 Q1 300 1,200 Net Sales 214 200 250 1,000 Growth (%) +7% +7% Growth (%, currency adjusted) +6% +5% 200 800 150 600 • Strong Net Sales from current business including software 100 400 expansions and upgrades • Increase in Software License sales in Q1 vs. p

  16. Slide 16: Security

    Security Stable license revenues of SEK 44m (45) Professional Services revenues of Support & Maintenance, SEK 25m (25) SEK 20m (19) • Very stable development. • Slight decrease vs 2024 • Slight increase vs. 2024 • Driven by a stable customer base. • Dependent on project milestones and timing. Invest

  17. Slide 17: Networks

    Networks License revenues of SEK 42m (25) Professional Services of SEK 29m (25) Support & Maintenance of SEK 34m (40) • New revenues with both • Related to ongoing projects and • Expiration of contract lower the perpetual and recurring term- project milestones revenue for the quarter. licenses • New

  18. Slide 18: Recurring Revenues – 68% of R12m revenues

    Recurring Revenues – 68% of R12m revenues Q125 700 600 • More than SEK 100m growth since 2021 • Share of recurring increased from 59% 2021 to 68% 500 2025 400 The recurring revenue streams: 300 • Support & Maintenance • Term based licenses 200 • Recurring service deliveries 100 0 2021 2022 2023 2024

  19. Slide 19: Updated adjusted EBITDA definition

    Updated adjusted EBITDA definition Q125 Increase Decrease Total 70 60 58 • Items affecting comparability 54 53 • Items affecting comparability can include restructuring 50 -4 -1 costs, non-recurring write-downs, legal advice costs 44 relating to major disputes, and transaction and integration 40 -9

  20. Slide 20: EBITDA Margin Q125

    EBITDA Margin Q125 EBITDA excluding NRI and Trans. Diff. (SEK m) 2025 2024 120 60% Q1 Q1 EBITDA excl NRI and Trans. Diff. SEK m 52.6 53.6 100 50% EBITDA, SEK m 41.8 57.9 80 40% EBITDA excl. NRI and Trans. Diff. % 25% 27% EBITDA margin, % 19% 29% 60 30% 40 20% • 25% (27%) EBITDA margin excl. NRI and

  21. Slide 21: EBIT Margin Q125

    EBIT Margin Q125 Operating profit excluding NRI and Trans. diff. (SEK m) 2025 2024 Q1 Q1 60 30% EBIT excl Non-Recurring Items and trans. 12.3 11.8 Diff., SEK m EBIT, SEK m 1.6 16.1 EBIT margin excl. non-rec. items and trans. 6% 6% 40 20% Diff., % EBIT margin, % 1% 8% Earnings per share, SEK -0.94 0.

  22. Slide 22: EPS Bridge

    EPS Bridge 19,9 M shares 20 5.1 0.4 16.1 EPS -0,94 15 0.5 12.3 10.6 11.8 10 -4.3 5 1.6 0 -10.7 -5 -10 20,9 M shares -15 EPS +0,51 1.4 -20 -18.7 -21.7 -25 22 CEO/CFO Report Q125

  23. Slide 23: Cash Flow Q1 2025

    Cash Flow Q1 2025 Cash flow generation • Cash flow from operations SEK 35.5m (120.1) • Net Cash flow SEK 46.6m (51.0) Financing Structure • Net debt of MSEK 144.7m (133.0) Financial KPI's • Equity ratio 69.1 percent (65.8) • Net debt to EBITDA 0.52 (0.40) Investor call Q1 2025 Public Information 23

  24. Slide 24: The Buy-back Program Continues

    The Buy-back Program Continues • 342 620 shares were bought back in Q125, for a total consideration of SEK 32.2m • The repurchases are since May 10th within the framework of the authorization from the Annual General Meeting 2024 to repurchase own shares up to SEK 100m • Since May 10th , until March

  25. Slide 25: Agenda

    Agenda • Intro • Financial Results • Way Forward & Outlook Investor call Q1 2025 Public Information 25

  26. Slide 26: Short-Term Way Forward

    Short-Term Way Forward Strategic Overhaul of Product Portfolio Commercial Excellence Operational Efficiency Investor call Q1 2025 Public Information 26

  27. Slide 27: Long Term Financial Ambition and 2025 Outlook

    Long Term Financial Ambition and 2025 Outlook Our long term ambition is to generate double-digit growth in our focus areas, an EBITDA margin exceeding 35 percent and strong cash flows. Our guidance for 2025 is continued growth in our focus areas, an EBITDA margin in the range of 30-35% and a strong

  28. Slide 28: Thank You!

    T E E MU S A L MI , CEO ULF S T I G B ER G , C FO Thank You! V I S IT E N E A. C O M F O R M O R E F I N AN I C A L I N F O R MA T I O N

Enea — Q1 2025 Earnings Presentation on 6ix