Enea Ab · OMXSTO:ENEA
Enea Ab — Q4 2024 Earnings Presentation
25 slides from Enea Ab's earnings presentation, Jan 30, 2025
Slide 1: Annual Statement 2024
30-01-2025 Annual Statement 2024 ANDERS LIDBECK, CEO ULF STIGBERG, CFO
Slide 2: Agenda
Agenda • Intro • Financial Results • Way Forward & Outlook Annual Statement 2024 Presentation Public Information 2
Slide 3: Our Vision – The Place To Be In 2025
Our Vision – The Place To Be In 2025 “We make the world’s communications safer and more efficient.” Open Gateway Deep fake & Cybersecurity Broadband augmented with Satellite AI Agents B2B Services Annual Statement 2024 Presentation Public Information 3
Slide 4: We Are On A Mission With A Unique Portfolio
We Are On A Mission With A Unique Portfolio Data Management Applications Service Network Security “Our mission is to provide Provider Wi-Fi innovative and robust solutions that elevate the network security, performance, and Network Data Layer intelligence of Communication Service Providers and Cyber
Slide 5: Winning New Business On A Global Scale In 2024
Winning New Business On A Global Scale In 2024 • South America Security • Asia Security • South America Security • Africa Security • North America Security • North America Security • North America Security • North America Networks • Europe Networks • Africa Networks • North America Networks • Middle
Slide 6: Double Digit Growth In Our Focused Areas 2024
Double Digit Growth In Our Focused Areas 2024 HITTING THE LONG TERM OBJECTIVE ALREADY IN 2024 430 392 392 359 Security focus area delivers 10% growth • The solid customer base continues to order capacity and functionality upgrades Security Growth 10% • New products generate new business • High share
Slide 7: Agenda
Agenda • Intro • Financial Results • Way Forward and Outlook Annual Statement 2024 Presentation Public Information 7
Slide 8: Key Numbers Q424 And FY24
Key Numbers Q424 And FY24 JANUARY–DECEMBER 2024 OCTOBER–DECEMBER 2024 JANUARY–DECEMBER 2024 EBITDA EBITDA HEAD NET SALES NET DEBT NET SALES NET DEBT MARGIN 2/ MARGIN 2/ QUARTER KISTA, 252 37 117 904 34 117 SWEDEN MSEK MSEK MSEK MSEK PERCENT PERCENT EARNINGS OPERATING EARNINGS OPERATING LISTED R&D 1/
Slide 9: 4% Organic Growth Q424
4% Organic Growth Q424 Net Sales (SEK m) 2024 2023 Q4 Q4 300 1 000 Net Sales 252 241 900 250 Growth (%) +4% -11% 800 Growth (%, currency adjusted) +4% -13% 700 200 Total Revenues 258 243 600 150 500 400 • Strong Net Sales from current business including software 100 expansions and upgrades 300 • Inc
Slide 10: Security – Solid Q424 Revenues
Security – Solid Q424 Revenues Stable license revenues of SEK 53m (54) Professional Services revenues of Support & Maintenance revenues 8% SEK 26m (26) growth over last year, SEK 27m (25) • Stable base recurring license • Quarter 4 was strong and in line • Very stable business during 2024. revenues.
Slide 11: Networks – Strong Growth In All Revenue Types
Networks – Strong Growth In All Revenue Types License revenues of SEK 43m (37) Professional Services of SEK 29m (27) Support & Maintenance of SEK 49m (43) or +16% growth or +7% growth or +14% growth • New license revenue increase • Related to ongoing projects and • Additional support and maintenance
Slide 12: Recurring Revenues – 69% Of Total Revenues FY24
Recurring Revenues – 69% Of Total Revenues FY24 FULL YEAR 2024 700 600 • More than SEK 100m growth since 2021 500 • Share of recurring increased from 59% 2021 to 68% 2023 400 • Recurring share increased to 69% in 2024 300 The recurring revenue streams: • Support & Maintenance 200 • Term based licens
Slide 13: Strong EBITDA Margin Q424 at 37%
Strong EBITDA Margin Q424 at 37% EBITDA excluding NRI (SEK m) 2024 2023 120 40% Q4 Q4 35% EBITDA excl Non-Recurring Items, SEK m 92.7 92.1 100 30% EBITDA, SEK m 88.2 88.8 80 EBITDA margin excl. non-rec. items, % 37% 38% 25% EBITDA margin, % 35% 37% 60 20% 15% 40 • 80.6% in Gross margin (79.0%), impa
Slide 14: 20% EBIT Margin In Q424 & Significant EPS Growth
20% EBIT Margin In Q424 & Significant EPS Growth Operating profit excluding NRI (SEK m) 2024 2023 16% Q4 Q4 80 EBIT excl Non-Recurring Items, SEK m 49.5 47.6 14% EBIT, SEK m 45.0 43.1 60 12% EBIT margin excl. non-rec. items, % 20% 20% 10% EBIT margin, % 18% 18% 40 8% Earnings per share, SEK 4.70 0.6
Slide 15: Strong Cash Flow Q424
Strong Cash Flow Q424 C A S H F LO W G E N E R AT I O N • Cash flow from operations SEK 103.5m (-24.0) • Net Cash flow SEK -126.4m (-56.8) FINANCING STRUCTURE • Net debt of MSEK 116.6m (209.1) • Loan amortization Net SEK -181.0m ( +7.1) FINANCIAL KPI’S • Equity ratio 72.9 percent (65.1) • Net debt t
Slide 16: Restructured & Improved Loan Facilities
Restructured & Improved Loan Facilities DECEMBER 2024 • On 16 December 2024, a three-year loan facility of EUR 25 million was signed. • 50% amortized over three-year starting in December 2024. • The current loan facility was amortized in full, EUR 40 million, leaving a net amortization in Q4 of EUR
Slide 17: The Buy-back Program Continues
The Buy-back Program Continues • 199 377 shares were bought back in Q424, for a total consideration of SEK 20.0m • For the full year 2024, 1,008,369 shares were bought, for a total consideration of SEK 73.8m • The repurchases are since May 10th within the framework of the authorization from the Annu
Slide 18: Agenda
Agenda • Intro • Financial Results • Way Forward and Outlook Annual Statement 2024 Presentation Public Information 18
Slide 19: Market Outlook 2025
Market Outlook 2025 Market Development • Mobile Packet Core +3,6 % Y/Y in 2025 1) • Telecom Security +8,4 % CAGR 2023-2028 2) • IT Security +10,8 % CAGR 2023-2028 2) • Secure Access ServiceEdge (SASE) +13 % CAGR 2023-2028 3) • Communication Providers (CPaaS) +14 % CAGR 2023-2028 4) 1) Dell Oro, Q4 2
Slide 20: Market Trends 2025
Market Trends 2025 Deep fake & Cybersecurity Open e.g. across all Gateway AI Agents comm channels e.g. customer voice, RCS Ecosystems in success, network Broadband formation optimization, augmented Security with Satellite B2B e.g. high Services performance rural area e.g. private network internet se
Slide 21: Innovation Is Key To Our Success
Innovation Is Key To Our Success WE REINVESTED 23% OF OUR REVENUES IN R&D IN 2024 Evolve to new offerings by embracing disruptive technologies, like AI, to drive new offerings Expand into adjacent areas to increase revenues by broadening the addressable market Enhance value to customers by improving
Slide 22: Enea Is Going AI
Enea Is Going AI DRIVING NEW OFFERINGS AND AN EFFICIENT ORGANIZATION In Q424 we: • Launched Traffic management 8.6 – with AI based functions • Launched Messaging Firewall 10.1 – with AI powered capabilities • Developed an Internal AI Chatbot for our global Sales Organization (ELLA - Enhanced Learnin
Slide 23: Come meet us at MWC in Barcelona March 3
Come meet us at MWC in Barcelona March 3 Annual Statement 2024 Presentation Public Information 23
Slide 24: 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
Slide 25: Thank You!
ANDERS LIDBECK, CEO ULF STIGBERG, CFO Thank You! VISIT ENEA.COM FOR MORE FINANICAL INFORMATION