Enea AB · OMXSTO:ENEA
Enea AB — Q4 2017 Earnings Presentation
27 slides from Enea AB's earnings presentation, Feb 8, 2018
Slide 1: Q417 The Enea Edge
Q417 Presentation by Anders Lidbeck President & CEO 8 February 2018 The Enea Edge
Slide 2: Agenda
Agenda Intro Financials 2017 Strategic Transformation Way Forward & Outlook
Slide 3: Intro
ENEA Intro
Slide 4: A Catalyst for the Connected Society
A Catalyst for the Connected Society OPERATING HEAD REVENUE MARGIN* 589.3 23 QUARTER KISTA, SWEDEN MSEK PERCENT NO. OF R&D OPEX INVESTMENT LISTED EMPLOYEES NASDAQ 463 17 STOCKHOLM PERCENT *Excluding non-recurring costs Numbers for FY 2017
Slide 5: Our Vision, Mission, and Commitment
Our Vision, Mission, and Commitment Our Vision Our Commitment Our software and expertise help you develop Our commitment is to amazing functions in a work together with the connected society leading hardware vendors and our customers - as a key contributor in the open source community - to Our Missi
Slide 6: More than 3 billion people rely on Enea software every day
More than 3 billion people rely on Enea software every day, to connect a call or use their mobile phone to get online
Slide 7: Customers
Customers @GENBAND NOKIA ERICSSONS ® VOLVO AA) mororo.a Honeywell patacom /inritSU @yaMaHA © envision: ensure Tanking sf Electrolux HUGHES. ENEA
Slide 8: Financials Q417
ENEA Financials Q417
Slide 9: Record Operating Profit
Record Operating Profit Q417 Q416 Operating profit excl. non-recurring costs, MSEK 40.6 34.6 Operating profit, MSEK 23.5 33.5 Operating margin excl. non-recurring costs, % 26.6 25.5 Operating margin, % 15.4 24.7 Earnings per share, SEK 0.97 1.67 40.6 MSEK operating profit excl. non-recurring costs
Slide 10: Non-recurring Costs
Non-recurring Costs The Enea Edge January 2018, the arbitration award in the dispute that has been ongoing with one of our largest customers for several years was issued. The ruling means we incurred the majority of the counterparty’s expenses meant that Q417 was charged with additional 16.4 MSE
Slide 11: Record FY Operating Profit
Record FY Operating Profit FY17 FY16 Operating profit excl. non-recurring costs, MSEK 135.4 121.6 Operating profit, MSEK 103.7 118.8 Operating margin excl. non-recurring costs, % 23.0 24.3 Operating margin, % 17.6 23.7 Earnings per share, SEK 4.73 5.95 All-time high operating profit excl. non-recu
Slide 12: Record Revenue Growth
Record Revenue Growth Q417 Q416 Revenue (MSEK) 152.7 135.7 Revenue growth (%) 13 8 Revenue growth (%) (currency adjusted) 15 5 FY17 Revenue (MSEK) 589.3 Revenue growth (%) 18 Revenue growth (%) (currency adjusted) 17 Highest full year revenue ever 14th consecutive quarter of y-o-y revenue growth
Slide 13: Strong Software Growth in the US
Strong Software Growth in the US Europe Revenue in Europe increased with 6 percent in the quarter year- over-year. Both Worldwide Software Sales and the Global Services delivered solid growth numbers in the quarter. Americas Revenue increased with 35 percent in the quarter year-over-year. The in
Slide 14: Improved Product Revenue Mix
Improved Product Revenue Mix Operating systems account for most of Enea’s sales, with 42 percent of revenues in the quarter. Sales decreased in the quarter compared to the corresponding quarter of the previous year. Sales in Network Solutions increased significantly in the quarter. This product
Slide 15: Signs of Improvement in US Services
Signs of Improvement in US Services Global Services sales increased on the corresponding quarter of the previous year, accounting for 22 percent of Enea’s total sales. European operations continued to post solid y-o-y growth numbers US operations have improved compared with the previous quarte
Slide 16: Strategic Transformation
ENEA Strategic Transformation
Slide 17: Change in Revenue Mix 2013-2017
Change in Revenue Mix 2013-2017 100% 90% 23% 26% 29% 31% 29% 80% 70% 13% 17% 35% 60% 18% 23% 50% 40% 30% 60% 55% 51% 48% 20% 42% 10% 0% FY13 FY14 FY15 FY16 FY17 Key Accounts WW Software Global Services WW Software grew 82% in FY17 (growth in both OS System Solutions & Network Solutions) Key Acco
Slide 18: A Quickly Expanding Portfolio
Network Monitoring A Quickly Cyber Security Expanding Portfolio 3 new areas in the last 2 years NFV Platforms Network Management Systems Virtual Probes On-Device Management Agents
Slide 19: During the quarter we continued and deepened our Partnerships
During the quarter we continued and deepened our Partnerships… ▶ Oct 24: With the Taiwanese hardware company and were ▶ Oct 27: With the Swedish company Clavister and (side by side with Wind River) on Lanner's announcement entered a collaborative partnership for virtual for : “NFV-ready Network Plat
Slide 20: Cooperation with the semiconductor company ARM
We engaged in our well-established cooperation with the semiconductor company ARM… ▶ Dec 8: We had a booth at "ARM Tech Symposia" ▶ 15-17 Nov: We had a booth with ARM on "Embedded Technology"
Slide 21: We still remain an independent software vendor
We still remain an independent software vendor… ▶ 26 Oct: One example is the webinar around NFV ▶ OSE remains a key player for us and during the fourth that we conducted during the quarter together quarter, we released both a whitepaper and a video with Intel and leading industry analysts. productio
Slide 22: Way Forward & Outlook
ENEA Way Forward & Outlook
Slide 23: Assessment of 2017 Targets
Assessment of 2017 Targets Our objective for the full year 2017 was to achieve double-digit revenue growth, and improved operating profit compared to 2016 before non-recurring costs. We achieved these two targets through revenue growth of 18 percent and operating profit of SEK 135.4 million, bef
Slide 24: Financial Position
Financial Position Q417 cash flow from operations 17.9 (27.5) MSEK Q417 cash flow before change in working capital 22.5 (45.0) MSEK Cash, cash equivalents and financial investments at the end of the quarter were 414.3 (223.5) MSEK Total interest-bearing liabilities at the end of the quarter
Slide 25: Dividend
Dividend Enea's aim is to build a larger and stronger company, delivering an increasing value for customers, employees and shareholders Acquisitions that strengthens the company's market position and long-term earnings capacity, as well as continued investments in our product portfolio are impor
Slide 26: Market Outlook 2018
Market Outlook 2018 Our goal for the full year 2018 is to achieve revenue growth and improved operating profit compared with 2017. The improvement in operating profit is expected to occur in the second half of 2018. The Enea Edge
Slide 27: Thank You
The Enea Edge THANK YOU www.enea.com