Enea AB · OMXSTO:ENEA
Enea AB — Q4 2018 Earnings Presentation
24 slides from Enea AB's earnings presentation, Feb 7, 2019
Slide 1: Q418 The Enea Edge
Q418 Presentation by Anders Lidbeck President & CEO 7 February 2019 The Enea Edge
Slide 2: Agenda
Agenda Intro Financials Q418 Way Forward & Outlook
Slide 3: Intro
ENEA Intro
Slide 4: Q4 2018 FY 2018 key facts
FY 2018 Q4 2018 OPERATING OPERATING HEAD REVENUE MARGIN* REVENUE MARGIN* QUARTER KISTA, SWEDEN 830.3 23.2 237.1 25.1 MSEK PERCENT MSEK PERCENT LISTED NO. OF R&D OPEX NO. OF R&D OPEX NASDAQ EMPLOYEES INVESTMENT EMPLOYEES INVESTMENT STOCKHOLM (MID CAP) 571 16 571 16 PERCENT PERCENT *Excluding non-recu
Slide 5: Global Presence
Global Presence Belfast Bristol Stockholm (HQ) Tokyo Redwood City Shanghai Pune Phoenix Singapore Paris Bucharest Boston Iasi Munich Craiova 5
Slide 6: Enea's software connects calls and mobile devices
Did you bring your mobile phone? Have you checked your email yet? Have you watched a streamed video today? Every day, more than 3 billion people rely on Enea’s software to connect a call or to use their mobile device to get online 6
Slide 7: Our Mission
Our Mission We provide the network software platform and expert services our customers need to enable today’s and tomorrow’s connected society 7
Slide 8: Financials Q418
ENEA Financials Q418
Slide 9: Record Revenue Growth
Record Revenue Growth Revenue Q418 Q417 Revenue (MSEK) 237.1 152.0 Revenue growth (%) 56 12 Revenue growth (%, currency adjusted) 49 14 FY18 FY17 Revenue (MSEK) 830.3 588.4 Revenue growth (%) 41 17 Revenue growth (%, currency adjusted) 38 17 Highest Q4 revenue ever Highest revenue growth number
Slide 10: Record Quarterly Operating Profit
Record Quarterly Operating Profit Operating profit excl. non-recurring items Q418 Q417 Operating profit excl. non-recurring items, MSEK 59.5 39.8 Operating profit, MSEK 66.7 22.8 Operating margin excl. non-recurring items, % 25.1 26.2 Operating margin, % 28.1 15.0 Earnings per share, SEK 2.72 0.93
Slide 11: Record FY Operating Profit
Record FY Operating Profit Operating profit excl. non-recurring items FY18 FY17 Operating profit excl. non-recurring items, MSEK 192.5 134.5 Operating profit, MSEK 188.9 102.8 Operating margin excl. non-recurring items, % 23.2 22.9 Operating margin, % 22.7 17.5 Earnings per share, SEK 7.33 4.69 43
Slide 12: Significant Growth in Revenues from New Customers
Significant Growth in Revenues from New Customers Revenue per Business Area (MSEK) 250 62% World Wide Software Sales include all software sales outside key accounts, and grew 153 percent year-over-year. 200 150 21% 28% 38% 62% 100 49% 50% 39% 23% 23% Key Accounts include software sales to major
Slide 13: Accelerated Software Growth in the US
Accelerated Software Growth in the US EMEA Revenue in EMEA increased by 18 percent in the quarter year over year. Both Worldwide Software Sales and the European service operation made stable progress in the quarter. Americas Revenue increased by 119 percent in the quarter, year over year. The in
Slide 14: Significant Growth in Revenues from New Products
Significant Growth in Revenues from New Products Revenue per Product Group (MSEK) 250 Network Solutions Sales increased 55% significantly in the quarter due to the acquisition of Openwave Mobility. This 200 product group more thank doubled over 55% Q417. 150 7% 23% 32% 100 Operating System Solut
Slide 15: Financial Position
Financial Position Cash flow from operations 42.3 (17.9) MSEK for the quarter. 168.6 (116.6) MSEK for the year. Cash flow before change in working capital 72.2 (21.7) MSEK for the quarter. 198.0 (95.9) MSEK for the year. Cash, cash equivalents at the end of the quarter were 74.7 (312.0) MSEK.
Slide 16: Dividend
Dividend Enea's long-term dividend policy is that at least 30 percent of profit after tax will be transferred to shareholders. However, consideration should be given to the Company's financial position, cash flow, acquisition opportunities and future prospects. In line with the dividend policy,
Slide 17: Way Forward & Outlook
ENEA Way Forward & Outlook
Slide 18: The Enea Journey
The Enea Journey Enea divests the Nordic Growth Acceleration consulting business and puts – prioritize growth focus on the more profitable before further margin software business expansion 1968 1980 1990 2000 2010 2018 Enea was founded as four Enea launches the real-time Enea’s software is deployed
Slide 19: Our Aim – Growth Acceleration
Our Aim – Growth Acceleration Prioritize Q4 2018 was yet a record in terms of growth before growth. Revenue growth 56% and operating margin profit up 49% over same quarter 2017 (excl. expansion NRI) Size matters – both to be perceived as a credible vendor and to leverage economies of scale Acquisi
Slide 20: Our Strategy
Our Strategy Expanding from “operating system solutions” to “network solutions” The value-chain is evolving – strategy to move More dialog and direct Move up in the software stack and address the end engagement with the end users closer to the of our software and solutions end user user directly
Slide 21: Acquisitions Complementing Organic Growth
Acquisitions Complementing Organic Growth The next step in a series of successful acquisitions Business unit 4M EUR 14.2M EUR 27M USD ~12M EUR Revenue (2007) (2016) (2017) (2019) # of employees ~120 ~90 ~140 ~90 Expected March Date of closing May 2008 December 2016 March 2018 2019 21
Slide 22: Enea Signed an Offer to Acquire Global Software Business
Enea Signed an Offer to Acquire Global Software Business Move up This acquisition brings several new applications for the More focus on software at the in the 4G/5G core network, functional blocks that sits side-by-side application level software with products that we previously acquired through Ope
Slide 23: Market Outlook 2019
Market Outlook 2019 Our objective for the full year 2019 is to achieve revenue growth over 2018 and an operating margin exceeding 20 percent The Enea Edge
Slide 24: Thank You
The Enea Edge THANK YOU www.enea.com