Slide 1: Interim report Q1 2024
04-25-2024 Interim report Q1 2024 ANDERS LIDBECK, CEO ULF STIGBERG, CFO
Slide 2: Agenda
Agenda ENEA INTERIM REPORT Q124 • Intro • Financial results ANDERS LIDBECK, CEO • Cybersecurity development • Way forward and outlook ULF STIGBERG, CFO
Slide 3: Our Vision
Our Vision 4.5 BILLION PEOPLE ARE RELYING ON OUR SOFTWARE EVERY DAY We make the world’s communications safer and more efficient. Our solutions connect, optimize and protect communications between companies, people, devices and things worldwide. 4
Slide 4: Key Numbers Q124
Key Numbers Q124 JANUARY – MARCH 2024 HEAD NET SALES EBITDA MARGIN 2/ NET DEBT QUARTER KISTA, SWEDEN 200 29 133 MSEK PERCENT MSEK EARNINGS OPERATING LISTED PER SHARE CASH FLOW R&D 1/ NASDAQ STOCKHOLM (MID CAP) 0.52 120 26 SEK MSEK PERCENT 1/ (OPEX less D&A plus Capitalized R&D)/(Net Sales) 2/ (EBITD
Slide 5: New Revenue Segmentation from Q124
New Revenue Segmentation from Q124 TO BETTER REFLECT ENEA’S MARKET FOCUS AND PORTFOLIO NETWORK SOLUTIONS OS 6
Slide 6: New Revenue Segmentation from Q124
New Revenue Segmentation from Q124 TO BETTER REFLECT ENEA’S MARKET FOCUS AND PORTFOLIO NETWORK SECURITY OS 7
Slide 7: Q124 Growth in Focus Areas
Q124 Growth in Focus Areas GOOD GROWTH BUT STILL SOFT MARKET CONDITIONS • 9% y-o-y growth in our Security Segment • 10% y-o-y growth in our Network Segment • Growth is driven by growing recurring revenues • The Telecom market is still soft • 11% decline in the global RAN investments 2023 over 2022 (
Slide 8: Agenda
Agenda • Intro • Financial results • Cybersecurity development • Way forward and outlook
Slide 9: Net Sales in Q1 2024
Net Sales in Q1 2024 2024 2023 2024 2023 Q1* Q1* Q1 Q1 Net Sales (SEK m) Net Sales 200 187 200 248 300 1 000 Growth (%) 7% -19% 18% 900 250 Growth (%, currency adjusted) 5% -21% 13% 800 Total Revenues 206 206 254 700 200 *Adjusted for one- off revenue in Q123 600 150 500 400 • Stable net sales gener
Slide 10: Operating Systems – Following Plans
Operating Systems – Following Plans REVENUE BY TYPE • License revenues of SEK 9m (72) or -92% • Excluding buyout 2023 of 61m, the drop is 2m (17%) which is excepted. • Support & Maintenance of SEK 11m (11m) or +2% • Performing steady and in line with plan 11
Slide 11: Security Solutions – Growing Recurring Revenue
Security Solutions – Growing Recurring Revenue REVENUE BY TYPE • License revenues of SEK 45m (46) or -1% • Support & Maintenance steady increase vs last year. SEK 25m (21) or +17% vs Q123 • Partly thanks to increased installed base and higher rates for specific deals • Professional Services of SEK 1
Slide 12: Network Solutions – Good Renewal Rate
Network Solutions – Good Renewal Rate REVENUE BY TYPE • Renewal rate of recurring contracts, in all categories, is good including key operators in both Europe and North America. • License revenues of SEK 25m (16) or +58% vs Q123 • Increase based on expansion and new deals for the quarter • Support &
Slide 13: EBITDA in Q124
EBITDA in Q124 2024 2023 2024 2023 Q1* Q1* Q1 Q1 40% EBITDA excl Non-Recurring EBITDA excluding NRI (SEK m) 57.9 33.7 57.9 94.4 Items, SEK m 140 35% EBITDA, SEK m 57.9 53.5 120 30% EBITDA margin excl. non-rec. 29% 18% 29% 38% items, % 100 25% EBITDA margin, % 29% 22% 80 *Adjusted for one- 20% off re
Slide 14: Strong Cash Flow Q124
Strong Cash Flow Q124 C A S H F LO W G E N E R AT I O N • Cash flow from operations SEK 120.0m (97.5) • Net Cash flow SEK 51.0m (24.2) FINANCING STRUCTURE • Net debt of MSEK 132.9m (262.9) FINANCIAL KPI’S • Equity ratio 65.8 percent (68.9) • Net debt to EBITDA 0.74 (0.74) 15
Slide 15: The Buy-back Program on Repeat
The Buy-back Program on Repeat • 245 825 shares were bought back in Q124, for a total consideration of MSEK 13.2 • The board has decided to continue the buy-back program of own shares until next AGM on May 7th • The program will be carried out by a credit institution following the ‘Safe Harbour Regu
Slide 16: Agenda
Agenda • Intro • Financial results • Cybersecurity development • Way forward and outlook
Slide 17: Industry in Force at Mobile World Congress
Industry in Force at Mobile World Congress MWC 2024 • 101,000 attendees, close to 2019 high • 59% from wider mobile ecosystem • 2700 exhibitors • 180 ministerial delegations, representing 140 countries, 70 Ministers • Security, AI, Revenue growth & protection key themes Enea at MWC 2024 • 100+ execu
Slide 18: State of Security - Survey Reveal Investment Gaps
State of Security - Survey Reveal Investment Gaps ENTERPRISE EXPECTATIONS 61% 51% 47% Report significant cost to Require CSP to provide CSP is rated the most business from mobile firewall protection. important Cybersecurity messaging fraud and scams. provider. COMMUNICATIONS SERVICE PROVIDER INVESTM
Slide 19: Call To Arms for 2024
Call To Arms for 2024 Voice Fraud Artificial Intelligence Learn how to defend Deepfake Biometrics, Imposter yourself and your business Chatbots, and “Inferred Private Data” Don’t be surprised; vishing attacks Be ready. Discover the Zero-Trust Strategies are on the rise. and Cutting-edge AI Defenses.
Slide 20: Agenda
Agenda • Introduction • Financial results • Cybersecurity development • Way forward and outlook
Slide 21: Demonstrating Thought Leadership
Demonstrating Thought Leadership Global Award Sms Fraud Keynote At Mobile 100+ Executive Meetings At Analyst Recognitions Mobile IoT with Swisscom Ecosystem Global Forum Mobile World Congress Barcelona For Network Security Cybersecurity Insiders Enea Security Survey Industry Momentum In Recommends E
Slide 22: Long Term Financial Ambition and 2024 Outlook
Long Term Financial Ambition and 2024 Outlook Our goal in the coming years is to generate double- digit growth in our focused business areas, an EBITDA margin over 35 percent, and strong cash flows. Our growth will continue to be affected by the general economic circumstances. But for the full year
Slide 23: Thank You!
ANDERS LIDBECK, CEO ULF STIGBERG, CFO Thank You! VISIT ENEA.COM FOR MORE FINANICAL INFORMATION
Slide 24: www.enea.com
www.enea.com