Enea AB · OMXSTO:ENEA
Enea AB — Q3 2019 Earnings Presentation
21 slides from Enea AB's earnings presentation, Oct 23, 2019
Slide 1: Q3 2019 Financial Result
Q3 2019 Financial Result Jan Häglund, President and CEO Björn Westberg, CFO October 23, 2019 The Enea Edge
Slide 2: Agenda
Agenda Introduction Financial result Way forward and outlook
Slide 3: Jul-Sep 2019 Jan-Sep 2019
Jul-Sep 2019 Jan-Sep 2019 OPERATING OPERATING HEAD REVENUE MARGIN* REVENUE MARGIN* QUARTER KISTA, SWEDEN 250.2 25.4 751.2 26.8 MSEK PERCENT MSEK PERCENT LISTED NO. OF R&D OPEX NO. OF R&D OPEX NASDAQ EMPLOYEES INVESTMENT EMPLOYEES INVESTMENT STOCKHOLM (MID CAP) 658 16 658 16 PERCENT PERCENT *excludin
Slide 4: Key Events in the Quarter
Key Events in the Quarter Direct sales of policy Contract worth 1.5 MEUR with large German operator and access solutions for AAA (Authentication, Authorization and Accounting). New video traffic management contract worth 2.3 MUSD Video traffic management with South-East Asian operator. Access virtua
Slide 5: Significant Growth in Network Solutions
Significant Growth in Network Solutions Revenue per Product group (MSEK) Total growth of 38 percent in 250 Network solutions 200 62% Good development of new Policy 150 54% and access control business unit 30% 100 Organic growth of 6 percent, 46% 29% 23% 50 based on new traffic management 24% 17%
Slide 6: Enea is a world-leading supplier of innovative software components for telecommunications and cybersecurity
Enea is a world-leading supplier of innovative software components for telecommunications and cybersecurity 6
Slide 7: Leading Positions in Select Segments
Leading Positions in Select Segments Connected Devices Network Edge Access Network Core Network Internet and Cloud #1 #1 RTOS for Video Traffic Radio Networks Management Tier 1 Cloud Data Management New Tier 1 Edge Virtualization Policy and Platforms Access Control #1 Embedded Deep Packet Inspection
Slide 8: Recent Acquisition and New Emerging Areas
Recent Acquisition and New Emerging Areas Connected Devices Network Edge Access Network Core Network Internet and Cloud #1 #1 RTOS for Video Traffic Radio Networks Management Cloud Data Management Edge Policy and Virtualization Access Control Platforms #1 Embedded Deep Packet Inspection
Slide 9: Investments for Organic Growth
Investments for Organic Growth Edge Cloud Data Policy and Virtualization Management Access Control Platforms 5G Core subscribers Growing market for 5G Core market expected Market Outlook Access virtualization to grow from 2020/2021 expected to grow from 2020/2021 Network Data Layer is New
Slide 10: Agenda
Agenda Introduction Financial result Way forward and outlook
Slide 11: Record Q3 Revenue
Record Q3 Revenue Revenue MSEK Q319 Q318 Revenue (MSEK) 250.2 209.6 300 Revenue growth (%) 19 44 250 Revenue growth (%, currency adjusted) 16 36 200 150 100 50 0 2/18 3/18 4/18 1/19 2/19 3/19 Highest Q3 revenue ever 19 percent revenue growth 11
Slide 12: Record Operating Profit in a Q3
Record Operating Profit in a Q3 EBIT excl. non-recurring items MSEK Q319 Q318 80 Operating profit excl. non-recurring items, MSEK 63.5 51.9 70 Operating profit, MSEK 63.5 51.2 60 50 Operating margin excl. non-recurring items, % 25.4 24.8 40 Operating margin, % 25.4 24.4 30 Earnings per share, SEK 2.
Slide 13: Increased number of customers and products
Increased number of customers and products Worldwide Software Sales Revenue per business area (MSEK) Grew 18 percent year-over-year, driven by the new Policy and Access Control 250 business and other new contracts. 57% 200 57% 150 58% 35% 100 Key Accounts 28% Grew by 30 percent year-over-year, d
Slide 14: Significant Growth in Network Solutions
Significant Growth in Network Solutions Network Solutions Revenue increased by 38 percent. Main Revenue per Product group (MSEK) contribution from the new Policy and Access 250 62% Control business. Organic growth (6 percent) in other products 200 62% 150 54% 30% 100 Operating System Solutions 4
Slide 15: All regions increased sales
All regions increased sales EMEA Revenue in EMEA increased by 8 percent in the quarter, Revenue per region Jul -Sep year over year. The increase is mainly related to the acquisition of the Policy and Access Control business (closed March 2019) 13% Americas Revenue increased by 19 percent in the
Slide 16: Financial Position
Financial Position Stable cash flow • CF before change in WC amounted to 78.1 MSEK (63.2) generation • CF from operations amounted to 69.5 MSEK (23.2) • Gross proceeds of 271 MSEK New share issue • Share dilution of 9 percent (after the issue) • Interest bearing liabilities amounted to 575 MSEK (573
Slide 17: Agenda
Agenda Introduction Financial result Way forward and outlook
Slide 18: Positioned for Profitable Growth
Positioned for Profitable Growth Select markets in telecommunication (4G and 5G) and cybersecurity, working with leading Market Position customers and gaining top positions in key niche segments. Pure play software company with high gross margin and significant recurring revenues, Business Model une
Slide 19: Strategy Execution in the Quarter
Strategy Execution in the Quarter Market Position Direct sales of policy and access solutions Business Model Go-to-Market Model Video traffic management New larger contract mobile operator in South-East Asia Growth Strategy Access virtualization market traction Initial design wins for NFV Acce
Slide 20: 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. 20
Slide 21: Thank You
The Enea Edge THANK YOU www.enea.com