Enea AB · OMXSTO:ENEA

Enea AB — Q2 2016 Earnings Presentation

22 slides from Enea AB's earnings presentation, Jul 20, 2016

  1. Slide 1: Anders Lidbeck, President & CEO, July 20, 2016

    Anders Lidbeck, President & CEO July 20, 2016

  2. Slide 2: Agenda

    Agenda  Enea Intro  Enea Financials Q216  Technology & Outlook

  3. Slide 3: A Catalyst for the Connected Society

    A Catalyst for the Connected Society OPERATING HEAD REVENUE MARGIN 481.5 22.9 QUARTER KISTA, SWEDEN MSEK PERCENT NO. OF R&D OPEX INVESTMENT LISTED EMPLOYEES NASDAQ 403 19 STOCKHOLM PERCENT Numbers for 2015

  4. Slide 4: Our Business

    Our Business  Software Products for embedded applications  Maintenance, Support, and Product Services focused on communication solutions  Related to our own product portfolio  Operating Systems  For Open Source based solutions  Network Operating Systems for NFV  For integrated solutions incl.

  5. Slide 5: Our Vision

    Our Vision Our software and expertise help you develop amazing functions in a connected society More than 3 billion people rely on Enea software every day, to connect a call or use their mobile phone to get online.

  6. Slide 6: Leading Customers

    Leading Customers g Ze NOKIA on meon wok tue: VOLVO @ mororora Honeywell (2) Electrolux FUJITSU @YAMAHA HUGHES,

  7. Slide 7: Financials Q2 2016

    ENEA Financials Q2 2016

  8. Slide 8: Record Q2 EBIT & Operating Margin

    Record Q2 EBIT & Operating Margin Q216 Q215 EBIT (MSEK) 28.8 26.5 Operating margin (%) 23.2 22.1 Earnings per share (SEK) 1.48 1.30 FY15 EBIT (MSEK) 110.0 Operating margin (%) 22.9 Earnings per share (SEK) 5.49 • 13th consecutive quarter of EBIT growth & highest Q2 EBIT ever • 19th consecutive quart

  9. Slide 9: Record Q2 Revenues

    Record Q2 Revenues Q216 Q215 Revenue (MSEK) 124.1 120.2 Revenue growth (%) 3 16 Revenue growth (%) (currency adjusted) 4 8 FY15 Revenue (MSEK) 481.5 Revenue growth (%) 12 Revenue growth (%) (currency adjusted) 5 • Highest Q2 revenue since 2011 (then with Nordic Consulting) • 8th consecutive quarter

  10. Slide 10: Significant Growth in some Revenue Lines

    Significant Growth in some Revenue Lines  Revenues from Key Accounts decreased – representing 45% of total Q2 revenues  Revenues from Worldwide Software Sales increased by 34 percent – representing 24% of total Q2 revenues  Growth in Global Services revenues – representing 31% of total Q2 revenue

  11. Slide 11: Revenue Split per Region

    Revenue Split per Region  Europe European revenues increased compared with the same quarter last year.  Double digit Services Sales growth  +20% Software Sales growth  Americas Americas revenues increased compared with the same quarter last year.  Flat Services Sales growth  +20% Software Sale

  12. Slide 12: Enea Press Release April 18

    Enea Press Release April 18 “…has signed an agreement for development services worth 2.8 MUSD over a period of 5 months.” “Enea has a long record providing the customer with uniquely skilled services teams for avionics systems, software development, quality assurance and design.” “Enea’s local and g

  13. Slide 13: Back to Growth in Global Services

    Back to Growth in Global Services  Global Services revenue growth both sequential and y-o-y  Local service sales in Romania progressed well, while revenues in the US were flat over the second quarter 2015 • 14% R12M revenue growth • Highest quarterly revenues on record

  14. Slide 14: Strong Financial Position

    Strong Financial Position  Q216 cash flow from operations 41.1 (54.7) MSEK.  Q216 cash flow before change in working capital 30.9 (28.1) MSEK.  Cash, cash equivalents and financial investments at the end of the quarter were 196.6 (187.6) MSEK.  Enea has no debt and unused credits of 15 MSEK.  T

  15. Slide 15: Technology & Outlook

    ENEA & Technology & Outlook

  16. Slide 16: Significant Technology Investment

    Significant Technology Investment REVENUE 124.1 MSEK S&M R&D G&A 22.5 22.4 13.0 MSEK MSEK MSEK R&D OPEX OPERATING INVESTMENT MARGIN EBIT 18 23.2 28.8 PERCENT PERCENT MSEK Numbers for Q216

  17. Slide 17: Enea's Technology Direction

    Enea’s Technology Direction Taking the role of a truly independent software vendor  Leveraging both multi-vendor hardware and software  Engaging with both end users and hardware vendors (both ARM and Intel) NFV infrastructure fully aligned with the open source community  Extending the OPNFV proje

  18. Slide 18: Next Step(s) within the NFV Domain

    Next Step(s) within the NFV Domain OPNFV  Our engagement with ARM remains strong “C”  Our engagement within OPNFV community continues Release  Our commitment to NFV is accelerated OPNFV  Next step within OPNFV community together with ARM “B”  Enea is the company behind the ARM support in the “B

  19. Slide 19: Public Recognition

    Public Recognition During the OPNFV Summit in Berlin, in June, the team headed by Enea, responsible for the ARM support within the OPNFV “Brahmaputra” release, received the “Director’s Award” for their achievements.

  20. Slide 20: Long Term Ambition

    Long Term Ambition The ambition over a period of three years commencing 2016 is to continue to develop a global software company with higher revenues, sustainable high profitability and good cash flows. The company will focus on organic growth, but both strategic and complementary acquisitions will

  21. Slide 21: Market Outlook

    Market Outlook  Outlook 2016 Our objective for the full year 2016 is to achieve revenue growth and our assessment is that earnings per share will improve compared with 2015.

  22. Slide 22: Thank You!

    Thank You! For additional information on Enea, please contact: Anders Lidbeck , President & CEO anders.lidbeck@enea.com Håkan Rippe, CFO hakan.rippe@enea.com Julia Steffensen, Executive Assistant julia.steffensen@enea.com Phone: +46 8 507 140 00

Enea — Q2 2016 Earnings Presentation on 6ix