Enea Ab · OMXSTO:ENEA
Enea Ab — Q1 2006 Earnings Presentation
24 slides from Enea Ab's earnings presentation, Apr 26, 2006
Slide 1: Interim Report January - March, 2006
Enea Interim Report January - March, 2006 April 26, 2006 Johan Wall President & CEO Håkan Gustavson CFO
Slide 2: Enea in Brief
Enea in Brief Key Data: Financial highlights: • Global software • Revenue SEK ~750 m company with a • Profitable growth strong professional services offering • Listed on Stockholm Stock Exchange • Customer value through complete embedded solutions, reduced development time and cost • World-wide pres
Slide 3: Market Offering
Market Offering Software - OSE™, Real Time Operating System - Element™ Middleware Platform - Polyhedra™, In Memory Database - Optima™ Eclipse-based Tools - LINX™ Communications Software - NASP Telecom-in-a-box Software Third party products - Best of breed tools, network protocols and applications -
Slide 4: Some of Enea's Clients
Some of Enea’s Clients Enea Interim Report January-March, April 26, 2006 (4)
Slide 5: Quarter 1
Quarter 1 Enea Interim Report January-March, April 26, 2006 (5)
Slide 6: Achievements during the first Quarter
Achievements during the first Quarter • Extended Product Portfolio – Network Applications Services Platform (NASP) launched – LINX communications product launched • Alliance with MontaVista – Industry leader in Linux • New Business – Key contracts with telecom equipment manufacturers in China and Ja
Slide 7: Financials
Financials Enea Interim Report January-March, April 26, 2006 (7)
Slide 8: Quarter 1 in Brief
Quarter 1 in Brief • Net sales SEK 187 (174) million, up 7% • Operating profit SEK 16 (16) million, operating margin 9 (10) % • Software sales SEK 64(58) million, up 12% • Consulting and other income SEK 123 (117) million, up 5% • Continued broadening of the product portfolio Enea Interim Report Jan
Slide 9: Enea Group - Net Sales and EBIT
Enea Group - Net Sales and EBIT MSEK MSEK 200 80 150 60 100 40 50 20 0 0 2003 2004 2005 2006 -50 -20 -100 -40 -150 -60 -200 -80 Net Sales Ebit Q1 Q2 Q3 Q4 Enea Interim Report January-March, April 26, 2006 (9)
Slide 10: Software Sales
Software Sales Software sales, MSEK 80 70 Products 34,4% 60 50 40 30 20 10 Services 0 65,6% 2003 2004 2005 2006 Q1 Q2 Q3 Q4 • Operational target 50 % software Revenue split Quarter 1 Enea Interim Report January-March, April 26, 2006 (10)
Slide 11: Sales per Segment and Market during Quarter 1
Sales per Segment and Market during Quarter 1 6% 24% 23% 71% 76% Telecom Nordic Others (Medtech,Automotive,Milaero etc.) North America EMEAA • Ericsson largest customer, > 50% of total sales Enea Interim Report January-March, April 26, 2006 (11)
Slide 12: Software – Net Sales and Gross Profit
Software – Net Sales and Gross Profit MSEK MSEK 70 100 60 80 50 40 60 30 40 20 20 10 0 - 1Q05 2Q05 3Q05 4Q05 1Q06 Net Sales Gross Profit • Gross Profit lower due to negative currency effects and changes in product mix Enea Interim Report January-March, April 26, 2006 (12)
Slide 13: Professional Services - Net Sales and Gross Profit
Professional Services - Net Sales and Gross Profit MSEK MSEK 140 100 120 80 100 80 60 60 40 40 20 20 0 - 1Q05 2Q05 Q1 3Q05 Q2 Q3 Q4 4Q05 1Q06 Net Sales Gross Profit Enea Interim Report January-March, April 26, 2006 (13)
Slide 14: Operations - Net Sales and Ebit
Operations - Net Sales and Ebit Nordic North America EMEAA 160 30 50 10 2 140 25 1,5 40 8 8 120 20 1 100 30 6 3 0,5 80 15 20 4 0 60 10 -2 1Q05 2Q05 3Q05 4Q05 1Q06 -0,5 40 5 10 2 20 -1 -7 0 0 0 0 -1,5 1Q05 2Q05 3Q05 4Q05 1Q06 1Q05 2Q05 3Q05 4Q05 1Q06 -12 -2 Net Sales Ebit Net Sales Ebit Net Sales Ebi
Slide 15: Solid Financials
Solid Financials MSEK 200 180 160 140 120 100 80 60 40 20 0 Equity Issue 81m 2002 2003 2004 2005 2006 Q1 Q2 Q3 Q4 Enea Interim Report January-March, April 26, 2006 (15)
Slide 16: Way Forward
Way Forward Enea Interim Report January-March, April 26, 2006 (16)
Slide 17: A Changing Marketplace – From Build to Buy
A Changing Marketplace – From Build to Buy Device Requirements • Increased complexity • Converging Technologies Changing Demands • Networking Capabilities • Standardization • Integrated Systems Competitive Pressure • Open Source • Professional Services • Faster Time-to-Market • Lower Development Cos
Slide 18: Trends in Software
Trends in Software Spending $/unit Average Selling Price (ASP) of Hardware Device Software X Middleware RTOS time Enea Interim Report January-March, April 26, 2006 (18)
Slide 19: Extended Product Portfolio (NASP)
Extended Product Portfolio Customer Customer Customer Application Application Application Third- Middleware Network party Databases Element protocols applications Polyhedra & stacks NASP Communications - LINX RTOS Linux OSE-family MontaVista Hardware Enea software Third-party products Not provided b
Slide 20: Targets
Targets • Operational targets – At least 50 % of total revenue from software • Financial targets – Over the course of a business cycle achieve: • Sales increase of more than 15 percent annually • Operating margin of at least 10 percent Enea Interim Report January-March, April 26, 2006 (20)
Slide 21: Our Strategy
Our Strategy Growth Competitiveness Profitability • Expanded product range • Platform independent software •Recurring revenue model • Geographic expansion • Professional Services & 3rd-party products •Cost efficiency • Broaden customer base • Complete and integrated solutions • Middleware integratio
Slide 22: Going Forward
Going Forward • A changing marketplace • Enea continues to expand the product portfolio • Financial capacity to participate in the changing environment Enea positioned for further profitable growth Enea Interim Report January-March, April 26, 2006 (22)
Slide 23: Questions & Answers
Slide 24: Thanks
Thanks For further information, please contact: Johan Wall, +46 8 507 140 00, johan.wall@enea.com Håkan Gustavson, +46 8 507 140 00, hakan.gustavson@enea.com Enea, OSE, OSEck, OSE epsilon, Element, Polyhedra, Optima, LINX and Device Software Optimized are all registrated trademarks by Enea AB or its