Slide 1: Interim report Q2 2024
18-07-2024 Interim report Q2 2024 ANDERS LIDBECK, CEO ULF STIGBERG, CFO
Slide 2: Agenda
Agenda • Intro • Financial Results • Way Forward & Outlook Q2 Presentation 2024 Public Information 2
Slide 3: A Really Good Quarter
A Really Good Quarter APRIL – JUNE 2024 EBITDA “14% organic NET SALES MARGIN 2/ NET DEBT growth and 35% 236 35 144 MSEK MSEK EBITDA margin PERCENT has made for a very strong EARNINGS PER SHARE OPERATING CASH FLOW R&D 1/ Q2.” 1.63 37.1 23 PERCENT SEK MSEK 1/ (OPEX less D&A plus Capitalized R&D)/(Net
Slide 4: Our Vision: We make the world's communications safer
Our Vision We make the world’s communications safer and more efficient. Our solutions connect, optimize and protect communications between companies, people, devices and things worldwide. Q2 Presentation 2024 Public Information 4
Slide 5: World Class Cybersecurity & Telecom Portfolio
World Class Cybersecurity & Telecom Portfolio Data Management Applications Service Network Security Provider Wi-Fi Network Data Layer Traffic Management Embedded Security Q2 Presentation 2024 Public Information 5
Slide 6: New Revenue Split from 2024
New Revenue Split from 2024 TO BETTER REFLECT ENEA’S MARKET FOCUS AND PORTFOLIO Networks Security OS Q2 Presentation 2024 Public Information 6 6
Slide 7: A Quarter of Notable Performance
A Quarter of Notable Performance • 14% y-o-y organic growth in total Net Sales • 15% y-o-y organic growth in our Security business • 25% y-o-y organic growth in our Network business • 35% EBITDA margin • Customer Trust • Large license expansion deal $2.9M (or 31MSEK) • Operational Quality • Employee
Slide 8: $2.9M 5G License Expansion Deal in Q224
$2.9M 5G License Expansion Deal in Q224 Enea's Stratum database supports all 5G subscriptions for a major Tier 1 operator in US. Already in commercial use, Stratum facilitates the open 5G network envisioned by the telecom industry, utilizing open and standard interfaces. 5G User Data Repository Q2 P
Slide 9: A Quarter of Notable Performance
A Quarter of Notable Performance • Customer Trust • Large license expansion deal, concrete value realized, joint webinars, joint press-releases, speaker slots • Operational Quality • ISO 9001 re-certification (IS0 2701) • Employee Satisfaction • eNPS significantly up • Summary index significantly up
Slide 10: Agenda
Agenda • Intro • Financial Results • Way Forward and Outlook Q2 Presentation 2024 Public Information 10
Slide 11: Double Digit Organic Growth Q224
Double Digit Organic Growth Q224 Net Sales (SEK m) 2024 2023 Q2 Q2 300 1 000 Net Sales 236 208 900 250 Growth (%) 14% -4% 800 Growth (%, currency adjusted) 13% -10% 700 200 Total Revenues 239 217 600 Fx impact vs. last year 0.9 150 500 400 • Strong Net Sales from current business including software
Slide 12: Growing Recurring Revenue - Security Solutions
Growing Recurring Revenue - Security Solutions REVENUE BY TYPE • License revenues of SEK 51m (48) or +6% • Driven by sales related to upgrades and expansions to current customers in combination with a base of recurring license revenues. • Support & Maintenance steady increase vs last year. SEK 27m (
Slide 13: Growing Recurring Revenue - Network Solutions
Growing Recurring Revenue - Network Solutions REVENUE BY TYPE • License revenues of SEK 52m (25) or +108% • Significant impact from large license deal software license expansion closed in Q2 at SEK 31m ($2.9M) • Support & Maintenance of SEK 42m (41) or +2% • Slight increase based on renewals by curr
Slide 14: Operating Systems Following Plans
Operating Systems Following Plans REVENUE BY TYPE • License revenues of SEK 7m (12) or -42% • Result of lower current license sales as planned. • Q223 included a new sizeable deal that we didn’t have in Q224. • Support & Maintenance of SEK 11m (13m) or -12% • The decrease is expected. 14 Q2 Presenta
Slide 15: 35% EBITDA Margin Q224
35% EBITDA Margin Q224 EBITDA excluding NRI (SEK m) 2024 2023 40% Q2 Q2 140 35% EBITDA excl Non-Recurring Items, SEK m 83.1 48.8 120 30% EBITDA, SEK m 75.1 -35.8 100 EBITDA margin excl. non-rec. items, % 35% 23% 25% EBITDA margin, % 32% -17% 80 20% 60 15% • 35% (23%) EBITDA margin excl. NRI 40 • 32%
Slide 16: Stable Cash Flow Q224
Stable Cash Flow Q224 C A S H F LO W G E N E R AT I O N • Cash flow from operations SEK 35.1m (77.1) • Net Cash flow SEK -11.7m (20.0) FINANCING STRUCTURE • Net debt of MSEK 144.5m (220.4) FINANCIAL KPI’S • Equity ratio 66.5 percent (64.0) • Net debt to EBITDA 0.50 (0.89) 16 Q2 Presentation 2024 Pub
Slide 17: The Buy-back Program Continues
The Buy-back Program Continues • 358 583 shares were bought back in Q224, for a total consideration of SEK 23.4m • The repurchases are since May 10th within the framework of the authorization from the Annual General Meeting 2024 to repurchase own shares up to SEK 100m. • The program will be carried
Slide 18: Agenda
Agenda • Intro • Financial Results • Way Forward and Outlook Q2 Presentation 2024 Public Information 18
Slide 19: Significant Investment in Product Development
Significant Investment in Product Development • 25% of our revenues invested in R&D during 1H24 • But now we amortize more than we capitalize Q2 Presentation 2024 Public Information 19
Slide 20: We Help 5G to be Realized
We Help 5G to be Realized Enea's Stratum database supports all 5G subscriptions for a major Tier 1 operator in US. Already in commercial use, Stratum facilitates the open 5G network envisioned by the telecom industry, utilizing open and standard interfaces. 5G User Data Repository Q2 Presentation 20
Slide 21: We Help Minimize CLI Spoofing Attacks
We Help Minimize CLI Spoofing Attacks FAKE CALLS IMPACT US ELECTIONS It’s not known who is behind the calls, though they falsely showed up to recipients as coming from the personal cellphone number of Kathy Sullivan, a former state Democratic Party chair who helps run Granite for America, a super-PA
Slide 22: We Help Accelerate Mobile Video Traffic
We Help Accelerate Mobile Video Traffic Enea’s Traffic Management products optimize video traffic, while delivering a better viewing experience for users. In the quarter we reduced the impact of video on a major European network by 16% during peak periods. Traffic Management Q2 Presentation 2024 Pub
Slide 23: Well Positioned in the Market
Well Positioned in the Market Events Awards In the media Q2 Presentation 2024 Public Information 23
Slide 24: 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 2
Slide 25: Thank You!
ANDERS LIDBECK, CEO ULF STIGBERG, CFO Thank You! VISIT ENEA.COM FOR MORE FINANICAL INFORMATION
Slide 26: ENEA
ENEA