Enea AB · OMXSTO:ENEA
Enea AB — Q2 2018 Earnings Presentation
23 slides from Enea AB's earnings presentation, Jul 19, 2018
Slide 1: Q218 The Enea Edge
Q218 Presentation by Anders Lidbeck President & CEO 19 July 2018 The Enea Edge
Slide 2: Agenda
Agenda Intro Financials Q218 Way Forward & Outlook
Slide 3: Intro
ENEA Intro
Slide 4: A Catalyst for the Connected Society
A Catalyst for the Connected Society OPERATING HEAD REVENUE MARGIN* 588.4 23 QUARTER KISTA, SWEDEN MSEK PERCENT NO. OF R&D OPEX INVESTMENT LISTED EMPLOYEES NASDAQ 463 17 STOCKHOLM PERCENT *Excluding non-recurring costs Numbers for FY 2017
Slide 5: Our Vision, Mission, and Commitment
Our Vision, Mission, and Commitment Our Vision Our Commitment Our software and expertise help you develop Our commitment is to amazing functions in a work together with the connected society leading hardware vendors and our customers - as a key contributor in the open source community - to Our Missi
Slide 6: More than 3 billion people rely on Enea software every day
More than 3 billion people rely on Enea software every day, to connect a call or use their mobile phone to get online
Slide 7: Customers
Customers @©GENBAND NOKIA ERICSSONy VOLVO AA) motorola Ainritsu @yaMAHA envision: ensure HM) ttectroux HUGHES Hytera= THE ELASTIC NETWORK. Ne Enea Edge
Slide 8: ..and now with Additional Customers
..and now with Additional Customers 7 out of top 20 mobile operators world wide are relying on Openwave Mobility 8
Slide 9: Financials Q218
ENEA Financials Q218
Slide 10: Record Operating Profit
Record Operating Profit Q218 Q217 Operating profit excl. non-recurring costs, MSEK 45.9 31.1 Operating profit, MSEK 44.0 22.6 Operating margin excl. non-recurring costs, % 21.5 20.9 Operating margin, % 20.6 15.2 Earnings per share, SEK 1.83 0.96 48 percent operating profit increase y-o-y (excl. no
Slide 11: Record Revenue Growth
Record Revenue Growth Q218 Q217 Revenue (MSEK) 213.4 148.5 Revenue growth (%) 44 20 Revenue growth (%) (currency adjusted) 44 17 FY17 Revenue (MSEK) 588.4 Revenue growth (%) 17 Revenue growth (%) (currency adjusted) 17 Highest Q2 revenue in ten years Highest growth number on record 11
Slide 12: Software Growth in the US
Software Growth in the US EMEA (The Europe region was renamed EMEA effective the first quarter 2018 to include sales to customers in the Middle East and Africa.) Revenue in EMEA increased by 11 percent in the quarter year over year. Both Worldwide Software Sales and the European service operation
Slide 13: Strategic Shift in Product Revenue Mix
Strategic Shift in Product Revenue Mix Operating systems represented 31 percent of the revenues in the quarter. Sales decreased somewhat in the quarter compared to the corresponding quarter of the previous year, due to the open source trend in key accounts. Sales in Network Solutions increased s
Slide 14: Double Digit Growth in Global Services
Double Digit Growth in Global Services Global Services revenues grew with 18 percent over the second quarter last year and in Q2 accounting for 17 percent of Enea’s total sales. Overall Global Services is showing an important growth in Bridge Services, both in the US and in Sweden 14
Slide 15: Key Changes in the Revenue Mix
Key Changes in the Revenue Mix 100% 90% 21% 17% 26% 25% 31% 31% 80% 70% 13% 16% 60% 18% 33% 24% 55% Global Services 50% WW Software 40% Key Accounts 30% 59% 62% 51% 46% 20% 45% 28% 10% 0% Q213 Q214 Q215 Q216 Q217 Q218 WW Software growth of 137 percent y-o-y Key accounts decreased with 12 percent
Slide 16: Financial Position
Financial Position Cash flow from operations 95.2 (38.1) MSEK Cash flow before change in working capital 41.5 (16.8) MSEK Cash-flow effected by settlement of unilateral price reduction of 24 MSEK Cash, cash equivalents at the end of the quarter were 220.6 (260.2) MSEK Total interest-bearin
Slide 17: Way Forward & Outlook
ENEA Way Forward & Outlook
Slide 18: Challenges and Drivers
Challenges and Drivers Prioritize growth before margin expansion Size does matter – both to be perceived as a credible vendor and to leverage economies of scale Expand portfolio and addressable New challenges within the networking and market mobile broadband domains calls for new A “New” solutio
Slide 19: Our Strategic Direction
Our Strategic Direction More dialog and direct Move engagement with the end users closer to the of our software and solutions end user Software as a complete Move up solution rather than software in the as an OEM component value chain More focus on software at Move up the application level in the so
Slide 20: Our Evolved Business
Our Evolved Business Mobile Traffic Software that helps Management mobile operators to + manage traffic and Cloud Data subscribers Management Network 51% Solutions Collect, aggregate, and Network leverage information Operating Intelligence about network traffic 31% System Solutions 17% Global Servic
Slide 21: Explosion in Mobile Data Traffic
Explosion in Mobile Data Traffic Mobile Data Traffic, Exabytes per Month Video is today the main driver for mobile data 60 Mobile File Sharing traffic Mobile Audio 50 Over-the-top services Mobile Web/Data/VoIP like Netflix, YouTube 40 and Facebook continue Mobile Video to push the amount of 30 m
Slide 22: Market Outlook 2018
Market Outlook 2018 Our objective for the full year 2018 remains to achieve revenue growth and improved operating profit compared to 2017. The Enea Edge
Slide 23: Thank You
The Enea Edge THANK YOU www.enea.com