Enea AB · OMXSTO:ENEA
Enea AB — Q2 2020 Earnings Presentation
18 slides from Enea AB's earnings presentation, Jul 16, 2020
Slide 1: Q2 2020 Financial Results
Q2 2020 Financial Results Jan Häglund, President and CEO Björn Westberg, CFO July 16, 2020
Slide 2: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 2
Slide 3: Summary
Summary Apr-Jun 2020 Jan-Jun 2020 OPERATING NET DEBT TO OPERATING HEAD NET SALES NET SALES MARGIN 1/ EBITDA MARGIN 1/ QUARTER KISTA, SWEDEN 239 25.3 0.55 461 21.9 SEK m SEK m PERCENT PERCENT EARNINGS PER OPERATING EARNINGS PER OPERATING LISTED R&D 2/ SHARE CASH FLOW SHARE CASH FLOW NASDAQ STOCKHOLM
Slide 4: Impact from Corona Pandemic
Impact from Corona Pandemic Solid Position to Face Market Challenges General Market Enea Telecommuting and digitalization have The majority of business is stable, supported increased as more people work remotely by high degree of recurring revenue Traffic volumes have increased significantly
Slide 5: Key Events for Enea During the Second Quarter
Key Events for Enea During the Second Quarter Signed 5-year contracts for 5G Network Data Layer with Strategic 5G contracts Tier 1 service providers in North America and Germany Traffic management Signed traffic management contract worth USD 1.3 million contract with a Tier 1 Middle Eastern mobile o
Slide 6: Enea Wins Two Strategic 5G Contracts
Enea Wins Two Strategic 5G Contracts ➢ Enea’s Network Data Layer solution Stratum selected by Tier 1 service providers in North America and Germany ➢ Unique openness for multi-vendor applications and cloud platforms ➢ Significant efficiency and cost benefits for Enea operators Stratum ➢ Generates re
Slide 7: Enea – 5G Core Innovation
Enea – 5G Core Innovation Finalists 2020: Most Innovative 5G Technology Most Innovative Telco Cloud Product Strategy Stratum (UDR, UDSF) Network Data Layer (NDL) Data Management Unified Equipment Network Access Policy Data Identity Exposure Manager Manager NSSF NSSF NRF Manager Register Function (AU
Slide 8: 5G Core – Operator Surveys
5G Core – Operator Surveys “74 percent have plans to deploy a multi-vendor 5G core.” Source: 5G Network & Services Strategy Operator Survey, Heavy Reading (2020) “37 percent will begin deploying a 5G core within 2 years.” Source: Technology Innovation Council, Enea (2020) “More than 50 percent plan
Slide 9: Video Traffic Management Contracts
Video Traffic Management Contracts Benefits of Optimization* Zain Kuwait deploys Enea traffic management suite for 4G and 5G 20% FASTER DOWNLOADS Vodafone Ireland delivers superior 15% FEWER video experience thanks to Enea CONGESTED CELLS 20% SAVINGS ON Operator in Egypt uses Enea for VIDEO BANDWIDT
Slide 10: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 10
Slide 11: Net sales increased by 8% vs Q1
Net sales increased by 8% vs Q1 Net sales (SEK m) 300 20Q2 19Q2 20H1 19H1 1/ Net Sales (SEK m) 239 249 461 489 250 growth (%) -4 18 -6 29 200 growth (%, currency adjusted) -5 13 -7 25 1/ the acquired Policy and Access Control business included from 1 March 2019 150 100 Q2 50 +8% growth vs 2020 Q1
Slide 12: Continued growth in Network Solutions
Continued growth in Network Solutions Network Solutions Revenue per Product group (SEK m) Net sales increase of 4 percent. Stable 250 recurring revenues and sales from new customer contracts. 200 67% 61% 51% 67% 150 100 32% 24% Operating System Solutions 18% 50 18% Net sales decreased by 25 perc
Slide 13: 25 percent EBIT margin in Q2
25 percent EBIT margin in Q2 EBIT (Operating profit) excluding NRI (SEK m) 80 20Q2 19Q2 20H1 19H1 60 EBIT excl. non-recurring items, SEK m 60.4 72.2 100.9 137.9 40 EBIT, SEK m 59.1 72.0 81.7 134.2 EBIT margin excl. non-recurring items, % 25.3 29.0 21.9 28.2 20 EBIT margin, % 24.7 28.9 17.7 27.4 0 2/
Slide 14: Solid financial Position
Solid financial Position Stable cash flow • Q2 cash flow before change in WC amounted to SEK 87.1 m (74.5) generation • Q2 cash flow from operations amounted to SEK 67.7 m (33.7) Effective • Interest bearing bank loans amounted to SEK 348.8 m (total facility of SEK 400 m) • Cash and cash equivalents
Slide 15: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 15
Slide 16: Strategy Execution - Highlights
Strategy Execution - Highlights Market Position Double finalist for 5G industry awards: most innovative telco cloud product strategy (Stratum) Business Model and most innovative 5G technology (UDM) Go-to-Market Model Signed 5-year contracts for 5G Network Data Layer with Tier 1 operators in Nort
Slide 17: Market Outlook 2020
Market Outlook 2020 Increased uncertainty in the short and Continued positive outlook for software medium term due to the pandemic in telecom and enterprise networks Our target of an operating margin over 20 percent remains, but we believe that the consequences of the corona pandemic will have a neg
Slide 18: Thank you!
Thank you! www.enea.com