Enea AB · OMXSTO:ENEA

Enea AB — Q4 2019 Earnings Presentation

19 slides from Enea AB's earnings presentation, Jan 30, 2020

  1. Slide 1: Annual Statement 2019

    Annual Statement 2019 Jan Häglund, President and CEO Björn Westberg, CFO January 30, 2020

  2. Slide 2: Agenda

    Agenda  Introduction  Financial Results  Way Forward and Outlook 2

  3. Slide 3: Summary

    Summary Oct-Dec 2019 Jan-Dec 2019 OPERATING OPERATING HEAD REVENUE REVENUE MARGIN MARGIN* QUARTER KISTA, SWEDEN 261 21.8 1012 25.5 MSEK MSEK PERCENT PERCENT EARNINGS PER NET DEBT TO EARNINGS PER R&D OPEX LISTED SHARE EBITDA SHARE INVESTMENT NASDAQ STOCKHOLM (MID CAP) 1.32 0.63 8.47 16.5 SEK SEK PERC

  4. Slide 4: Significant Increase in Revenue and EBIT

    Significant Increase in Revenue and EBIT Revenue per Product group and Group EBIT (MSEK) 1200 300 1000 250 800 200 60% 600 50% 150 31% 9% 14% 400 100 59% 56% 32% 25% 46% 200 50 32% 30% 23% 18% 15% 0 0 2015 2016 2017 2018 2019 Global Services OS Solutions Network Solutions EBIT 4

  5. Slide 5: Key Events for Enea During the Fourth Quarter

    Key Events for Enea During the Fourth Quarter Expansion of portfolio Unveiling of 5G Data Management suite New product capabilities First vendor to offer optimization of Apple TV+ streaming Capital markets day Event attended by more than 70 institutional investors Early payment of 500 MSEK, earnings

  6. Slide 6: Investment Focus for Long-Term Growth

    Investment Focus for Long-Term Growth Connected Devices Network Edge Access Network Core Network Internet and Cloud • Significant investments in virtualization #1 #1 platforms and 5G data management Real-Time Video Traffic • Adjustments for declining OS revenues Operating Systems Management for Radi

  7. Slide 7: Evolution to 5G Standalone (SA)

    Evolution to 5G Standalone (SA) Until now: From 2020/2021: 4G core + 5G radio Addition of 5G core 4G Core 4G Core 5G Core Non-Standalone 5G Standalone 5G • Support for new applications (AR/VR, gaming, smart 4G 5G factories, connected vehicles) 4G 5G Radio Radio • Optimized use of 5G Radio Radio Radi

  8. Slide 8: Enea Well-Positioned in Data Management for 5G Core

    Enea Well-Positioned in Data Management for 5G Core 3G/4G Core 5G Core Data locked into vendor-specific “silos” Open, cloud-native, multi-vendor architecture System A System B System C Multi-vendor Core Applications App App App Vendor A Vendor B Enea … • Lower cost … • Consistent data Multi-vendor N

  9. Slide 9: Agenda

    Agenda  Introduction  Financial Results  Way Forward and Outlook 9

  10. Slide 10: Record revenue for a quarter and > SEK 1bn for the year

    Record revenue for a quarter and > SEK 1bn for the year Revenue MSEK Q419 Q418 FY19 FY18 300 Revenue (MSEK) 261 237 1,012 830 250 200 Revenue growth (%) 10 56 22 41 150 Revenue growth (%, currency adjusted) 7 49 17 38 100 50 0 4/18 1/19 2/19 3/19 4/19 Q4 FY  Highest revenue for a quarter  First ti

  11. Slide 11: All quarters in the year > 20% in EBIT margin

    All quarters in the year > 20% in EBIT margin EBIT excl. non-recurring items MSEK Q419 Q418 FY19 FY18 80 70 EBIT excl. non-recurring items, MSEK 57.0 59.5 258.4 192.5 60 EBIT, MSEK 57.0 66.7 254.7 188.9 50 40 EBIT margin excl. non-recurring items, % 21.8 25.1 25.5 23.2 30 EBIT margin, % 21.8 28.1 25

  12. Slide 12: Increased number of customers and products

    Increased number of customers and products  Worldwide Software Sales Revenue per business area (MSEK) Grew 6 percent year-over-year, driven by the new Policy and Access Control 250 business. No large order Q4 2019. 60% 200 60% 62% 150 38%  Key Accounts 100 Grew by 24 percent year-over-year in spit

  13. Slide 13: Significant Growth in Network Solutions

    Significant Growth in Network Solutions  Network Solutions Revenue increased by 24 percent. Main Revenue per Product group (MSEK) contribution from the new Policy and Access 250 62% Control business. 200 62% 56% 150 33% 100  Operating System Solutions 44% 29% 23% 23% Revenue decreased by 11 percen

  14. Slide 14: All regions increased sales

    All regions increased sales  EMEA Revenue per region Oct-Dec Revenue increased by 9 percent in the quarter, year over year. The increase is mainly related to sales from the acquired Policy and Access Control 13% business (closed March 2019).  Americas 46% EMEA Revenue increased by 7 percent in the

  15. Slide 15: Financial Position

    Financial Position Stable cash flow • CF before change in WC 2019 (FY) amounted to 288.3 MSEK (198.0) generation • CF from operations 2019 (FY) amounted to 245.2 MSEK (168.6) More effective • Enea redeemed the 500 MSEK bond loan (from March 2018) in Q4-19 financing structure • Short term negative EP

  16. Slide 16: Agenda

    Agenda  Introduction  Financial Results  Way Forward and Outlook 16

  17. Slide 17: Strategy Execution - Highlights

    Strategy Execution - Highlights Market Position  World’s first optimization of Apple TV+ Business Model Go-to-Market Model  Increased R&D investments in growth areas  Launch of 5G data management portfolio Growth Strategy Track Record  Bond loan redemption Financial Position Management 17

  18. Slide 18: Market Outlook 2020

    Market Outlook 2020 Our goal for the full year 2020 is to achieve revenue growth on 2019, and an operating margin above 20 percent. 18

  19. Slide 19: Thank you!

    Thank you! www.enea.com

Enea — Q4 2019 Earnings Presentation on 6ix