Enea AB · OMXSTO:ENEA
Enea AB — Q1 2020 Earnings Presentation
17 slides from Enea AB's earnings presentation, Apr 28, 2020
Slide 1: Q1 2020 Financial Results
Q1 2020 Financial Results Jan Häglund, President and CEO Björn Westberg, CFO April 28, 2020
Slide 2: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 2
Slide 3: Summary Jan-Mar 2020
Summary Jan-Mar 2020 OPERATING OPERATING HEAD REVENUE MARGIN 1/ CASH FLOW QUARTER KISTA, SWEDEN 227 18.3 62 MSEK PERCENT MSEK EARNINGS PER NET DEBT TO LISTED R&D 2/ SHARE EBITDA NASDAQ STOCKHOLM (MID CAP) 0.80 0.58 28.2 PERCENT SEK 1/ Excluding non-recurring items 2/ Opex (excl NRI) and Capitalized
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 First Quarter
Key Events for Enea During the First Quarter Signed a 5-year contract worth USD 15-20M for 5G Cloud Large 5G contract Network Data Layer with a Tier 1 North American operator Launched the Enea Unified Data Manager, a cloud-native New 5G product network function for 4G and 5G data management Offered
Slide 6: 5G Data Management Contract
5G Data Management Contract Large, multi-year deal signed directly with Tier 1 Operator in North America Enea Stratum 6
Slide 7: An Important Mission in a Volatile World
An Important Mission in a Volatile World General Market Enea Spanish carriers see a 40% spike in network Enea’s traffic management solutions help traffic due to COVID-19 (Fierce Telecom) customers to control traffic spikes Enea’s Video Optimization solution provides COVID-19 makes data connect
Slide 8: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 8
Slide 9: Stable quarter without major new orders
Stable quarter without major new orders Net sales (SEK m) 20Q1 19Q1 FY19 FY18 300 Revenue (MSEK) 227 2411/ 1,012 830 250 Revenue growth (%) -6 42 22 41 200 Revenue growth (%, currency adjusted) -8 34 17 38 1/ the Policy and Access Control business acquired from ATOS included 1 month (March) LY 150 1
Slide 10: EBIT margin of 18.3 percent
EBIT margin of 18.3 percent 20Q1 19Q1 FY19 FY18 EBIT excl. non-recurring items, MSEK 40.5 65.7 258.4 192.5 EBIT, MSEK 22.6 62.2 254.7 188.9 EBIT margin excl. non-recurring items, % 18.3 27.4 25.5 23.2 EBIT margin, % 10.2 25.9 25.2 22.7 Earnings per share, SEK 0.80 2.14 8.47 7.33 Q1 18.3% EBIT marg
Slide 11: Growth in Network Solutions
Growth in Network Solutions Revenue per Product group (MSEK) Network Solutions Revenue increased by 4 percent. Main 250 contribution from the Policy and Access 61% Control and Deep Packet Inspection 200 (DPI) businesses. 55% 150 61% 40% 100 31% Operating System Solutions 38% 22% 22% Revenue decr
Slide 12: Increased sales in EMEA
Increased sales in EMEA EMEA Revenue per region Jan-Mar Revenue increased by 10 percent in the quarter, year over year. The increase is mainly related to sales from the acquired (1 March 2019) Policy and Access Control business and the DPI business. 33% Americas EMEA Revenue decreased by 22 perc
Slide 13: Solid financial Position
Solid financial Position Stable cash flow • Q1 CF before change in WC amounted to 43.9 MSEK (66.9) generation • Q1 CF from operations amounted to 62.2 MSEK (93.3) Effective • Interest bearing bank loans amounted to 349.9 MSEK (total facility of 400 MSEK) • Cash and cash equivalents were 170.3 MSEK (
Slide 14: Agenda
Agenda Introduction Financial Results Way Forward and Outlook 14
Slide 15: Well-Positioned for Long-Term Growth
Well-Positioned for Long-Term Growth Market Position Financial Situation Confirmed strong position in 5G data Strong cash flow and low net debt create a management, mobile traffic management, and solid position in a period of macro-economic DPI for cybersecurity uncertainty Growth Strategy Go-to-Mar
Slide 16: 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 think that the consequences of the corona pandemic will have a negat
Slide 17: Thank you!
Thank you! www.enea.com