Enea AB · OMXSTO:ENEA
Enea AB — Q2 2014 Earnings Presentation
21 slides from Enea AB's earnings presentation, Jul 22, 2014
Slide 1: Financial results Q214
Financial results Q214 Anders Lidbeck, President and CEO July 22, 2014
Slide 2: Agenda
Agenda Enea Intro Enea Financials Q214 Way Forward & Outlook Enea is Powering the Wireless 2 Broadband
Slide 3: Powering the Wireless Broadband
Powering the Wireless Broadband (2013 numbers) The market for wireless communication is R&D OPEX REVENUE expanding rapidly. INVESTMENT Enea is global software company with high 22.1 408.5 MSEK operating profit margins and a large R&D PERCENT investment. Enea already holds a world-leading posit
Slide 4: Leading Customers
Leading Customers S$ a ) — . Hospira - BOEING ERICSSON H 4 one’ NOKIA ywe MOTOROLA © Alcatel-Lucent @ VOLVO fe) FUJITSU sa pe @ YAMAHA Electrolux HUGHES, > §, wo ‘, = ~
Slide 5: Q214 Financials
Q214 Financials 5
Slide 6: Improved EBIT & EPS
Improved EBIT & EPS Q214 Q213 EBIT (MSEK): 22.7 22.0 Operating margin (%) 21.9 20.8 Earnings per share (SEK) 1.09 1.04 1H14 1H13 EBIT (MSEK): 40.7 36.0 Operating margin (%) 19.9 17.5 Earnings per share (SEK) 1.98 1.74 6
Slide 7: Firm Revenues
Firm Revenues Q214 Q213 Revenue (MSEK): 104.0 105.7 Growth (%) -1.7 -12.3 Growth (%) (excl. currency effects) -2.2 -9.6 1H14 1H13 Revenue (MSEK): 205.0 205.1 Growth (%) -0.1 -13.8 Growth (%) (excl. currency effects) -0.2 -11.5 7
Slide 8: Recurring Revenues more than 90%
Recurring Revenues more than 90% Revenues from term-based development licenses, including support and maintenance, fell slightly compared with the same quarter last year. Revenues from perpetual licenses remained unchanged. Revenues from production licenses (royalties), remained unchanged duri
Slide 9: Important Contracts in Different Segments
Important Contracts in Different Segments In Europe, a three year term contract was signed with a major customer developing Industrial Security Systems. The customer will be using Enea OSE in its products. In North America, a Bridged Services contract was signed with a leading supplier of medica
Slide 10: Global Business
10 Global Business Revenue per geography (Q2 2014) Mi com Europe 27% North America Oo 4% Asia
Slide 11: Revenue per Product
11 Revenue per Product Revenue per product (Q2 2014) | "A HE 60% Operating systems incl. tools 7% Middleware imi 31% Services HE 2% Other
Slide 12: Double Digit Growth in Global Services
Double Digit Growth in Global Services 14% y-o-y growth in Global Services revenues. The Services operation in North America extended a contract worth SEK 17 million with a large avionics company. In North America, a Bridged Services contract was signed with a leading supplier of medical equip
Slide 13: Strong Financial Position
Strong Financial Position MSEK Cash flow from operations amounted to 36.8 (36.2) MSEK. Cash and cash equivalents and financial investments at the end of the quarter were 172.2 (175.1) MSEK. Enea has unused credits of 15 MSEK. The equity ratio was 77.7 (81.8)%. 13
Slide 14: Dividend
Dividend Policy; at least 30 percent of profit after tax should be transferred to shareholders. The Board proposed transferring an amount equivalent to SEK 3.00 (3.00) per share to shareholders. This is equivalent to a transfer amounting to SEK 49.1 (49.4) million. Dividend to be executed in
Slide 15: Way Forward & Outlook
Way Forward & Outlook 15
Slide 16: Over 20% Investment in R&D
Over 20% Investment in R&D (22.6% in Q214) Enea is Powering the Wireless 16 Broadband
Slide 17: Product Highlights from Q2
Product Highlights from Q2 New releases of all our major product lines: • Version 4.0 of the Enea Linux distribution • Version 3.4 of Enea Element middleware platform • Version 5.7.2 of the OSE real-time operating system New strategic partnership with Linux Foundation: • As one of four training part
Slide 18: Enea Linux 4.0
• Enea Linux 4.0 Virtualization IP communication Real-time capabilities Yocto based embedded Linux distributions Hardware independent Linux distributions Linaro – the ARM open source community 18
Slide 19: Long Term Ambition
Long Term Ambition Enea’s ambition during five years, starting 2012, is to create a global software company with significantly higher revenues, high profitability, good cash flows and a large proportion of recurring revenues. Enea will be focusing on organic growth, but both strategic and comple
Slide 20: Market Outlook
Market Outlook Outlook Q214 We continue to be prepared for ongoing soft demand, but maintain our forecast for the year. Our estimate for the full year 2014 is that earnings per share will be improved compared with the previous year. 20
Slide 21: Thank You!
Thank You! For further information, please contact: Anders Lidbeck, CEO anders.lidbeck@enea.com Håkan Rippe, CFO hakan.rippe@enea.com Phone: +46 8 507 140 00 Enea is Powering the Wireless Broadband