Enea AB · OMXSTO:ENEA
Enea AB — Q3 2021 Earnings Presentation
17 slides from Enea AB's earnings presentation, Oct 26, 2021
Slide 1: Enea Interim Report January-September 2021
Enea Interim Report January-September 2021 Jan Häglund, President and CEO Ola Burmark, CFO October 26, 2021
Slide 2: Agenda
Agenda Summary and Key Events Financial Results Way Forward and Outlook 2
Slide 3: Summary of Q3 2021
Summary of Q3 2021 Jul-Sep 2021 Jan-Sep2020 Jan-Dec 2021 OPERATING NET DEBT TO OPERATING OPERATING HEAD NET SALES NET NET SALES SALES MARGIN 2/ EBITDA MARGIN MARGIN 1/ 2/ QUARTER KISTA, SWEDEN 257 23.6 1.76 696 915 24.0 24.2 SEK m SEK SEK mm PERCENT PERCENT PERCENT EARNINGS PER OPERATING EARNINGS EA
Slide 4: Key Events During the Third Quarter
Key Events During the Third Quarter AdaptiveMobile Security Enea completes acquisition of AdaptiveMobile Security Traffic Classification for Contract worth USD 3.5 Million for traffic classification SD-WAN Software contract for secure authentication of Secure Authentication communication services wo
Slide 5: Enea Completes Acquisition of AdaptiveMobile Security
Enea Completes Acquisition of AdaptiveMobile Security On July 17, Enea closed the acquisition of AdaptiveMobile Security The acquisition brings a strong portfolio and a Tier 1 customer base in telecom security AdaptiveMobile Security will have sales of approximately 17 MEUR for the full year 2
Slide 6: Contract Worth USD 3.5 Million for Traffic Classification
Contract Worth USD 3.5 Million for Traffic Classification 6-year agreement for new business with an existing customer The customer is a global North American vendor of cloud networking solutions for large data center and campus environments Enea software will be embedded in intelligent SD- WAN
Slide 7: Software Contract for Secure Authentication Worth EUR 1.7 Million
Software Contract for Secure Authentication Worth EUR 1.7 Million 5-year agreement for secure authentication of communication services with a Central European Tier-1 mobile operator Agreement covers new business with an existing customer License revenues of EUR 0.4 million are recognized in th
Slide 8: Product Innovation Saves Costs and Resources
Product Innovation Saves Costs and Resources + 15% Radio Capacity - 50% Hardware Virtualized 5G core solutions Industry’s first user-based cut hardware total cost of congestion management, ownership by up to 50% boosts radio access network capacity by 15% 8
Slide 9: Agenda
Agenda Summary and Key Events Financial Results Way Forward and Outlook 9
Slide 10: Net Sales Increased by 26% (currency adjusted)
Net Sales Increased by 26% (currency adjusted) Net sales (SEK m) 2021 2020 300 Q3 Q3 Net sales (SEK m)1/ 257 206 250 Growth (%) 24 -16 200 Growth (%, currency adjusted) 26 -13 1/ LY does not include Aptilo (aquired October 2020) and AdaptiveMobile Security (acquired July 2021) 150 100 50 Q3 0 3/20 4
Slide 11: Network Solutions Represent 77 Percent of Total Net Sales
Network Solutions Represent 77 Percent of Total Net Sales Network Solutions Net Sales per Product group (SEK m) 250 Net sales increased by 46% in fixed currencies, driven by the acquired Aptilo and AdaptiveMobile Security businesses 200 62% 77% 77% 150 67% 100 Operating System Solutions 23% Net
Slide 12: 23.6 Percent EBIT Margin in Q3
23.6 Percent EBIT Margin in Q3 Operating profit excluding NRI (SEK m) 2021 2020 2021 2020 Q3 Q3 Jan-Sep Jan-Sep 80 EBIT excl Non-Recurring Items, SEK m 60.5 47.6 167.3 148.4 EBIT, SEK m 48.1 42.8 154.9 124.5 60 EBIT margin excl. non-rec. items, % 23.6 23.0 24.0 22.3 40 EBIT margin, % 18.7 20.7 22.2
Slide 13: Solid Financial Position
Solid Financial Position Stable cash flow • Q3 cash flow before changes in WC amounted to SEK 86.1 m (68.1) generation • Q3 cash flow from operations amounted to SEK 28.3 m (82.8) Effective • Interest bearing bank loans amounted to SEK 790.4 m • Increase related to the new loan for the AdaptiveMobil
Slide 14: Agenda
Agenda Summary and Key Events Financial Results Way Forward and Outlook 14
Slide 15: Strong Position in Cybersecurity
Strong Position in Cybersecurity #1 #1 #1 Mobile Messaging Secure Security Authentication Secure #1 Network Data Layer #1 Mobile Signaling Security #1 Embedded DPI for Cybersecurity #1 #1 Threat Intelligence for Operators and Governments Traffic Management 5G slicing and with Content Filtering IoT s
Slide 16: Outlook 2021 and Longer Term
Outlook 2021 and Longer Term 2021 Longer Term • Pandemic restrictions remain • Growing markets for 5G data management, Market in large parts of the world edge virtualization, IoT and cybersecurity Dynamics • Some project delays and • We challenge established players and increase barriers to new sale
Slide 17: Thank you!
Thank you! www.enea.com