Enea AB · OMXSTO:ENEA
Enea AB — Q1 2014 Earnings Presentation
22 slides from Enea AB's earnings presentation, Apr 29, 2014
Slide 1: Financial result Q1 2014
Financial result Q1 2014 Anders Lidbeck, President and CEO April 29, 2014
Slide 2: Agenda
Agenda Enea intro Enea financials Q114 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 expanding rapidly. R&D REVENUE INVESTMENT Enea is global software company with high 22.1 408.5 operating profit margins and a large R&D MSEK PERCENT investment. Enea already holds a world-leading position N
Slide 4: Strength developed with our Customers
Strength developed with our Customers 4
Slide 5: Q1 2014 Financials
Q1 2014 Financials 5
Slide 6: Improved EBIT & EPS
Improved EBIT & EPS Q1/14 Q1/13 Operating margin % EBIT (MSEK): 18.0 14.0 Operating margin (%) 17.8 14.1 Earnings per share (SEK) 0.88 0.70 FY/13 EBIT (MSEK): 82.1 Operating margin (%) 20.1 Earnings per share (SEK) 3.83 1/13 2/13 3/13 4/13 1/14 6
Slide 7: Back to Growth
Back to Growth Q1/14 Q1/13 Revenue MSEK Revenue (MSEK): 101.0 99.3 Growth (%) 1.7 -15.3 Growth (%) (excl. currency effects) 2.0 -13.4 FY/13 FY/12 Revenue (MSEK): 408.5 467.8 Growth (%) -12.7 4.7 Growth (%) (excl. currency effects) -11.0 3.6 1/13 2/13 3/13 4/13 1/14 7
Slide 8: Important Wins in Different Segments
Important Wins in Different Segments Revenue per segment (Q1 2014) In Germany, a contract for Bridged Services was signed worth SEK 2 million with an energy company. A new licensing agreement worth SEK 20 million was concluded in the US. It was with a global telecoms company, relating to OSE and
Slide 9: Global Business
Global Business Revenue per geography (Q1 2014) 67% Europe 26% North America 7% Asia 9
Slide 10: Revenue per Product
Revenue per Product Revenue per product (Q1 2014) 61% Operating systems 7% Middleware 29% Services 2% Others 9
Slide 11: Another Quarter of Sequential Growth
Another Quarter of Sequential Growth Service revenues Sales from services increased during MSEK the first quarter over fourth quarter last year. 2nd consecutive quarter with sequential growth. But still slightly down over same quarter last year. New contracts in the US being rolled-out and two
Slide 12: Solid Development of Recurring Revenues
Solid Development of Recurring Revenues Type of Revenue MSEK Revenue from the time-limited development licenses, including support and maintenance remained unchanged for the first quarter. Royalties increased slightly y/y but down q/q, due to customer’s sales volumes. 1/13 2/13 3/13 4/13 1/14 De
Slide 13: Strong Financial Position
Strong Financial Position Cash flow (from operations) Cash flow from operations amounted to MSEK 23.0 (6.5) MSEK. Cash and cash equivalents at the end of the year were 191.9 (143.3) MSEK. Enea has unused credits amounting to 15 MSEK. The equity ratio was 80.4 (79.9)%. 1/13 2/13 3/13 4/13 1/1
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 49.2 (49.4) million. Dividend to be executed in
Slide 15: Way Forward & Outlook
Way Forward & Outlook 15
Slide 16: Continued +20% Investment in R&D
Continued +20% Investment in R&D
Slide 17: Network Functions Virtualization
Network Functions Virtualization • The concept of “Network Functions Virtualization” (NFV) aims to virtualize network nodes and functions in the same way as IT and business applications have been virtualized over the last decade. • For several years, Enea has helped key customers to virtualize OSE-b
Slide 18: NVF/SDN with Partners
NVF/SDN with Partners • Network Functions Virtualization (NFV) and the related concept of Software Defined Networking (SDN) opens up opportunities for engagements and dialogues with new partners for Enea. • One example is HP – HP and Enea has traditionally not operated in the same domain and address
Slide 19: Carrier Grade Linux (CGL)
Carrier Grade Linux (CGL) • CGL is a specification from the Linux Foundation that focus on “carrier grade” functionality for the telecommunication industry. • CGL is part of the Enea Linux roadmap, to be released at the end of Q4, 2014. New way of working – when Enea started to work on CGL: • We cre
Slide 20: 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 21: Market Outlook
Market Outlook Outlook for 2014 We continue to be prepared for ongoing subdued demand, but retain the target for the year. Our estimate for the whole year 2014 is that profit per share will be improved compared with the previous year. 21
Slide 22: 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