Enea AB · OMXSTO:ENEA

Enea AB — Q2 2013 Earnings Presentation

19 slides from Enea AB's earnings presentation, Jul 23, 2013

  1. Slide 1: Financial result Q2 2013

    Financial result Q2 2013 Anders Lidbeck, President and CEO July 23, 2013

  2. Slide 2: Agenda

    Agenda  Enea intro  Enea financials  Way forward & Outlook Enea is Powering the Wireless Broadband 2

  3. Slide 3: Powering the Wireless Broadband

    Powering the Wireless Broadband Numbers for 2012  The market for wireless communication is expanding rapidly. TEN OFFICES REVENUE IN NORTH  Enea is global software company showing AMERICA, EUROPE AND 467.8 revenue growth and high operating profit ASIA MSEK margins.  Enea already holds a world-lea

  4. Slide 4: Customer Trust

    | ENEA Customer Trust ERICSSON 2 Ho A, Honeywell - wnt @ — coe con VOLVO FUJITSU raging _— @ YAMAHA

  5. Slide 5: Q2 2013

    Q2 2013 5

  6. Slide 6: Over 20% operating margin

    Over 20% operating margin Q2/13 Q2/12 Operating margin % EBIT (MSEK): 22.0 18.4 Operating margin (%) 20.8 15.3 Earnings per share (SEK) 1.04 0.88 H1/13 H1/12 FY/12 EBIT (MSEK): 36.0 34.1 72.5 Operating margin (%) 17.5 14.3 15.5 Earnings per share (SEK) 1.74 1.54 3.18 1/12 2/12 3/12 4/12 1/13 2/13 6

  7. Slide 7: Slow Q213 Revenues

    Slow Q213 Revenues Q2/13 Q2/12 Revenue MSEK Revenue (MSEK): 105.7 120.6 Growth (%) -12.3 12.3 Growth (%) (excl. currency effects) -9.6 8.1 H1/13 H1/12 FY/12 Revenue (MSEK): 205.1 238.0 467.8 Growth (%) -13.8 7.7 4.9 Growth (%) (excl. currency effects) -11.5 7.9 3.6 1/12 2/12 3/12 4/12 1/13 2/13 7

  8. Slide 8: Revenue Down – Margin up

    Revenue Down – Margin up  Europe: Revenue and margins improved. Sales Revenue per geography (Q2 2013) to key customers and software sales to other customers in Europe increased. Service sales in Romania decreased  North America: Sales of services and sales of software were lower than last year. Pr

  9. Slide 9: Services Revenue Drop – Big Win Signed

    Services Revenue Drop – Big Win Signed  New customer signed within secure Revenue per product (Q2 2013) electronic payments. The engagement will gradually ramp up to include 40 full 58% Operating systems time consultants in US and Romania. 9% Middleware 4% Tools The potential contract value for the

  10. Slide 10: Product Sales – Increase of Rentals and Royalty

    Product Sales – Increase of Rentals and Royalty Type of Revenue  Rentals has increased while perpetual MSEK licenses decreased. More rental than perpetual licenses is good long-term but is affecting revenue short-term.  Customers are reporting slightly higher production volumes, resulting in highe

  11. Slide 11: Important Wins in a Soft Market

    Important Wins in a Soft Market  Electrolux Small Appliances chooses Enea Linux v3.0 for state- Revenue per segment (Q2 2013) of-the-art embedded Linux solution in future appliances. In addition to providing the embedded Linux distribution, Enea will also deliver professional services and support.

  12. Slide 12: Substantial Product Development

    Substantial Product Development Enea OSE, real-time operating system  version 5.7 adding significant performance upgrades and new functionality.  The 64-bit edition now meets the need for increased buffering capabilities due to vastly increased IP traffic in today’s telecom and network equipment.

  13. Slide 13: Strong Financial Position

    Strong Financial Position Cash flow (from operations)  Cash flow from operations amounted to MSEK 36.2 (27.3) MSEK for Q2.  Cash and cash equivalents at the end of the period were 175.1 (117.3) MSEK  Enea has unused credits amounting to 92 MSEK  The equity/assets ratio was 81.8 (78.9)% 1/12 2/12

  14. Slide 14: Way Forward & Outlook

    Way Forward & Outlook 14

  15. Slide 15: Continued Investments in Growth Areas

    Continued Investments in Growth Areas Real-time Operating Systems Solutions (Rtos and Linux)  Recruitment of Linux expertise in R&D and Sales.  Linaro membership with the ambition to become #1 on Linux for ARM.  Partnership and collaboration with Xilinx. • Currently 2-3 hot Linux prospects. Middl

  16. Slide 16: 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 supple

  17. Slide 17: Booming Data Traffic – Challenging Prices

    Booming Data Traffic – Challenging Prices 40% of the world's mobile traffic is handled through equipment supplied by Ericsson. Mobile data traffic doubled, according to Ericsson in 2012. But the company's revenue during the same period didn’t increase. From TeliaSonera's Annual Report: "The year was

  18. Slide 18: Market Outlook

    Market Outlook Outlook for 2013 We are experiencing a soft market but there are indications from the service organization that some stabilization could be expected. Even if demand will remain low during the year, our assessment is that we will improve both our operating margin and our profit per sha

  19. Slide 19: Thank You!

    Thank You! For further information, please contact:  Anders Lidbeck, CEO, anders.lidbeck@enea.com  Håkan Rippe, CFO hakan.rippe@enea.com  Catharina Paulcén, SVP Marketing & Communications catharina.paulcen@enea.com  Phone: +46 8 507 140 00 Enea is Powering the Wireless Broadband

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