Enea AB · OMXSTO:ENEA
Enea AB — Q4 2016 Earnings Presentation
23 slides from Enea AB's earnings presentation, Feb 9, 2017
Slide 1: Anders Lidbeck, President & CEO
Anders Lidbeck, President & CEO February 9, 2017
Slide 2: Agenda
Agenda Enea Intro Enea Financials Q416 Technology & Corporate Development Outlook
Slide 3: A Catalyst for the Connected Society
A Catalyst for the Connected Society OPERATING HEAD REVENUE MARGIN 501.3 23.7 QUARTER KISTA, SWEDEN MSEK PERCENT NO. OF R&D OPEX INVESTMENT LISTED EMPLOYEES NASDAQ 464 18 STOCKHOLM PERCENT Numbers for 2016
Slide 4: Our Vision, Mission, and Commitment
Our Vision, Mission, and Commitment Our Vision Our Commitment Our software and expertise help you Our commitment is to develop work together with amazing functions in a the leading hardware connected society vendors and our customers - as a key contributor in the Our Mission open source community -
Slide 5: Our Vision
Our Vision Our software and expertise help you develop amazing functions in a connected society More than 3 billion people rely on Enea software every day, to connect a call or use their mobile phone to get online
Slide 6: Our Business
Our Business Software Products for embedded applications Maintenance, Support, and Product Services focused on communication solutions Related to our own product portfolio Operating Systems For Open Source based solutions Network Operating Systems for NFV For integrated solutions incl.
Slide 7: Leading Customers
Leading Customers Enea Qosmos
Slide 8: Record Q4 & FY EBIT
Record Q4 & FY EBIT Q416 Q415 EBIT (MSEK) 33.5 32.3 Operating margin (%) 24.7 25.6 Earnings per share (SEK) 1,67 1,72 FY16 FY15 EBIT (MSEK) 118.8 110.0 Operating margin (%) 23.7 22.9 Earnings per share (SEK) 5.95 5.49 • 15th consecutive quarter of y-o-y EBIT growth. • 20 consecutive quarters of cont
Slide 9: Q4 & FY Revenue Growth
Q4 & FY Revenue Growth Q416 Q415 Revenue (MSEK) 135.7 126.2 Revenue growth (%) 8 6 Revenue growth (%) (currency adjusted) 5 1 FY16 FY15 Revenue (MSEK) 501.3 481.5 Revenue growth (%) 4 12 Revenue growth (%) (currency adjusted) 3 5 • 10th consecutive quarter of y-o-y revenue growth
Slide 10: Revenue Split per Region
Revenue Split per Region Europe In Europe, sales increased during the quarter compared with the same quarter last year. Sales in Europe were positively affected by the acquisition of Qosmos. Sales increased also for the full year. Asia In Asia sales increased with more than 50% during the quarte
Slide 11: Improved Revenue Mix
Improved Revenue Mix World-wide software sales continued to grow and now represents 27% of total Q4 revenues compared to 21% one year ago. Due to the Qosmos acquisition revenues from Key Accounts increased compared to the same quarter last year representing 50% (48%) of Q4 revenues. Improved p
Slide 12: Weak Quarter in US Services
Weak Quarter in US Services Significant y-o-y decline in the US in the quarter, after strong Q2 and Q3 Strong pipeline supports improvement during 2017 Double digit y-o-y growth in Europe, both in the quarter as well as for the year
Slide 13: Strong Cash Flows
Strong Cash Flows Q416 cash flow from operations 27.5 (18.8) MSEK Q416 cash flow before change in working capital 45.0 (39.0) MSEK Cash, cash equivalents and financial investments at the end of the quarter were 223.5 (203.5) MSEK Total interest-bearing liabilities at end of the quarter to 15
Slide 14: Technology & Corporate Development
Technology & Corporate Development
Slide 15: Long Term Ambition
Long Term Ambition We continue our efforts to build a bigger and stronger company, delivering an increasing value for customers, employees and shareholders. Acquisitions that strengthens our market position and long-term earning capacity is an important part of this transition.
Slide 16: Acquisition of Qosmos
Acquisition of Qosmos October 2016, Enea signed an agreement to “I am proud to announce this highly complementary acquire Qosmos – a leading supplier of acquisition, which provides a significant and attractive Network Intelligence software based on Deep extension of our portfolio. The combination of
Slide 17: What is DPI?
What is DPI? DPI stands for Deep Packet Inspection Use Cases Technology that scans network traffic in real Include time Traffic Shaping Enables users to make automated decisions about what to do with the traffic Cyber Security Makes it possible to find, identify, classify, Value Added
Slide 18: Network Intelligence to Optimize, Monetize and Protect
Network Intelligence to Optimize, Monetize and Protect Optimize Monetize Protect Policy Control, QoS, … Analytics, vCPE, … NG Firewall, SIEM, … Visibility on thousands of application protocols Extraction of 4,300+ Metadata Caller, called party, jitter, packet loss, latency, call duration, setup time
Slide 19: Together We become Bigger and Stronger
Together We become Bigger and Stronger TEMs and NEPs are main customers today, similar dialogues with customers in the SDN/NFV domain Market Well established in the ARM & Intel ecosystem Together stronger coverage in community projects and industry consortiums Similar go-to-market models Bus
Slide 20: Our Joint Offering
Our Joint Offering How to get insight Network Intelligence and DPI How to manage it Network and Device Management How to virtualize it Network Virtualization and NFV OS Platforms for Networking and Telecom How to build it Embedded Software and Services
Slide 21: Proposed Dividend
Proposed Dividend Enea’s ambition is to build a bigger and stronger company that delivers increasing value for customers, employees and shareholders. Acquisitions that strengthens the company’s market position and long-term earnings capacity are part of this strategy. With cash, cash equivalents and
Slide 22: Market Outlook
Market Outlook Target compliance in 2016 In 2016, Enea achieved sales growth and earnings per share improved on 2015. Outlook for 2017 The objective for 2017 is to achieve double-digit revenue growth and improved operating profit compared to 2016. The operating profit improvement is expected in the
Slide 23: Thank You!
Thank You! For additional information on Enea, please contact: Anders Lidbeck , President & CEO anders.lidbeck@enea.com Håkan Rippe, CFO hakan.rippe@enea.com Julia Steffensen, Executive Assistant julia.steffensen@enea.com Phone: +46 8 507 140 00