Enea AB · OMXSTO:ENEA
Enea AB — Q2 2019 Earnings Presentation
19 slides from Enea AB's earnings presentation, Jul 18, 2019
Slide 1: Q2 2019 Financial Result
Q2 2019 Financial Result Jan Häglund, President and CEO Björn Westberg, CFO July 18, 2019 The Enea Edge
Slide 2: Agenda
Agenda Introduction Financial result Way forward and outlook
Slide 3: Q2 and H1 2019 at a glance
Q2 2019 H1 2019 OPERATING OPERATING HEAD REVENUE MARGIN* REVENUE MARGIN* QUARTER KISTA, SWEDEN 260.2 27.8 501.1 27.5 MSEK PERCENT MSEK PERCENT LISTED NO. OF R&D OPEX NO. OF R&D OPEX NASDAQ EMPLOYEES INVESTMENT EMPLOYEES INVESTMENT STOCKHOLM (MID CAP) 642 17 642 16 PERCENT PERCENT *Excluding non-recu
Slide 4: Key events
Key events Contract for Deep Packet Inspection (DPI) technology worth #1 position in MUSD 2.8 signed with US-based market leader in Software high-growth market Defined Wide Area Networks (SD-WAN) Frame agreement with key customer and leading global Secure operating telecom equipment supplier ext
Slide 5: What We Do
What We Do Enea is a world-leading supplier of innovative software components for telecommunications and cybersecurity 5
Slide 6: Leading Position in Selected Market Segments
Leading Position in Selected Market Segments Connected Enterprise Access Core Internet devices premises network network and cloud infrastructure #1 #1 Operating systems Video traffic for radio access management networks Small Cells Tier-1 Central Site 3G/4G/5G Cloud data and Fixed (on premise or man
Slide 7: Profitable Market Segments with High Growth
Profitable Market Segments with High Growth Connected Enterprise Access Core Internet devices premises network network and cloud infrastructure Mobile video traffic grows by 54% per year 1 118% 5G infrastructure CAGR2 Small Cells Virtual and CPE Fixed 3G/4G/5G 80% Central Site (on premise or softwar
Slide 8: Market Leading Global Customers
Market Leading Global Customers Global Services Network Solutions 15% Operating System 21% Solutions 64% 8
Slide 9: Agenda
Agenda Introduction Financial result Way forward and outlook
Slide 10: Record Revenue
Record Revenue Revenue MSEK Q219 Q218 300 Revenue (MSEK) 260.2 213.4 250 Revenue growth (%) 22 44 200 Revenue growth (%, currency adjusted) 17 44 150 100 50 0 2/18 3/18 4/18 1/19 2/19 Highest quarterly revenue ever 22 percent revenue growth 10
Slide 11: Record Operating Profit
Record Operating Profit EBIT excl. non-recurring items MSEK Q219 Q218 80 70 Operating profit excl. non-recurring items, MSEK 72.2 45.9 60 Operating profit, MSEK 72.0 44.0 50 Operating margin excl. non-recurring items, % 27.8 21.5 40 30 Operating margin, % 27.7 20.6 20 Earnings per share, SEK 2.71 1.
Slide 12: Worldwide Software Sales Continues to Increase
Worldwide Software Sales Continues to Increase Revenue per Business Area (MSEK) 300 Worldwide Software Sales include all software sales outside key accounts. Grew 250 59% 31 percent year-over-year, driven by the new Policy and Access Control business and other 200 new contracts. 59% 150 55% 33% 10
Slide 13: Significant Growth in Network Solutions
Significant Growth in Network Solutions Revenue per Product Group (MSEK) Network Solutions 300 Sales increased significantly in the quarter due to the Policy and Access 250 64% Control business and several new deals from other products. Sales is now 200 representing 64 percent of total Group 64% r
Slide 14: Accelerated Software Growth in the US and EMEA
Accelerated Software Growth in the US and EMEA EMEA Revenue per region Apr -Jun Revenue in EMEA increased by 18 percent in the quarter, year over year. The increase is mainly related to the acquisition of the Policy and Access Control business (closed March 2019) 9% Americas EMEA Revenue increas
Slide 15: Financial Position
Financial Position Cash flow before change in working capital amounted to 74.5 MSEK (41.5) in the quarter. Cash flow from operations amounted to 33.7 MSEK (95.2) in the quarter. Cash and cash equivalents at the end of the quarter were 150.5 MSEK (220.6). Total interest-bearing liabilities at
Slide 16: Agenda
Agenda Introduction Financial result Way forward and outlook
Slide 17: Positioned for Profitable Growth
Positioned for Profitable Growth Select markets in telecommunication (4G and 5G) and cybersecurity, working with leading Market Position customers and gaining top positions in key niche segments. Pure play software company with high gross margin and significant recurring revenues, Business Model une
Slide 18: Market Outlook 2019
Market Outlook 2019 Our objective for the full year 2019 is to achieve revenue growth over 2018 and an operating margin exceeding 20 percent The Enea Edge
Slide 19: Thank You
The Enea Edge THANK YOU www.enea.com