Enea Ab · OMXSTO:ENEA
Enea Ab — Q1 2007 Earnings Presentation
22 slides from Enea Ab's earnings presentation, Apr 25, 2007
Slide 1: Interim Report January - March 2007
Enea Interim Report January - March 2007 April 25, 2007 Johan Wall President & CEO Håkan Gustavson CFO
Slide 2: Enea Software Offering
Enea Software Offering Run-time software Traditional Products: - OSE™, Real Time Operating System Family of Products - Polyhedra™, In Memory Database New Products: - Element™ Middleware Platform - LINX™ Communications Software Tools Traditional Products: - Illuminator™ Run-time analysis tools New Pr
Slide 3: Enea Professional Services Offering
Enea Professional Services Offering • Providing full life-cycle professional services – application development, systems development, systems integration, maintenance and technical training • Industry recognized expertise • Embedded systems focus • International workforce: 300+ professionals in USA
Slide 4: Enea Solutions Portfolio for Telecom Infrastructure
Enea Solutions Portfolio for Telecom Infrastructure Customer Customer Customer Application Application Application Professional Services Third-party Middleware Network Databases X X X applications Element protocols Polyhedra & stacks Communications - LINX RTOS Linux OSE-family Hardware Enea software
Slide 5: Enea has Trusted Relationships with Customers
Enea has Trusted Relationships with Customers Interim Report Jan-Mar 2007, April 25, 2007 5
Slide 6: Q1 and Financials
Q1 and Financials Interim Report Jan-Mar 2007, April 25, 2007 6
Slide 7: Q1 2007 in Brief
Q1 2007 in Brief • Major outsourcing contract won for delivery from Enea’s Romanian operations. Order value SEK 20 million over two years • Enea Romania joint effort with local partner. Enea subsidiary soon established • Acquisition of QiValue Technologies with 13 consultants, focusing on Linux serv
Slide 8: Q1 2007 in Brief, continued
Q1 2007 in Brief, continued • Strong professional services market in Sweden. Somewhat increased staff turn-over. • Two new orders in North America for Element middleware with total order value of MSEK 8. • Enea today has six active middleware customers, in North America and in Europe. Primary applic
Slide 9: Q1 2007 Financials
Q1 2007 Financials • Net sales increased by 8.3% to MSEK 202.9 (187.3). Currency-adjusted growth was 11.2 %. • Software sales increased by 18.9% to MSEK 76.7 (54.5) representing 38 (34)% of total sales • Professional Services increased by 2.7% to MSEK 126.2 (122.8) • Operating profit increased by 11
Slide 10: Enea Group - Net Sales
Enea Group - Net Sales MSEK MSEK 250 750 200 700 150 650 100 600 50 550 0 500 Q1-2005 Q2-2005 Q3-2005 Q4-2005 Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 Nordic North America EMEAA Rolling 12-months • Q1 07, +12% • Q1 07, flat • Q1 07, +20% Interim Report Jan-Mar 2007, April 25, 2007 10
Slide 11: Enea Group - EBIT
Enea Group - EBIT EBIT margin MSEK Percent 22 22 20 20 18 18 16 16 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 -2 Q1-2005 Q2-2005 Q3-2005 Q4-2005 Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 -2 Nordic North America EMEAA EBIT Margin Interim Report Jan-Mar 2007, April 25, 2007 11
Slide 12: Software Sales
Software Sales 90 300 80 250 70 60 200 50 150 40 30 100 20 50 10 0 0 Q1-2005 Q2-2005 Q3-2005 Q4-2005 Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 So ftware sales Rolling 12-mo nths • YTD 19% Interim Report Jan-Mar 2007, April 25, 2007 12
Slide 13: Sales Distribution Q1 2007
Sales Distribution Q1 2007 EMEAA 6% Services Software North Others 38% 28% 62% America 19% Telecom Infrastr. 43% Nordic 75% Telecom Handsets 29% Interim Report Jan-Mar 2007, April 25, 2007 13
Slide 14: Key Metrics
Key Metrics Metric Q107 (Q106) Earnings per share, SE 0.04 (0.03) Equity per share, SEK 1.07 (0.96) Equity/asset ratio, % 69.1 (71.5) Return on capital employed, % 4.7 (5.0) Cash Flow from Operations 34.3 (-16.7) Cash, MSEK 168.5 (155.6) Currency effects, MSEK 0.2 (-1.3) Depreciation, MSEK 4.0 (2.2)
Slide 15: Way Forward
Way Forward Interim Report Jan-Mar 2007, April 25, 2007 15
Slide 16: The Mobile Revolution Has Only Just Begun
The Mobile Revolution Has Only Just Begun Interim Report Jan-Mar 2007, April 25, 2007 16
Slide 17: Convergence is Driving Revenue Opportunities for Carriers
Convergence is Driving Revenue Opportunities for Carriers “Everything networks. People and devices , music, video games, content, data and services” - Howard Stringer, CEO Sony Interim Report Jan-Mar 2007, April 25, 2007 17
Slide 18: Market Challenges for Enea Customers
Market Challenges for Enea Customers Enable high-availability Buy-out Ensure scalability Reduce time-to-market Royalty Reduce development costs Reduce device costs Rental Reduce R&D effort “Free”, Loss-leader Reduce cost of ownership Interim Report Jan-Mar 2007, April 25, 2007 18
Slide 19: Enea's Response
Enea’s Response Convergence • Traditional product portfolio – RTOS, data management, tools, services – Market growth rate: 10 % – Competitive landscape: • Wind River, Green Hills, Mentor Graphics, Linux • Convergence solutions – New platforms to address market demands – Middleware – Market growth ra
Slide 20: Our Strategy
Our Strategy • Expand with vertically integrated solutions positioned towards the convergence market • Provide off-the-shelf software foundations that enable development of high availability applications, accelerate software development and reduce cost • Integrate new and existing solutions leveragi
Slide 21: Summary
Summary • Financial objectives remain • Enea well positioned for growth in Mobility and Network convergence • We are in an exciting, rapidly evolving marketplace • Enea has the resources and the ambition to actively take part in the development and potential consolidation of the market Interim Repor
Slide 22: Thanks
Thanks For further information, please contact: Johan Wall, +46 8 507 140 00, johan.wall@enea.com Håkan Gustavson, +46 8 5071 4000, hakan.gustavson@enea.com Enea, OSE, OSEck, OSE epsilon, Element, Polyhedra, Optima, LINX, Enea Accelerator, Accelerating Network Convergence and Device Software Optimiz