Enea AB · OMXSTO:ENEA
Enea AB — Q2 2021 Earnings Presentation
24 slides from Enea AB's earnings presentation, Jul 16, 2021
Slide 1: Q2 2021 Financial Results
Q2 2021 Financial Results Jan Häglund, President and CEO Björn Westberg, CFO July 16, 2021
Slide 2: Agenda
Agenda Summary and Key Events AdaptiveMobile Acquisition Financial Results Way Forward and Outlook 2
Slide 3: Summary of Q2 2021
Summary of Q2 2021 Apr-Jun 2021 Jan-Jun2020 Jan-Dec 2021 OPERATING NET DEBT TO OPERATING OPERATING HEAD NET SALES NET NET SALES SALES MARGIN EBITDA MARGIN MARGIN 1/ 1/ QUARTER KISTA, SWEDEN 226 27.5 0.43 440 915 24.3 24.2 SEK m SEK SEK mm PERCENT PERCENT PERCENT EARNINGS PER OPERATING EARNINGS EARNI
Slide 4: Key Events for Enea During the Second Quarter
Key Events for Enea During the Second Quarter Enea has signed an agreement to acquire AdaptiveMobile Acquisition Security, a leading provider of Mobile Network Security Multi-Vendor 5G Core Enea Joins Telenor in World’s Most Diverse Multi-Vendor 5G SA Core Solution Enea’s Qosmos ixEngine Wins Cybers
Slide 5: Agenda
Agenda Summary and Key Events AdaptiveMobile Acquisition Financial Results Way Forward and Outlook 5
Slide 6: Enea has Signed an Agreement to Acquire AdaptiveMobile Security
Enea has Signed an Agreement to Acquire AdaptiveMobile Security A leading provider of mobile network security, at Telecoms the intersection of Telecoms and Cybersecurity Deployed by > 80 mobile operators, protecting more than 2 billion subscribers globally Founded in 2006, 135 employees Head
Slide 7: Financials – AdaptiveMobile Security
Financials – AdaptiveMobile Security Sales - Net sales EUR 15.5 million in 2020 Aptilo - Estimated sales FY 2021 of EUR 17 million Operating margin - EBIT margin in 2022 that will be close to Enea's operating margin target Consolidated as part of Enea during Q3 2021 7
Slide 8: Acquisition Financials
Acquisition Financials Enterprise value of EUR 45 million Financed by cash and bank loan Expected to be EPS accretive from Q4 2021 Transaction costs ~ SEK 13 million - Includes stamp duty estimated at SEK 4.6 million 8
Slide 9: AdaptiveMobile Security – a Market Leader
AdaptiveMobile Security – a Market Leader Messaging Security Prevents unwanted messaging traffic which can be linked to security threats, service abuse or revenue loss Signaling Security Protects against attacks exploiting signaling traffic 9
Slide 10: Networks and Mobile Phones are under Threat
Networks and Mobile Phones are under Threat At least 40% of the world’s mobile devices are inherently vulnerable to cyberattacks Source: CheckPoint Mobile Security Report 2021 More than 80% of the surveyed telecom operators in the EU responded they have detected or encountered some attacks Source: I
Slide 11: AdaptiveMobile Security's Business Model
AdaptiveMobile Security’s Business Model Products Delivery Customers CPaaS Messaging • Software licenses Providers Security • Managed services supported by threat Mobile intelligence team Operators Signaling • Cloud-based SaaS Security (Software as a Service) Governments and National Security Agenci
Slide 12: Unique Combination of Networking and Security
Unique Combination of Networking and Security Connected Devices Network Edge Access Network Core Network Internet and Cloud Tier 1 4G/5G Data Management #1 Aptilo Wi-Fi Data Management New #1 #1 Edge Virtualization Embedded Video Traffic Platforms Operating Systems Optimization IoT Connectivity #1 T
Slide 13: AdaptiveMobile Security expands Product Group Network Solutions
AdaptiveMobile Security expands Product Group Network Solutions Software Development Services Operating Systems Network Solutions 13
Slide 14: Summary - Strong Combined Portfolio and Customer Base
Summary - Strong Combined Portfolio and Customer Base Strengthens Enea’s cybersecurity portfolio Creates a unique offering: 5G core + mobile + security Adds new customers and additional sales capabilities targeting Tier 1 telcos Synergies with Enea traffic intelligence 14
Slide 15: Agenda
Agenda Summary and Key Events AdaptiveMobile Acquisition Financial Results Way Forward and Outlook 15
Slide 16: Net sales increased by 1% (currency adjusted)
Net sales increased by 1% (currency adjusted) Net sales (SEK m) per quarter 2021 2020 300 Q2 Q2 250 Net sales (SEK m)1/ 226 239 Growth (%) -5 -4 200 Growth (%, currency adjusted) 1 -5 1/ LY does not include the Aptilo business, which was acquired 1 October 2020 150 100 50 Q2 0 1% increase vs 2020-
Slide 17: Network Solutions represent 74% of Total Net sales
Network Solutions represent 74% of Total Net sales Net Sales per Product group (MSEK) 250 Network Solutions Net sales increased by 13% in fixed currencies, mainly driven by the 200 acquired Aptilo business generating 13% of the sales increase. Organic 61% growth flat. 67% 74% 150 74% 100 24% 18%
Slide 18: 27.5 percent EBIT margin in Q2
27.5 percent EBIT margin in Q2 2021 2020 2021 2020 Operating profit excluding NRI (SEK m) Q2 Q2 H1 H1 80 EBIT excl. non-recurring items, SEK m 62.1 60.4 106.8 100.9 EBIT, SEK m 62.1 59.1 106.8 81.7 60 EBIT margin excl. non-rec. items, % 27.5 25.3 24.3 21.9 EBIT margin, % 27.5 24.7 24.3 17.7 40 Earni
Slide 19: Solid Financial Position
Solid Financial Position Stable cash flow • Q2 cash flow before changes in WC amounted to SEK 88.4 m (87.1) generation • Q2 cash flow from operations amounted to SEK 94.3 m (67.7) Effective • Interest bearing bank loans amounted to SEK 393 m (total facility of SEK 530 m) financing structure • Cash a
Slide 20: Agenda
Agenda Summary and Key Events AdaptiveMobile Acquisition Financial Results Way Forward and Outlook 20
Slide 21: Enea is one of the world's leading specialists in software for telecommunications and cybersecurity
Enea is one of the world’s leading specialists in software for telecommunications and cybersecurity
Slide 22: Strengthening Cybersecurity Portfolio
Strengthening Cybersecurity Portfolio AdaptiveMobile Security - a leading provider of Mobile Network Security Enterprise value amounts to 45 MEUR The acquisition strengthens Enea cybersecurity portfolio, extends market reach and creates new opportunities in 5G network security 22
Slide 23: Outlook 2021 and Longer Term
Outlook 2021 and Longer Term 2021 Longer Term • Pandemic causes delays in • Growing markets for 5G data management, Market projects edge virtualization, IoT and cybersecurity Dynamics • Risks in earnings over the • We challenge established players and increase next several quarters our market share
Slide 24: Thank you!
Thank you! www.enea.com