financial result q3 2012 - enea · ‒ more than 250m of the 325m lte population coverage is...

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Anders Lidbeck, President and CEO Oct 24, 2012 Financial result Q3 2012

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Page 1: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Anders Lidbeck, President and CEO Oct 24, 2012

Financial result Q3 2012

Page 2: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Agenda Enea intro

Enea financials

Way forward & Outlook

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Enea is Powering the Wireless

Broadband

Page 3: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

TEN OFFICES IN NORTH AMERICA,

EUROPE AND ASIA

REVENUE

446.7 MSEK

NO. OF EMPLOYEES

426

The market for wireless communication is expanding rapidly.

Enea is global software company showing revenue growth and high operating profit margins.

Enea already holds a world-leading position on this market with products that unquestionably work. ‒ More than 250M of the 325M LTE

population coverage is powered by Enea OS Solutions.

‒ Enea OS Solutions run in more than half of the world’s 8.2M radio base stations.

Powering the Wireless Broadband

Numbers for 2011

DIVIDEND

8.00 SEK /SHARE

Page 5: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Enea products include operating systems, development tools, middleware, interprocess communication tool, databases and network protocols, all with focus on embedded development.

The solutions are customized for each customer.

Most common usage is in base stations and mobile devices.

Enea Products

Custom Software

Linux Databases RTOS

Interprocess Communication

tools More

Customer Integration

and Services

Operating Systems Solutions Offering

Middleware

Page 6: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Q3 2012

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Page 7: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Continued Growth in Third Quarter

Q3/12 Q3/11 Q1-Q3/12 Q1-Q3/11 Revenue (MSEK): 107.3 101.1 345.3 322.0 Growth (%) 6.1 7.2 Growth (%) (excl. currency effects) 5.8 5.2

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Revenue MSEK

1/11 2/11 3/11 4/11 1/12 2/12 3/12

Type of Revenue MSEK

1/11 2/11 3/11 4/11 1/12 2/12 3/12

Other Perpetual Rentals Royalty Support & Maintenance Services

Page 8: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Growth in North America and Europe

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Europe MSEK

1/11 2/11 3/11 4/11 1/12 2/12 3/12

North America MSEK

1/11 2/11 3/11 4/11 1/12 2/12 3/12

Asia MSEK

1/11 2/11 3/11 4/11 1/12 2/12 3/12

64% Europe

30% North America 6% Asia

• Europe: Revenue growth and improved profits. Increased revenue from key accounts. Revenue in line with previous year in Romania.

• North America: Increased services revenue but a decline in license revenue. In total, revenue growth but lower margins.

• Asia: Declining revenues with lower profits. Revenue in Japan in line with previous year. Revenue in China lower than previous year.

Page 9: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Strong Product Offering

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Over the third quarter, sales increased for operating systems and for services, compared with the same period in the previous year.

Sales for middleware and tools declined compared with the same

period previous year.

Revenue per product

53% Operating systems

6% Middleware

2% Tools

34% Services

5% Others

MSEK

1/11 2/11 3/11 4/11 1/12 2/12 3/12

Revenue per product

Page 10: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Improved Earnings

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Q3/12 Q3/11

EBIT (MSEK) 18.0 3.2

Operating margin (%) 16.8 3.2

Earnings per share (SEK) 0.77 -1.63*

Q1-Q3/12 Q1-Q3/11

EBIT (MSEK) 52.1 21.5

Operating margin (%) 15.1 6.7

Earnings per share (SEK) 2.31 -0.91*

Operating margin (excl. write downs) %

1/11 2/11 3/11 4/11 1/12 2/12 3/12

All numbers excluding capital gain. *including write downs of SEK 37.5 millions.

Page 11: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Continued Strong Financial Position

Cash flow from operations amounted to 26.6 (17.9) MSEK for Q3.

Cash and cash equivalents at the end of the period were 134.6 (121.6) MSEK

Enea has unused credits amounting to 100 MSEK

The equity/assets ratio was 81.1 (72.2)%

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Cash flow (from operations)

MSEK

1/11 2/11 3/11 4/11 1/12 2/12 3/12

The figures from 2011 include the divested business

Page 12: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Way Forward & Outlook

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Page 13: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

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Long Term Ambition Enea’s ambition during the next five years 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 supplementary acquisitions will be evaluated regularly. This growth will vary over the years and between the quarters, depending on when individual deals take place and the development of royalty revenue streams which are dependent on customers’ sales volumes.

The operating margin will vary in line with growth over the various quarters of the period. Our objective during this five year period is to achieve an operating margin of 20 percent.

Page 14: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Equipment manufac-turers want system-on-chip, i.e pre-integrated hardware and software

TechnologyTrends and Enea Innovation

The equipment manufacturer can then consult a single player and receive a fully integrated solution which is tested and verified right from the outset. The relationships with hardware manufacturers become even more important.

Accelerated focus on Linux.

Linux with real-time properties is a crucial factor in the communications segment.

Enea Linux Base Station Platform , well suited for Freescale’s System-on-Chip (SoC) solutions.

Increased investment in partner

relationships .

Enea Linux with strengthened real-time properties.

Enea Linux Base Station Platform provides customers fast and flexible access to a basic platform for base station development.

Enea focus Enea projects

Linux combined with RTOS is the de facto standard in telecoms

The Enea OSE family of real-time operating systems with its proven and reliable performance is subject to a continuous evolution.

Extension of the Enea operating system OSE with 64-bit support for selected CPU architectures.

Continuous development of OSE’s multicore architecture makes it possible to support future CPUs such as Freescale T4240 with 24 virtual cores.

Demand on increased performance and capacity pushes RTOS evolution

Page 15: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Market Outlook

Growth and operating margin will vary in line with growth over the various quarters of the period, depending on when individual deals take place and the development of royalty revenue streams which are dependent on customers’ sales volumes. Our objective during this five year period is to achieve an operating margin of 20 percent.

Outlook for 2012 The long term objective will not be reached in 2012. For 2012 Enea has decided not to provide any further outlook.

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Page 16: Financial result Q3 2012 - Enea · ‒ More than 250M of the 325M LTE population coverage is powered by Enea OS Solutions. ‒ Enea OS Solutions run in more than half ... Outlook

Enea is Powering the Wireless Broadband

Thank You! For further information, please contact: Anders Lidbeck, CEO,

[email protected] Catharina Paulcén, VP Communications

[email protected] Phone: +46 8 507 140 00