Enea (ENEA) Investor Update summary

Market and strategic context

• Geopolitical instability, increased security threats, and regulatory changes are driving demand for security and network solutions, especially in Europe and globally.

• Macroeconomic trends show slow growth in Europe but higher growth potential in emerging markets like Asia and Africa.

• Currency fluctuations, particularly a stronger SEK, have impacted reported growth due to significant revenue in foreign currencies.

Portfolio and growth focus

• The portfolio is split into Growth (network performance, signaling/messaging security, embedded network insights) and Classic (network access control, operating systems) segments.

• Growth portfolio saw 8% growth in 2024, while Classic declined by 15%; Classic remains highly profitable due to mature products and lower R&D costs.

• Key value drivers are security, optimization, and monetization for customers, with a focus on regulatory compliance and network efficiency.

Financial performance and targets

• Group revenue declined by 1.6% in 2023 and 0.9% in 2024, with EBITDA rebounding to SEK 300 million in 2024.

• New financial targets: average annual revenue growth over 10% (CAGR) for 2026–2028 and adjusted EBITDA above 35% by 2028.

• Growth plan is based on three pillars: market acceleration, vertical expansion, and offering evolution, each contributing roughly equally to growth.