Enea (ENEA) Strategy update summary

Geopolitical and Macroeconomic Trends

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

• Shift to a multi-polar world increases demand for regional and resilient solutions, with heightened security needs and regulatory pressures driving tech investment.

• Macroeconomic trends show slow growth in Europe but higher growth potential in emerging markets like Asia and Africa, with global GDP growth slowing but emerging economies expected to outpace advanced ones.

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

Market Development and Opportunities

• Embedded security, network observability, and cybersecurity markets are growing rapidly, with CAGRs ranging from 7% to 13% across segments.

• Telecom and CPaaS software markets are expanding, driven by modernization, omnichannel demand, and regulatory compliance.

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, serving telecom operators, CPaaS, cybersecurity vendors, and governments.

• Portfolio spans security, optimization, and monetization, with over 240 customers and high equity ratio.