Enea Q1 presentation April 26, 2005 1

EneaQuarter 1 Report 2005

Johan WallPresident & CEO

Gunilla SponghCFO

Enea Q1 presentation April 26, 2005 2

Enea in Brief• Global software company with

local consulting

• Specialist in telecom

• Customer value through reliable, safe and stable software

• Approx. 500 employees

• Real time operating systems from Enea found in cell phones, base stations and other equipment from major telecom vendors worldwide

Enea Q1 presentation April 26, 2005 3

Q1 2005 in Brief• Net sales increased by 24 % to SEK 170 (137) million• Profit after tax increased to SEK 17 (-20) million

• Software sales increased by 77 % to SEK 55 (31) million

• Cash flow increased to SEK 14 (9) million

• License agreement signed with Nokia Mobile Phones

• Acquisition of technology for telecom infrastructure

Enea Q1 presentation April 26, 2005 4

Our Vision• World leader in terms of market share and profitability in

selected segments

• Customer’s first choice for complete and integrated embedded solutions with the highest customer value

• The most attractive employer for the industry’s leading experts

Enea Q1 presentation April 26, 2005 5

Enea’s Business ConceptEnea secures our clients’ success by • providing complete embedded

solutions• the OSE family of software• related professional services• and third party products

Enea software is primarly sold on royalty-based license model.

Enea Q1 presentation April 26, 2005 6

Enea Embedded

Enea Q1 presentation April 26, 2005 7

OSE makes your software device run

• Faster• More efficient• At a lower cost

OSE enables customers to achieve

• Shorter time-to-market• Lower costs for development

and Bill of Material costs • High performance and reliability

Enea Q1 presentation April 26, 2005 8

Other Market Segments

Enea Q1 presentation April 26, 2005 9

Some of Enea’s Clients:Top 5:

Enea Q1 presentation April 26, 2005 10

Intensified market orientation• Broaden base within telecom• Strengthen sales and market

organisation• Increase sales reach in China• Increase penetration within

medtech and automotive• Broaden offering through third

party products

Enea Q1 presentation April 26, 2005 11

New Product – high availability platform• Integrates with OSE and gives

access to standard functions• A framework for high-availability

applications development• Developed primarily for

customers within telecom and IT• Compatible with systems other

than OSE, like Linux• Based on software IPR acquired

in Q1

Enea Q1 presentation April 26, 2005 12

Net Sales Enea GroupSEK million

0

50

100

150

200

Q1 Q2 Q3 Q42003 2004 2005

Enea Q1 presentation April 26, 2005 13

EBIT Enea GroupSEK million

-30

-20

-10

0

10

20

30

Q1 Q2 Q3 Q4

2003 2004 2005

Enea Q1 presentation April 26, 2005 14

Software Sales

0

10

20

30

40

50

60

70

2003 2004 2005

Q1Q2Q3Q4

SEK million

Repositioning into a software company. Operational target 50 % software

Products33%

Services67%

Enea Q1 presentation April 26, 2005 15

Sales per segment and market Q1 2005

75%

5%

4%

16%

TelecomMedicalAutomotiveOthers

71%

6%

22%

1%

Nordic areaEurope, excl NordicUSAAsia

• Ericsson largest customer, > 50% of total sales

Enea Q1 presentation April 26, 2005 16

Enea Systems

0

20

40

60

80

100

Q1-2004 Q2-2004 Q3-2004 Q4-2004 Q1-20050

2

4

6

8

10

Net sales EBIT

SEK million SEK million

Enea Systems provides consulting services in Sweden

Enea Q1 presentation April 26, 2005 17

Enea Embedded Technology

0

20

40

60

80

100

120

Q1-2004 Q2-2004 Q3-2004 Q4-2004 Q1-2005-10-50510152025

Net sales EBIT

SEK million SEK millionEnea Embedded Technology provides OSE software worldwide and related professional services in Sweden and in USA

Enea Q1 presentation April 26, 2005 18

Cash Position

020406080

100120140160180

2002 2003 2004 2005Q1 Q2 Q3 Q4

SEK million

March 2005:Cash SEK 152 million Equity SEK 282 million Equity/assets ratio 60 % Intangible assets SEK 106million

Equity Issue SEK 81 million

• Solid Financials

Enea Q1 presentation April 26, 2005 19

Market Growth

The global market for real time technology is estimated at around USD 1 billion, one third telecom

Underlying growth is estimated at 15% annually

Source: Venture Development Corporation, www.vdc-corp.com

Enea Q1 presentation April 26, 2005 20

Market and CompetitorsReal Time Operating Systems

• Wind River• Green Hills• Mentor Graphics, Accelerated

Tech• MontaVista• QNX

Other Operating Systems• Symbian, OMTP, Microsoft CE,

LinuxInhouse Developed Systems

• Equipment and chip-set vendors

Enea Q1 presentation April 26, 2005 21

Industry OutlookSoftware

• Fewer suppliers• Consolidation• Integrated solutions• Multiple CPUs in each device• Sales via chip sets vendors• 3G deployment• Strong Growth• Price stability

Consulting• High demand• Price pressure, specifically in

Swedish market

Enea Q1 presentation April 26, 2005 22

Financial TargetsEnea´s long-term financial targets are to, over the course of a business cycle, achieve• Sales increase of more than 15

percent annually• Operating margin of at least 10

percent

Enea Q1 presentation April 26, 2005 23

Summary• Strong earnings recovery

continued in Q1(05)• Improved cash flow and

solid financial position• License agreement with

Nokia Mobile Phones• New product• Intensified market

orientation

Enea Q1 presentation April 26, 2005 24