Interim Report, April – June 2013

20 percent profitability target reached during the quarter.

The operating margin and earnings per share continued to improve, while Enea’s
sales for the second quarter were lower than in the second quarter last year.
The profitability target of a 20 percent operating margin was reached during the
quarter.
Net sales for the second quarter amounted to SEK 105.7 (120.6) million, which is
equivalent to decline of 12.3 percent. Net sales fell by 13.8 percent for the
first six months of the year.

The operating profit for the second quarter amounted to SEK 22.0 (18.4) million,
which is equivalent to an operating margin of 20.8 (15.3) percent. For the first
six months of the year, operating profit amounted to SEK 36.0 (34.1) million,
corresponding to an operating margin of 17.5 (14.3) percent.

Earnings per share increased to SEK 1.04 (0.88) for the second quarter and SEK
1.74 (1.54) for the first six months of the year.

Cash flow from operations amounted to SEK 36.2 (27.3) million for the second
quarter and SEK 42.7 (33.4) million for the first six months of the year. Cash
and cash equivalents amounted to SEK 175.1 (117.3) million at the end of the
second quarter.

On July 25, SEK 3.00 (8.00) per share will be paid out via a redemption program,
equivalent to a transfer to the shareholders amounting to SEK 49.4 (135.2)
million.

April to June 2013

(second quarter previous year in brackets)

  · Net sales, SEK 105.7 (120.6) million
  · Growth, -12.3 (12.3)%
  · Growth, currency adjusted, -9.6 (8.1)%
  · Operating profit, SEK 22.0 (18.4) million
  · Operating margin, 20.8 (15.3)%
  · Net profit before tax, SEK 23.4 (20.5) million
  · Net profit after tax, SEK 17.1 (14.9) million
  · Net profit, divested business, SEK - (-0.1) million
  · Earnings per share, SEK 1.04 (0.88)1
  · Cash flow from operations, SEK 36.2 (27.3) million
  · Cash and cash equivalents, SEK 175.1 (117.3) million

January to June 2013

(January to June previous year in brackets)

  · Net sales, SEK 205.1 (238.0) million
  · Growth, -13.8 (7.7)%
  · Growth, currency adjusted, -11.5 (4.9)%
  · Operating profit, SEK 36.0 (34.1) million
  · Operating margin, 17.5 (14.3)%
  · Net profit before tax, SEK 38.6 (36.8) million
  · Net profit after tax, SEK 28.7 (26.1) million
  · Net profit, divested business, SEK - (61.7) million
  · Earnings per share, SEK 1.74 (1.54)1
  · Cash flow from operations, SEK 42.7 (33.4) million
  · Cash and cash equivalents, SEK 175.1 (117.3) million

1) Earnings per share is calculated based on profit after tax for the remaining
business.

Anders Lidbeck, President and CEO comments:

“During the second quarter the operating profit increased significantly which
resulted in an operating margin of 20.8 percent. We thereby reached our
profitability target of a 20 percent operating margin. Although we have divested
parts of the business and therefore have lower revenues, the second quarter of
this year saw better profitability than any second quarter in the past, not only
in percentage terms, but in absolute terms as well. We have focused on creating
an efficient global software company with the ability to supply high quality
services on both a global and a local level. This is why we currently have
higher gross margins, better operating margins and high earnings per share.

However, the weak market development we predicted in the beginning of the year
has continued during the second quarter. We are still seeing a massive increase
in connected devices and mobile data traffic, but the network expansion is
subject to significant price pressure and this is having an adverse impact on
the investment level among our customers. Of course, the general economic
situation also adds to the situation. Our service revenue in particular has
developed softly compared with the same period last year. In this area we have
also been adversely affected by a weak demand in the defense industry in the
USA. Our software revenue also fell slightly during the second quarter, which
overall resulted in revenues 12 percent lower than in the same period in 2012.

In parallel with our efforts to improve our profitability, we are also investing
in both the market organization and product development to stimulate growth. We
are continuously reinvesting one third of our software revenue in product
development. We released new versions of OSE, Linux and Element in the second
quarter. Enea OSE has been launched in a 64-bit version, focusing on handling
large data volumes, and also with performance improved still further. OSE is
currently the product with the highest revenue and having a strong product
offering is a very important element of our strategy.

The new version of our middleware product Enea Element includes improved support
for cloud services. Middleware is a field in which we will be seeing future
double-digit growth, hopefully as early as 2014. During the last few quarters,
we have been awarded a number of contracts with Element, thereby securing future
licensing and royalty revenue. Element represented just 7 percent of our total
sales last year, but if we succeed in our ambition, Element could become an
increasing part of our sales and help reinforce our global market position going
forward.

Version 3.0 of Enea Linux was released in the quarter, with the ambition to
offer the best real-time support on the global Linux market. Alongside OSE,
Linux is currently our biggest product development investment. However, it will
take some time for our Linux sales to reach a level which will make it one of
our bigger products in revenue terms, and ongoing investments will be required
to achieve this. That said, our focus on Linux has already had a favorable
effect on sales of our other products and services.

Our focus on major customers has been successful, and our sales to this customer
group grew during the quarter. We are continuing to adopt a long-term approach
to our biggest customers in order to extend their use of our products and
services. Continuing strong relations with our biggest customers are key to our
business going forward. With Enea Linux, we have created opportunities for new
discussions on how the communication systems of the future can be designed.

During the second quarter, we also won our first contract involving Enea Linux
with a completely new customer to us. Electrolux chose Enea’s solution for a
high-tech consumer electronics product. It is great to see that this contract
has allowed us to gain a foothold with a new customer on the consumer
electronics market. Advanced products with embedded systems can be found in many
industries which demands similar to the telecom market. We will be continuing to
invest outside the telecom segment as well as moving resources to new areas in
the long term, all with a view to improving our competitiveness, market
position, and margins.

To further strengthen our services organization we have during the year invested
in more sales staff and continued to develop our ‘Bridged Services’ concept. At
the end of the quarter we were also awarded a major new contract with a supplier
of secure payment services in the USA. This was a very important contract, and
this customer is expected to develop into one of the three biggest customers for
our service business over the next few years. The assignment involves
cooperation between our American and Romanian service sites, with a majority of
the delivery to be done in Romania. This assignment is also important as it will
compensate for the consultancy work that has declined, particularly in the
defense industry in the USA over the first six months of the year.

We will of course be continuing our attempts to improve growth and
profitability. Achieving a 20 percent margin during a quarter is good, but our
long-term aim is to be able to deliver a 20 percent operating margin annually.
We are prepared for a market that remains weak, but the number of orders we are
receiving for our service business is indicating a certain level of
stabilization for the second half of the year.

We are repeating our forecast for 2013; that even if demand remains weak
throughout the year, it is our assessment that we will improve both our
operating margin and our earnings per share over the full year.”

Press and analyst meeting

Press and financial analysts are invited to a press and analyst meeting where
Anders Lidbeck, President and CEO, will present and comment on the report.

Time: Tuesday April 23 at 10:00 am CET.

Link: Financial Hearings (http://financialhearings.nu/130723/enea/)

Phone number: +46 850556477 or +44 2033645372

The full report is published at www.enea.com/investors

This information is such that Enea AB (publ) is to publish in accordance with
the Swedish Securities Markets Act and/or the Financial Instruments Trading Act.
The information was submitted for publication on July 23, 2013 at 7.30 CET.
For more information visit www.enea.com or contact

Anders Lidbeck, President & CEO
E-mail: anders.lidbeck@enea.com

Catharina Paulcén, SVP Marketing & Communications
Phone: 46 8 507 14 133
E-mail: catharina.paulcen@enea.com
About Enea
Enea is a global vendor of Linux and Real-time operating system solutions
including middleware, tools, protocols and services. The company is a world
leader in developing software platforms for communication-driven products in
multiple verticals, with extreme demands on high-availability and performance.
Enea’s expertise in operating systems and high availability middleware shortens
development cycles, brings down product costs and increases system reliability.
The company’s vertical solutions cover telecom handsets and infrastructure,
medtech, automotive and mil/aero. Enea has offices in Europe, North America and
Asia, and is listed on NASDAQ OMX Nordic Exchange Stockholm AB. For more
information please visit enea.com or contact us at info@enea.com.

Enea®, Enea OSE®, Netbricks®, Polyhedra® and Zealcore® are registered trademarks
of Enea AB and its subsidiaries. Enea OSE®ck, Enea OSE® Epsilon, Enea® Element,
Enea® Optima, Enea® Optima Log Analyzer, Enea® Black Box Recorder, Enea® LINX,
Enea® Accelerator, Polyhedra® Lite, Enea® dSPEED Platform, Enea® System Manager
and Embedded for Leaders(TM) are unregistered trademarks of Enea AB or its
subsidiaries. Any other company, product or service names mentioned above are
the registered or unregistered trademarks of their respective owner. © Enea AB
2013.