Slide 1: Earnings call presentation Q1 2022 financial results
Earnings call presentation Q1 2022 financial results April 28, 2022
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements with words such as “believes”, “anticipates” and “expects” to describe expected revenues and earnings, anticipated demand for networking solutions, internal estimates and liquidity. These forward-looking stat
Slide 3: Business update and outlook
Business update and outlook Brian Protiva, CEO © 2022 ADVA. All rights reserved. Confidential.
Slide 4: Q1 2022 financial highlights
Q1 2022 financial highlights Revenues Q1 2022 Pro forma operating income Q1 2022 y-o-y y-o-y + 18% - 39.3% Pro forma operating income Q1 2022 Net cash in % y-o-y 4.6% EUR + 11.4m Strong quarter, solid demand but also supply challenges continue 4 © 2022 ADVA. All rights reserved. Confidential.
Slide 5: Innovation supporting our business transformation
Innovation supporting our business transformation Ensemble network management and control Synchronization: • GNSS assurance software • Optical Cesium clock, first in Japan Communication service providers Scalable metro/core transport 5G x-haul FTTx backhaul Service delivery and assurance Enterprise
Slide 6: Innovation for the converged edge
Innovation for the converged edge Cloud-based, comprehensive network optimization and AI-driven insights, orchestration and optimization assured service delivery DCI Data center interconnect FTTB* (10/100G Ethernet) Enterprise multi-VNF edge cloud uCPE FTTH* (10G PON) Aggregation Cloud-managed Metro
Slide 7: ADVA Terafactory
ADVA Terafactory State-of-the-art facility in the heart of Europe • EUR 12.4m investment in Meiningen, partially government funded • Includes R&D, new product introduction and operations • SmartLogistics and SmartManufacturing supported by our own ADVA campus 5/6G network and solar power Sharpening
Slide 8: Financial performance
Financial performance Ulrich Dopfer, CFO © 2022 ADVA. All rights reserved. Confidential.
Slide 9: Q1 2022 key financials
Q1 2022 key financials Revenues (m€) Pro forma gross profit (m€) Pro forma EBIT (%) +18.0% 170.5 -3.5% 144.5 -4.3pp 55.3 53.4 8.9% 4.6% Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Net income (m€) Diluted EPS (€) Net cash (m€)* 0.8 -45.0% -46.6% 11.2 0.22 6.2 0.12 -10.6 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 *N
Slide 10: IFRS vs US GAAP comparison (pro forma)
IFRS vs US GAAP comparison (pro forma) (in millions of EUR, in % of revenues) Revenue & pro forma gross margin (IFRS) Pro forma EBIT & margin (IFRS) 170.5 149.4 151.8 157.7 144.5 38.3% 38.3% 35.6% 34.4% 31.3% 14.4 14.4 12.9 13.0 8.9% 9.7% 8.6% 9.1% 7.8 4.6% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21
Slide 11: Regional revenue development Q1 2022
Regional revenue development Q1 2022 Revenue split Q1 2022 (%) Revenue development per region Q1 21 – Q1 22 (m€) +0.2% 96 96 88 101 96 EMEA Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 34.7% +61.3% 59 42 48 39 37 56.5% Americas Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 8.8% +29.3% 15 18 15 12 11 EMEA Americas Asia-Pacific Asi
Slide 12: Cash flow and balance sheet
Cash flow and balance sheet Cash flow breakdown (m€)* Working capital development (m€; %) Q1 21.5% 22.2% 21.7% 20.6% 23.8% 2021 2022 164.4 132.8 130.8 129.0 125.8 Earnings before taxes 11.9 6.8 Depreciation & Amortization 17.0 17.9 Increase (-) / decrease (+) in working capital 4.0 -35.4 Increase (-
Slide 13: Outlook FY 2022
Outlook FY 2022 Revenues (m€) 650m – 700m Pro forma EBIT (%) 6% – 10% Supported by: Business transformation strategy successfully implemented Non-telco expansion – software & services – verticalization A unique investment cycle for communications networks Digitalization – government stimulus – netwo
Slide 14: Road to business combination with ADTRAN
Road to business combination with ADTRAN 1 2 3 4 5 6 Business Filings and ADTRAN 60% Regulatory Closing combination investor special acceptance approvals agreement and discussions shareholder threshold announcement meeting reached 14 © 2022 ADVA. All rights reserved. Confidential.
Slide 15: Thank you
Thank you ir@adva.com IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited. The informa