Slide 1: Calnex Solutions plc
Calnex Solutions plc Test solutions for the world’s networks Final Results for the 12 months to 31 March 2021 Tommy Cook, CEO Ashleigh Greenan, CFO
Slide 2: Test solutions for the world’s telecom networks
Test solutions for Calnex Solutions the world’s telecom networks ▪ We design, produce and market test instrumentation and solutions for network synchronization and network emulation ▪ Our solutions enable our customers to validate the performance of the critical infrastructure associated with teleco
Slide 3: Focused on high value niches of the testing market
Focused on high Where we fit in the telecoms lifecyle value niches of the testing market ▪ R&D Design Validation and Conformance Testing ▪ Maintenance Testing ▪ Critical points in the development cycle, require high post deployment capability and high-value test equipment ▪ Deep insight is ▪ Fully p
Slide 4: Supporting the world’s telecoms industry
Supporting the world’s telecoms industry TELECOM EQUIPMENT VENDORS HYPERSCALE, ENTERPRISE NETWORK OPERATORS COMPONENT MANUFACTURERS 4
Slide 5: Operating in a growth market
Operating in a growth market The global market for telecoms test and measurement equipment in 2020 for Requiring innovative mobile networks alone estimated to be The telecoms industry is a products, technologies and around US$1.3 billion and is forecast to highly competitive services to support exce
Slide 6: Review of FY21
Calnex Review of FY21
Slide 7: Exceptional Financial performance
£18.0m Revenue +31% Exceptional Financial performance ▪ Revenue & Underlying EBITDA growth exceeded initial expectations £5.5m for the year: strong order levels across the board with all regional and product line targets exceeded Underlying EBITDA ▪ Little negative impact from COVID-19 on business,
Slide 8: Ongoing business expansion
Ongoing business Headcount expansion • Expansion of Business Development and R&D teams accelerated, to support the growth of the Company’s product offering and capitalise on available opportunities • Strengthening of Quality Management System to promote continuous improvement • Continued high levels
Slide 9: All product line targets exceeded
All product line targets exceeded Synchronisation testing in the lab Network emulation for real-world testing in the lab Portable field test units LAB SYNC CLOUD & IT FIELD SYNC Paragon-neo Paragon-X Attero-100G SNE Sentinel ▪ Strong growth in sales of Paragon-neo. Continues to be ▪ Strong growth in
Slide 10: Financial Review
Financial Review 10
Slide 11: Strong performance across all financial KPIs
Strong performance across all financial KPIs 11
Slide 12: Consistent customer metrics
Consistent customer metrics (by orders) ▪ The number of customers sold to in the year increased by 15 to 192 (FY20: increase of 12 to 177) ▪ Top 10 revenue generating customers accounted for 49% of revenues (FY20: 52%) ▪ The average length of customer relationship across the top ten customers in FY2
Slide 13: Income statement
Income statement Year ending 31 March FY21 FY20 £000 £000 Revenue 17,978 13,739 Cost of sales (4,013) (3,116) Gross Profit 13,965 10,623 Other income 530 549 Administrative expenses (excl D&A) (7,941) (5,384) EBITDA 6,554 5,788 Amortisation of development costs (2,479) (2,186) Add back exceptional i
Slide 14: Cashflow
Cashflow Year ending 31 March FY21 FY20 £000 £000 Cashflows from operating activities EBITDA (continuing business) 6,554 6,288 Add back: Other income (530) (549) IPO - fees 1,057 - Other non cash items 365 203 Discontinued operations (201) (299) Movements in net working capital 1,911 160 Cash genera
Slide 15: Strategy & Outlook
Strategy & Outlook 15
Slide 16: Delivering against the growth strategy
Delivering against the growth strategy Three-pillared growth strategy to capitalise on the structural market growth drivers Continued product innovation to Expand within the Cloud Computing Target select M&A opportunities to add capitalise on growth of 5G sector and other Ethernet market niches to p
Slide 17: Confident outlook
Confident outlook Established Proven business industry position model provides a with reputation for strong platform for • FY21 an exceptional year in a winning products sustainable growth number of respects, including early pull through of orders • Anticipate FY22 results will be consistent with FY
Slide 18: Q&A
Calnex Q&A
Slide 19: General information
General information Major shareholders • Share Price 114.0p (at 21.05.2021) % of Issued • Market AIM Shareholder Share Capital • Ticker CLX Thomas (Tommy) Cook (CEO) 21.0% • Market Cap. £98m BGF Investment Management Limited 15.0% • Ord. shares in issue 87.5m Scottish Enterprise 8.98% Otus Capital M
Slide 20: The Board
The Board Tommy Cook Ashleigh Greenan George Elliott Ann Budge Graeme Bissett CEO CFO Non-Exec Chairman Non-Exec Director Non-Exec Director Founded Calnex in 2006 Joined Calnex in 2020. Extensive board experience at Experienced Non-Executive Experienced corporate financier private and public technol
Slide 21: Balance sheet
Balance sheet Summary Balance Sheet FY21 FY20 As at 31 March £000 £000 Non-current assets Intangible assets 7,525 6,779 Tangible & right of use assets 544 681 Deferred tax asset 612 554 8,682 8,014 Current assets Inventories 1,111 958 Trade and other receivables 1,819 2,508 Cash and cash equivalents
Slide 22: Commitment to ESG
Commitment to ESG Calnex is focussed on including effective environmental goals into the Group’s strategic decisions, operations and supply chain. Environment Social Governance Calnex’s HQ - Linlithgow Oracle Global Services Long-standing charity committee which is Committed high levels of corporate
Slide 23: 5G driving market change
5G driving market change 5G Enhanced Mobile Broadband Massive Internet of Things Mission-critical Control Faster, more uniform user-experience Very high numbers of low-data rate Ultra-low latency and high reliability machine-to-machine connections Autonomous vehicles, object Demanding indoor/outdoor
Slide 24: Lean Business Operational Model
Lean Business Operational Model Lean business model, with global distribution channels in place and manufacturing outsourced to a high quality local partner Distribution channels Manufacturing capability Operational excellence ▪ Global reach through network of regional ▪ Manufacturing outsourced to
Slide 25: Calnex Solutions plc
Calnex Solutions plc Test solutions for the world’s networks Final Results for the 12 months to 31 March 2021 Tommy Cook, CEO Ashleigh Greenan, CFO