Padtec Holding Sa · BMFBOVESPA:PDTC3
Padtec Holding Sa — Investor Presentation (March 2024)
39 slides from Padtec Holding Sa's investor presentation, Mar 8, 2024
Slide 1: Padtec
Slide 2: Padtec goes where no one else goes
padtec.com Padtec goes where no one else goes by bringing high-capacity connections to life. From Brazil to the Americas, from the smallest to the largest business, we are where you are. A
Slide 3: With a history that spans more than 20 years
With a history that spans more than 20 years, _ we are honored to be a Brazilian multinational company that works alongside our customers to offer services that bring people together. We live and breathe technology _ using our expertise to design new futures. We leverage connections and create new r
Slide 4: Padtec by the numbers
EUA a Padtec by : the numbers RS 368.7 MI S) Net revenue ¢ozs) 9 |—o @) Headquarters _ RS 56.0 MI = Campinas, Sao Paulo (Brazil) EBITDA ozs) Rua Doutor Ricardo Benetton Martins, 1000 9 Polo I de Alta Tecnologia Tel: +55 19 2104-9600 9 D) =a q) CEO Carlos Raimar Schoeninger e 3) () National offices c
Slide 5: We transform technology so that technology can transform the world
We transform technology so that technology can transform the world_ Brazilian multinational with more than two decades of experi- ence in the Telecom market; Global supplier with a strong presence in Latin America; It operates in a global market worth US$14 billion per year. rt mt it Develops, manuf
Slide 6: Leaders: The people that drive our connections
ar Leaders The people that drive our connections padtec.com CEO AND INVESTOR RELATIONS DIRECTOR Carlos Raimar Schoeninger_ With a Master in Business Administration from Fundagao Gettlio Vargas (FGV), Raimar has over 20 years of experience in executive positions in the telecommunications, electromech
Slide 7: Leaders: The people that drive our connections
se Leaders The people that drive our connections padtec.com CEO OF PADTEC AMERICA AND SVP OF INTERNATIONAL OPERATIONS Manuel Andrade _ An Electronic Engineer with a Master's degree in Computer Science from IME (Instituto Militar de Engenharia), Manuel has more than 30 years of experience, working in
Slide 8: padtec.com
padtec.com CHIEF LEGAL COUNSEL AND COMPLIANCE OFFICER Patricia Iqueda_ A lawyer who graduated from the University of Sao Paulo (USP), Iqueda has more than 15 years of experience in the legal field, working for large companies in the telecommunications sector, such as Vivo and Oi. CFO Ramon Cabral_ B
Slide 9: Leaders: The people that drive our connections
i Leaders The people that drive our connections CEO AND INVESTOR RELATIONS DIRECTOR Carlos Raimar Schoeninger_ With a Master in Business Administration from Fundagao Getilio Vargas (FGV), Reimar has over 20 years of experience in executive positions in the telecommunications, electromechanics, oil p
Slide 10: Values
padtec.com Exceed expectations Our bar is set high. We always look ahead, investing in excellent, long lasting and exceptional solutions. Working together to increase knowledge In our universe, everything depends on teamwork. We value our collective intelligence, as diverse as the challenges we solv
Slide 11: Company history timeline
(© Padtec acquires important clients_ ‘and begins its expansion G) Padtec connects Brazil and the world _ In the greatest World Cup of all times, performs the Sea Trial ofits submarine repeater in the Caribbean Sea and Implements a system with sub-fluvial cable in the Rio Negro, in Manaus.Negro, en
Slide 12: Customer portfolio
Customer portfolio We've said it before and we'll say it again: from Brazil to the Americas, from the smallest to the biggest business, we're where you are. padtec.com G Telecom operators ——— Regional Providers 4 C— G Carriers of carriers G Subsea systems Utilities and Integrators C- Data center and
Slide 13: Made by people, for people
Made by people, for 720° A 510° employees and interns working in person, hybrid or fully remote 86” is the engagement rate of the company's employees* 22” employees at the company's headquarters in Campinas 68” of employees with college Generations** FE people 210° © Employees spread throughout Braz
Slide 14: Understand new realities
iderstand nol new realities.
Slide 15: Business units
~ Business units @) Optical Networks + LightPad i6400G Platform + DCI transponders (up to 600Gb/s per channel) + ROADMs up to 9 degrees + EDFA, Raman and hybrid amplifiers + LightPad OTDR Plataform db + Switches and routers Platforms and solutions + Smart Site + Network Operation and Maintenance + N
Slide 16: LightPad i6400G Platform
Optical networks LightPad i6400G Platform LightPad i6400G: a platform for the most diverse solutions Our platform delivers a carrier-class solution for high-capacity multi-service transport across diverse network architectures. G) Applications + Terrestrial and submarine backbones + Metro and aggreg
Slide 17: LightPad i6400G Product family
4 Optical networks LightPad i6400G Platform Product family i > ae = + wes padtec.com Muxponder Dual 400G TMD400G- Network Interfaces » 2x CFP2-DCO 400G + Rate configurable from 100 Gb/s to 400 Gb/s » Client Interfaces » QSFP28 SR or LR + Up to 8x 100G » Port activation by license » 4x100G dual muxpo
Slide 18: Passive solutions
Optical networks Business units Passive solutions Mux/Demux 48 channels with and without VOA Mux/Demux Low Loss + Low loss Mux/Demux developed specifically for this application » Network design and performance Complete portfolio for Add/Drop channels. Mux/Demux from 4 to 96 channels guaranteed by Pa
Slide 19: Amplifiers
4 Optical networks Amplifiers High performance, low noise figure C Band EDFA 18 dBm family C+ Band + EDFA 21 dBm + Raman 29 dBm + Hybrid EDFA + Raman Hybrid R2 Special solutions » Super compact Hybrid Amplifier * Raman 33 dBm with integrated Transmit EDFA, * ROPA C+ Receive EDFA and Raman stages + R
Slide 20: ROADM
Optical networks ROADM | | | Wavelength Selective Switch WSS9-9A and WSS4-9A Functionalities ¥ . ROADM + End-to-end provisioning Wass + Automatic EQ LL | ae + Protection I+], 1+#R and I+]+R sono Architecture: Lo aN * Directed ROADM ROAM ge ws. wes. » Directionless aye Colorless he foul Me + FlexGrid
Slide 21: Padtec Muxponders 1200G and 800G
Optical networks Business units G) TM1200G DCI Generation “Transmission rates from 100 Gb/s to 600 Gb/s + Configurable modulations: DP-QPSK to DP-64QAM - Transmission capacity of 38.4Tbps in the C+ Band Padtec Muxponders * Support for Fine Tuning “ Compatible with MicroMux module 1200G and 800G + 27
Slide 22: Dual 400G Transponder
Optical networks Business units Dual 400G Transponder Standalone transponder with up to 400 Gb/s (per optical channel) ideal for point-to-point applications or traditional DWDM solutions TMD400G-SD * Standalone mechanics with low rack space requirements (IRU height) + Low cost coherent solution from
Slide 23: LightPad OTDR
Optical networks Business units LightPad OTDR Optical Time-Domain Reflectometer Monitoring, in real time, the status of your network. The latest generation product, which is part of VIAVI's OTDR OTU-SOOO series, remotely and automatically monitors the integrity of optical fibers. oe * Unit with 3 sl
Slide 24: Switch and router platform
padtec.com 1S9500 Family 2 $9600 Family Switch and router platform Access networks $9510-28DC Responsible for providing direct connectivity to residential and corporate users, the access infrastructure provided by the partnership between Padtec and UfiSpace features open access routers that are temp
Slide 25: Padtec NMS+
Optical networks Business units Padtec NMS+ It's never been easier to manage your network Comprehensive web management platform for DWDM networks. » Web interface for board management : » New platform administration tools 4 aaa ime = ooooo » Supports high availability platforms + Graphical interface
Slide 26: Services and solutions
padtec.com Services and solutions Smart Site Monitor your network sites wherever you are: with this service, operators and ISPs, can remotely monitor and control, in real time, the elements that make up the infrastructure of their network environments. Business units Network Operation and Maintenanc
Slide 27: Network Management (NOC)
24h padtec.com Services and solutions Network Management (noc) Padtec is always with you To fully monitor and manage routes, built with different technologies, in real time, Padtec also offers network operation and maintenance services from its Network Operations Center (or NOC), + 24x7 operation; »
Slide 28: Spaas and Fiber Supervision
©) aN padtec.com Services and solutions Spaas - Spare Part as a Service Service for contracting spare parts for immediate replacement in cases of original equipment failure. Business units Fiber Supervision Through its NOC, Padtec offers the supervision of both the monitoring systems and the fiber i
Slide 29: Training center and Site Survey
O oe padtec.com Services and solutions Training center Basic and advanced modules for entry level and ongoing training. Paditec’s varied training portfolio includes theoretical courses in the areas of network planning and engineering and practical courses in the areas of operation and maintenance of
Slide 30: Services and solutions
padtec.com Smart Site Monitor your network sites wherever you are: with this service, operators and ISPs, can remotely monitor and control, in real time, the elements that make up the infrastructure of their network environments. Network Operation and Maintenance + More than 40 MCs (Maintenance Cent
Slide 31: Latest results
4s Latest results 2023 All Revenue venus "8368.7 mi ’S44.5 mi + 0.8% (2023 x 2022) (11% of net revenue) @ iematonalmaiet IE 265 6 0 mij 79.2 mi ae TM 2.5% (2023 x 2022), C Gross Margin 35.6% padtec.com
Slide 32: Financial Results: Net revenues
Financial Results Stable revenue evolution. Significant growth of 38.5% in the Services, Software, and Platforms unit, maintenance of the international growth trend, and a slowdown in the evolution of the local market in Brazil. Net revenues (R$MM) 400 365.7 368.7 300 244.4 228.4 200 100 79.2 77.2 4
Slide 33: Financial Results: Gross margin
Financial Results 2023: a year of focus on profitability. Control of production costs, improvement in the acquisition of components, optimization of development costs and contract profitability management were the drivers of the increase in gross margin. Gross margin (%) 50% 40% 35.6% 32.0% 30% 20%
Slide 34: Financial Results: EBITDA
Financial Results EBITDA (R$ MM); Adjusted EBITDA (R$MM); EBITDA Margin (%) 60 44.6 EBITDA: 56.0 12.2% +25.7% 15.2% 50 2.0 40 30 46.6 48.6 20 10 0 -7.4 -10 2022 2023 EBITDA Adjusted EBITDA Nonoperational effects Padtec S/A © 2023. Todos os direitos reservados.
Slide 35: Financial Results: Expenses
Financial Results Administrative Expenses x R&D x Net Revenues (R$MM) Net Revenues (R$MM) 50 12% 43.6 41.7 10% 41.5 10% 40 35.8 8% 8% 8% 8% 30 6% 20 4% 10 2% 14% 13% 11% 11% 0 0% 2020 2021 2022 2023 2020 2021 2022 2023 Sales Expenses x Financial Expenses x Net Revenues (R$MM) Net Revenues* (R$MM) 12
Slide 36: Financial Results: Debt restructuring
Financial Results Debt restructuring successfully concluded in 2Q23 More than 90% in long-term, average funding cost 5.7% p.a. in 2023 Debt: long X short term (R$MM) Net Debt / LTM EBITDA¹ (X) 150 2 113.3 112.5 100 69.9% 88.1% 1 50 1.42 1.08 30.1% 11.9% 0 0 2022 2023 2022 2023 Short term debt Long t
Slide 37: Financial Results: Debt evolution
Financial Results Debt Evolution (R$MM) 150 100 50 113.3 112.5 50.9 60.2 0 (0.4) (51.4) (50.5) (1.5) -50 -100 Gross Debt Interest Amortization New Loans Gross Debt Cash and Cash Financial Net Debt 2023 2022 and Principal 2023 Equivalents Investments in Payment Guarantee Padtec S/A © 2023. Todos os d
Slide 38: Financial Results: Solid economic-financial balance
Financial Results Solid economic-financial balance 2022 2023 Net Results (R$ thousand) 9.754 15.413 Net Results per share (R$) 0,12 0,19 Dividends distribution proposal (R$ thousand) - 3.674 Dividends distribution proposal per share (R$) - 0,046 2022-2023 Gross Profit +12.3% EBITDA +25.7% Net Result
Slide 39: Create, transform, revolutionize
padtec.com create transform revolutionize