Slide 1: Interim Management Statement Q1 2024
Interim Management Statement Q1 2024 Lars Boilesen, CEO Heine Thorsgaard, CFO May 16, 2024 NAPATECH A/S © COPYRIGHT 2024
Slide 2: Q&A Session
Q&A Session Following the presentation DK: +45 8987 5045 NO: +47 8150 3308 US: +1 646 787 9445 UK: +44 20 3936 2999 Participant Access Code: 521156 To ask a question, press *1 on your telephone keypad To withdraw your question, press *2 Texted question can be submitted using the button on the websit
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by Napatech A/S (the “Company”) solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various fo
Slide 4: Agenda
Agenda • Business Status 1Q-2024 • Business Outlook 2024-2026 • Financial Review and Outlook • Q&A Session 4 NAPATECH A/S © COPYRIGHT 2024
Slide 5: Business Status and Outlook
Business Status and Outlook 5 NAPATECH A/S © COPYRIGHT 2024
Slide 6: Business Status – 1Q 2024
Business Status – 1Q 2024 2024 Progress: • Extended collaboration agreementt with Intel/Altera for next-generation 400G IPUs. Napatech Strategic Plan https://newsweb.oslobors.no/message/616155 • Retain and expand our • New commercial agreement with tier-1 server OEM focused on cloud and enterprise.
Slide 7: Napatech's Products Are Integral For Server Performance
Napatech’s Products Are Integral For Server Performance A D A Infrastructure Processing Unit E B SmartNIC B D C GPU or FPGA for AI D Memory chip C E E Central Processing Unit D F Server F Napatech’s Programmable NICs play a crucial role … providing access to CPUs and GPUs resources ✓ in modern datac
Slide 8: The Problem: Server Performance Cannot Keep Up With Network Traffic Growth
The Problem: Server Performance Cannot Keep Up With The Exponential Growth In Network Traffic Mega industry trends are driving more … causing increased network traffic … but the servers cannot keep up with and more applications to run … and growth in servers deployed … the demand ... million servers
Slide 9: The Solution: Programmable NICs Help Bridge The Server Performance Gap
The Solution: Programmable NICs Help Bridge The Server Performance Gap Historically, the way to increase server Given the constraint of adding new servers, Programmable NICs have proven to capacity has been to … be a solution for bridging the performance gap ✓ Expand the number of servers Applicatio
Slide 10: Programmable NICs Run Non-Core Tasks, Enabling Higher Server Performance
The solution: Programmable NICs Run Non-Core Tasks, Enabling Higher Server Performance Programmable NICs and IPUs improve server capacity and accelerate the Why do we need a Programmable NIC? performance of applications by processing tasks servers normally would handle Server stack Server stack Enab
Slide 11: Partnership With Intel And Altera Unlocks New Prospects
Partnership With Intel And Altera Unlocks New Prospects With Transformational Scale Together with Intel, Napatech builds leading … with access to the mass-market through Intel partnership products with cutting-edge software … launched in 2022 Napatech Programmable NICs powered by Intel Partnership b
Slide 12: Exposed To The Fast-Growing Programmable NIC Market
Napatech Is Exposed To The Fast-Growing Programmable NIC Market Driven By Industry Megatrends Mega industry trends are driving more … increasing the number of servers deployed and eventually the and more applications to run … programmable NICs being deployed – replacing basic NICs Revenues (USDm) Cl
Slide 13: Ready To Roll Out SmartNICs And IPUs To A Large Addressable Market
Napatech Is Ready To Roll Out SmartNICs And IPUs With Intel/Altera To A Large And Growing Addressable Market IPUs have already been adopted Fortune 5000s are now starting to adopt the technology and require a complete by hyperscalers and the solution which Napatech can deliver technology has become
Slide 14: Early Success Validates Napatech's Position In The High-Volume Market
Early Success Validates Napatech’s Position In The High-Volume Market 7 Major design wins secured with … resulting in accelerating pipeline Intel partnership … growth Tier-1 Server OEM Danish IT company set for 2024 >15x growth with Intel partnership Customer Previous prospects A new collaboration w
Slide 15: Accelerating Volumes And Strong Growth Potential Going Forward
Accelerating Volumes And Strong Growth Potential Going Forward Napatech has transformed from a niche supplier to a 4-6 IPU design wins annually high-volume partner in a high growth market New design wins 50-60,000 units annually expected to (30-40,000 units in previous guiding) unlock high volumes I
Slide 16: Financial Review and Outlook
Financial Review and Outlook 16 NAPATECH A/S © COPYRIGHT 2024
Slide 17: Consolidated Income Statement Q1 2024
Consolidated Income Statement Q1 2024 Key Points Q1 Q1 DKK'000 2024 2023 ∆ • Revenue in Q1 down 42% compared to Q1’23 Revenue 21,542 37,096 -42% Cost of goods sold (6,112) (16,566) • GM in Q1 72% up 16 basis points compared to Gross profit 15,430 20,530 -25% Q1’23. GM% 71.6% 55.3% • Staff costs in Q
Slide 18: Consolidated Cash Flow Statement Q1 2024
Consolidated Cash Flow Statement Q1 2024 Q1 DKK'000 2024 2023 Key Points Earnings before tax (EBT) (32,183) (21,564) • Net Cash flow from operating activities in Q1 negative Adjustments to reconcile profit before tax to net cash flows 9,882 9,613 DKK 5.4m Working capital adjustments 17,222 35,617 •
Slide 19: 2024 Financial Guidance unchanged
2024 Financial Guidance unchanged Summary Guidance • 2024 is a year focused on winning new design wins Revenue DKK 170-180m • We are targeting 4-6 IPU design wins Gross margin 69-71% but increase the total annual unit potential from 30-40,000 units at peak Staff expenses & Other external costs DKK 1
Slide 20: Q&A Session
Q&A Session DK: +45 8987 5045 NO: +47 8150 3308 US: +1 646 787 9445 UK: +44 20 3936 2999 Participant Access Code: 521156 To ask a question, press * 1 on your telephone keypad To withdraw your question, press * 2 Texted question can be submitted using the button on the website 20 NAPATECH A/S © COPYR