Slide 1: FY 2021 Annual Results
FY 2021 Annual Results March 9, 2022
Slide 2: Speakers
Speakers Didier Brédy Dmitri Pigoulevski Chairman - CEO CFO
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Ekinops. This presentation is not solicitation or recommendation. This presentation is for information for onward distribution. Neither the whole nor any part of the purposes only and is purely indicative. It does not constitute an offer or informati
Slide 4: Ekinops' Mission Statement
Ekinop’s Mission Statement To provide open, trusted and innovative network connectivity. We enable our customers’ success by delivering high value-added software-driven solutions. Open Trusted Innovative
Slide 5: We provide open, trusted and innovative network connectivity solutions
We provide open, trusted and innovative network connectivity solutions 2021 revenue: €103.6 m • 2019 : +11% growth– 16.0% EBITDA • 2020 : flat revenue – 15.9% EBITDA • 2021 : +12% growth – 16.9% EBITDA THREE ACTIVITIES Staff: 485 1 Optical Transport • Half in R&D 2 Data & Voice Routers • >90% softwa
Slide 6: Ekinops' Portfolio
Ekinops’ Portfolio Compose Solutions for SDN (Software Defined Networks) Manager (NMS, Director) Services (SD-WAN, VNFs) Middleware (OneOS6 LIM) Software Equipment Ekinops360 OneAccess WDM,OTN Data & Voice Routers Ethernet Device Optical Transport solutions for Metro / Long-haul / … Devices for Bran
Slide 7: Customers: Operators and Service Providers
Customers: Operators and Service Providers 16 of the Top 30 service providers are customers 1/3rd of the Top 100 More than 3 million routers deployed OneAccess: Top 3 in our segment Half of Ekinops360 installed-base in the USA
Slide 8: Activity & Highlights
ACTIVITY & HIGHLIGHTS 8 EKINOPS
Slide 9: 2021: annual revenue tops the €100m mark
2021: annual revenue tops the €100m mark • Annual revenue growth of +12% (identical at constant 2021 revenue of €103.6m: +12% perimeter and exchange rates) exceeding the €100m mark for the first time o Four successive quarters of double-digit organic growth o Q1: +12% Q2: +14% Q3: +12% Q4: +11% 103.
Slide 10: +18% international growth in 2021
+18% international growth in 2021 EMEA France North America APAC (excl. France) 33% 43% 18% 6% vs. 37% vs. 37% vs. 17% vs. 9% FY 2020 FY 2020 FY 2020 FY 2020 Flat activity in 2021 Very dynamic growth Steady growth of +21% Annual decline of -28% (-0.3%) after sustained (+28%) with strong (+25% in USD
Slide 11: Top 10 customers 2021
Top 10 customers 2021 Part of 2021 Variation Zone revenue vs.2020 Customer #1 France 19% -6% ⚫ 25% revenue growth on top 10 customers Customer #2 EMEA 7% +253% Customer #3 France 5% -17% ⚫ Customer #2, German operator, which rolled Customer #4 EMEA 5% +22% out Ekinops’ Optical Transport solutions fo
Slide 12: Key 2021 business highlights
Key 2021 business highlights • 5G and Virtualization: strengthening of Ekinops’ leadership o Successful 5G first connectivity for businesses tests at Orange o Chosen by TELUS to deliver virtualized access functions (SDN) Walter Miron, Director, Technology Strategy, SDN and Business Solutions DevOps
Slide 13: Key 2021 business highlights
Key 2021 business highlights • Upgrade IKOULA Data Center Interconnection Links o Aim: modernize its backbone network between data centers to support the tremendous growth in customer traffic • Build for GPSS (Michigan) its own WDM Network o Aim: deliver up to ten times the connection bandwidth comp
Slide 14: SixSq: a step up in Edge Computing
SixSq : a step up in Edge Computing • Acquisition of the start-up SixSq, a software-as-a-service (SaaS) provider for Edge Computing o An ultra-innovative solution complementing Cloud computing, enabling smart data processing directly on the company’s site: o Based in Geneva (Switzerland) o acquisiti
Slide 15: A key step in the development of Ekinops' software business
A key step in the development of Ekinops’ software business • Major step forward in Ekinops upscale and software business development strategy o Ekinops and SixSq solutions are already integrated through the Ekinops virtualization offering (OneOS6-LIM) o Aim: integrate NuvlaBox software directly int
Slide 16: Key Financials
KEY FINANCIALS
Slide 17: 2021 gross margin in line with the target range
2021 gross margin in line with the target range Gross margin (in % of revenue) 55.9% 56% 54.5% 53.4% 55.1% 52% 51.1% 50.0% 49.9% 49.0% 2014 2015 2016 2017 2018 2019 2020 2021 ⚫ Solid gross margin rate at 54.5% despite the global component crisis o Successful control of the supply chain o Repercussio
Slide 18: FY 2021 P&L (1/2)
FY 2021 P&L (1/2) €m - IFRS - Audited 2020 2021 Change ⚫ Good control over operating expenses: +11% Revenue 92.8 103.6 +12% ⚫ R&D : +€2.2m o +€1.1m related to the growth of the R&D teams / Production Gross margin 51.1 56.5 +10% o +€0.7m related to R&D equipment and consumables % of revenue 55.1% 54.
Slide 19: FY 2021 P&L (2/2)
FY 2021 P&L (2/2) €m - IFRS - Audited 2020 2021 Var. EBITDA1 14.8 17.6 +19% % of revenue 15.9% 16.9% ⚫ Net increase of +€0.8m in depreciation and Amortization charge-tangible & intangible provisions (2.7) (3.1) assets Amortization charge-Technologies & PPA (5.8) (5.8) ⚫ €5.8 m in amortization charge
Slide 20: FY 2021 Cash Flow
FY 2021 Cash Flow €m - IFRS - Audited 2020 2021 ⚫ Cash flow before taxes and net borrowing costs: +23% Cash flow before taxes & net borrowing 13.8 17.0 Change in operating working capital (5.6) (4.0) ⚫ Working capital increase in line with the growth in Tax paid (1.0) (0.5) business activity (+€4.0m
Slide 21: Net cash: €21.6 million at end 2021
Net cash: €21.6 million at end 2021 €m - IFRS - Audited 2021/12/31 ⚫ €18.4m of bank loans, including a €10.7m “PGE” - Cash & cash equivalent 45.4 state-guaranteed loan (France) Financial liabilities 23.8 ⚫ Factoring liabilities: financial assets sold are o/w bank loans 18.4 included in trade receiva
Slide 22: Balance sheet
Balance sheet €m - IFRS - Audited 2020/12/31 2021/12/31 €m - IFRS - Audited 2020/12/31 2021/12/31 Non-current assets 77.6 75.2 Shareholders’ equity 90.9 98.8 o/w goodwill Financial liabilities 31.6 23.8 28.3 29.4 o/w intangible assets 27.2 23.2 o/w bank loans 21.9 18.4 o/w right-of-use assets 5.3 4.
Slide 23: Capital markets snapshot
Capital markets snapshot Shareholding (current) Shareholding (fully diluted) 25,832,666 shares (at end 2021) 27,513,026 shares (31 déc. 2021) ⚫ Stock market data (at March 4, 2022) o ISIN: FR0011466069 o Ticker symbol: EKI 12.4% 3.4% 9.3% 11.6% o Stock price: €6.57 o Market capitalization: €170m (co
Slide 24: Our CSR Policy
Our CSR Policy • Be an employer of choice o Ensure good working conditions and well-being o Build loyalty through an attractive mobility and compensation policy o Develop a genuine corporate culture • Be a responsible company towards its stakeholders The overall rating of Ekinops o Responsible syste
Slide 25: Outlook
Outlook
Slide 26: Our strategic focus
Our strategic focus Bandwidth Explosion and Optimization SDN, SD-WAN & Virtualization 5G: More Traffic, More Virtualization Edge Computing: Convergence of Access Functions and WAN/Cloud Services into the Edge Network 26
Slide 27: 2022 Strategy
2022 Strategy • Strengthen leadership in OTN and SD-WAN solutions o Intensify R&D investments & recruitments in 2022 • Accelerate commercial development and customer acquisition o Strengthen sales teams o Intensify marketing actions after two years of under-activity during the pandemic (travel, trad
Slide 28: Reseller Partnership with Fujitsu for its OTN compact solution, ESTc
Reseller Partnership with Fujitsu for its OTN compact solution, ESTc Ekinops’ OTN switches will become the newest offering in the Fujitsu Optical Networking Portfolio ESTc Virtuora® Ekinop’s new OTN compact platform gives Fujitsu's multi-layer, multi-vendor control service providers, greater scaling
Slide 29: 2022 Financial Targets
2022 Financial Targets Revenue Gross margin EBITDA Organic growth at least Between 52% and 56%, Between 14% and 18%, equal to 2021 growth in line with long-term integrating human and (+12%) to tend towards ambitions and technological 15% considering the potential investments to execute impact of the
Slide 30: Thank you
#¢ CKINOPS THANK YOU
Slide 31: Other 2021 highlights
Other 2021 highlights • Several key new products launched o 2nd generation OTN : with a first chassis and a 400Gbps line card Optical Transport o New WDM products: 20 degrees ROADM, new 32GFC transponder, new 400G transpondeur o New hardware platform based on ARM chips with a 5G router (One-5G) Acce
Slide 32: Market drivers
Market drivers A digital era Cloud & Edge Service providers o 5 billion individuals have o Flexible, distributed o Network core: strengthen at least 1 mobile device resources for the optical layer today on-demand usage o Edge: bring compute o 25 billion IoT devices by o Growth of real-time tools pow