Ribbon Communications Inc. · NASDAQ:RBBN

Ribbon Communications — Cowen 49th Annual Technology, Media & Telecom Conference (June 2021)

32 slides from Ribbon Communications's conference presentation, Jun 1, 2021

1. Slide 1: Cowen 49th Annual Technology, Media & Telecom Conference

   Cowen 49th Annual Technology, Media & Telecom Conference June 1st, 2021 1

2. Slide 2: Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures

   Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than state

3. Slide 3: Ribbon at a Glance

   Ribbon at a Glance Global provider of software and network solutions to service providers, enterprises, and critical infrastructure sectors enabling communications and high-bandwidth networking and connectivity Headquarters: Plano, Texas • NASDAQ: RBBN 1000+ $935M 3,700 140 1000+ Customers1 2021 Rev

4. Slide 4: We Provide Real Time Communications Technology and IP Optical Networking

   We Provide Real Time Communications Technology IP Optical Networking • IP Switching and Routing • High-capacity Optical Transport Enterprise & Service • SDN, Automation & Multi-layer networking Industry Providers Secure VoIP Communications Verticals • Cloud-based secure Voice over IP • Voice calling

5. Slide 5: Rich History of Innovation Brought Together as Ribbon

   Rich History of Innovation Brought Together as Ribbon Session Border Controllers Secure and interwork VoIP communications networks and enable 2018 2019 2020 cloud communications applications 2017 Founded 1997 2010 Media Gateways Interwork legacy voice communications networks with Voice over Internet

6. Slide 6: Solutions Aligned With Favorable Industry Trends

   Solutions Aligned With Favorable Industry Trends Market & Technology Disruption Ribbon Focus and Investment 4G & Broadband 5G High-capacity IP Optical Networking 5G x-haul, Flex Ethernet, network slicing and timing solutions Mobile Network Federal Broadband Private Traffic Growth Programs Networks N

7. Slide 7: Positioned for Increased Growth and On-Going Success

   Positioned for Increased Growth and On-Going Success Focused on Large Favorable Industry Trusted Business Disruptive Innovation Market Segments Trends Partner • Optical Transport • 4.5X growth in global mobile • Software-defined, • We have the world’s leading • Metro WDM traffic from 2020-20261 mult

8. Slide 8: Servicing Multiple Segments Across the Network

   Servicing Multiple Segments Across the Network 2020 Serviceable Market Education Utilities Enterprises Health Res Transportation IP Routing Mobile Access $6B Aggregation Dell’Oro Service Provider Edge Router minus China Optical Transport Metro $8B Dell’Oro Metro & Long Haul minus China and DCI Core

9. Slide 9: Focused on Gaining Share in Large Markets

   Focused on Gaining Share in Large Markets Higher Growth Serviceable Share Gain Focus Market Segments and CAGR IP Routing Edge Router 3% 1 Focus on higher-growth market sub-segments 2 Leading the transition to Open Networking Optical Transport WDM Metro 3% 3 Disruptive solutions enabled by 5G and clo

10. Slide 10: IP Optical Networking Portfolio Delivering Multi-layer Optimization

    IP Optical Networking Portfolio Delivering Multi-layer Optimization Higher Level Services User Orchestration Interface Controller - Muse MuseTM Domain Orchestration Multi-layer Optimization Increase in automation Network Controller Network Network Improved asset utilization Platform Admin Network Se

11. Slide 11: Innovation Driving Disruptive Economics in Optical Transport

    Innovation Driving Disruptive Economics in Optical Transport Gigabits/second per Apollo Slot 1200 1200G 60X improvement in slot TM1200SC 76.8T 1100 5nm DSP transmission capacity (64λs@1200G) 1000 96X fiber 900 400G ZR+ capacity C+L 800 800G Pluggable increase bands TM400_2 Coherent 0.8T 700 7nm DSP

12. Slide 12: Secure VoIP Portfolio Applications Across Networks and the Cloud

    Secure VoIP Portfolio Applications Across Networks and the Cloud Enterprise Enterprise Network Secure Unified Communications and Teams and Zoom Calling Secure Contact Center Cloud Cloud Secure VoIP, UC applications and Teams Analytics and Call Trust Secure Contact Center Service Provider VoIP Commun

13. Slide 13: Established Network Position Enables New Analytics Applications

    Established Network Position Enables New Analytics Applications Operations Communications Network Network Operations Network Management Quality of Experience Data Ingestion Customer Care Applications Security Data Machine Learning Detect & Mitigate Fraud DoS Prevention Rogue/Bad Actor Identification

14. Slide 14: Significant Revenue from Services and Recurring Maintenance

    Significant Revenue from Services and Recurring Maintenance Professional Services Presence and Scale ($101M revenue in 2020) Network analysis & Engineering design Integration & consulting & installation validation Transformation & Managed network migration operation Maintenance Provides Durable Recu

15. Slide 15: Large and Diverse Service Provider and Enterprise Customer Base

    Large and Diverse Service Provider and Enterprise Customer Base Telco and Mobile Multi-System Operators Enterprise Verticals Utilities Transportation Government Finance Healthcare Education 15

16. Slide 16: Experienced Leadership Team

    Experienced Leadership Team Tony Scarfo Mick Lopez Patrick Macken Sam Bucci Bruce Steven Bruny Steve McCaffery Petrena Ferguson Sean Matthews EVP, GM Cloud EVP & Chief EVP, General EVP, GM IP Optical McClelland EVP., Sales, EVP, Sales, EMEA SVP Human EVP Corp. Dev & Edge BU Financial Officer Counsel

17. Slide 17: Key Financials

    Key Financials Revenue and Adjusted EBITDA ($M)1, 2 2020 Revenue Diversification3 $935 Est $844 30% Service providers 12% Hardware Enterprises $563 70% 34% Maintenance $150 Est 22% $131 $86 Software Prof. Services Rest of World 33% 45% 2019 2020 2021 55% US Cloud and Edge Revenue IP Optical Networks

18. Slide 18: Capital Position and Priorities

    Capital Position and Priorities Capital Priorities ($MM) 2019 2020 • Using capital for debt pay down, but will GAAP Net Cash provided by evaluate opportunities to gain scale in IP 56 102 operating activities Optical business • Currently focused on ECI integration Interest paid 4 16 Purchases of prop

19. Slide 19: Building Shareholder Value

    Building Shareholder Value Strategy to Address Growing Market Opportunity • Focused on large market segments • Favorable industry trends • Disruptive innovation • Trusted business partner Strong Leadership and Execution • Experienced management team with proven track record incentivized to drive gro

20. Slide 20: Appendix

    Appendix &) rioddon

21. Slide 21: Addressable Market Sizing References

    Addressable Market Sizing References 1. Dell’Oro Group, Optical Transport Five Year Forecast Report 2021 – 2025 (Optical), (Yearly) Volume 21, Number 1 O2A, Published January 2021, Covering: WDM, Multiservice Multiplexer, Optical Switch, Optical Packet, and Data Center Interconnect 2. Dell’Oro Group

22. Slide 22: Basis of Presentation

    Basis of Presentation Totals may not sum due to rounding. The terms “Cloud and Edge”, “Ribbon standalone”, “Ribbon’s organic business” and “organic” as used herein refer to the business, continuing operations and/or financial results, as the context dictates, of Ribbon Communications excluding the r

23. Slide 23: Discussion of Non-GAAP Financial Measures

    Discussion of Non-GAAP Financial Measures Our management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensa

24. Slide 24: Discussion of Non-GAAP Financial Measures (continued)

    Discussion of Non-GAAP Financial Measures (continued) Acquisition-Related Inventory Adjustment Acquisition-related inventory adjustment amounts are inconsistent in frequency and amount and are significantly impacted by the then-current market prices of such inventory items. We believe that excluding

25. Slide 25: Discussion of Non-GAAP Financial Measures (continued)

    Discussion of Non-GAAP Financial Measures (continued) Acquisition-, Disposal- and Integration-Related Expense We consider certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of our acquired businesses and the Company, and such costs are

26. Slide 26: Discussion of Non-GAAP Financial Measures (continued)

    Discussion of Non-GAAP Financial Measures (continued) Interest Income on Debentures We recorded paid-in-kind interest income on the Debentures, which increased their fair value. We exclude this interest income because we believe that such a gain is not part of our core business or ongoing operations

27. Slide 27: Discussion of Non-GAAP Financial Measures (continued)

    Discussion of Non-GAAP Financial Measures (continued) Adjusted EBITDA We use Adjusted EBITDA as a supplemental measure to review and assess our performance. We calculate Adjusted EBITDA by excluding from Income (loss) from operations: depreciation; amortization of acquired intangible assets; stock-b

28. Slide 28: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $000's 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 2Q20 3Q20 4Q20 FY20 Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Edge Networks Edge Networks Edge Networks

29. Slide 29: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation $000's 1Q20 2Q20 3Q20 4Q20 FY20 Q121 Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Cloud and IP Optical Consolidated Edge Networks Edge Networks

30. Slide 30: GAAP to Non-GAAP Reconciliation (Continued)

    GAAP to Non-GAAP Reconciliation (Continued) $000s 1Q20 Q220 Q320 Q420 FY20 Q121 GAAP Operating expenses $ 119,264 $ 121,675 $ 123,037 $ 127,462 $ 491,438 $ 123,151 Stock-based compensation (2,819) (3,024) (3,708) (3,473) (13,024) (4,798) Amortization of acquired intangible assets (14,334) (14,669) (

31. Slide 31: GAAP to Non-GAAP Reconciliation (Continued)

    GAAP to Non-GAAP Reconciliation (Continued) 1Q20 2Q20 3Q20 4Q20 FY20 1Q21 Earnings (loss) per share GAAP (Loss) per share or diluted earnings per share $ (0.27) $ (0.06) $ 0.04 $ 0.81 $ 0.61 $ (0.31) Acquisition-related inventory adjustment - - 0.01 - 0.01 - Stock-based compensation 0.02 0.02 0.03 0

32. Slide 32: GAAP to Non-GAAP Reconciliation (Continued)

    GAAP to Non-GAAP Reconciliation (Continued) Three months ending Year ending June 30, 2021 December 31, 2021 Outlook Range Range Revenue (in $ millions) $ 215 to $ 225 $ 925 to $ 945 Gross margin GAAP outlook 55.9% 56.9% 54.9% 55.9% Stock-based compensation 0.1% 0.1% 0.1% 0.1% Non-GAAP outlook 56.0%

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