Slide 1: 4Q 2021 Interim Management Statement
4Q 2021 Interim Management Statement Ray Smets Heine Thorsgaard CEO CFO 24 February 2022 NAPATECH A/S © COPYRIGHT 2022 24 February 2022 1
Slide 2: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 80 82 00 35 NO: +47 80 02 49 73 US: +1 646 664 1960 UK: +44 2039 362 999 Participant Access Code: 383767 To ask a question, press * ONE on your telephone keypad. To withdraw your question, press * TWO. Texted question can be submitted using the butt
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
Slide 4: 4Q & FY 2021 IMS Report Topics
4Q & FY 2021 IMS Report Topics • Q4 & FY 2021 Financial Results Summary • Napatech Building Growth in a Compelling Environment • Q4 & FY 2021 Financial Results • 2022 Outlook • Q&A NAPATECH A/S © COPYRIGHT 2022 2021 24 February 2022 4
Slide 5: Q4 & FY 2021 Financial Results Summary
Q4 & FY 2021 Financial Results Summary Result for the period DKKm Revenue 40.2 Highly-Leverageable Business Model $M 35 194.2 195.5 DKKm 200 170.6 29.7 31.1 30 25.6 150 Improved Earnings 40.2 DKK m 25 20 100 15 4.8 10 50 2019 FY 2020 FY 2021 FY Solid EBITDAC 29.3 DKK m 5 0 0 2019 20 20 20 21 Re venu
Slide 6: The Opportunities for Napatech Have Never Been More Compelling
The Opportunities for Napatech Have Never Been More Compelling Faster Growing Increasing SmartNIC Telecom OEM Investments in Market Evolving SmartNIC Tier-2 Cloud Technology Curve Enterprise Hyperscale 2025: $3.6B Growing Access to Significant Progress New Design Win with Tier-1 Strategic Opportunit
Slide 7: Key Strategic Developments in 2022
Key Strategic Developments in 2022 Aligning our technology roadmap Creating valuable partnerships to to ensure Napatech SmartNICs expand our market reach focused an support all FPGA architectures, increasing set of customers, markets including IPU and DPU & geos • Signed 3 partnership deals in 2021
Slide 8: Napatech Value to Our Strategic Partnerships
Napatech Value to Our Strategic Partnerships Why Do Partners Invest in Napatech Solutions? How Napatech Benefits • Our SmartNIC software and hardware designs align • We gain access to leading edge FPGA technology with their FPGA customer requirements • We reach new customers that we cannot on our ow
Slide 9: Evolutionary Step for SmartNICs is the IPU/DPU
Evolutionary Step for SmartNICs is the IPU/DPU New SmartNic Architectures: Infrastructure Processing Unit (IPU) Data Processing Unit (DPU) Unlocks New Customers and Use Cases: Cloud bare-metal servers Hypervisor offload Microservices • We are enhancing our SmartNIC HW solutions to include x86 and AR
Slide 10: Link-Programmable SmartNIC Solution
Link-Programmable™ SmartNIC Solution • Product Announced 3Q’21 • Two New Design Wins in 4Q’21 • 10+ opportunities unfolding Validation of expanding set of applications and use-case enabled by programmable SmartNICs NAPATECH A/S © COPYRIGHT 2022 24 February 2022 10
Slide 11: Napatech Emerging in Growing Market
Napatech Emerging in Growing Market Overall NIC Market Q3’21 Programmable NIC Market Share Q3’21 Napatech Category remains on the top 10 list of all NIC makers with 1.2% share. Breakdown Napatech is ranked #4 of SmartNIC vendors with 3.1% share. 6,000 Programmable NICs 5,000 Q3'21 Markect Share 1. M
Slide 12: Q4'21 Wins: Top Brands Deploy Napatech
Q4’21 Wins: Top Brands Deploy Napatech Networking & Security Telecom & Cloud Government & Defense Financial / Enterprise Increasing speeds, 5G increases speeds, Mission-critical apps Faster networks & evolving threats users & devices, need zero packet nanosecond require performance greater software
Slide 13: Napatech Managing Supply Chain Situation
Napatech Managing Supply Chain Situation Napatech has managed the supply chain challenge well despite significantly increased lead times for typical sourced components • Napatech product Gross Margins well managed via cost control and price increases • Ongoing proactive sourcing of SmartNIC componen
Slide 14: Q4 & FY 2021 Financial Results
Q4 & FY 2021 Financial Results NAPATECH A/S © COPYRIGHT 2022 2021 24 February 2022 14
Slide 15: Consolidated Income Statement Q4 & FY 2021
Consolidated Income Statement Q4 & FY 2021 Q4 Full-year Q4 Full-year DKK'000 2021 2020 2021 2020 ∆ ∆ Key Highlights Revenue 54,992 52,478 195,471 194,233 5% 1% Cost of goods sold (15,305) (14,728) (55,113) (55,265) • Revenue in Q4 in USD up 2% compared to Q4’20 Gross profit 39,687 37,750 140,358 138
Slide 16: Consolidated Cash Flow Statement Q4 & FY 2021
Consolidated Cash Flow Statement Q4 & FY 2021 DKK'000 2021 Q4 2020 2021 Full-year 2020 Key Highlights Earnings before tax (EBT) 17,335 1,388 36,998 5,081 • Net Cash flow from operating activities in Q4 Adjustments to reconcile profit before tax to net cash flows 5,862 10,910 18,399 32,629 DKK 15.2m
Slide 17: 2022 Outlook
2022 Outlook NAPATECH A/S © COPYRIGHT 2022 2021 24 February 2022 17
Slide 18: Napatech Builds Napatech's Accelerating Investment & Going For Growth
Napatech Builds Napatech’s Accelerating SmartNICs Investment & Going For Growth Full Steam Ahead • We see a large opportunity in fast-growing • Napatech has increased investments in software target use cases in cloud, mobile/telco, development to accelerate feature velocity within this enterprise an
Slide 19: Annual Guidance for 2022
Annual Guidance for 2022 Key Highlights • In 2022 Napatech is expecting revenue in the range of USD 37-41m corresponding to growth between 19%-32% compared to 2021. • Component pricing challenges are factored into in Gross Margins • Increase to engineering capacity is fully accounted for within outl
Slide 20: Why Invest In Napatech?
Why Invest In Napatech? Profitable and Great reputation Increasing Targeting high scalable business with customers and investments in close growth, very model business partners collaboration with interesting new key industry leaders market segments NAPATECH A/S © COPYRIGHT 2022 2021 24 February 2022
Slide 21: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 80 82 00 35 NO: +47 80 02 49 73 US: +1 646 664 1960 UK: +44 2039 362 999 Participant Access Code: 383767 To ask a question, press * ONE on your telephone keypad. To withdraw your question, press * TWO. Texted question can be submitted using the butt