Slide 1: Fiscal Year 2024 Q1 Results
Fiscal Year 2024 Q1 Results Quarterly Investor Call November 9, 2023 September Ending Results Incorporated © 2023 2022 Vecima Confidential & Proprietary Information
Slide 2: Safe Harbour
SAFE HARBOUR Forward-Looking Statements Certain statements in this presentation may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not li
Slide 3: Q1 FY2024 Highlights
Q1 FY2024 Highlights Top-Line Adjusted Gross Revenue: EBITDA of Profit: $61.5M $8.1M $28.8M down down down 15% 16% YoY 53% YoY YoY Significant Order Backlog Resulting from Charter Partnership FY2024 2H Revenue Return to Historic Highs © 2023 Vecima Confidential & Proprietary Information Units: CAD 3
Slide 4: Financial Performance
FINANCIAL MARKET COMPANY PERFORMANCE OPPORTUNITY OPERATIONAL INDUSTRY – LEADERSHIP EXCELLENCE LEADING TECH © 2023 Vecima Confidential & Proprietary Information 4
Slide 5: Significant Progress with New Products
Significant Progress with New Products FY’20 Q1 vs FY’24 Q1 New Product Introduction 212% 63% Top Line Revenue Growth of Revenue FY’20 Q1 v FY’24 Q1 Attributed to Distributed Access (Cable & Fiber) © 2023 Vecima Confidential & Proprietary Information Units: CAD 5
Slide 6: Vecima Financial Overview
Vecima Financial Overview As at C$ • Recent Market Cap of ~$419.6M Sept 30, 2023 (as at October 24, 2023) • Solid Balance Sheet Cash, net of Rev. LOC ($17.39M) • Quarterly Dividends ($45M returned to shareholders since October 2014) Working Capital $79.0M Total Assets $357.8M Short & Long-term Debt
Slide 7: Corporate Financial Trends
Corporate Financial Trends Annual Revenue ($M) Gross Margin ($M) Adjusted EBITDA ($M) Accelerating Annual Nokia Cable BU Revenue Growth Acquisition Aug 7, 2020 Concurrent Acquisition Jan 1, 2018 Quarterly Revenue ($M) Gross Margin ($M) Adjusted EBITDA ($M) © 2023 Vecima Confidential & Proprietary In
Slide 8: Market Opportunity
FINANCIAL MARKET COMPANY PERFORMANCE OPPORTUNITY OPERATIONAL INDUSTRY – LEADERSHIP EXCELLENCE LEADING TECH © 2023 Vecima Confidential & Proprietary Information 8
Slide 9: Three Trends Drive Our Investments
Three Trends Drive Our Investments High-Speed Data Video Delivery Enterprise Market rates will increase to for Managed IP and OTT will for Bundled Data & IP Video 10Gbps+ over the next 5-7 continue to be the largest Solutions will be critical to years BW consumer MSO/BSP offerings 01 02 03 50% Annua
Slide 10: Vecima Delivers an End-to-End Technology Portfolio
Vecima Delivers an End-to-End Technology Portfolio CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE OFF-NETWORK CACHE ORIGIN OPEN CACHING STORAGE TRANSCODE ON-NETWORK MULTI-TIER CACHE R-PHY|MACPHY ACCESS NODES 10G PON R-OLT CONTROLLER vCCAP CORE 10G PON SHELF OLT © 202
Slide 11: Three Business Segments
Three Business Segments 35+ Years of Innovation & Profitability 591 Employees VIDEO & CONTENT BROADBAND DELIVERY & TELEMATICS ~60% Engineers / R&D SOLUTIONS STORAGE 10 Offices Globally 72% 25% 3% 3 Business Segments Service Provider infrastructure for IPTV software and systems GPS-based fleet manage
Slide 12: Industry Leading Tech
FINANCIAL MARKET COMPANY PERFORMANCE OPPORTUNITY OPERATIONAL INDUSTRY – LEADERSHIP EXCELLENCE LEADING TECH © 2023 Vecima Confidential & Proprietary Information 12
Slide 13: Global Broadband Demand Continues to Explode
Global Broadband Demand Continues to Explode Global IP Traffic Dominated by Video Global Broadband Speeds Continue to Grow Source: Cartesian Study Source: Omdia VIDEO DRIVES GLOBAL IP AND BROADBAND DEMAND © 2023 Vecima Confidential & Proprietary Information 13
Slide 14: The Bandwidth Wars are Back!
The Bandwidth Wars are Back! Company Tests 4 Gbps Charter launches $5B initiative to Symmetrical Services. expand broadband availability. 2Q22 AT&T will expand its fiber Google Fiber 2-Gig service Stated Goal to Achieve CapEx at highest levels in years, footprint to 7M additional goes live. Expandin
Slide 15: Huge and Growing Rural Broadband Investment
Huge and Growing Rural Broadband Investment Rural Digital Opportunity Fund Universal Broadband Broadband Equity Access Fund in Canada and Deployment (BEAD) Expanding fiber service network wide. $20.4B USD to: $3.225B CAD to: $42.45B USD to: • Build out rural fiber in US over 10 years • Build high-sp
Slide 16: Vecima TAM Across Distributed Access & Video Solutions
Vecima TAM Across Distributed Access & Video Solutions ALL VECIMA TAM - Cable & Fiber Access + Managed IPTV, IP Ad Insertion & Open CDN $8,000 Millions +$2B INCREASE $7,000 Total spend in Vecima’s technology categories is $6,000 growing from $5B to $7B $5,000 $4,000 $3,000 $2,000 $1,000 $- 2019 2020
Slide 17: Vecima is Focused on Next-Generation Technology
Vecima is Focused on Next-Generation Technology Next Generation Technology Focus $8,000 Millions +$3.1B INCREASE $7,000 Vecima focuses on Next-Gen Technology, which is expected $1,310 $6,000 to grow from $2.5B to $5.7B $1,866 $1,562 $5,000 $2,195 $4,000 $2,545 $2,891 $3,000 $3,212 $5,677 $3,109 $5,0
Slide 18: Vecima's Addressable Market Share (DAA Only)
Vecima’s Addressable Market Share (DAA Only) Vecima’s Addressable Market $8,000 Does not Include: Millions Video Solutions, DSL, <10G +$2.5B INCREASE Includes: $7,000 PON Solutions, I-CCAP, RPD, RMD, vCORE, 10G Analog Nodes, Amplifiers & EPON, XGS (Starting in 2023) Targeting Taps, CIN Equipment & X
Slide 19: Operational Excellence
FINANCIAL MARKET COMPANY PERFORMANCE OPPORTUNITY OPERATIONAL INDUSTRY – LEADERSHIP EXCELLENCE LEADING TECH © 2023 Vecima Confidential & Proprietary Information 19
Slide 20: With 30+ years of global relationships
With 30+ years of global relationships AMERICAS APAC EMEA Installed at 100+ operators worldwide, serving more than 100M subscribers © 2023 Vecima Confidential & Proprietary Information 20
Slide 21: Cable & Fiber Engagement Tracking
Cable & Fiber Engagement Tracking (as of FY’24 Q1) 108 Individual 158 Individual Product Opportunities Customer Engagements In our quarter ending September 30, 2023, engagements increased by 1, +1 from FY23 Q4 totaling 108 and customers ordering our products remained at 51. Fiber Since our portfolio
Slide 22: Company Leadership
FINANCIAL MARKET COMPANY PERFORMANCE OPPORTUNITY OPERATIONAL INDUSTRY – LEADERSHIP EXCELLENCE LEADING TECH © 2023 Vecima Confidential & Proprietary Information 22
Slide 23: Where are Vecima Products? Everywhere....
Where are Vecima Products? Everywhere…. CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE Today, there are ~1 million nodes deployed. Expected to increase 4x to 4+ million nodes © 2023 Vecima Confidential & Proprietary Information 23
Slide 24: Tier 1 Case Study
Tier 1 Case Study CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE 50M Homes Passed ---------------------- 21 2,000+ 195,000+ Data Centers Hub Sites Analog Nodes 2.275M SMBs & Enterprise Customers © 2023 Vecima Confidential & Proprietary Information 24
Slide 25: Network Architectures are Evolving
Network Architectures are Evolving Revolutionizing CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE Proprietary Technology is Analog Node Technology is LEGACY Virtualized into the network, in the replaced with Digital capability Data Center, Hub Site or Node CCAP CORE
Slide 26: Vecima DAA Solutions are Built to Support Every Architecture
Vecima DAA Solutions are Built to Support Every Architecture CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE Proprietary Technology is LEGACY Virtualized into the network, in the Data Center, Hub Site or Node CCAP CORE ANALOG TX/RX ANALOG NODE R-PHY R-PHY NODE vCORE/v
Slide 27: Vecima DAA Solutions are Built to Support Every Architecture
Vecima DAA Solutions are Built to Support Every Architecture CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE Analog Node Technology is LEGACY replaced with CCAP CORE ANALOG TX/RX ANALOG NODE Digital capability R-PHY R-PHY NODE vCORE/vCCAP vCCAP CORE R-PHY NODE R-MACPH
Slide 28: Vecima DAA Solutions are Built to Support Every Architecture
Vecima DAA Solutions are Built to Support Every Architecture INCLUDING FIBER TO THE HOME! CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE LEGACY CCAP CORE ANALOG TX/RX ANALOG NODE R-PHY R-PHY NODE vCORE/vCCAP vCCAP CORE R-PHY NODE R-MACPHY CONTROLLER R-MACPHY NODE Leg
Slide 29: Network Architectures are Evolving
Network Architectures are Evolving CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE Real Estate & Power Savings Signal Quality Service Quality Improvement Improvement Truck Roll High-Speed Data Reduction Speed Increase ~ 180 rack units. ~ 300 kW “Big Iron” Note: model
Slide 30: MediaScale + Terrace: A holistic video solution
MediaScale + Terrace: A holistic video solution CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE OFF-NETWORK CACHE IP Video ORIGIN OPEN CACHING MICROCACHE STORAGE TERRACE IQ TRANSCODE ON-NETWORK MULTI-TIER CACHE TC600E NDVR & JUST-IN- FULL ECOSYSTEM AWARD-WINNING, SCAL
Slide 31: Strategically Positioned and Aligned
Strategically Positioned and Aligned CLOUD / DATA CENTER HUB SITE ACCESS NETWORK / OS PLANT RESIDENTIAL / ENTERPRISE OFF NETWORK CACHE ORIGIN OPEN CACHING STORAGE TRANSCODE ON-NETWORK MULTI-TIER CACHE R-PHY|MACPHY ACCESS NODES 10G PON R-OLT CONTROLLER vCCAP CORE 10G PON SHELF OLT © 2023 Vecima Confi
Slide 32: Vecima's Competitive Edge
Vecima’s Competitive Edge Most Industry- Most Open & Widest Solution Global Sales Team Credibility in Focused Vendor in Interoperable Ecosystem / Momentum Market Market Cable Scale Invented Flexibility $400M+ R&D Fiber Knowledge Developed = Accumulated IP Video Support Deployed Design Wins over 8 ye
Slide 33: Competitive Landscape
Competitive Landscape Next-Generation Next-Generation IP Video Commercial (in scope order) Cable Access Fiber Access Distribution Video IP Gateways Vecima 4 4 4 4 Competitor 1 3 2 2 0 Competitor 2 4 1 3 0 Competitor 3 1 3 0 0 Competitor 4 0 4 0 0 Competitor 5 0 4 0 0 Competitor 6 0 0 0 3 Competitor
Slide 34: Company Leadership
FINANCIAL MARKET COMPANY PERFORMANCE OPPORTUNITY OPERATIONAL INDUSTRY – LEADERSHIP EXCELLENCE LEADING TECH © 2023 Vecima Confidential & Proprietary Information 34
Slide 35: Vecima Leadership Team
Vecima Leadership Team SUMIT KUMAR DALE BOOTH DEAN ROCKWELL PRESIDENT AND CEO CHIEF FINANICAL EXECUTIVE VICE OFFICER PRESIDENT Over 25 years of C-level, Over 30 years of executive and technical Over 30 years of senior management experience in experience in c-level and experience, including senior ma
Slide 36: Board of Directors
Board of Directors DR. SURINDER KUMAR SUMIT KUMAR RICK BRACE CHAIRMAN OF THE PRESIDENT AND CEO INDEPENDENT BOARD Over 25 years of C-level, DIRECTOR Founder of Vecima executive and technical Former President of Networks experience, including Rogers Media and former senior management Chairman of CTV p
Slide 37: Key Takeaways
Key Takeaways Global leader in IP Video Delivery and Strong Cable & Fiber Access operational and with a market- financial track leading portfolio record Strong industry dynamics – broadband demand; shift to Organic and Distributed Access acquisitive growth underway; $3 billion strategy per year mark
Slide 38: Thank You
Thank You © 2023 Vecima Confidential & Proprietary Information
Slide 39: Contact Vecima
CORPORATE HEAD OFFICE: U.S. OFFICE: MANUFACTURING FACILITY: 771 Vanalman Avenue, 4375 River Green Parkway, Suite 100 150 Cardinal Place Victoria, BC, Canada V8Z 3B8 Duluth, GA, USA 30096 Saskatoon, SK, Canada S71 6H7 Tel: (250) 881-1982 Tel: (678) 258-4112 Tel: (306) 955-7075 Fax: (250) 881-1974 Fax