Batm Advanced Communications Ltd. · LSE:BVC
Batm Advanced Communications — Investor Day (June 2023)
79 slides from Batm Advanced Communications's investor day presentation, Jun 6, 2023
Slide 1: BATM Capital Markets Day
| a | BATM € Communications Capital Markets Day 6 June oa"™
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein
Slide 3: BATM Strategy Update
Slide 4: BATM's strategic growth plan process
BATM’s strategic growth plan process e@ Anin-depth 3-month strategy process was recently completed with a leading consulting firm e BATM’s current state, strategies, and relevant markets were analysed in a comprehensive manner © Strategic principles were established in line with BATM's identity, bus
Slide 5: BATM's strategic vision
BATM’s strategic vision ‘As a global enterprise, BATM will maximise its top assets while providing high-quality solutions in growing markets with innovative technology, unique know-how and focused businesses’ CEO of BATM since January 2023 | Previously served as CFO since 2015 Prior to BATM, held se
Slide 6: Key facts
Key facts BATM is a global leader in the fields of real-time technologies, providing networking, cyber and bio-medical solutions 1 Research partnerships with the Italian National Research, Tor Vergata University, University of Catania, Catanzaro hospital, Bioaster and Ohio State University
Slide 7: Company evolution
Company evolution BATM’s entrepreneurial approach has developed a diverse portfolio of businesses worldwide 1992-2006 2007-2011 2012-2023 Stage Bootstrap & IPO Bio-Med division Division development Telco Edge E ption Telco Networking Business Networki computi > r Clinical Molecular Telco Networking
Slide 8: BATM overview
BATM overview Networking & Cyber Aleading provider of network function virtualisation, carrier ethernet and MPLS access solutions and cyber network monitoring sySTSMS €elare =DGILITY 2023 BATM Strategy Update Bio-Medical A leading provider of molecular diagnostic laboratory reagents and equipment, a
Slide 9: Sustained underlying growth
Sustained underlying growth BATM adjusted revenues’, by division, USD m, 2018-2022 GP Growth of 21.7% YoY Adj. Gross Margin? 2022 + £4.73) > @ Networking & Cyber © Bio-Med -=- Act. Revenues 89.4 Adj. Revenues YoY 2018 2019 2020 2021 2022 Growth Adj. Revenues " Adjusted revenues exclude revenues from
Slide 10: Business playbook & differentiating assets
Business playbook & differentiating assets BATM’s playbook IP creation from extensive research conducted with academic partners and key customers Development of innovative technologies and cutting-edge products that are ready for commercialisation a Strategic partnerships with industry leaders to es
Slide 11: Global enterprise with a Best of Breed strategy
Global enterprise with a “Best of Breed” strategy As a global enterprise, BATM has a systematic strategic approach that enables sustainable growth Growth Strategy “Best of Breed” BATM’s Identity BATM is a global Prioritise top performers and maximise current assets enterprise that plays an active ro
Slide 12: BATM's strategy lenses
BATM’s strategy lenses BATM can maximise capabilities and make methodical strategy choices using these strategy lenses as a decision-making tool foi Growth Commercialisation Unique Brand know-how reputation potential Innovation What is the growth Does this initiative | Whatisthe timeline Whatis BATM
Slide 13: Untapped growth opportunity for the Cyber Unit
Untapped growth opportunity for the Cyber Unit Encryption software market size an 4 Global, USD bn, 2021A, 2025F Breakdown by application, 2025F End-user segmentation, 2025F End encryption 34% +18% c Financial ho Network encryption Telecommunication 16% Retail 19% - $1 1.0bn Government 9% : | Other!
Slide 14: Expanding loyal customer base for ethernet solutions
Expanding loyal customer base for ethernet solutions Ethernet controller market size Global, USD bn, 2021A, 2025F Breakdown by bandwidth size, 2025F End-user segmentation, 2025F 47% ‘Switch Ethernet Servers! 33% ted Routers and switches! 18% we $12.5bn Fag Gigabit Ethernet Consumer application 32% O
Slide 15: An emerging force in a rapidly-growing market
An emerging force in a rapidly-growing market Edge computing market size Breakdown by component, 2025F End-user segmentation, 2025F Global, USD bn, 2021A, 2025F Hardware Industrial 22% +37% Energy 22% Healthcare 14% $18.6bn E24 software Retail [mm 10% 5.2 Other" 32% Total TAM of $11.7bn 20218 2025F
Slide 16: Existing registered licences and facilities in Europe
Existing registered licences and facilities in Europe IVD market size Global, USD bn, 2021A, 2025F Breakdown by application, 2025F End-user segmentation, 2025F Cardiology 107.0 Cancer Laboratories [mmm 35% 86.4 $1 07bn nee Hospitals and clinics mmm 4296 Diabetes Other? mmm 252 Total TAM of $50bn 202
Slide 17: Disruptive technology for molecular diagnostics
Disruptive technology for molecular diagnostics Molecular diagnostics market size Global, USD bn, 20214, 2025F Breakdown by application, 2025F End-user segmentation, 2025F +O% Other! —_. 9 Laboratories 34% 17.8 Oncology $24.9bn © infsauete Hospitals and clinics 46% Other? 1996 Blood Screening Total
Slide 18: Other businesses
Other businesses Medical, agricultural and pharmaceutical bio-waste solutions cet Growth Potential ® Commercialisation ty i Innovation al Future environmental regulation C4 Med-waste sales to customers Strong environmental impact will create a large opportunity LY all over the world of eco-med solut
Slide 19: Schedule for the day
Schedule for the day BATM Strategy Update Moti Nagar, CEO of BATM Focus on Networking Ariel Efrati, Head of Networking Unit Coffee Break CityFibre - Building a Network that’s Better by Design David Tomalin, Group CTO of CityFibre Focus on Cyber Avi Cohen, Head of Cyber Unit 11.45 Focus on Diagnostic
Slide 20: Thank You
| Thank You For Your Attention www.BATM.com etl
Slide 21: Focus on Networking
Focus on Networking Ariel Efrati, Head of Networking Unit Advanced Communications
Slide 22: Networking Unit overview
Networking Unit overview High-performance connectivity solutions for the network edge Focus area ) BATM solution Opportunity Edge compute and network Hyper-growth market potential lfaue scien Open software edge platform lyper-g p Broad switching and routing hardware Carrier ethernet and software pro
Slide 23: High quality carrier ethernet offering
High quality carrier ethernet offering School School ) E-Rate B DIA, L2\L3 VPN Broad portfolio of carrier grade demarcation and aggregation products for communication service providers Residential OLT Backhaul T=Mare ” T-Mare Admin Business DIA L2\L3 @ VPN Offer a complete solution with full interop
Slide 24: Carrier ethernet portfolio
Carrier ethernet portfolio Fibre demarcation or aggregation transport device for any site requirement 8106 213xx-33XX - ===, 128Gb Switch 100Ge SDD 24*1GE 1.2Tb Switch 2*10GE = om 2*100GE & 1.2 Tb Switch 16*10GE = = 4 40 x 10GE 7 Caccoasnete Le “2 a Load = 88*10GE 2*100GE & i : Business Routers: 4-2
Slide 25: Strong customer base
Strong customer base Canada 9 Netherlands Denmark Belgium Germany USA Fi Ws Austria ae x Slovenia 9 Israel 9 Multibillion-dollar Mexico s Puerto Rico installed base across 9 9 tier 1 customers Colombia Kenya worldwide 9 Peru Bolivia 9 500+ unique 300+ service providers customers in VI last 5 years T
Slide 26: Competitive differentiation
Competitive differentiation BATM’s Networking Unit Best of suite Focus on tier 2/3 Common operating system Single service management Licence embedded (MPLS) Excellent cost:feature ratio Competitors* Best of breed Focus on tier 1 Operating system version per device Various management systems Licence
Slide 27: Carrier ethernet growth
Carrier ethernet growth S U bsta nt j a | a ral d g rowi ral g Ethernet controller market size market, driven by Global, USD bn, 2021A, 2025F Expanded service range and coverage +7% a vy Bandwidth demands vy Business cloud services Vv Vv 5G deployments Internet of Things 2023 Focus on Networking 202
Slide 28: Strengthening go-to-market
Strengthening go-to-market Launching new 1 0G solution with competitive pricing General availability of 2 “7 software releases per year 2023 Focus on Networking Improve product portfolio based on constant dialogue and feedback from customers Maintain resilient supply chain to enable short lead-times
Slide 29: What is Edgility?
What is Edgility? =DGiLiITY THE COMPETITIVE EDGE An open, distributed, smart platform for edge computing that accelerates & automates the deployment, operation and life cycle of IT services at scale Built by edge experts Ultra-sophisticated and : —_ future-proof virtual networks ______ Forglobal Ent
Slide 30: Why edge computing will continue to grow
Why edge computing will continue to grow Flexible 5G Integration Connectivity 10-20 Sites Data Centre Regional 100s of Sites Data Centre 1000s of Sites NGCO 10000s of Sites loT-Gateway Devices Sensors loT Billions of Devices Security 2023 Focus on Networking ” www.batm.com
Slide 31: Momentum for edge computing
Momentum for edge computing Laws of Physics 6 () Low latency applications need intelligence to move closer to where data is generated sy2025, More than 75% of enterprise-generated data will be created and processed at the edge - outside a traditional or used : centralised data centre or cloud. That’
Slide 32: Edge computing market size projections 2030
Edge computing market size projections 160 2030 Anascent market, Edge Computing 140 projections range in values, with a common theme of >35% CAGR by 2030* ee 100 +35% *Grand View Research 80 60 MEGS 4q —___ * (Revenue) 20 0 2023 Focus on Networking ” www.batm.com
Slide 33: Where Edgility fits in
Where Edgility fits in > 9 > =) y | 3 A ty Constrained mal = a Device Ea Device Edge On-PremData | 5) Access Edge Regional Edge nee CIE ls. ig Includes IOT (headless) Centre Edge a Centres Microcontroller based, and end user client < Server-based Compute Server-based Compute Server-based Compute hig
Slide 34: Innovative technology
Innovative technology Device Manager K8s Intuitive Service |) Controller Designer Node App Catalog & Onboarding Monitoring & ee ee Troubleshooting Lifecycle Management Zero-Touch Secure VPN Pro ng Concentrator 2\ =DGiLITY DGi yos Headquarters GILITY OS Regional Local Office Office => yos WorkloadA =
Slide 35: Competitive advantages
Competitive advantages On-premise uCPE Scale 2.0 Small form factor / BYOD Versatility DevOps automation Performance / Networking Embedded apps —*— Objective Rating 2023 v a
Slide 36: Customer engagements and market segments
Customer engagements and market segments =DGILiITY THE COMPETITIVE EDGE Edgility winning features @ New addressable market segments @ Customer Engagements SWARCO é loT nterprise Private Networks Kroger ROBO / SOHO CITYFIBRE EDGILITV BYOApp NGAS11 BYO deployment model SNAPPY INTERNET Time-to-Money ZA
Slide 37: Customers
Customers Large Enterprises (Retail, Pharma, Managed Service Providers (IT Services) Oil & Gas...) Operators IOT Players (CSPs, ISPs, DSPs, (Government, State-owned Broadband, Cable) Organisations) 2023 Focus on Networking 7” www.batm.com 7
Slide 38: Edgility subscription model
Edgility subscription model jes | tse | voce | Average software price per endpoint/month $25 $17 $10 Average software price per endpoint/year $300 $204 $120 YO (30% of Y1) 600 3,000 24,000 (# units/year) Y1 onwards 2,000 10,000 80,000 Contracts typically also include hardware sales 2023 Focus on Net
Slide 39: Edgility Phase 1 Completed
=DGiLiTY Phase 1Completed Commercialisation g Expertise g Technology g Product Readiness / \ g Early Adopters Q Funnel “| 2023 Focus on Networking ” www.batm.com
Slide 40: Edgility Onto Phase 2
=DGiLITY OntoPhase 2 Commercialisation 9 Gaining Market Share % Expertise 9 Global Adoption % Technology > | Boost Go-to-Market 9 Product Readiness Build M&A Funnel » Early Adopters % Funnel o> | Robust Infrastructure 2023 Focus on Networkin« ae
Slide 41: Thank You
| Thank You For Your Attention www.BATM.com etl
Slide 42: Focus on Cyber
Focus on Cyber Avi Cohen, Head of Cyber Unit
Slide 43: Cyber Unit overview
Cyber Unit overview network encryption and security platform hardware security modules for generating, securing and managing cryptographic keys
Slide 44: Industry challenge
Industry challenge Increasing attacks targeting supply chain weak links, such as third-party vendors and suppliers @ Quantum computing era - requires new quantum safe encryption algorithms combined with highly powerful computing power Resulting in significant efforts to classify sensitive network pl
Slide 45: Cyber security landscape
Cyber security landscape Network (eee Monitoring/Forensics caine Mirae Endpoint Endpoint , 9 Prevention Detection & . . Response Intrusion Prevention aA 37 WAFE& * Application ‘Systems or Network Security Security Endpoint ‘ Vulnerability Network =~ Firewall Security q Application Setev\aintanaaalin
Slide 46: Encryption market
Encryption market Encryption software market size Global USD bn, 2021A, 2025F in 2021 11.0 5.8 2021A 2025F by 2025
Slide 47: Our technologies and activities
Our technologies and activities DPI (Deep packet inspection) Establish high diversity IP probe for high-speed networks bringing best-of-breed cyber and intelligence solutions to classify and analyse suspicious activity and anomaly detection 2023 Focus on Cyber Identity Providing a unique approach to
Slide 48: cGate Platform
cGate Platform 1/10/100 Gigabit Hardware encryption — AES256GCM or Highly secure against supply Ethernet interfaces customer proprietary algorithm chain and network attacks X86 based Virtualisation infrastructure to maximise and scale resources for NFV Focus on Cyber www.batm.com
Slide 49: cHSM
cHSM Hardware security module — a physical device that provides extra security for sensitive data and applications by safeguarding and managing secrets, such as digital keys cHSM is a module of cGate — future plans to sell as a standalone product Provides a robust Competitive strengths: defence agai
Slide 50: cGate overview
cGate overview Secure and efficient resource management 3'¢ party 3'4 party application application Virtual Private Space Virtual Private Space Virtual Private Space 3 OGEX4 Path Controller AES256-GCM Encryption Engine (FPGA) — Encrypted Data—> —Decrypted Data—> 2023 Focus on Cyber ~ www.batm.com
Slide 51: Use case: access and core encryption
Use case: access and Se encryption Internet a B a 2) © SiteA Site F oat & Public OS cm t Network 7 a ZN’, O OW a (airforce J) Novy OA 6 Sy ma << © ©. SiteC ~*s.) ™ nnOF | SiteE _ aa - Ministry #1 2023 Focus on Cyber ~” www.batm.com
Slide 52: Use case: sovereign clouds
Use case: sovereign clouds Or oo Ao a3 cGate + CHSM Customer B | _...2<--"" te © ee Customer C cGate + CHSM Customer Z 2023 Focus on Cyber Customer A Key Customer Z Key Sovereign Cloud Sovereign Cloud ” www.batm.com
Slide 53: Competitive edge
Competitive edge Focus on Cyber www.batm.com
Slide 54: Target growth areas and markets
Target growth areas and markets
Slide 55: Thank You
| Thank You For Your Attention www.BATM.com monet
Slide 56: Focus on Diagnostics
Focus on Diagn Dr. Eran Zahavy, Head of Diagnostics Unit
Slide 57: Diagnostics Unit overview
Diagnostics Unit overview In vitro diagnostics - tests done on samples taken from the body + Consumables (reagents, kits, panels, * International research and industrial partnerships cartridges) and instruments * Manufacturing facilities in Italy; R&D in Italy and + Established international custome
Slide 58: Established diagnostic businesses
Established diagnostic businesses 25,000+ 35 years 100m+ experience in developing, manufacturing and marketing IVD instruments and reagents tests sold to date instruments sold to date * Pioneer in fully automated instruments + Vast ‘know-how’ from extensive experience * Current portfolio of 11 instr
Slide 59: Diagnostics market drivers
i i The global elderly population is expected to double to 2.1bn people by 2050, macing population ra N creating high demand for regular diagnostics testing Chronic diseases ae a Almost 500m people globally will develop chronic diseases between 2020 see and 2030 (e.g. heart disease, diabetes), foste
Slide 60: Diagnostics Unit activity in IVD segment
Diagnostics Unit activity in |1VD segment In Vitro Diagnostic Market by Product by Technology/Test type by Application Reagents * Microbiology Clinical Chemistry Infectious Diseases Diabetes * Instruments Hematology Others Cardiology Oncology Services Coagulation vent Nephrology ee * Immunoassay Dru
Slide 61: Current product portfolio
Current product portfolio Disease areas (examples) MOLgen - 100+ panels and HIV, respiratory, TB, + EXTRAlab . ‘4 ' reagent kits for Nucleic Acid gastrointestinal, hepatitis, « AMPLilab Molecular diagnostics clan extraction and RT-PCR of tick-borne infections, TORCH, infectious and genetic diseases
Slide 62: Facilities and partnerships
Facilities and partnerships ¢ R&D facilities in Italy and |srael Hospital & Academic Partnerships SP TORVERGATA —sragiasecscas: ay ¢ End-to-end product development (a) : oe : Consiglio Nazionale @ SAPIE NZA and via Original Design Manufacturers dae tacaeeaen oe * Two manufacturing facilities in Rome
Slide 63: Customer base
Customer base Mexico ¢ Medium-sized laboratories ¢ Hospitals ¢ Blood banks > | Selling direct and via distributors 2023 Focus on Diagnostics Germany Hungary t Pita Q romania Spal 9 Greece morro 9 Pakistan ‘ Saudi Arabia 9 Nigeria Brazil Indonesia 9 ” www.batm.com
Slide 64: Near-term product pipeline
Near-term product pipeline MDxXlab A FULLY INTEGRATED SAMPLE-TO- RESULT MDXlab NUCLEIC ACID DETECTION SYSTEM Enhanced version of EXTRAlab Fast molecular point-of-care solution for syndromic testing New reagent kits + ADVANCED TECHNOLOGY * CARTRIDGE SYSTEM + FLEXIBLE THROUGHPUT + MULTIPLEXING COMPATI
Slide 65: ADOR Diagnostics
AKR DIAGNOS TFIc s Disruptive molecular diagnostics - ADOR Diagnostics
Slide 66: The Need
The Need Animmediate and specific treatment for infectious disease patients The Solution Syndromic multiplex diagnosis of the etiologic agents To better inform healthcare providers to enable precise treatment 2023 Focus on Diagnostics a” www.batm.com
Slide 67: Future
Future POC device for worldwide monitoring of existing and emerging pandemics & epidemics Discovery & analysis to improve diagnostics and treatment of cancer, neurodegenerative and autoimmune diseases Liquid biopsy & biomarker detection to replace sequencing for early treatment
Slide 68: NATlab solution
NATIlab solution
Slide 69: Sample-to-answer
Sample-to-answer Simple “Sample-to-Answer’” Protocol, requiring 2 minutes or less of hands-on time ———————————— Apply relevant body liquid Scan specific cartridge Results are displayed, printed and (blood, urine, CSF, saliva etc.), & insert into the analyser sent electronically after processing samp
Slide 70: Syndromic multiplex panels
Syndromic multiplex panels Sample to answer per disease / panel / cartridge Panel name Respiratory Meningitis Sexual Transmitted Diseases Sepsis Hospital Acquired Infectious Tuberculosis Tropical Diseases 2023 Focus on Diagnostics of targets / pathogens 34 22 ” www.batm.com
Slide 71: Effectively addresses key industry pain points
Effectively addresses key industry pain points Scalable and compact RCA NATlab diagnostics platform i sample-to-answer solution Simplicity Sample to answer, no expertise required with limited room for error Multiplex Currently 100 plex per cartridge, 200 or 400 plex can be achieved allowing for exac
Slide 72: Intellectual property
Intellectual property International Protection a x | @ << === United States Europe Israel China Japan India Taiwan Robust Patent Estate 11issued US patents with 8 issued international patents additional filings pending with additional filings pending Broad Patent Coverage Strategy + New biological I
Slide 73: Notable partnerships
Notable partnerships Industrial Partners UN Organisations sion @) World Health Pornershin “2 p rset » @eo heer Sein HOSPITAL Cc Hospitals “$750 thinXxS ial 2 =< BIOASTER : : Fe fy ecapereapeeea OHSU ee “Pugliese Ciaccio” Scientific Collaboration ligation | RAMBAM NO __ osPEDALE PEDIATRICO HealthCare
Slide 74: Market potential for syndromic multiplex diagnostics
Market potential for syndromic multiplex diagnostics The global market for syndromic multiplex diagnostic for infectious disease: Global Infectious Disease 2022 © 2028 «=S 2024 «= 2025 += 2026 «= 2027_:—~S ss CAGR MDx market: 15176 1456.0 «12979 = «13397 1509.9 16888 «= 2.2% 2020 - $32.4bn Canada 53
Slide 75: Infectious disease TAM
Infectious disease TAM Current pipeline targeting ~75% of Infectious Disease TAM, with a plan to capture 100% of TAM through indication expansion $35bn Infectious Disease Market sep Respiratory ~$ibn HAIs sys Tuberculosis sup Meningitis ~17bn upper respiratory infections worldwide" ~5.7m cases estim
Slide 76: Favourably positioned vs competitors
Favourably positioned vs competitors Ease of new P, L ' 1 : ADCR so natiab 60-120 ! ' ' Biofire / Multiple . P Filmarray PCR steps NA 43 60-90 Handling Multiplex PCR 150-200 CD Cepheid / Single 5 . | ola GeneXpert PCR step >10 5 90-120 yes Multiplex PCR 70-140 GenMark / Single . ePlex PCR step 210 2
Slide 77: Investment highlights
ss 5 Targeting POC, labs, hospitals and provider offices across a well-established $35 Substantial Market Opportunity billion global infectious disease market, growing at low double digits annually = é Rapid, simple and accurate RCA sample-to-answer solution with up to 400- Differentiated Technol og
Slide 78: Thank You
| Thank You For Your Attention www.BATM.com etl
Slide 79: BATM Capital Markets Day
| a | BATM € Communications Capital Markets Day 6 June oa"™
BATM Advanced Communications — Investor Day (June 2023) on 6ix