Slide 1: Growth and Positive Cash Flow: Q4 2014 Presentation
napatech GROWTH AND POSITIVE CASH FLOW Q4 2014 PRESENTATION FEBRUARY 24’TH, 2015 HENRIK BRILL JENSEN, CEO
Slide 2: Financial Highlights Q4 2014
napatech“ FINANCIAL HIGHLIGHTS Q4 2014 Invoiced USD sales in 2014 where 32.9 MUSD Revenue for the full year 2014 of 182.3 MDKK = 0.1% increase compared to 2013 Revenue in Q4 2014 was 48.4 MDKK = 10% increase compared to Q4 2013 = 9% increase compared to Q3 2014 Gross margin in Q4 2014 was 73% = Comp
Slide 3: Financial Results Q4 2014
napatech“ FINANCIAL RESULTS @4 2014 Q4'14 Q3’14 Q4'13 Revenue (MDKk) 48.4 44.3 44.0 Growth YoY* 10% 5% (16%) Gross Margin 73% 75% 74% EBITDA (MDKk) 4.6 5.1 10.5 EBT (MDKk) (0.3) 2.4 (1.5) *YoY is the growth of current quarter compared with the same quarter one year earlier ea EE Napatech A/S Copyrig
Slide 4: Financial Results Q4 2014 and Full Year 2014
napatech“ FINANCIAL RESULTS @4 2014 AND FULL YEAR 2014 Q4'14 Q4'13 2014 FY 2013 FY Invoiced sale (MUSD) - - 32.9 32.6 Revenue (MDKk) 48.4 44.0 182 182 Growth 10% (16%) 0.1% 0.5% Gross margin 73% 74% 73% 72% EBITDA (MDKk) 4.6 10.4 18.0 29.4 EBIT (MDKk) (1.9) (1.6) (5.9) 1.2 EBT (MDKk) (0.3) (1.5) (0.
Slide 5: Cash Flow Q4 2014
napatech“ CASH FLOW Q4 2014 1,000 DKK Q4'14 Q4'13 Net cash flow from operating activities 15.515 9.600 Investments in product development (10.098) (8.810) Net cash used in investments activities (11.381) (10.829) Issue of shares ie) 99.970 Net cash flow from financing (188) 99.970 Net increase in ca
Slide 6: Q4 2014 Increase in Revenue
napatech“ Q4 2014 INCREASE IN REVENUE Invoiced Sales / Revenue Growth (YoY) Influencing factors: = Overall market situation is still challenging Revenue Growth » Revenue affected by a combination of push out of 12% customer projects and some projects not materializing or being redefined 8% - Higher
Slide 7: Gross Margin — Continued Improvements
GROSS MARGIN — CONTINUED IMPROVEMENTS Gross Margin (Yearly) Margin development » Transition towards higher speed products, continues to improve margin * Operational excellence and improvements in production have a positive effect as well » It is our ambition to utilize the — strong gross margin to e
Slide 8: EBITDA Margin
EBITDA MARGIN napatech“ 30% 25% 20% 15% 10% 5% 0% EBITDA Margin Q413 Q1'14 Q2'14 Q3'14 Q4'14 Q4 2014 EBITDA margin » EBITDA is primarily influenced by the level of revenue » Gross margin increase has positive impact on EBITDA » Increased sales and marketing costs and other plannedinvestments in futu
Slide 9: Positive Progress in Key Regions
napatech“ POSITIVE PROGRESS IN KEY REGIONS YoY Revenue Growth Geographical split » North America delivered a great quarter with close to 40% growth. 80% North America accounts for 80% of 60% AA the total revenue / V\ » EMEA continues to be affected by a 40% rt/\ >» Fa combination of push out of cust
Slide 10: Communication & Shareholder Status
napatech COMMUNICATION & SHAREHOLDER STATUS
Slide 11: Revenue growth by quarter
60% 40% 20% 0% Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 -20% -40% -60% Low-end: High-end Total revenue DKK
Slide 12: Top Shareholders Jan, 2015
napatech™ TOP 20 SHAREHOLDERS 31 JAN, 2015 Shareholders 1 - 10 Shareholders 11 - 20 z Investor Type Country (%) Investor Type Country (%) Verdane Capital VIII Ordinary Denmark 22.2 DTU Invest rep. ved Sympion Ordinary Denmark 2.0 Northzone IV K/S Ordinary Denmark 22.0 BNP Paribas Nominee Italy 17 Sk
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Slide 14: Target industries
Enterprise Enterprise Security Mngt. Telecom Operators Financial services Cloud and Data Center services E-commerce and Media Infrastructure and Defense
Slide 15: Re-focus Resources and Efforts to Secure a More Commercial Culture
napatech“ RE-FOCUS RESOURCES AND EFFORTS TO SECURE A MORE COMMERCIAL CULTURE » As seen from the 2014 figures, a significant amount of resources were added in the organization to generate growth = However, the additional resources have not yet provided the expected growth, but Management expects thes
Slide 16: Continued Focus on Future 100G and Telecom Product Line
napatech“ CONTINUED FOCUS ON FUTURE 100G AND TELECOM PRODUCT LINE « Development of our first 100G product completed as planned and the first customer shipment was done by December 2014 = Continued development of our 100G product portfolio during 2015 resulting in release of our 200G solution at Mobi
Slide 17: Conquer the Time-to-Market Challenge
CONQUER THE TIME-TO-MARKET CHALLENGE =» To support our customers in reducing time-to-market, Napatech in 2014 introduced the pre-integrated and pre-tested Napatech Acceleration Platform delivered through our Dell OEM Technology Partnership =» In 2015 Napatech will expand this concept further by deli
Slide 18: Recent Design Wins in Our Target Industries
Ce | napatech RECENT DESIGN WINS IN OUR TARGET INDUSTRIES = 10 Gigabit design win at a US based Financial Customer for Design wins underline Pipeline of new customers transaction latency monitoring Expansion of business with existing customers = 10 Gigabit design win with an Asia based telecom custo
Slide 19: Business Trends and Outlook
napatech“™ / BUSINESS TRENDS AND OUTLOOK
Slide 20: Improving Our Performance and Business Pipeline
IMPROVING OUR PERFORMANCE AND BUSINESS PIPELINE y. » Re-focus our resources to enable enhanced investments within sales and marketing activities to growth our business opportunities = Continued focus on our organizational efficiency to secure a significantly reduced cash burn in 2015 compared to 201
Slide 21: Management Guidance 2015
MANAGEMENT GUIDANCE 2015 y. » We plan for 2015 to be a challenging year with a revenue i development in USD at around the same level as 2014 = We will benefit from favorable USD exchange rate as the net exposure has been hedged = However, the Management Team believe that 2015 will be an exciting yea
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napatech
Slide 23: Important Notice
IMPORTANT NOTICE napatech“ This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and
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