Slide 1: 2021 Half-Year Report
2021 Half-Year Report Ray Smets Heine Thorsgaard CEO CFO 18 August 2021 NAPATECH A/S © COPYRIGHT 2021 18 August 2021 1
Slide 2: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 78 15 01 07 NO: +47 23 96 39 38 UK: +44 3333 009 272 US: +1 631 913 1422 (US PIN: 85911781#) To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. Texted question can be submitted using the button on
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: 2021 Half-Year Report Topics
2021 Half-Year Report Topics • 1H 2021 Financial Summary • Business Highlights • Market Update • 1H 2021 Financial Results • 2021 Outlook • Q&A NAPATECH A/S © COPYRIGHT 2021 18 August 2021 4
Slide 5: 1H 2021 Performance Continues as Expected
1H 2021 Performance Continues as Expected • Growing • Profitable • 1H 2021 YoY Revenue Growth +5% • Solid Gross Margins for Q2 of 71.8% • Earnings Result for 1H was Significant Up YoY and Growing • Net Cash Flow for 1H was negative reflecting the deployment of advanced use of working capital for sup
Slide 6: 1H21 Continues with Growth and Profitability
1H21 Continues with Growth and Profitability Revenue over the last three 1H periods 1H positive earnings demonstrates demonstrate the underlying strength and business leverage and longer-term stability of Napatech’s business profitable operation $M Revenue DKKm DKKm Result for the period 16 15.1 120
Slide 7: Business Highlights
Business Highlights NAPATECH A/S © COPYRIGHT 2021 18 August 2021 7
Slide 8: Napatech Builds SmartNICs and SmartNIC Software
Napatech Builds SmartNICs SmartNICsand SmartNIC Software Napatech SmartNICs Accelerate Server-based Applications • We design high-performance programmable SmartNICs to offload servers and accelerate apps • Our software powers the SmartNICs - our key strategic advantage NAPATECH A/S © COPYRIGHT 2021
Slide 9: How Does Napatech Get Access to this Growing Market?
How Does Napatech Get Access to this Growing Market? • Focused on Application Acceleration Server SmartNICs • 5G Mobile, Cloud & Edge • Networking and Cybersecurity • Financial Services • Supporting Faster Networks • 25G to 100G growing fast • Making Servers More Cost Effective • Smaller footprint,
Slide 10: Key Strategic Developments in 2021
Key Strategic Developments in 2021 Partnership & OEM Software Solution New Partnership & Design Win Provider FPGA Collaboration Joint Product Napatech’s Virtualization Growing partnership with Development SW powers joint solution fast-growing FPGA silicon provider Focused on NEW Operates on Silicom’
Slide 11: Q2'21 Wins: Top Brands Deploy Napatech
Q2’21 Wins: Top Brands Deploy Napatech Networking & Security Telecom & Cloud Government & Defense Financial / Other Increasing speeds, 5G increases speeds, Mission-critical apps Faster networks & evolving threats users & devices, need zero packet nanosecond require performance greater software loss,
Slide 12: Napatech Emerging in Growing Market
Napatech Emerging in Growing Market Omdia Q1-2021 Ethernet Network Adapter Equipment Market Tracker NAPATECH A/S © COPYRIGHT 2021 18 August 2021 12
Slide 13: The Napatech Opportunity: Growth Strategy
The Napatech Opportunity: Growth Strategy • EXPAND CORE PRODUCT revenues with new competitive features • GROW NEW PRODUCT revenues with in-line features to access growing cybersecurity market opportunities • TRACTION in fast-growing VIRTUAL use-cases with addressable market needing apps deployed as
Slide 14: H1 2021 Financials
H1 2021 Financials NAPATECH A/S © COPYRIGHT 2021 18 August 2021 14
Slide 15: Consolidated Income Statement Q2 & H1 2021
Consolidated Income Statement Q2 & H1 2021 Q2 H1 Q2 H1 Key Highlights DK K '000 2021 2020 2021 2020 ∆ ∆ • Revenue in Q2 in USD up 4% compared to Q2’20 Revenue 46,408 48,867 93,232 97,403 -5% -4% (down 5% in DKK). Revenue in H1 in USD up 5% Cost of goods sold (13,072) (12,129) (27,109) (27,257) compa
Slide 16: Consolidated Cash Flow Statement Q2 & H1 2021
Consolidated Cash Flow Statement Q2 & H1 2021 Q2 H1 DK K '000 2021 2020 2021 2020 Key Highlights Earnings befo re tax ( EBT) 6,453 4,656 11,722 2,746 • Net Cash flow from operating activities in Q2 Adjustments to reconcile profit before tax to net cash flows 3,086 7,565 7,147 13,690 negative DKK 0.9
Slide 17: 2021 Outlook
2021 Outlook NAPATECH A/S © COPYRIGHT 2021 18 August 2021 17
Slide 18: Annual Guidance for 2021 - unchanged
Annual Guidance for 2021 - unchanged Guidance Middle Key Highlights Revenue DKK 210-230m DKK 220m • Revenue growth in USD between Gross margin 70-72% 71% $35.0-$38.3M corresponding to Staff expenses & Other external costs DKK 125-135m DKK 130m 17.8-29.1% growth Transferred to capitalized development
Slide 19: Why Invest In Napatech?
Why Invest In Napatech? EXCITING REVENUE, STABLE DELIVERING WINNING MARKET CASH FLOW & PRODUCT TOP POTENTIAL & GROWING INNOVATION CUSTOMER EARNINGS BRANDS NAPATECH A/S © COPYRIGHT 2021 18 August 2021 19
Slide 20: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 78 15 01 07 NO: +47 23 96 39 38 UK: +44 3333 009 272 US: +1 631 913 1422 (US PIN: 85911781#) To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. Texted question can be submitted using the button on