Ceragon Networks Ltd. · NASDAQ:CRNT
Ceragon Networks — Investor Presentation (May 2021)
21 slides from Ceragon Networks's investor presentation, May 2021
Slide 1: The Global Innovator & Leading Solutions Provider of 5G Wireless Transport
THE GLOBAL INNOVATOR & LEADING SOLUTIONS PROVIDER OF 5G WIRELESS TRANSPORT POSITIONED TO CAPITALIZE ON 5G EVOLUTION May | 2021 1
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Ceragon Networks Ltd. (“Ceragon” or the “Company”) for informational purposes only. This presentation is proprietary to the Company and may not be reproduced (in whole or in part) nor summarized, passed, distributed, disseminated and/or copied withou
Slide 3: Driving Transition from 4G to 5G
DRIVING TRANSITION FROM 4G to 5G 1 Ceragon has a LONG, STRONG HISTORY 2020 BROUGHT A MASS EXODUS TO THE ONLINE WORLD 4 OF INNOVATING ON THE TRANSITIONS BETWEEN WIRELESS GENS. Created urgent need for more We grew significantly during the transitions network capacity from 2G to 3G, and from 3G to 4G E
Slide 4: Disruption in the Market Drives Our Growth
DISRUPTION IN THE MARKET DRIVES OUR GROWTH Future Growth Growth 80%+ $300M Growth REVENUES 190%+ $160M $55M 2005 2009 2018 2021+ 2G 3G 4G 5G 9 5G Design Wins in 2020 4
Slide 5: Company Snapshot
COMPANY SNAPSHOT INNOVATIVE MARKET LEADER GLOBAL COMPANY 4G & 5G NETWORK ENABLER COMPANY SNAPSHOT Customers who choose based on value Significant activity in each region of technology select Ceragon +2,000 TOTAL CUSTOMERS LAST 4 ROLLING QUARTERS (Q4/’19-Q3/’20):(UNITS) +1M SYSTEMS DEPLOYED Other COU
Slide 6: Our Wireless Hauling Specialty
OUR WIRELESS HAULING SPECIALTY A KEY DIFFERENTIATOR & A CRITICAL TECHNOLOGY FOR 4G & 5G NETWORKS WIRELESS HAULING – AN ALTERNATIVE TO FIBER DEPLOYMENT AN ESSENTIAL PART OF ANY NETWORK EVOLUTION FOR FASTER AND MORE COST-EFFECTIVE DEPLOYMENTS Connects approximately 45% of all cell sites globally (curr
Slide 7: The 5G Market
THE 5G MARKET 77
Slide 8: The 5G Market Is Accelerating
THE 5G MARKET IS ACCELERATING CULTURE SHIFT IS CREATING URGENT NEED FOR NETWORK AND TECHNOLOGY CAPACITY 5G will create new revenue streams via new service offerings & additional target markets 5G to drive growth Combined with Accelerating deployment in number of connections significant growth in tra
Slide 9: 5G Is Networks & Services Disruption
5G IS NETWORKS & SERVICES DISRUPTION WHILE CREATING NETWORK CHALLENGES OF A DIFFERENT SCALE THAN 4G 5G expected to create opportunities for service providers New revenue streams via new service offerings & additional target markets NETWORK New New New TRENDS Services Network Architectures Cellular S
Slide 10: Positioned for Growth
POSITIONED FOR GROWTH 10 10
Slide 11: Built on Vertical Integration
BUILT ON VERTICAL INTEGRATION CHIPSET SYSTEMS SOFTWARE UNIQUE MULTICORE TECHNOLOGY BEST-FIT FOR PIONEERING OPEN NETWORKS OUTDOOR NETWORK SOLUTIONS IN THE HAULING DOMAIN FAST DEPLOYMENT | SIMPLE SITE ACQUISITION LOW TOTAL NETWORK INVESTMENT ENABLER FOR NETWORK DENSIFICATION FAST NETWORK ROLLOUT LOWES
Slide 12: Unique Value: Built on Vertical Integration
UNIQUE VALUE: BUILT ON VERTICAL INTEGRATION HIGHEST INDUSTRY OPEN SOFTWARE RADIO CAPACITY AT ANY SPECTRUM RAN DEFINED NETWORKING CAPACITY Network Orchestrator SDN APPS Hierarchical Controller 100Gbps BACKHUAL MIDHAUL FRONTHAUL EPC/5GC CU DU RU 50Gbps SDNMASTER Wireless hauling domain controller 20Gb
Slide 13: 460+ Operators Globally
460+ OPERATORS GLOBALLY ABLE TO CAPITALIZE ON WORLDWIDE 5G TRENDS 13
Slide 14: Leads Ceragon to Leadership Position and Future Growth
LEADS CERAGON TO LEADERSHIP POSITION AND FUTURE GROWTH ‘BEST-OF-BREED’ LEADERSHIP THROUGH UNIQUE VERTICAL INTEGRATION LAST 4 ROLLING QUARTERS (Q4/’19-Q3/’20): (UNITS) 4000 Other 3500 17% Ceragon Increasing Market Size 3000 23% 2500 1720 Aviat Networks BEST-OF-BREED 6% 2000 $1.73B 1500 1720 Nokia 6%
Slide 15: Financials
FINANCIALS 15 15
Slide 16: Strong Start to 2021
STRONG START TO 2021 OVERALL BUSINESS RETURNED TO MORE NORMAL RUN RATES IN Q1 $80 40% $74.0 $ 71.3 $70.6 $70 $68.3 35% $62.4 33.5% • Revenues varied from region to region and were $60 31.3% $55.9 30% 28.9% 29.6% generally in line with the effect that COVID has had on $50 25% 26.5% 25.1% local busine
Slide 17: Gross Margin Expansion Opportunity
GROSS MARGIN EXPANSION OPPORTUNITY CERAGON SEES A PATH TO RETURNING TO HISTORICAL GROSS MARGIN LEVELS AS THE COVID-19 PANDEMIC SUBSIDES 30% – 34% TRANSITION TO 5G GEOGRAPHIC 28.9% MIX NORMALIZATION POST-COVID Q4’20A 2021E Gross Margin 17
Slide 18: Positive Trends in Cash Position and Geographic Mix
POSITIVE TRENDS IN CASH POSITION AND GEOGRAPHIC MIX POSITIVE TRENDS Q2 2020 – Q1 2021 IN CASH BALANCE ($ Millions) GEOGRAPHIC REVENUE MIX Africa 10% Latin America FINANCIAL METRICS Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1’21 17% APAC Revenue $69.2 $73.0 $72.2 $71.3 $55.9 $62.4 $70.6 $74.0
Slide 19: We Are at a Cusp of Global Gen Transition
WE ARE AT A CUSP OF GLOBAL GEN TRANSITION 19 19
Slide 20: Driving Transition from 4G to 5G
DRIVING TRANSITION FROM 4G to 5G 1 Ceragon has a LONG, STRONG HISTORY 2020 BROUGHT A MASS EXODUS TO THE ONLINE WORLD 4 OF INNOVATING ON THE TRANSITIONS BETWEEN WIRELESS GENS. Created urgent need for more We grew significantly during the transitions network capacity from 2G to 3G, and from 3G to 4G E
Slide 21: Thank You
THANK YOU 21 21