Slide 1: Q3 2023 IMS Presentation
Q3 2023 IMS Presentation Henrik Brill Jensen, CEO Heine Thorsgaard, CFO November 02, 2023 1 2023-11-02 COPYRIGHT © 2023 NAPATECH A/S
Slide 2: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 8987 5045 NO: +47 8150 3308 US: +1 646 664 1960 UK: +44 20 3936 2999 Participant Access Code: 031723 To ask a question, press * 1 on your telephone keypad. To withdraw your question, press * 2. Texted question can be submitted using the button on th
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 fo
Slide 4: Agenda
Agenda • Business Status and Outlook • Market Update • Strategy Mileposts • Financial Review and Outlook • Q&A Session 4 2023-11-02 COPYRIGHT © 2023 NAPATECH A/S
Slide 5: Progress in Business, Market and Strategy
Progress in Business, Market and Strategy 5 2023-11-02 COPYRIGHT © 2023 NAPATECH A/S
Slide 6: Business Status and Outlook
Business Status and Outlook • Napatech continues partnerships, development and design wins Napatech continues to execute its strategic plan anchored in: that position us for new high-growth segments – anchored by • Strategic initiatives with Intel, delivering new IPU product • Servicing our valuable
Slide 7: Mega-Trends Drive Opportunities for Napatech
Mega-Trends Drive Opportunities for Napatech • New network architectures relevant to Napatech New Infrastructure Processing Unit • Hybrid multi-cloud services • Collaboration with Intel • Telco 5G Core and Edge, Private 5G • Newest FPGA technology • Cybersecurity, monitoring, recording • Cloud, ente
Slide 8: Market Update: Napatech Solutions Positioned for Growth
Market Update: Napatech Solutions Positioned for Growth Crehan Research: Dell’Oro Group: • October 2023 report • August 2023 report • IPU/DPU revenue tripled in 1H 2023 • 400 Gbps NICs expanding rapidly • Emerging, early stage of market • Off-the-shelf SmartNIC opportunities emerge • First adopters
Slide 9: Strategy Milepost: Our Intel Journey
Strategy Milepost: Our Intel Journey • Q3 Global Intel and Napatech launch of new SmartNIC and IPU • Orderability and delivery in 2023 for early prospects • Received first developer order from tier-1 cloud datacenter operator • Enhanced business opportunities from current agreement Napatech FPGA Sma
Slide 10: Global Launch of new Napatech IPU at Intel Innovation and IFTD in September
Global Launch of new Napatech IPU at Intel Innovation and IFTD in September Intel Innovation and IFTD highlights • Global launch • Heavily promoted by Intel • Broad customer reach • More than 1,000 attendees • Napatech featured in several presentations and as a guest speaker LINK: Napatech 2x100G In
Slide 11: Strategy Milepost: Expanded Customer Reach Through Partnerships
Strategy Milepost: Expanded Customer Reach Through Partnerships Partnerships lower the barriers to customer adoption and validate the Napatech solution by the partner for their customers • Improved time to proof-of- concept, trial and design win • System integration • Expand our customer access • Jo
Slide 12: Financial Review and Outlook
Financial Review and Outlook 12 2023-11-02 COPYRIGHT © 2023 NAPATECH A/S
Slide 13: Consolidated Income Statement Q3 2023
Consolidated Income Statement Q3 2023 Key Figures Q3 YTD Q3 Q3 YTD Q3 • Revenue in Q3 in USD up 44% compared to DK K '000 2023 2022 2023 2022 ∆ ∆ Q3’22 (up 34% in DKK). Revenue YTD in USD Revenue 49,651 36,976 124,593 124,697 34% 0% up 1% compared to Q3’22 (on par in DKK) Cost of goods sold (10,886)
Slide 14: Consolidated Cash Flow Statement Q3 2023
Consolidated Cash Flow Statement Q3 2023 Key Developments Q3 YTD Q3 • Net Cash flow from operating activities in Q3 DK K '000 2023 2022 2023 2022 negative DKK 8.8m Earnings before tax (EBT) (178) (12,680) (34,247) (30,632) Adjustments to reconcile profit before tax to net cash flows 8,596 7,390 27,6
Slide 15: 2023 Guidance unchanged
2023 Guidance unchanged Summary • Our 2023 focus is to accelerate our Guidance engineering activities in software and hardware, extending our Programmable SmartNICs into new projected high-growth Revenue DKK 180-200m segments • With performance in the middle of the Gross margin 68-71% guided ranges:
Slide 16: Q&A Session
Q&A Session DK: +45 8987 5045 NO: +47 8150 3308 US: +1 646 664 1960 UK: +44 20 3936 2999 Participant Access Code: 031723 To ask a question, press * 1 on your telephone keypad. To withdraw your question, press * 2. Texted question can be submitted using the button on the website. 16 2023-11-02 COPYRI