Slide 1: Q4 2023 IMS Presentation
Q4 2023 IMS Presentation Lars Boilesen, CEO Heine Thorsgaard, CFO February 28, 2024 1 2024-02-28 COPYRIGHT © 2024 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 89 87 50 45 NO: +47 81 50 33 08 US: +1 646 664 1960 UK: +44 20 3936 2999 Participant Access Code: 396571 To ask a question, press * 1 on your telephone keypad. To withdraw your question, press * 2. Texted question can be submitted using the button o
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 • Management Update • Business Status and Outlook • Strategy Mileposts • Market Update • Financial Review and Outlook • Q&A Session 4 2024-02-28 COPYRIGHT © 2024 NAPATECH A/S
Slide 5: Management Update
Management Update Lars Boilesen Appointed Napatech Chief Executive Officer • Former Chairman Napatech Lars Boilesen, CEO Heine Thorsgaard, CFO • Former CEO Opera Software • Former CEO Otello Corporation Henrik Brill Jensen, COO Flemming Andersen, CDO Jarrod Siket, CMO 5 2024-02-28 COPYRIGHT © 2024 N
Slide 6: Progress in Business, Market and Strategy
Progress in Business, Market and Strategy 6 2024-02-28 COPYRIGHT © 2024 NAPATECH A/S
Slide 7: Business Status and Outlook
Business Status and Outlook FY-2023 Financial Results Napatech Strategic Plan • 26.5 MUSD in Revenue, 17% up YoY. • Servicing our valuable installed base of customers • 73% in Gross Margins, up 16% YoY • Accelerating engineering in • Strong Q4, 8,4 MUSD, 71% up YoY software and hardware, extending o
Slide 8: Strategy Milepost: Our Intel Journey
Strategy Milepost: Our Intel Journey DISCLOSED SOLUTIONS USE CASES PIPELINE Collaboration Production Networking, Joint Sales Agreement Hardware, Software Storage, Security And Marketing Napatech NT400 FPGA SmartNIC JAN FEB MAR APR May JUN SEP NOV DEC SHIPPED SHIPPED LAUNCHED COMPLETED ACCEPTED First
Slide 9: Unlocking Transformational Scale of Opportunities
Unlocking Transformational Scale of Opportunities Early Majority >15x Early Adopters Late Majority Prospects Innovators Laggards Tier-1 Hyperscale • 8 global hyperscale cloud operators, dominate initial programmable NIC demand Cloud Operators • Serviced direct by semiconductor vendors, in Self-Built
Slide 10: Strategy Milepost: Ecosystem Extends Customer Reach
Strategy Milepost: Ecosystem Extends Customer Reach 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 • Joint marketin
Slide 11: Product Strategy: Extending Portfolio to Growth Segments
Product Strategy: Extending Portfolio to Growth Segments Napatech production grade solutions target high growth APPLICATION applications and services in DRIVEN modern networks SOFTWARE Programmable NIC Software FOCUSED In success, people choose Link-Capture Napatech because we have the Link-Inline s
Slide 12: Network Interface Cards (NIC) Market Overview
Network Interface Cards (NIC) Market Overview Basic NIC ASIC-based. Multiple years between silicon revisions. Ultra-low cost. Ultra-low power. Small form-factor. Fixed network connectivity functions, and not programmable Offload NIC ASIC-based. Multiple years between silicon revisions. Slightly more
Slide 13: Industry Megatrends Boost Programmable NIC Opportunities
Industry Megatrends Boost Programmable NIC Opportunities Industry Mega-Trends: OMDIA 2024 Programmable NIC use-cases that are relevant to Napatech explode $6.9B towards 2026: $5.2B • Hybrid multi-cloud services • Telco 5G Core and Edge • Private 5G • Cybersecurity, monitoring • FinTech and Financial
Slide 14: Live from Mobile World Congress
Live from Mobile World Congress Partner Booth Exhibits: Mobile World Congress: • February 26-29, 2024 • Barcelona, Spain • Hall #7, Booth #7B67 Solutions: • 5G Core UPF Acceleration • Network Performance Monitoring Pre-Show News and Promo: • Application Performance Monitoring • Lawful Interception •
Slide 15: Financial Review and Outlook
Financial Review and Outlook 15 2024-02-28 COPYRIGHT © 2024 NAPATECH A/S
Slide 16: Consolidated Income Statement Q4 2023
Consolidated Income Statement Q4 2023 Financial Summary Q4 FY Q4 FY DK K '000 2023 2022 2023 2022 ∆ ∆ • Revenue in Q4 in USD up 75% compared to Reven u e 58,081 33,931 182,674 158,628 71% 15% Q4’22 (up 71% in DKK). Revenue for the full-year Cost of goods sold (12,483) (14,073) (49,126) (68,931) Gro
Slide 17: Consolidated Cash Flow Statement Q4 2023
Consolidated Cash Flow Statement Q4 2023 Q4 FY Financial Summary DK K '000 2023 2022 2023 2022 Earnings before tax (EBT) (2,198) (13,512) (36,445) (44,144) Adjustments to reconcile profit before tax to net cash flows 10,886 10,507 38,543 29,696 • Net Cash flow from operating activities in Q4 Working
Slide 18: 2024 Expectations
2024 Expectations IPUs NRE Financial targets SmartNICs Summary • SmartNIC business in the US under pressure in H1 Revenue in $M • With performance in the middle of the guided 26.5 26.3 but we expect to start seeing revenue from IPUs 24.8 ranges, in 2024: 5.6 • In 2024, we expect: • Revenue is expect
Slide 19: Q&A Session
Q&A Session DK: +45 89 87 50 45 NO: +47 81 50 33 08 US: +1 646 664 1960 UK: +44 20 3936 2999 Participant Access Code: 396571 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. 19 2024-02-28 CO