Slide 1: Earnings call presentation Q2 2022 financial results
Earnings call presentation Q2 2022 financial results July 28, 2022
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements with words such as “believes”, “anticipates” and “expects” to describe expected revenues and earnings, anticipated demand for networking solutions, internal estimates and liquidity. These forward-looking stat
Slide 3: Business update and outlook
Business update and outlook Brian Protiva, CEO, Christoph Glingener, CTO © 2022 ADVA. All rights reserved. Confidential.
Slide 4: Q2 2022 financial highlights
Q2 2022 financial highlights Revenues Q2 2022 Revenues 6M 2022 y-o-y + 11.4% EUR 336.8m Pro forma EBIT Q2 2022 Net Debt Q2 2022 in % 3.9% EUR 0.9m Another good quarter with solid demand and supply challenges 4 © 2022 ADVA. All rights reserved. Confidential.
Slide 5: Business transformation update
Business transformation update Joint development of DSP and Innovation Launching new coherent 100G leadership on SaaS offerings transceiver network security Development of new Disproportionate growth in Increase in revenue markets and cost private and security-relevant contributions from optimizatio
Slide 6: Coherent 100ZR
Coherent 100ZR A paradigm shift for the optical edge Edge access Edge aggregation Core FTTH ODN Broadband OLT 100ZR access HFC RPD 100ZR CCAP Open line system Business services IP 100ZR HUB Router Fronthaul Mobile access RU DU 100ZR <100G (direct-detect) 100G (coherent) 400G (coherent) FTTH: fiber t
Slide 7: Coherent 100ZR
Coherent 100ZR A new breed of coherent optics for the edge Cost per port Cost per bit 400G Traditional Coherent • Millions of access tails at 10GE (SFP+) need 200G 100G 100ZR high-speed upgrades • 100GE (QSFP28) ports will dominate QSFP28 • 100ZR plug needs optimized price- performance to substitute
Slide 8: Financial performance
Financial performance Ulrich Dopfer, CFO © 2022 ADVA. All rights reserved. Confidential.
Slide 9: Q2 2022 key financials
Q2 2022 key financials Revenues (m€) Pro forma gross profit (m€) Pro forma EBIT (%) +11.4% 166.3 -5.1% 149.4 -5.8pp 57.3 54.3 9.7% 3.9% Q2 21 Q2 22 Q2 21 Q2 22 Q2 21 Q2 22 Net income (m€) Diluted EPS (€) Net cash (+) / debt (-) (m€)* 3.9 -39.2% -41.1% 12.0 0.23 7.3 0.14 -0.9 Q2 21 Q2 22 Q2 21 Q2 22
Slide 10: IFRS vs US GAAP comparison (pro forma)
IFRS vs US GAAP comparison (pro forma) (in millions of EUR, in % of revenues) Revenue & pro forma gross margin (IFRS) Pro forma EBIT & margin (IFRS) 170.5 166.3 149.4 151.8 157.7 38.3% 35.6% 34.4% 31.3% 32.7% 14.4 14.4 13.0 9.7% 8.6% 9.1% 7.8 6.4 4.6% 3.9% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q
Slide 11: Regional revenue development Q2 2022
Regional revenue development Q2 2022 Revenue split Q2 2022 (%) Revenue development per region Q2 21 – Q2 22 (m€) 96 88 101 96 93 EMEA Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 35.7% 59 59 42 48 39 55.9% Americas Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 8.4% 15 18 15 11 14 EMEA Americas Asia-Pacific Asia-Pacific Q2 21 Q3 2
Slide 12: Cash flow and balance sheet
Cash flow and balance sheet Cash flow breakdown (m€)* Working capital development (m€; %) Q2 22.2% 21.7% 20.6% 23.8% 27.4% 2021 2022 183.0 129.0 164.4 Earnings before taxes 12.4 7.3 132.8 130.8 Depreciation & Amortization 17.7 17.4 Increase (-) / decrease (+) in working capital -6.7 -18.6 Increase (
Slide 13: Outlook FY 2022
Outlook FY 2022 Revenues (m€) 680m – 730m Pro forma EBIT (%) 5% – 9% Supported by: Business transformation strategy successfully implemented Non-telco expansion – software & services – verticalization A unique investment cycle for communications networks Digitalization – government stimulus – networ
Slide 14: Road to business combination with ADTRAN
Road to business combination with ADTRAN 1 2 3 4 5 6 7 Business Filings and ADTRAN 60% Regulatory Closing DA or combination investor special acceptance approvals (July 15) DPLTA/ agreement and discussions shareholder threshold Integration announcement meeting reached 14 © 2022 ADVA. All rights reser
Slide 15: Thank you
Thank you ir@adva.com IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA is the exclusive owner or licensee of the content, material, and information in this presentation. Any reproduction, publication or reprint, in whole or in part, is strictly prohibited. The informa