Slide 1: Calnex Solutions plc Interim Results
Calnex Solutions plc Test solutions for the world’s networks Interim Results for the 6 months to 30 September 2021 Tommy Cook, CEO Ashleigh Greenan, CFO
Slide 2: Test solutions for the world’s telecom networks
Test solutions for Calnex Solutions the world’s telecom networks ▪ We design, produce and market test instrumentation and solutions for network synchronization and network emulation ▪ Our solutions enable our customers to validate the performance of the critical infrastructure associated with teleco
Slide 3: Focused on high value niches of the testing market
Focused on high Where we fit in the telecoms lifecyle value niches of the testing market ▪ R&D Design Validation and Conformance Testing ▪ Maintenance Testing ▪ Critical points in the development cycle, require high post deployment capability and high-value test equipment ▪ Deep insight is ▪ Fully p
Slide 4: Supporting the world’s telecoms industry
Supporting the world’s telecoms industry TELECOM EQUIPMENT VENDORS HYPERSCALE, ENTERPRISE NETWORK OPERATORS COMPONENT MANUFACTURERS 4
Slide 5: Operating in high growth markets
Operating in high growth markets The global market for telecoms test and measurement equipment in 2020 for Requiring innovative mobile networks alone estimated to be The telecoms industry is a products, technologies and around US$1.3 billion and is forecast to highly competitive services to support
Slide 6: Review of H1 FY22
Review of H1 FY22 6
Slide 7: Continued strong performance
£9.3m Revenue +20% Continued strong performance ▪ Another considerable step forward for Calnex, with revenue and profit before tax ahead of management expectations at the start of FY22 £2.3m ▪ Brought forward investment in the business, to support our growth Adjusted PBT aspirations ▪ Continued stro
Slide 8: Return to pre-COVID spending patterns
Return to pre- 4.5 Revenue by geography COVID spending 4.0 +33% patterns 3.5 +22% ▪ Revenues to the Americas grew 22% Revenue (£m) 3.0 2.5 ▪ Rest of the World experienced a 33% 2.0 uplift in revenues 1.5 ▪ North Asia remained flat due to the 1.0 ongoing geopolitical tensions 0.5 between the US and C
Slide 9: Financial Review
Financial Review 9
Slide 10: Income statement
Income statement Year ending 31 March H1 FY22 H1 FY21 £000 £000 ▪ Revenue growth of 20%. Revenue 9,251 7,721 Gross Profit 7,046 6,031 ▪ Gross margin 76% for the period – within anticipated range. Product and Other income 93 103 bundle mix will drive margin in a period. Administrative expenses (excl
Slide 11: Cashflow
Cashflow Year ending 31 March H1 FY22 H1 FY21 £000 £000 ▪ Strong cash flow performance as a result of strong trading in the period, Cashflows from operating activities EBITDA 3,877 3,424 ahead of management expectations at start of FY22 Add back non cash items Discontinued operations (4) - 398 (202)
Slide 12: Strategy & Outlook
Strategy & Outlook 12
Slide 13: Investing in our people and operations
Investing in our people and operations ▪ Increased staffing levels across Business Development, Sales, R&D and support roles, in order to support new product development and maximise exposure in new and existing territories ▪ New Vice President of Operations tasked with advancing internal manufactur
Slide 14: Product launches well received
Product launches well received Synchronisation testing in the lab Network emulation for real-world testing in the lab Portable field test units LAB SYNC CLOUD & IT FIELD SYNC Paragon-neo Paragon-X Attero-100G SNE Sentinel ▪ Sustained positive response to the launch of enhanced ▪ O-RAN industry initi
Slide 15: Customer Case Study
Customer Case Study Maintaining accurate time with Facebook/Meta datacentres ▪ Top 10 customer since FY20. Sentinel ▪ Facebook produces some of the most popular websites and apps in the world. Facebook technologies empower over a billion people around the globe and a crucial enabler for this is thei
Slide 16: Customer Case Study
Customer Case Study ▪ A tier 1 Server manufacturer placed orders of circa. £1M during the last 18 months. O-RAN brings new players ▪ A new customer to Calnex in FY21, likely to be a top 10 customer for FY22 into the market ▪ Purchasing for lab test equipment to verify implementation of O-RAN functio
Slide 17: Delivering against the growth strategy
Delivering against the growth strategy Three-pillared growth strategy to capitalise on the structural market growth drivers Continued product innovation to Expand within the Cloud Computing Target select M&A opportunities to add capitalise on growth of 5G sector and other Ethernet market niches to p
Slide 18: Confident outlook
Confident outlook Established Proven business industry position model provides a with reputation for strong platform for ▪ Strong levels of trading seen in H1 have winning products sustainable growth continued into the second half of the year ▪ Demand for telecoms testing equipment remains strong Ex
Slide 19: Q&A
Calnex Q&A
Slide 20: General information
General information Major shareholders ▪ Share Price 132p (at 18.11.2021) % of Issued ▪ Market AIM Shareholder Share Capital ▪ Ticker CLX Thomas (Tommy) Cook (CEO) 21.0% ▪ Market Cap. £117m BGF Investment Management Limited 15.0% ▪ Ord. shares in issue 87.5m Scottish Enterprise 9.0% Otus Capital Man
Slide 21: The Board
The Board Tommy Cook Ashleigh Greenan George Elliott Ann Budge Graeme Bissett CEO CFO Non-Exec Chairman Non-Exec Director Non-Exec Director Founded Calnex in 2006 Joined Calnex in 2020. Extensive board experience at Experienced Non-Executive Experienced corporate financier private and public technol
Slide 22: Balance sheet
Balance sheet Year ending 31 March H1 FY22 H1 FY21 £000 £000 Non-current assets Intangible assets 7,982 7,009 Tangible & right of use assets 699 621 Deferred tax asset 730 250 9,411 7,880 Current assets Inventories 1,189 1,226 Trade and other receivables 2,414 2,148 Cash and cash equivalents 13,643
Slide 23: Repeat Customer Demand
Repeat Customer Demand Top 10 customers by revenue Top 10 customers Repeat customers Year of first 3 year average 3 year average sale FY18 FY19 FY20 Telecoms Customer 1 ‘09 834 1,525 1,264 17% Telecoms Customer 2 ’11 388 811 1,230 Telecoms Customer 3 ’10 711 1,384 1,081 Telecoms Customer 4 ’11 127 1
Slide 24: Commitment to ESG
Commitment to ESG Calnex is focussed on including effective environmental goals into the Group’s strategic decisions, operations and supply chain Environment Social Governance Calnex’s HQ - Linlithgow Oracle Global Services Long-standing charity committee which is Committed to high standards of Orac
Slide 25: Calnex Solutions plc
Calnex Solutions plc Test solutions for the world’s networks Interim Results for the 6 months to 30 September 2021 Tommy Cook, CEO Ashleigh Greenan, CFO