Adtran Networks Se · XETR:ADV
Adtran Networks — ADVA Optical Networking — Investor Presentation (March 2011)
22 slides from Adtran Networks's investor presentation, March 2011
Slide 1: ADVA Optical Networking Investor Presentation
ADVA Optical Networking Investor Presentation February / March 2011
Slide 2: Capitalizing on Next-Generation Networks
Capitalizing on Next-Generation Networks Interactive Multi-Media Single Application Apple iPad Approx. $200 billion Intelligent Infrastructure Global Annual (Dynamic, Application-Driven, Infrastructure Investment High-Bandwidth, Multi-Purpose) $3.3 billion* Legacy Networks in Optical Transport, (Sta
Slide 3: Business Overview
Business Overview Revenues 2010:* EUR 291.7 million 30% 30% 40% + 25.3% vs. 2009 Market Growth 2010-2013:** + 14% + 23% +14% 14-18% CAGR Addressable 14% 29% 57% Market 2010:** EUR 2.5 billion ENTERPRISE ETHERNET CARRIER NETWORKS ACCESS INFRASTRUCTURE Well-Balanced and Diversified Mix of Market Segme
Slide 4: Focus on Growth Markets
Focus on Growth Markets “The industry is poised for “Global mobile “IPTV Service Revenue will strong growth through 2014, data bandwidth usage grow from US$17.5 when worldwide cloud increased 68% billion to US$46 billion services revenue is projected in H1 2010 alone.” in 2014.” to reach $148.8 bill
Slide 5: Competitive Overview
Competitive Overview ENTERPRISE ETHERNET CARRIER NETWORKS ACCESS INFRASTRUCTURE Application Know How Innovation Automation Strong Traction in Three Diversified Market Segments Provides the Basis for Profitable Growth 5 © 2011 ADVA Optical Networking. All rights reserved.
Slide 6: Innovation for Growth Markets
Innovation for Growth Markets High-Performance Intelligent Automated Enterprise Networks Carrier Ethernet Access Carrier Network Infrastructure Best Data Center Mobile Agile Connectivity Backhaul Core Transport Highest Availability Integrated Approach Capacity and Reach – Build, Maintain, Assure 100
Slide 7: Innovation Example: Agile Core Transport
Innovation Example: Agile Core Transport Static Wavelength Layer Web 2.0 Dynamic High-Capacity Demand Agile , Scalable Core Support of Optical and POT* Ethernet Services Fixed and Blocking AAA** WDM X WDM Layer Optical Switching Distortion-Tolerant Extended Reach Limited Scalability High Capacit
Slide 8: Pushing the Competitive Edge of our Strategic Customers
Pushing the Competitive Edge of our Strategic Customers Beyond 100 G E-Infrastructure Transmission Solutions Spectrally Specialty Efficient 400 & Networks for 1,000 Gbit/s New Transport Applications Software- Intelligent Defined Optics Packet Edge Service & Con- Programmable Beyond 100G transmission
Slide 9: Adding Value via Software and Service
Adding Value via Software and Service Planning Layout and Diagram Deployment Diagram Stage Stage and Create Layout Create Production NETWORK Detect and Predict Visualize AUTOMATION Detect Optimization Alert Predict Verify and Audit Audit Verify Assurance Alert and Visualize Focus on Software and Ser
Slide 10: Operational Excellence Example: Efficient Sales Organization
Operational Excellence Example: Efficient Sales Organization > Regional Sales – > Life Cycle Management > New CRM Tool Centralized Global Support > Funnel Management > New Customer Portal > Strong Regional Focus > Complaint Handling > Advanced Content (APAC, Emerging Markets) > Go-To-Market Process
Slide 11: Loyal Base of Customers
Loyal Base of Customers Lead Accounts Prioritize Roadmap Innovation that Benefits a Wide Base of Loyal Customers 11 © 2011 ADVA Optical Networking. All rights reserved.
Slide 12: Customer-Optimized Sales Model
Customer-Optimized Sales Model Size Relationships Geographic Presence CUSTOMER Vertical Segments Turnkey Solutions Regional Focus e.g. Operational Excellence with a Three-Pronged Distribution Model Allows Optimized Support of Loyal Customer Base 12 © 2011 ADVA Optical Networking. All rights re
Slide 13: Annual IFRS Revenues and Pro Forma Profitability
Annual IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit (millions of EUR, % of revenues) 291.7 251.5 232.8 217.7 192.7 105.9** (42.1%) 100.4 100.0 121.2 83.1 91.9 (39.9%) (42.9%) (41.6%) (43.1%) (42.2%) 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Pro Forma Operatin
Slide 14: Quarterly IFRS Revenues and Pro Forma Profitability
Quarterly IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit (millions of EUR, % of revenues) 80.5 79.4 63.2 68.6 59.6 28.1 32.2 33.7 27.1 27.2 (42.5%) (41.0%) (40.0%) (45.4%) (43.0%) Q4 2009 Q4 2009 Q1 2010 Q1 2010 Q2 2010 Q2 2010 Q3 2010 Q3 2010 Q4 2010 Q4 2010 Pro Forma
Slide 15: IFRS Profitability
IFRS Profitability EUR million Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Pro Forma Operating Income 3.1 2.7 1.9 4.4 4.3 (5.2%) (4.3%) (2.8%) (5.5%) (5.4%) Operating Income 2.1 1.9 1.0 3.3 3.1 (3.5%) (3.0%) (1.5%) (4.1%) (3.9%) Net Income 1.4 2.4 0.6 2.4 1.6 (2.4%) (3.8%) (0.9%) (3.0%) (2.0%) EPS in EU
Slide 16: Cash and Net Liquidity
Cash and Net Liquidity EUR million Cash & Cash Equivalents Financial Liabilities and Lease Obligations 60 Net Liquidity 54.1 50 40 30 24.7 20 10 0 -10 -20 -30 -40 -29.4 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 High net liquidity positions have been demonstrating financ
Slide 17: Working Capital Metrics
Working Capital Metrics Days Sales Outstanding (DSOs) Days Payable Outstanding (DPOs) Inventory Turns 80 5.8 5.8 75 5.6 5.6 70 5.4 5.4 65 62 5.2 5.2 60 5.0 5.0 5.0 55 4.8 4.8 50 50 45 4.6 4.6 40 4.4 4.4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2009 2009 2009 2010 2010 2010 2010 Healthy working capital m
Slide 18: Revenues Per Region
Revenues Per Region Quarterly Development of Regional Revenues (millions of EUR, % of total) EMEA Americas Asia-Pacific 80.5 79.4 4% 8% 68.6 63.2 59.6 5% 4% 7% 28% 23% 22% 31% 41% 73% 71% 64% 55% 64% Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 EMEA remains most significant revenue contributor, Q4 2010 r
Slide 19: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q3 2010 Q4 2010 FY 2009 FY 2010 Net cash provided by operating activities 2.0** 6.3 29.1 21.1 Net cash used for investing activities -5.4 -7.2 -19.0 -24.0 Net cash provided by financing 15.5 -10.9 -7.2 3.3 Net effect of foreign currency translation 2
Slide 20: Guidance Q1 2011
Guidance Q1 2011 Revenues between EUR 70 million and EUR 75 million Pro forma operating margin between 0% and 4% of revenues* ADVA Optical Networking will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capitalized re
Slide 21: How we ADd VAlue
How we ADd VAlue Profitable Growth OPERATIONAL EXCELLENCE THOUGHT Loyal LEADERSHIP Customers FOCUS ON GROWTH MARKETS Differentiated Technology Expanding Opportunities ADVA Optical Networking is a Thought Leader in Developing Intelligent Network Infrastructure for High-Growth Markets 21 © 2011 ADVA O
Slide 22: Thank you
Thank you INVESTOR RELATIONS Wolfgang Guessgen t +49 89 89 06 65 940 wguessgen@advaoptical.com www.advaoptical.com IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and information in this
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