Napatech A/s · OSL:NAPA
Napatech A/s — Investor Day (March 2021)
41 slides from Napatech A/s's investor day presentation, Mar 17, 2021
Slide 1: Capital Markets Day 2021
Capital Markets Day 2021 Ray Smets Chief Executive Officer 17 March 2021 NAPATECH A/S © COPYRIGHT 2021
Slide 2: Napatech Capital Markets Day Agenda
Napatech Capital Markets Day Agenda WELCOME Lars Boilesen, Chairman of the Board, Napatech Howard Bubb and Henry Wasik, board members, Napatech COMPANY OVERVIEW Ray Smets, Chief Executive Officer, Napatech INTEL PARTNERSHIP Jim Dworkin, Sr. Director, Programmable Solutions Group, Intel CUSTOMER TEST
Slide 3: Corporate Overview
Corporate Overview 18-year history delivering high-performance FPGA-based SmartNICs Unparalleled expertise accelerating compute-intensive applications on servers Denmark HQ with 90 employees worldwide; R&D in Copenhagen 22 patents & patents-pending provides high barrier-to-entry for competitors Soli
Slide 4: Top Tier Global Customers & Partners
Top Tier Global Customers & Partners 200+ global customers with ~70% of revenue from US-based customers in 2020 73% of revenue from OEMs with 27% of revenue from End-Users Key partnerships with long-term strategic relationships & across multiple market segments for technology leaders multi-year prod
Slide 5: Napatech Builds SmartNICs
Napatech Builds SmartNICs Napatech SmartNICs Accelerate Server-based Applications • We design high-performance programmable SmartNICs to offload servers and accelerate apps • Our software powers the SmartNICs - our key strategic advantage • US-based specialized hardware manufacturer with extreme hig
Slide 6: We are Building a History of Solid Financial Performance
We are Building a History of Solid Financial Performance Strong Revenue Growth Solid Gross Margins 194.2 170.6 +16% 71.5% FY’20 FY’20 DKKm 2019 2020 Improved Balance Sheet Earnings Growth EBIT +10.1 DKK 50.2m DKK +33.6m EBIT Net Cash Strong Free 0.0 DKK 10.1m Position Cash Flow -10.1 FY’20 2019 2020
Slide 7: 17 March 2021 NAPATECH A/S © COPYRIGHT 2021
7 17 March 2021 NAPATECH A/S © COPYRIGHT 2021
Slide 8: Intel and Napatech: A Growing Partnership
March 2021 Intel and Napatech A Growing Partnership Jim Dworkin, Sr. Director Cloud & Enterprise Acceleration Division, Programmable Solutions Group
Slide 9: Notices & Disclaimers
Notices & Disclaimers § Intel technologies may require enabled hardware, software or service activation. § No product or component can be absolutely secure. § Your costs and results may vary. § All product plans and roadmaps are subject to change without notice. § Statements in this document that re
Slide 10: Thank you, Napatech
Thank you, Napatech Intel® FPGA Programmable Intel® FPGA SmartNIC Intel® Open FPGA Stack Acceleration Card C5000X-PL Platform (Intel® OFS) (Intel® FPGA PAC) Data Platforms Group | Programmable Solutions Group 3
Slide 11: The Role of FPGAs in Data Center Evolution
The Role of FPGAs in Data Center Evolution CLOUD CLIENTS APPLICATION General Purpose Accelerated Compute Node Compute Node APPLICATIONS AND SERVICES FPGA XPU PLATFORMS FPGA FPGA Memory Node Storage Node COMPUTING & STORAGE INFRASTRUCTURE Low Latency Fabric FPGA FPGA NETWORK INFRASTRUCTURE FPGA FPGA
Slide 12: Programmable Acceleration Platforms
Programmable Acceleration Platforms Accelerate Many Workloads Access & Core Edge/Smart Edge Cloud Devices Network Network Accelerate Application Performance and Reduce Total Cost of Ownership (TCO) with the Versatility of Intel® FPGAs Intel® FPGA Programmable Acceleration Cards (Intel® FPGA PAC) Acc
Slide 13: Intel Strategy for SmartNICs
Intel Strategy for SmartNICs Intel® FPGA SmartNIC Platform Host Host SmartNIC Core Core Core Core Core Core Core Core Approach Platform Network Foundational Core Core Core Core Core Core Core Core Infrastructure services NIC Core Core Core Core Core Core Core Core Storage accelerated on Core Core Co
Slide 14: Intel FPGA Cloud SmartNIC Platform
Intel® FPGA Cloud SmartNIC Platform Architecture of the hyperscalers Hardware and software programmable Agile with the future in mind Data Platforms Group | Programmable Solutions Group 7
Slide 15: Intel Open FPGA Stack
Intel® Open FPGA Stack § Addresses the developer dilemma for software, hardware, and application developers § Delivered via git repositories § Source accessible Data Platforms Group | Programmable Solutions Group 8
Slide 16: Thank you, Napatech
Thank you, Napatech Intel® FPGA Programmable Intel® FPGA SmartNIC Intel® Open FPGA Stack Acceleration Card C5000X-PL Platform (Intel® OFS) (Intel® FPGA PAC) Data Platforms Group | Programmable Solutions Group 9
Slide 17: Intel
intel.
Slide 18: Programmable Ethernet adapter market & trends
Programmable Ethernet adapter market & trends Napatech Investor Conference March 2021 Manoj Sukumaran Senior Analyst, DC Compute, Cloud & DC Research Practice Manoj.Sukumaran@omdia.com Brought to you by Informa Tech
Slide 19: COVID-19 impact on the data center compute market
COVID-19 impact on the data center compute market Quarterly server shipments CSPs ramping up infrastructure as 4,5 demand for cloud services 27% increases CSP digestion 4,0 12% 39% 31% 9% 3,5 YoY 4% 3,0 5% 13% Millions 2,5 2,0 1,5 Macroeconomic Hyperscale CSPs populate headwinds impact newly-built D
Slide 20: DC Ethernet adapter port forecast by CPU offload
DC Ethernet adapter port forecast by CPU offload 70% 60% 50% 40% 30% Ports (%) 20% 10% 0% CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 Basic NIC Offload NIC Programmable NIC © 2020 Omdia Page 3 Napatech Capital Markets Day | March 2021
Slide 21: Programmable NIC deployments drive revenue growth
Programmable NIC deployments drive revenue growth 40 Ethernet adapter port shipments forecast $6 Ethernet adapter revenue forecast 35 $5 11.8 30 Million 3.8 ports 25 $4 Million ports Million Ports 2.6 USD Billions 20 $3 Billion 15 $2 0.8 10 Billion $1 5 0 $0 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY18 C
Slide 22: Programmable ethernet adapter revenue market share trend
Programmable ethernet adapter revenue market share trend (excl. AMZN and MSFT) $100 $90 $80 $70 $60 USD Millions $50 $40 $30 $20 $10 $0 3Q19 4Q19 1Q20 2Q20 3Q20 Marvell Broadcom Napatech Xilinx Silicom Intel NVIDIA All Others Page 5 Napatech Capital Markets Day | March 2021
Slide 23: Final thoughts
Final thoughts </> A booming market Software to be a Expect more key differentiator disruptions All CSP will deploy Optimized software for Programmable adapters are programmable NICs. Use specific workloads would still in its infancy and more cases grow as vendors port be a key differentiator for ap
Slide 24: Questions?
Questions? Manoj Sukumaran Senior Analyst, Data Center Compute Cloud and DC Research Practice Mobile: +91 8137 844 344 Manoj.Sukumaran@omdia.com @manojsukumaran Page 7 Napatech Capital Markets Day | March 2021
Slide 25: Thank You / Disclaimer
Thank You Disclaimer The Omdia research, data and information referenced herein (the “Omdia Materials”) are the copyrighted property of Informa Tech and its subsidiaries or affiliates (together “Informa Tech”) and represent data, research, opinions or viewpoints published by Informa Tech, and are no
Slide 26: Programmable SmartNICs
Programmable SmartNICs The onramp for the modern datacenter Jarrod Siket Chief Marketing Officer 17 March 2021 NAPATECH A/S © COPYRIGHT 2021
Slide 27: NIC Market is Driven By Server Expansion
NIC Market is Driven By Server Expansion Cloudification Server Market NIC Market Grows to of Everything Expansion Continues Solve Server Connectivity 5G Network AI IoT Software Defined Networking SmartNICs emerge to support advanced applications and services when standard Data Center Private Cloud P
Slide 28: The Problem: Server CPU's Cannot Keep Up
The Problem: Server CPU’s Cannot Keep Up Applications Demand More CPU Power The Solution: FGPA SmartNICs SmartNIC solve the application performance Acceleration gap on standard server platforms Server CPU Performance Cannot Keep Up with Demand 3 17 March 2021 NAPATECH A/S © COPYRIGHT 2021
Slide 29: Customers Who Benefit
Customers Who Benefit $2.1B $1.1B $1.2B 2024 Revenue $ (48%) (25%) (28%) (Share of end user %) Appliance and Server Cloud and Edge Telco 5G Service Enterprise Hybrid Governments OEM and ODM Data Center Provider NFV Data Center and Research Napatech Embedded END USER CONSUMERS: Roll-your-own (RYI), D
Slide 30: Applications and Services That Benefit From SmartNICs
Applications and Services That Benefit From SmartNICs Cybersecurity Monitoring Infrastructure Cloud and Edge Mobile Financial Trading Firewall Stateful Load Balancer vEPC, vBNG Market Simulation Application Performance Server Virtualization Next-Gen Firewall Session Border Controller vBRAS, vFW Low
Slide 31: Link FPGA-Based SmartNICs
Link™ FPGA-Based SmartNICs 1 / 10 / 25 / 40 / 100 Gigabit Ethernet 17 March 2021 NAPATECH A/S © COPYRIGHT 2021 6
Slide 32: Benefits of Programmable SmartNICs
Benefits of Programmable SmartNICs Performance Agility Efficiency 200 Gbps Line-Rate Processing Software-Defined Hardware CPU Offload and Acceleration Economics Scalable Sustainable Open, Standard, Low-Cost Servers Management and Configuration Lowest power, cooling, space 7 17 March 2021 NAPATECH A/
Slide 33: Growth Aspirations
Growth Aspirations 8 17 March 2021 NAPATECH A/S © COPYRIGHT 2021
Slide 34: Napatech is Building Momentum for Future Growth
Napatech is Building Momentum for Future Growth Unlocking Higher Growth Earning a Path to the Next Level 2021 Reaching Higher with Realistic Expectations 2020 • Grow Core Revenue • Gain Momentum in • New Product Revenue Virtualization Opportunity 2019 • New Design Wins • Invest in New Partnerships C
Slide 35: A Year of Major Progress
A Year of Major Progress Strong FY2020 Partnership & OEM 2020 Expansion & Software Solution Growing Number of Financials Design Win Major Design Win Provider New Design Wins Solid Revenue Growth Joint Product Napatech’s Virtualization +16% Development SW powers joint solution Strong Free Cash Flow F
Slide 36: The Napatech Opportunity: Growth
The Napatech Opportunity: Growth Applications + • EXPAND CORE PRODUCT revenues with new competitive Application Cybersecurity Monitoring Infrastructure Cloud & Edge Mobile Financial The features Segments Market • GROW NEW PRODUCT revenues with in-line features to Cloud & Data Service Enterprise Gov’
Slide 37: Napatech is Earning a Path to the Next Level
Napatech is Earning a Path to the Next Level • Solid Core Product Momentum • Focused on Application Acceleration • Building New Product Revenues • 5G Mobile, Cloud & Edge • Winning New Design Wins • Networking and Cybersecurity • Gaining traction on key • Financial Services new partnerships • Suppor
Slide 38: Annual Guidance for 2021
Annual Guidance for 2021 Guidance Middle Revenue DKK 210-230m DKK 220m Key Highlights Gross margin 70-72% 71% • Revenue growth in USD between Staff expenses & Other external costs DKK 125-135m DKK 130m $35.0-$38.3M corresponding to 17.8-29.1% growth Transferred to capitalized development costs DKK 2
Slide 39: Napatech On Track to Fulfill Our Growth Aspirations from 2019
Napatech On Track to Fulfill Our Growth Aspirations from 2019 3-Year Aspiration Status (2020-2022) On-Track for achieving 2020-2022 aspirations. 2020-2021 CAGR will be at 20%+ by EoY’21. Revenue CAGR 20%-30% On Track Expecting yearly growth >30% from 2022+, with a path to annual revenues of $100M by
Slide 40: Why Invest In Napatech?
Why Invest In Napatech? STABLE REVENUE, EXCITING DELIVERING WINNING & CASH FLOW MARKET PRODUCT TOP GROWING & POTENTIAL INNOVATION CUSTOMER EARNINGS BRANDS 15 17 March 2021 NAPATECH A/S © COPYRIGHT 2021
Slide 41: Thank You!
Thank You! NT-0014 Rev.1 17 March 2021 NAPATECH A/S © COPYRIGHT 2021