Slide 1: Investor Overview FY 2024 – Q3 Results
Investor Overview FY 2024 – Q3 RESULTS VECIMA NETWORKS (TSX: VCM) May 15, 2024 March 2024 Q3 Results
Slide 2: Safe Harbour
SAFE HARBOUR Forward-Looking Statements Certain statements in this presentation may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not lim
Slide 3: Dynamics driving industry growth through to 2030
Dynamics driving industry growth through to 2030 10 + 25 % $B Bandwidth- GBPS CAGR Broadband Intensive Apps Data Rates Network Traffic Equity Stimuli 4K & 8K, AR, VR & XR Symmetrical services Up to 3,300 EB/m Bridging ‘digital divide’ Cloud Gaming & AI with <5ms latency by 2030 accelerates growth So
Slide 4: Dynamics driving industry growth through to 2030
Dynamics driving industry growth through to 2030 FROM TO 1 Analog Hubs & Nodes Digital Hub & Nodes RPD, RMD, OLT DIGITIZATION OF THE NETWORK 2 Integrated CMTS VIRTUALIZATION OF THE NETWORK vCMTS vPON MONETIZATION OF STREAMING VIDEO Monetizing OTT Video 3 Bundled Video Packages With Open CDN & Dynami
Slide 5: Dynamics driving industry growth through to 2030
Dynamics driving industry growth through to 2030 FROM TO Cost Reductions in: 1 Analog Hubs & Nodes Space 6X Power 3x DIGITIZATION OF THE NETWORK Truck Rolls 2 Integrated CMTS VIRTUALIZATION OF THE NETWORK Improvements in: MONETIZATION OF STREAMING VIDEO Signal Quality Data Rates 10x 3 Bundled Video
Slide 6: Next-gen technologies dominate TAM growth
Next-gen technologies dominate TAM growth Legacy Fiber Cable Open CDN IP Ad Insertion Managed IPTV $12,000 $10,000 33% NEXT-GENERATION TECHNOLOGIES $8,000 TAM Growth to $10.7B $6,000 $4,000 73% $2,000 Next-Gen TAM growth to $9B: - Fiber LEGACY - Cable $ - Open CDN 2023 2024 2025 2026 2027 2028 - IP
Slide 7: 35+ years of growth and technology excellence
35+ years of growth and technology excellence Vecima Vecima supplies First direct Tier 1 Vecima acquires Vecima acquires Nokia founded solutions for early MSO engagements Concurrent for IP Cable Business Unit, in Canada cable modem launches commence Video delivery including Gainspeed Vecima goes pub
Slide 8: Solid market traction with new product introductions
Solid market traction with new product introductions $100 Distributed Access Commercial Video IPTV 193% Growth in top-line revenues $80 1Q2021 vs 3Q2024 $60 29% Growth in top-line revenues 2Q2024 vs 3Q2024 $40 $20 76% Revenue attributed to Distributed Access (Fiber + Cable Broadband) $ 1Q 2Q 3Q 4Q 1
Slide 9: Vecima has the strategy and structure to win
Vecima has the strategy and structure to win FUTURE- FLEXIBILITY PROOF Deliver high-performance Network & Content Delivery technologies for Service Providers that enable outstanding quality of experience for their subscribers VALUE Video & Broadband Content Delivery & Telematics Solutions Storage 85
Slide 10: New phase of growth and development
New phase of growth and development Video & Broadband Solutions Content Delivery & Storage Telematics • Strong start for Gen 2 Entra • IPTV and OTT streaming • Consistent growth in fleet ERM3 R-PHY Module expanding exponentially tracking and moveable asset services • Full availability of DOCSIS 4.0-
Slide 11: Proudly serving 100+ Operators and 100m people globally
Proudly serving 100+ Operators and 100m people globally 113 OPERATOR ENGAGEMENTS 188 OPPORTUNITIES ACTIVE FIBER CABLE AMERICAS EMEA APAC © 2024 Vecima Confidential & Proprietary Information 11
Slide 12: BEAD: Extending Broadband reach across the US
BEAD: Extending Broadband reach across the US 3Q24 PRODUCT AVAILABILITY STATE 5 YEAR ACTION PLAN INITIAL PROPOSAL REVIEW & APPROVAL NTIA 20% INITIAL FUNDING RELEASE CHALLENGE PROCESS STATE SUBGRANTEE SELECTION FINAL PROPOSAL 4Q24 FUNDS FLOWING REVIEW & APPROVAL NTIA ONGOING FUNDING RELEASE STATE MUL
Slide 13: Huge and growing Rural Broadband investment
Huge and growing Rural Broadband investment More than $65B in subsidies pouring into North American Broadband Networks Rural Digital Opportunity Fund Universal Broadband Broadband Equity Access (RDOF) Fund in Canada and Deployment (BEAD) $20.4B USD to: $3.225B CAD to: $42.45B USD to: • Build out rur
Slide 14: Transforming next-gen Broadband Networks
Transforming next-gen Broadband Networks CLOUD / DATA CENTER / HUBSITE ACCESS NETWORK / OUTSIDE PLANT RESIDENTIAL / ENTERPRISE FIBER Helping Fiber Broadband providers accelerate to 10G+ FTTx 3x Helping Cable Broadband providers digitize networks to CABLE deliver multi-Gigabit data services to 10G+ 3
Slide 15: Transforming next-gen Broadband Networks
Transforming next-gen Broadband Networks CLOUD / DATA CENTER / HUBSITE ACCESS NETWORK / OUTSIDE PLANT RESIDENTIAL / ENTERPRISE OLT | CHASSIS FIBER vPON CONTROLLER OLT | R-OLT NODES R-MACPHY NODES CABLE vCMTS R-PHY NODES SPACE POWER SIGNAL QUALITY TRUCK ROLLS DATA RATES SERVICE QUALITY © 2024 Vecima
Slide 16: US Tier 1 Win Case Study: DAA for Cable Network Upgrade
US Tier 1 Win Case Study Vecima DAA for Cable Network Upgrade CLOUD / DATA CENTER HUB SITE ACCESS NETWORK RESIDENTIAL / ENTERPRISE 21 50M homes will be 2,000+ 195,000+ passed with DAA Regional Data Centers Hub Sites which manage will consolidate to virtual Analog Nodes being connectivity across the
Slide 17: US Tier 1 Win Case Study: DAA for Fiber Network Expansion
US Tier 1 Win Case Study Vecima DAA for Fiber Network Expansion CLOUD / DATA CENTER HUB SITE ACCESS NETWORK RESIDENTIAL / ENTERPRISE +1.75M 21 2,000+ Vecima New FTTH Passings w/ Regional Data Centers Vecima Virtualized Hub Sites R-OLTs RDOF underway Controller Software Freed by virtualizing Fiber Ru
Slide 18: Bringing video to life
Bringing video to life CLOUD / DATA CENTER / HUBSITE ACCESS NETWORK / OUTSIDE PLANT RESIDENTIAL / ENTERPRISE Helping Operators migrate subs from Legacy QAM to IP, Better monetize video, and deliver superior quality of experience © 2024 Vecima Confidential & Proprietary Information 18
Slide 19: Bringing video to life
Bringing video to life CLOUD / DATA CENTER / HUBSITE ACCESS NETWORK / OUTSIDE PLANT RESIDENTIAL / ENTERPRISE Managed IPTV + VAS Platform for Service Providers ORIGIN | STORAGE | TRANSCODE COMMUNITY / MICRO-CACHE CACHE COMMERCIAL VIDEO GATEWAYS Video Platform for Commercial Services QOE REVENUES OPEX
Slide 20: Igniting new experiences, revenues & loyalty
Igniting new experiences, revenues & loyalty • Dramatically improved OTT QoE Open CDN + + + + • Reduced network loading NEW SOLUTIONS • New revenue streams Dynamic • Pinpoint ad targeting and reduced ad-waste Ad Insertion + + + + • New revenue streams MIGRATING SUBS TO IP Core Platform • Improved cu
Slide 21: Overcoming the challenges of OTT streaming
Overcoming the challenges of OTT streaming Content Providers pay Public ! 1 CDNs to sync & serve libraries NETWORK CONGESTION Stream requests fulfilled from 2 ! the CDN across entire network VIEWING Congestion builds from the CDN QUALITY 3 across the core network Viewers get an inconsistent ! 4 qual
Slide 22: Improving quality and generating revenue
Improving quality and generating revenue Content Providers pay CDNs 1 only once OPTIMIZED TRAFFIC Open Cache captures content in 2 the Hubs, reducing traffic OPEN CDN MANAGER HIGH QUALITY Viewers dramatically improved VIEWING OPEN CDN EDGE 3 viewing experience Content Provider revenues are $ 4 share
Slide 23: Vecima's Competitive Edge
Vecima’s Competitive Edge Most Industry- Most Open & Widest Solution Global Sales Team / Focused Vendor in Credibility in Market Interoperable Ecosystem Momentum Market Cable Flexibility $500M+ R&D Scale Invented Fiber = Accumulated Knowledge Developed IP Video Design Wins over 10 years Support Depl
Slide 24: Core focus on growth and profitability
Core focus on growth and profitability CASH, NET OF REV. LOC ($CAD) SHORT & LONG-TERM DEBT ($CAD) 58% MANAGEMENT / ($78.4M) $15.49M INSIDERS 42% INSTITUTIONAL RETAIL / OTHERS WORKING CAPITAL ($CAD) SHAREHOLDER’S EQUITY ($CAD) 24.3M BASIC SHARES $82.09M $226.84M OUTSTANDING Market Cap ~$483.7M (as at
Slide 25: Strong, consistent financial performance
Strong, consistent financial performance $17.2 $78.3 $75.5 $80.1 $38.1 $37.6 $15.1 $34.1 $61.5 $62.0 $28.8 $29.6 $11.7 $12.5 QUARTERLY $8.1 44% 51% 47% 48% 47% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 $142.0 $303.4 $59.7 $90.0 ANNUAL $186.8 $56.6 $31.0 $124.2 $44.8
Slide 26: Leadership with extensive experience
Leadership with extensive experience Dale Booth Dean Rockwell Clay McCreery Colin Howlett Sumit Kumar Heather Asher CHIEF FINANCIAL EXECUTIVE VICE CHIEF OPERATING CHIEF TECHNOLOGY PRESIDENT & CEO GENERAL COUNSEL OFFICER PRESIDENT OFFICER OFFICER 30 years of C-level 30+ years of 30+ years of 20+ year
Slide 27: Leadership with extensive experience
Leadership with extensive experience Surinder Kumar Sumit Kumar Rick Brace D. Faizullabhoy James Blackley Scott Edmonds Samuel Chernak CHAIRMAN PRESIDENT & CEO INDEPENDENT INDEPENDENT INDEPENDENT INDEPENDENT INDEPENDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR Founder, 30 years of C-level Former
Slide 28: Why invest?
Why invest? Established technology leader in Broadband and Video - $500M R&D invested Growing base of loyal customers, across a global footprint ~2x Serviceable Market growth forecast to 2024 to 2028 Consistently profitable with a proven operational track record Proven, professional team, able to ex
Slide 29: In summary
In summary Bandwidth-intensive Broadband Service More than $65B in Opportunities to apps and competitive Providers (BSPs) must government subsidies improve monetization pressures are driving upgrade and digitize will continue to drive for both Managed IPTV utilization, network their networks to meet
Slide 30: Thank you.
Thank you. 771 Vanalman Avenue, Victoria, BC, Canada V8Z 3B8 Tel: (250) 881-1982 Fax: (250) 881-1974 invest@vecima.com www.vecima.com