Ekinops Sa · EURONEXT:EKI
Ekinops Sa — H1 2024 Earnings Presentation
30 slides from Ekinops Sa's earnings presentation, Jul 29, 2024
Slide 1: H1 2024 Results Investor Presentation
29 July 2024 H1 2024 Results Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Ekinops. This presentation is not for purely indicative. It does not constitute an offer or invitation for the sale or onward distribution. Neither the whole nor any part of the information in this purchase of securities or any of the businesses or a
Slide 3: Speakers
Speakers Didier Brédy Dmitri Pigoulevski CEO CFO 3 Classification : public
Slide 4: Ekinops' Mission Statement
Ekinops’ Mission Statement To provide open, trusted and innovative network connectivity We enable our customers’ success by delivering high value-added software-driven solutions Open Trusted Innovative 4 Classification : public
Slide 5: We provide open, trusted and innovative network connectivity solutions
We provide open, trusted and innovative network connectivity solutions • 2021: +12% growth – 16.9% EBITDA • 2022: +23% growth – 17.7% EBITDA • 2023: +1% growth – 14.4% EBITDA THREE FY 2023 revenue: 129.1 m€ - FY 2023 EBITDA: 18.6 m€ ACTIVITIES Staff: +500 people (End-2023) 1 Optical Transport • 55%
Slide 6: Ekinops' Portfolio
Ekinops’ Portfolio Network Management System SBC, SD-WAN, FW, SDN-NFV Edge Computing COMPOSE Solutions for Software Defined Networks & Network Management System Software Hardware ONEACCESS EKINOPS360 Data & Voice WDM,OTN L1 Routers Ethernet Device L2, L3 Optical Transport Solutions for Metro / Long-
Slide 7: Why we win ... and Deliver !
Why we win ... and Deliver ! Access Transport OneOS6, a unique Operating System incl. routing Proprietary optical interface Runs on physical/special-purpose CPEs (pCPEs) 1 Designed in-house with off-the-shelf components, or universal/virtualized CPEs (uCPEs) highly differentiated in performance and
Slide 8: Customers: Operators & Service Providers
Customers: Operators & Service Providers 1/3rd of the top 100* are customers More than 3 million routers deployed OneAccess : Top 3 in our segment +50% of Ekinops360 installed-base in the USA * Total Telecom Global 100 Business Analysis 8 Classification : public
Slide 9: Activity & Highlights H1 2024
ACTIVITY & HIGHLIGHTS H1 2024
Slide 10: H1 2024 consolidated revenue: 57.5 m€
H1 2024 consolidated revenue: 57.5 m€ • Ekinops’ H1 2024 revenue down -19% (identical at constant exchange rates) • 29.2 m€ in Q2, down -25% as expected, given a high basis for comparison (+10% in Q2 2023) Revenue (in € million) • Quarterly revenue in line with Q3 and Q4 2023 trend • On a sequential
Slide 11: Sales by region
Sales by region France EMEA North America Asia-Pacific (excl. France) 44% 32% 22% 2% vs. 32% vs. 41% vs. 25% vs. 2% in FY 2023 in FY 2023 in FY 2023 in FY 2023 +5% growth -32% decline -31% decline Revenue down -15% Rebound in Access sales Penalized by the sharp Sales down -31% vs. H1 2023 Q2 2024 sa
Slide 12: H1 2024 Top 10 clients
H1 2024 Top 10 clients % revenue Change Geography Business H1 2024 vs. H1 2023 Client #1 France Access 29% +5% Client #2 France Access 6% +102% • +4% revenue growth on Top 10 clients Client #3 NorAm Transport 6% -5% Client #4 EMEA Access 6% +70% • Strong growth for 5 Top 10 clients in Europe o Clien
Slide 13: Enriching our SD-WAN offering with Infovista's 5view software suite
Enriching our SD-WAN offering with Infovista’s “5view” software suite • Acquisition of the “5View” software suite from Infovista, an infrastructure management software editor for mobile and fixed networks • 5View: a solution for analyzing application performance across networks • Collects data in re
Slide 14: Orange Business launches its SD-WAN Essentials solution based on Ekinops' technology
Orange Business launches its SD-WAN Essentials solution based on Ekinops’ technology Orange Business SD-WAN Essentials is a co-managed solution giving all businesses access to the essentials of SD-WAN services, providing • control, • reliability, • performance • application-level routing • security
Slide 15: Other H1 2024 highlights
Other H1 2024 highlights Valo Networks chooses Ekinops360 WDM Distribution partnership with EUVIC to help transport platform to deliver rural bring more cost-effective and scalable, broadband connectivity in Red Deer high-performance optical transport County, AB, Canada solutions in Poland 1.8 m€ su
Slide 16: Financial Results H1 2024
FINANCIAL RESULTS H1 2024
Slide 17: P&L (1/2)
P&L (1/2) • Record 56.1% gross margin for a semester In €m - IFRS - Audited H1 2023 H2 2023 H1 2024 FY 2023 • favorable business mix (growth in Access) • components crisis is over Revenue 71.0 58,1 57.5 129.1 • growing weight of S&S (17% vs 14%) in the top line Gross margin 37.7 29,6 32.2 67.3 % of
Slide 18: EBITDA margin of 14.3% in H1 2024
EBITDA margin of 14.3% in H1 2024 EBITDA EBITDA margin 14.3 m€ (in m€) (in % of revenue) 20.2% 11.8 m€ 10.8 m€ 18.3% 9.4 m€ 17.0% 8.1 m€ 8.3 m€ 18.4% 8.2 m€ 8.2 m€ 17.9% 6.9 m€ 17.5% 15.4% 14.3% 6.4 m€ 6.5 m€ 14.2% 15.3% 14.3% 4.3 m€ 4.0 m€ 7.4% 9.5% H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H
Slide 19: P&L (2/2)
P&L (2/2) €m - IFRS - Audited H1 2023 H2 2023 H1 2024 FY 2023 EBITDA(1) 14.3 4.3 8.2 18.6 % of revenue 20.2% 7.4% 14,3% 14,4% • D&A charge of 5.2 m€, including 1.1 m€ of PPA technologies (vs 6.5 m€ & 3.2 m€ in H1 2023) D&A - tangible & intangible assets (2.2) (2.4) (2.9) (4.6) Amortization - Technol
Slide 20: Cash-Flow Statement
Cash-Flow Statement €m - IFRS - Audited H1 2023 H1 2024 • Limited working capital increase in H1 2024: 2.1 m€ Cash flow before working capital & 14.6 7.3 • trade receivables decrease (-3.5 m€) vs 31/12 taxes • rise in inventory levels (+3.3 m€) due to Transport line slow down Change in operating wor
Slide 21: Net cash of 22.3 m€ by end June 2024
Net cash1 of 22.3 m€ by end June 2023 €m - IFRS - Audited 30/06/2024 • 19.5 m€ of various bank loans Cash & cash equivalent 41.8 • No use of M&A line so far Financial liabilities2 19.5 • Factoring liabilities: receivables factored are included in o/w bank loans 17.0 trade receivables o/w factoring l
Slide 22: Balance sheet
Balance sheet €m - IFRS - Audited 31/12/2023 30/06/2024 €m - IFRS - Audited 31/12/2023 30/06/2024 Non-current assets 78.8 85.4 Shareholders’ equity 119.4 120.4 o/w goodwill 28.5 28.4 Financial liabilities 21.4 19.5 o/w intangible assets 17.1 18.5 o/w bank loans 18.3 16.7 o/w right-of-use assets 6.7
Slide 23: Capital markets snapshot
Capital markets snapshot Shareholding Stock market data (at 26 July 2024) 26,994,049 shares (30 June 2024) • ISIN: FR0011466069 0.5% 3.3% • Ticker symbol: EKI Treasury Stock • Stock price: 2.985 € 11.9% Management & Employees • Market capitalization: 80.6 m€ • Daily average liquidity (1 year) : €148
Slide 24: Our sustainable performance in 2023
Our sustainable performance in 2023 Reduced carbon footprint First CoP* published testifying to the progress on implementing reduction in tons of CO2 emissions on the Ten Principles and helping reach the revenue (tCO2e/m€) by -40% vs. 2022 17 Sustainable Development Goals 3 strategic axes Be an empl
Slide 25: Outlook
OUTLOOK Classification : public
Slide 26: Optical Transport: Product news to support our growth
Optical Transport: Product news to support our growth End to End service creation, alien wave management, optimized network operations High Performance Low Cost 100G Edge OTN 400G/800G • Cost optimized 100G • Latest 135Gbaud DSP • 400 Gbps switching • Long reach and optics capacity in 1RU form • Hig
Slide 27: Access: Ready to empower the Branch
Access: Ready to empower the Branch Clo aa ud / S S / Edge Ekinops’ Uniqueness Unique Vendor in the world combining all Network Services COMPUTING cu VI RT U in a single device powered by a single OS Se AL / N IZA WA TIO SD- N CE 2024: we should start seeing some return on DA TA VO I our software in
Slide 28: Outlook
Outlook • With overall of economic slowdown, Q2 2024 activity followed the trend of previous quarters • revenues around 28 m€/30 m€ for the four consecutive quarters. • Encouraging signs in Access • improved sales in H1 2024 in France: inventory easing continued at operators • Target: accelerate thi
Slide 29: Questions - Réponses
Questions - Réponses Microsoft Teams Téléphone Bouton lever la main Touches « * » puis « 6 » Activer le micro 29
Slide 30: Thank you
Thank you Ekinops France www.ekinops.com 13 avenue Morane Saulnier, 78140 Vélizy Villacoublay, France www.ekinops.com 13 avenue Morane Saulnier, 78140 Vélizy Villacoublay, France www.ekinops.com