Slide 1: Q3 2019 Interim Statement Presentation
Q3 2019 Interim Statement Presentation Ray Smets Heine Thorsgaard CEO CFO 5 November 2019 NAPATECH A/S © COPYRIGHT 2019 5 November 2019 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement • This presentation has been prepared by Napatech A/S (the “Company”) solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various
Slide 3: Q3 2019 Interim Management Statement Topics
Q3 2019 Interim Management Statement Topics • Q3 2019 Business Highlights • Q3 2019 Financial Results • 2019 Outlook • Q&A NAPATECH A/S © COPYRIGHT 2019 5 November 2019 3
Slide 4: Please Join Napatech's Capital Markets Day
PLEASE JOIN Napatech’s Capital Markets Day 12:00 today at Hotel Continental, Oslo, Norway, and via live webcast http:/www.napatech.com/investor-relations/ Napatech live Q&A session on Aksjeforum 15:00 today on Facebook http://bit.ly/Napatech NAPATECH A/S © COPYRIGHT 2019 5 November 2019 4
Slide 5: Q3 2019 Business Highlights
Q3 2019 Business Highlights NAPATECH A/S © COPYRIGHT 2019 5 November 2019 5
Slide 6: Executive Summary Q3 2019
Executive Summary Q3 2019 • Meeting Expectations and on Track to Achieve Guidance • Solid revenues • Stronger margins • Positive EBITDAC • Positive free cash flow for YTD 2019 • During a seasonably slower quarter, momentum remained encouraging as we entered Q4 2019 • Our FPGA-based SmartNIC software
Slide 7: Financial Highlights
Financial Highlights Q3 2019 Q3 2018 YTD 2019 YTD 2018 Revenue M DKK 38.7 5.1 116.6 52.2 Revenue M USD $5.8 $0.8 $17.6 $8.1 Growth YoY 654% -88% 124% -67% Gross Margin 81.6% -105.6% 74.6 51.6 NAPATECH A/S © COPYRIGHT 2019 5 November 2019 7
Slide 8: Napatech Sits at the Crossroads of Two Major Market Forces
Napatech Sits at the Crossroads of Two Major Market Forces More sophisticated and compute-intensive applications Artificial Intelligence consuming and generating more data Machine Learning require more processing speed and power Cloud Infrastructure Virtual Switching The FPGA-based SmartNIC is becom
Slide 9: The SmartNIC Market is Expanding
The SmartNIC Market is Expanding DC Ethernet Adapter Revenue Forecast by CPU Offload • Overall NIC market is $1.7B today, $4.000 $3.7B growing to $3.7B by 2023. Napatech $3.500 Addressable • Programmable NIC market is $386M Market today, growing to $1.6B by 2023. $3.000 Revenue (US$ Millions) • Napa
Slide 10: Q3 Business Shows Progress with Well-Known Brands
Q3 Business Shows Progress with Well-Known Brands Acceleration of Network Increased Performance of Faster and More Accurate Monitoring and Analytics Open Cybersecurity Open Source Apps Network Monitoring & Analytics Source Apps Better Packet Capture & More Improved Service Assurance for Accurate Net
Slide 11: Our Plan Of Attack
Our Plan Of Attack Leverage our expertise in FPGA software to out-innovate the competition and build new higher growth product lines in Application Acceleration for Virtualization and Cybersecurity solutions 1. Continue to drive FPGA-based SmartNIC leadership in current Packet Capture solutions 2. E
Slide 12: Q1-Q3 2019 Financials
Q1-Q3 2019 Financials NAPATECH A/S © COPYRIGHT 2019 5 November 2019 12
Slide 13: Consolidated Income Statement Q3 & YTD September 2019
Consolidated Income Statement Q3 & YTD September 2019 Q3 YTD September Q3 Q1-Q3 DKK'000 2019 2018 2019 2018 ∆ ∆ Key Highlights Revenue 38,706 5,135 116,594 52,156 654% 124% Cost of goods sold Gross profit (7,116) 31,590 (10,559) (5,424) (29,614) 86,980 (25,267) 26,889 N/A 223% • Revenue up year-over
Slide 14: Consolidated Cash Flow Statement Q3 & YTD September 2019
Consolidated Cash Flow Statement Q3 & YTD September 2019 3rd quarter YTD September DKK'000 2019 2018 2019 2018 Key Highlights Earnings before tax (EBT) 63 (72,396) (13,815) (127,270) Adjustments to reconcile profit before tax to net cash flows 5,592 39,577 20,025 63,015 • Q3 Cash flows from operatin
Slide 15: 2019 Outlook
2019 Outlook NAPATECH A/S © COPYRIGHT 2019 5 November 2019 15
Slide 16: Guidance
Guidance • Due to improvements in products margins 2019 guidance is updated as follows: Note: • With performance in the middle of the Guidance Previous Updated guided ranges: Revenue 150-180 MDKK 150-180 MDKK • EBITDA would be 6.3 MDKK (previous guidance: 1.3 MDKK) – up 5.0 MDKK Gross margin around
Slide 17: Please Join Napatech's Capital Markets Day
PLEASE JOIN Napatech’s Capital Markets Day 12:00 today at Hotel Continental, Oslo, Norway, and via live webcast http:/www.napatech.com/investor-relations/ Napatech live Q&A session on Aksjeforum 15:00 today on Facebook http://bit.ly/Napatech NAPATECH A/S © COPYRIGHT 2019 5 November 2019 17
Slide 18: Thank You!
Thank You! WANT TO LEARN MORE? Sign up for the Napatech News Sign up for OSE news Follow us on social media NAPATECH A/S © COPYRIGHT 2019 5 November 2019 18