Slide 1: Fiscal Year 2023 Q1 Results
Fiscal Year 2023 Q1 Results Quarterly Investor Call November 10, 2022 September 2022 Ending Results Incorporated © 2022 Vecima Confidential & Proprietary Information
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 li
Slide 3: Company Market Opportunity
INDUSTRY- MARKET COMPANY LEADING OPPORTUNITY TECH OPERATIONAL FINANCIAL LEADERSHIP EXCELLENCE PERFORMANCE © 2022 Vecima Confidential & Proprietary Information 3
Slide 4: Q1 FY2022 Highlights
Q1 FY2022 Highlights Record Revenue: Record Gross Gross Margin: $73.4M (up 127% Profit: $33.7M (up 46% YoY and 22% 115% YoY and Cash Balance: QoQ) 18% QoQ) $3.7M Adjusted EBITDA Record VBS sales CDS sales of of $17.2M (up of $61.0M (up $11.0M (up 63% 296% YoY and 151% YoY and YoY and 19% 55% QoQ) 23
Slide 5: Significant Progress with New Products
Significant Progress with New Products FY’20 Q1 vs FY’23 Q1 New Product Introduction 100% $70 Millions 90% $60 80% 70% $50 60% $40 50% $30 40% 30% $20 20% $10 10% $- 0% Distributed Access Commercial Video IPTV Telematics Other Distributed Access Commercial Video IPTV Telematics Other 273% 72% Top Li
Slide 6: Financial Trends
Financial Trends Annual Revenue ($M) Gross Margin ($M) Adjusted EBITDA ($M) Nokia Cable BU Accelerating Annual Concurrent Acquisition Revenue Growth Acquisition Aug 7, 2020 Jan 1, 2018 Quarterly Revenue ($M) Gross Margin ($M) Adjusted EBITDA ($M) >22% Average Quarterly Growth Rate Sector-wide Supply
Slide 7: Vecima Financial Overview
Vecima Financial Overview As at • Recent Market Cap of ~$392.9M C$ September 30, 2022 (as at November 9, 2022) • Solid Balance Sheet Cash & ST Investments $3.7M • Quarterly Dividends ($41.3M returned to shareholders since Working Capital $66.8M (+14% QoQ) October 2014) Total Assets $293.9M (+12% QoQ
Slide 8: Company Market Opportunity
INDUSTRY- MARKET COMPANY LEADING OPPORTUNITY TECH OPERATIONAL FINANCIAL LEADERSHIP EXCELLENCE PERFORMANCE © 2022 Vecima Confidential & Proprietary Information 8
Slide 9: Three Trends Drive Our Investments
Three Trends Drive Our Investments High-Speed Data Video Conferencing and OTT Enterprise Market for Bundled rates will increase to 10Gbps+ Delivered Video will continue Data & IP Video Solutions will be over the next 5-10 years to grow at high rates critical to MSO/BSP offerings 50% Annual Growth Au
Slide 10: Vecima's Competitive Edge
Vecima’s Competitive Edge Most Industry- Most Open & Widest Solution Global Sales Team Credibility in Focused Vendor Interoperable Ecosystem / Momentum Market in Market Cable Scale Invented Flexibility $350M+ R&D Fiber Knowledge Developed = Accumulated IP Video Support Deployed Design Wins over 7 ye
Slide 11: Three Business Segments
Three Business Segments 30+ Years of Innovation & VIDEO & CONTENT Profitability BROADBAND DELIVERY & TELEMATICS 607 SOLUTIONS STORAGE Employees 83% 15% 2% 68% Engineers / R&D 10 Service Provider infrastructure for IPTV software and systems GPS-based fleet management Offices Globally gigabit broadban
Slide 12: Company Market Opportunity
MARKET INDUSTRY- COMPANY OPPORTUNITY LEADING TECH OPERATIONAL FINANCIAL LEADERSHIP EXCELLENCE PERFORMANCE © 2022 Vecima Confidential & Proprietary Information 12
Slide 13: Global Broadband Demand Continues to Explode
Global Broadband Demand Continues to Explode Global IP Traffic Dominated by Video Global Broadband Speeds Continue to Grow Other IP Video Source: Cartesian Study Source: Omdia Video Drives Global IP and Broadband Demand © 2022 Vecima Confidential & Proprietary Information 13
Slide 14: The Bandwidth Wars are Back!
The Bandwidth Wars are Back! Company Achieves a Charter launches $5B initiative to AT&T will expand its fiber Google Fiber 2-Gig service Live Network With expand broadband availability. footprint to 3M additional goes live. Expanding Symmetrical 1.25Gbps 2Q22 CapEx at highest levels in locations thi
Slide 15: Huge and Growing Rural Broadband Investment
Huge and Growing Rural Broadband Investment Rural Digital Opportunity American Jobs Plan Universal Broadband Fund Fund $20.4B USD to: $100B USD to: $3.2B CAD to: • Build out rural fiber in US over 10 years • Build high-speed broadband US • Support high-speed internet projects • Many Vecima customers
Slide 16: Vecima TAM Across Distributed Access & Video Solutions
Vecima TAM Across Distributed Access & Video Solutions ALL VECIMA TAM - Cable & Fiber Access + Managed IPTV, IP Ad Insertion & Open CDN $8,000 Millions +$2B INCREASE $7,000 Total spend in Vecima’s technology categories is $6,000 growing from $5B to $7B $5,000 $4,000 $3,000 $2,000 $1,000 $- 2019 2020
Slide 17: Vecima is Focused on Next-Generation Technology
Vecima is Focused on Next-Generation Technology Next Generation Technology Focus $8,000 Millions +$3.1B INCREASE $7,000 Vecima focuses on Next-Gen Technology, which is expected $1,310 $6,000 to grow from $2.5B to $5.7B $1,866 $1,562 $5,000 $2,195 $4,000 $2,545 $2,891 $3,000 $3,212 $5,677 $3,109 $5,0
Slide 18: Vecima's Addressable Market Share (DAA Only)
Vecima’s Addressable Market Share (DAA Only) Vecima’s Addressable Market $8,000 Does not Include: Includes: Millions Video Solutions, DSL, <10G RPD, RMD, vCORE, 10G +$2.5B INCREASE PON Solutions, I-CCAP, EPON, XGS (Starting in 2023) $7,000 Analog Nodes, Amplifiers & & 25G PON, 50G PON Taps, CIN Equi
Slide 19: Company Market Opportunity
INDUSTRY- MARKET COMPANY LEADING OPPORTUNITY TECH OPERATIONAL FINANCIAL LEADERSHIP EXCELLENCE PERFORMANCE © 2022 Vecima Confidential & Proprietary Information 19
Slide 20: 30+ Years of Global Relationships
30+ Years of Global Relationships 30+ Years of Innovation & Profitability 607 Employees 68% Engineers / R&D 10 Offices Globally 3 Business Segments 6 Continents with Deployments © 2022 Vecima Confidential & Proprietary Information 20
Slide 21: Cable & Fiber Engagement Tracking (as of FY'23 Q1)
Cable & Fiber Engagement Tracking (as of FY’23 Q1) 95 Individual Customer Engagements 143 Individual Product Opportunities +4 from FY22 Q4 In our quarter ending Sept ’22, engagements increased by 4, totaling 95 and customers ordering our products grew by 4, totaling 49. Fiber Access Since our portfo
Slide 22: Vecima DAA Solutions are Built to Support Every Architecture
Vecima DAA Solutions are Built to Support Every Architecture DATA CENTER HUB OUTSIDE PLANT vCORE + RPD CABLE ACCESS vCCAP Core R-PHY Node Vecima nodes Vecima Core Vecima R-MACPHY are built to technology can Controllers can support any be deployed in be deployed in Controller R-MACPHY Node DAA a vCOR
Slide 23: Company Market Opportunity
INDUSTRY- MARKET COMPANY LEADING OPPORTUNITY TECH OPERATIONAL FINANCIAL LEADERSHIP EXCELLENCE PERFORMANCE © 2022 Vecima Confidential & Proprietary Information 23
Slide 24: Network Architectures are Evolving
Network Architectures are Evolving CORE EDGE COMMERCIAL HOME MDU DATA CENTER HOME HUB © 2022 Vecima Confidential & Proprietary Information 24
Slide 25: Network Architectures are Evolving
Network Architectures are Evolving CORE EDGE COMMERCIAL Today, there are ~1 million nodes deployed. HOME Expected to increase 4x to 4+ million nodes by 2025 MDU DATA CENTER HOME HUB © 2022 Vecima Confidential & Proprietary Information 25
Slide 26: Network Architectures are Evolving
Network Architectures are Evolving Current COMMERCIAL Future U.S. Tier 1 Example 2M SMBs 275K Enterprise HOME MDU DATA CENTER HOME HUB 21 Data Centers 50M+ Homes passed 30M+ Homes served 2,000 180,000 © 2022 Vecima Confidential & Proprietary Information Hubs Nodes 26
Slide 27: Network Architectures are Evolving
Network Architectures are Evolving Current COMMERCIAL Network utilization & Future increased speed 2M SMBs 275K Enterprise requirements HOME DRIVE NODE GROWTH MDU DATA CENTER HOME HUB 21 Data Centers 50M+ Homes passed 30M+ Homes served 2,000 180,000 700,000 © 2022 Vecima Confidential & Proprietary I
Slide 28: Network Architectures are Evolving
Network Architectures are Evolving Current COMMERCIAL Vecima’s technology drives a Future 2M SMBs 5x reduction in real estate & 275K Enterprise power utilization HOME MDU DATA CENTER HOME HUB 21 Data Centers 50M+ Homes passed 30M+ Homes served 2,000 5,000 1,000 180,000 700,000 © 2022 Vecima Confiden
Slide 29: Legacy Architectures Do Not Scale
Legacy Architectures Do Not Scale Current limitations COMMERCIAL “Big Iron” Cable-specific Difficult to scale Space-power intensive “Big Iron” HOME Devices MDU DATA CENTER HOME HUB 2,000 1,000 180,000 700,000 © 2022 Vecima Confidential & Proprietary Information Hubs Nodes 29
Slide 30: DAA Utilizes both Near & Far Edge Technologies
DAA Utilizes both Near & Far Edge Technologies Centralize What You Can COMMERCIAL Massive scalability PROPERTY Flexible deployment Cloud Native Public and private cloud Centralized Control Latency tolerance and Management application servers NODE - GAP (Generic Access Platform) MDU DATA CENT
Slide 31: Significant Service Quality & Financial Benefits
Significant Service Quality & Financial Benefits Improved Network Fidelity RESULTS Access Controller SDU Signal Quality Signal QualitySpeed to Market Increased DATA CENTER Revenue SDU HUB Truck Rolls Service QualityReduced TruckSpeed Rolls R-MACPHY R-PHY Real Estate & Power Savings Lower OpEx MDU De
Slide 32: Advanced IP Video Delivery
Advanced IP Video Delivery PACKAGE Central control COMMERCIAL FORMAT Ingest & package video ADAPT TRANSCODE ORIGIN Convert legacy to CLOUD IP video VIDEO GATEWAY HOME STORAGE MDU DATA CENTER HOME HUB Edge processing STREAM Video streaming CACHE Highly scalable © 2022 Vecima Confidential
Slide 33: Significant Service Quality & Financial Benefits
Significant Service Quality & Financial Benefits Enhance CPE FORMAT Reclaim Bandwidth PACKAGE ORIGIN Central control COMMERCIAL Ingest & package video TRANSCODE CLOUD CONVERT Convert Internet legacy to HOME Internet STORAGE IP video VIDEO GATEWAY Self-install 25% 100% 75% Lower cost DATA CENTE
Slide 34: Strategically Positioned and Aligned
Strategically Positioned and Aligned Data Center Hub OSP Users LIVE - VOD - DVR MULTI-TIER CACHE TV / STB MSX MSX ORIGIN MSX TRANSCODE CACHE IP VIDEO DELIVERY LAPTOP MSX STORAGE ACCESS CONTROL & CABLE ACCESS NODES DAA VIDEO AND AGGREGATION HOTELS COMMERCIAL VIDEO ENTRA ACCESS CONTROLLER TABLET CABLE
Slide 35: Competitive Landscape
Competitive Landscape (in scope order) Next-Generation Next-Generation IP Video Commercial Cable Access Fiber Access Distribution Video IP Gateways Vecima 4 4 4 4 Competitor 1 3 2 2 0 Competitor 2 3 1 3 0 Competitor 3 2 3 0 0 Competitor 4 0 4 0 0 Competitor 5 0 4 0 0 Competitor 6 0 0 0 3 Competitor
Slide 36: Company Market Opportunity
INDUSTRY- MARKET COMPANY LEADING OPPORTUNITY TECH OPERATIONAL FINANCIAL LEADERSHIP EXCELLENCE PERFORMANCE © 2022 Vecima Confidential & Proprietary Information 36
Slide 37: Vecima Leadership Team
Vecima Leadership Team DALE BOOTH DEAN ROCKWELL SUMIT KUMAR CHIEF FINANICAL EXECUTIVE VICE PRESIDENT AND CEO OFFICER PRESIDENT Over 25 years of C-level, Over 30 years of senior Over 30 years of executive and technical management experience in experience in c-level and experience, including finance,
Slide 38: Board of Directors
Board of Directors DR. SURINDER KUMAR SUMIT KUMAR T. KENT ELLIOTT CHAIRMAN OF THE PRESIDENT AND CEO INDEPENDENT BOARD Over 25 years of C-level, DIRECTOR Founder of Vecima executive and technical Former CEO and Networks experience, including Executive Vice-Chairman senior management at ForeScout posi
Slide 39: Key Takeaways
Key Takeaways Global leader in IP Video Delivery and Cable & Fiber Access with a market-leading portfolio Strong industry dynamics – broadband demand; shift to Distributed Access underway; $3 billion per year market opportunity Recent acquisitions have advanced Company’s product offering, positionin
Slide 40: Contact Vecima
CORPORATE HEAD OFFICE: U.S. OFFICE: MANUFACTURING FACILITY: 771 Vanalman Avenue, 4375 River Green Parkway, Suite 100 150 Cardinal Place Victoria, BC, Canada V8Z 3B8 Duluth, GA, USA 30096 Saskatoon, SK, Canada S71 6H7 Tel: (250) 881-1982 Tel: (678) 258-4112 Tel: (306) 955-7075 Fax: (250) 881-1974 Fax
Slide 41: Thank You
Thank You © 2022 Vecima Confidential & Proprietary Information 41