Napatech A/s · OSL:NAPA

Napatech A/s — Q1 2016 Earnings Presentation

22 slides from Napatech A/s's earnings presentation, 2016

  1. Slide 1: Napatech A/S Q1 2016

    Napatech A/S Copyright 2016 1 Napatech A/S Copyright 2016

  2. Slide 2: Napatech A/S Copyright 2016

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  3. Slide 3: Q1'16 Q4'15 Q1'15 results

    Q1’16 Q4’15 Q1’15 * YoY is the growth of current quarter compared with the same quarter one year earlier 3 Napatech A/S Copyright 2016

  4. Slide 4: Revenue growth influencing factors

    Influencing factors:  Growth in underlying business, 9% primarily driven by existing customers 8% buying 1 and 10 gigabit products 7%  Higher US Dollar to Danish Kroner 6% exchange rate creates tailwind to the revenue 5%  Revenue recognition and accounting 4% adjustment have a negative effect 3%

  5. Slide 5: Gross margin development

    Margin development:  Focused and aggressive go-to-market 80% strategy could affect gross margin in the longer run 75%  The gross margin in Q1’16 is better than expected, and due to a favorable product mix 70% 65% 60% 2011 2012 2013 2014 2015 2016 YTD 5 Napatech A/S Copyright 2016

  6. Slide 6: Q1 2016 EBITDA margin

    Q1 2016 EBITDA margin:  EBITDA margin shows solid growth 25% compared to first quarter 2015 20%  Growth in revenue have had a positive impact on the EBITDA margin 15%  The development clearly shows our scalability, as increase in revenue 10% leads to margin expansion 5% 0% Q1 Q2 Q3 Q4 2015 2016 6

  7. Slide 7: Geographical split

    Geographical split:  North America showed a decline of 50 5% compared with Q1 2015  EMEA showed a significant growth 40 driven by run-rate business 30  APAC showed high growth but from a low level, APAC continues to show good progress in China 20 10 - NAM EMEA APAC Q1'15 Q1'16 7 Napatech A/S Copy

  8. Slide 8: Our focus areas and 2016 targets

    Our focus areas The Trend Target Comment 2016 Target 2016 YTD Revenue Deliver to guidance ~ 20% growth 6% growth Gross Margin Influenced by new product line(s) and go to market strategy ~ 70% 73% Overall Costs Improved overall profitability by sustained scalability 5% increase 3% increase EBITDA Mar

  9. Slide 9: Napatech A/S Copyright 2016 Napatech A/S Copyright 2016

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  10. Slide 10: Napatech A/S Copyright 2016

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  11. Slide 11: Napatech A/S Copyright 2016

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  12. Slide 12: Comments to quarterly revenue indicator

    Comments to quarterly revenue indicator: 25%  Q1 2016 growth at 6% compared to negative 9% in Q1 previous year 20%  Full year growth in 2015 ended at 15% 19%, and guidance for 2016 is around 20% growth 10% 5% 0% Q1 Full year -5% -10% 2015 2016 Actual 2016 Guidance 12 Napatech A/S Copyright 2016

  13. Slide 13: Comments to scalability

    Comments to scalability:  The Revenue to EBITDA ratio shows 300% solid sustained scalability trough 2015 and into 2016 250%  We expect the Revenue to EBITDA 200% ratio will decline over time. However the sustained scalability will continue 150% to drive a strong EBITDA long term 100% 50% 0% -50% Q

  14. Slide 14: Napatech A/S Copyright 2016 Napatech A/S Copyright 2016

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  15. Slide 15: Market leader in accelerator solutions

      MARKET LEADER IN MARKET LEADER FOR ACCELERATOR DEDICATED RECORDER SOLUTIONS SOLUTIONS   FRONT-RUNNER THOUGT LEADER IN ACCELERATING DRIVING EXCEPTIONAL VIRTUALIZED NETWORKS INNOVATION 15 Napatech A/S Copyright 2016

  16. Slide 16: Napatech A/S Copyright 2016

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  17. Slide 17: Accelerators – full potential yet to be exploited

     ACCELERATORS – FULL POTENTIAL YET TO BE EXPLOITED +450 MUSD Scaling ongoing projects with Tier 1 Network Management, Telecom and Data Center Providers to the entire market offers a potential of more than USD 450 million by 2020* ACCELERATOR SOLUTIONS NETWORK RECORDERS – HUGE MARKET POTENTIAL +600

  18. Slide 18: Napatech A/S Copyright 2016 Napatech A/S Copyright 2016

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  19. Slide 19: Guidance for full year 2016 is maintained

     Guidance for full year 2016 is maintained at:  Revenue growth around 20%  EBITDA margin around 20%     NOTE: Please find additional information about Napatech in the Annual Report 2015  and presentation from the Capital Markets Day 2016. The material is available on www.napatech.com – inves

  20. Slide 20: Napatech A/S Copyright 2016 Napatech A/S Copyright 2016

    Napatech A/S Copyright 2016 20 Napatech A/S Copyright 2016

  21. Slide 21: Forward-looking statements

    This presentation includes and is based, inter alia, Napatech A/S’ businesses, energy prices, market 2016 results presentations. Information contained on forward-looking information and statements that acceptance of new products and services, within will not be updated. The following slides are subj

  22. Slide 22: Napatech A/S Copyright 2016 Napatech A/S Copyright 2016

    Napatech A/S Copyright 2016 22 Napatech A/S Copyright 2016

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