Slide 1: Q4 & FY 2019 Interim Management Statement Presentation
Q4 & FY 2019 Interim Management Statement Presentation Ray Smets Heine Thorsgaard CEO CFO 27 February 2020 NAPATECH A/S © COPYRIGHT 2020
Slide 2: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 82 33 31 94 NO: +47 23 50 02 36 UK: +44 3333 009 274 US: +1 833-52- 8397 To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. NAPATECH A/S © COPYRIGHT 2020 27 February 2020 2
Slide 3: 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 4: Q4 & FY 2019 Management Statement Topics
Q4 & FY 2019 Management Statement Topics • Q4 & FY 2019 Business Highlights • FY 2019 Review • Q3 & FY 2019 Financial Results • 2020 Outlook • Q&A NAPATECH A/S © COPYRIGHT 2020 27 February 2020 4
Slide 5: Q4 & FY 2019 Business Highlights
Q4 & FY 2019 Business Highlights NAPATECH A/S © COPYRIGHT 2020 27 February 2020 5
Slide 6: Executive Summary 2019
Executive Summary 2019 • Beating expectations • Solid Turn-around Year with Record Breaking Results • Solid Revenues and Growth • Strong Margins • Positive EBITDAC • Positive free cash flow for FY 2019 • Foundation of revenues built on both existing and new customers • Core product line enhancements
Slide 7: Financial Highlights – Continued Operations
Financial Highlights – Continued Operations Q4 2019 Q4 2018* FY 2019 FY 2018* Revenue M DKK 54.0 39.7 170.6 106.0 Growth YoY 36% -15% 62% -48% • For YoY reported revenue comparison purposes, results for 2018 are adjusted for revenues associated with divested product line in 2018. NAPATECH A/S © COPY
Slide 8: Positive Free Cash Flow
Positive Free Cash Flow Free Cash Flow (MDKK) 12,6 FY19: 2013 2014 2015 2016 2017 2018 2019 • FY19 Free Cash Flow of (8,0) (14,3) 12.6 MDKK (35,0) (34,0) (38,2) • EOY Cash and Cash Equivalents were 64.3 MDKK (81,5) NAPATECH A/S © COPYRIGHT 2020 27 February 2020 8
Slide 9: Actuals Compared to Guidance
Actuals Compared to Guidance Guidance in MDKK Original Latest ACTUALS Compared to guidance Revenue 150-180 150-180 170.6 • Revenue in the upper half of the guided range • GM above the guided range Gross margin around 68% 71-73% 74.5% • Operating expenses in the lower half of the Operating expenses*
Slide 10: 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 & Edge Virtual Switching The FPGA-based SmartNIC is becoming the
Slide 11: NIC Market is Driven By Server Expansion
NIC Market is Driven By Server Expansion Megatrends Impact Server Market NIC Market Grows to All Networks Expansion Continues Solve Server Connectivity CLOUD Data Centers FOG 5G Nodes SmartNICs emerge to support advanced applications and EDGE IoT services when standard Devices servers can’t keep up
Slide 12: Innovative New And Improved SmartNIC Design
Innovative New And Improved SmartNIC Design CURRENT INDUSTRY-LEADING NEXT GENERATION SmartNIC Designs New SmartNIC Design • Newest FPGA technology • Highest performance processing • Full software suite available • Greener design (power, space, cooling) • Cost efficient • Mass-market volume potential
Slide 13: 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 growing to $3.4B by 2023. 3,500 $3.4B Napatech Revenue (US$ Millions Addressable • Programmable NIC market is $306M 3,000 Market in CY19, growing to $1.6B by 2023. 2,500 •
Slide 14: Q4 Wins: Top Brands Deploy Napatech Across Many Applications
Q4 Wins: Top Brands Deploy Napatech Across Many Applications Network Cybersecurity Infrastructure Cloud & Edge Mobile Financial Monitoring Applications and Services that are accelerated by SmartNICs NAPATECH A/S © COPYRIGHT 2020 27 February 2020 14
Slide 15: Our Plan Of Attack – Progress
Our Plan Of Attack – Progress Leverage our expertise in FPGA software to out-innovate the competition and build new higher growth product lines in Application Acceleration for Virtualization, Cybersecurity and 5G Mobile solutions New More Features Features 2019 2020 more to come… 1. Continue to driv
Slide 16: FY 2019 Financials
FY 2019 Financials NAPATECH A/S © COPYRIGHT 2020 27 February 2020 16
Slide 17: Consolidated Income Statement Q4 & FY 2019
Consolidated Income Statement Q4 & FY 2019 DKK'000 2019 Q4 2018 2019 FY 2018 Q4 ∆ FY ∆ Key Highlights Revenue 54,013 53,997 170,607 106,153 0% 61% Cost of goods sold (13,807) (31,793) (43,421) (57,060) • Revenue in Q4 on par & up 61% FY Gross profit 40,206 22,204 127,186 49,093 81% 159% compared to
Slide 18: Consolidated Cash Flow Statement Q4 & FY 2019
Consolidated Cash Flow Statement Q4 & FY 2019 4th quarter YTD December DKK'000 2019 2018 2019 2018 Key Highlights Earnings before tax (EBT) (437) (64,836) (14,252) (192,106) Adjustments to reconcile profit before tax to net cash flows 11,117 75,944 31,142 138,959 • Net Cash flow from operating activ
Slide 19: 2020 Outlook
2020 Outlook NAPATECH A/S © COPYRIGHT 2020 27 February 2020 19
Slide 20: Guidance
Guidance Annual guidance for 2020 guidance is as follows: Note: • With performance in the middle of Guidance the guided ranges: Revenue 185-205 MDKK • EBITDAC would be 6.5 MDKK Gross margin 68-72% Staff expenses & Other external costs 125-135 MDKK • EBIT would be 1.5 MDKK Transferred to capitalized
Slide 21: Why Invest In Napatech?
Why Invest In Napatech? STABLE GROWTH IN EXECUTING DELIVERING WINNING & REVENUE, ON OUR PRODUCT TOP GROWING CASH FLOW STRATEGY INNOVATION CUSTOMER & BRANDS LEVERAGABLE NAPATECH A/S © COPYRIGHT 2020 27 February 2020 21
Slide 22: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 82 33 31 94 NO: +47 23 50 02 36 UK: +44 3333 009 274 US: +1 833-52- 8397 To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. NAPATECH A/S © COPYRIGHT 2020 27 February 2020 22
Slide 23: Thank You!
Thank You! WANT TO LEARN MORE? Sign up for OSE news Follow us on social media NAPATECH A/S © COPYRIGHT 2020 27 February 2020 23