Slide 1: 1Q 2021 Interim Management Presentation
1Q 2021 Interim Management Presentation Ray Smets Heine Thorsgaard CEO CFO 28 April 2021 NAPATECH A/S © COPYRIGHT 2021
Slide 2: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 78 15 01 07 NO: +47 23 50 02 36 US: +1 844 625 1570 UK: +44 3333 009 264 To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. Texted question can be submitted using the button on the website. NAPATEC
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: 1Q 2021 IMS Report Topics
1Q 2021 IMS Report Topics • Q1’21 Financial Summary • Business Highlights • Q1’21 Financial Results • 2021 Outlook • Q&A NAPATECH A/S © COPYRIGHT 2021 28 April 2021 4
Slide 5: 2021 Starts on Track and As Expected
2021 Starts on Track and As Expected Growing Profitable 1Q 2021 YoY Revenue Growth in USD +6% Gross Margins of 70% EBITDAC, EBITDA & Earnings Significantly Up YoY NAPATECH A/S © COPYRIGHT 2021 28 April 2021 5
Slide 6: Business Highlights
Business Highlights NAPATECH A/S © COPYRIGHT 2021 28 April 2021 6
Slide 7: Napatech is Earning a Path to the Next Level
Napatech is Earning a Path to the Next Level • Solid Core Product Momentum • Focused on Application Acceleration • Building New Product Revenues • 5G Mobile, Cloud & Edge • Winning New Design Wins • Networking and Cybersecurity • Gaining traction on key • Financial Services new partnerships • Suppor
Slide 8: Q1'21 Wins: Top Brands Deploy Napatech
Q1’21 Wins: Top Brands Deploy Napatech Networking & Security Telecom & Cloud Government & Defense Financial Technology Increasing speeds, 5G increases speeds, Mission-critical apps Faster networks & evolving threats users & devices, need zero packet nanosecond require performance greater software lo
Slide 9: Napatech Emerging in Growing Market – FY2020 Market Share
Napatech Emerging in Growing Market – FY2020 Market Share • First view of 2025 forecast shows continued strong market growth • Napatech is ranked in the top 10 of the total NIC market • Napatech is focused on and measured in the highest growth segment of the Programmable NIC market NAPATECH A/S © CO
Slide 10: Programmable NIC Market Overview
Programmable NIC Market Overview Programmable NIC Market - ALL Programmable NIC Market – VENDORS ONLY Market Share (%) FY 2020 1. Microsoft 35% Self-Build 2. Amazon 24% 3. Marvell 15% 4. Broadcom 9% • Napatech ranks #3 5. Napatech 3.8% (SOC) amongst Vendors 6. Xilinx 2.8% vendors 7. Silicom 1.9% • N
Slide 11: Making Progress with Partners in 2021
Making Progress with Partners in 2021 Partnership & OEM Software Solution Vapor IO’s Kinetic New Partnership & New Cybersecurity Design Win Provider Edge Alliance FPGA Collaboration Design Win Joint Product Napatech’s Virtualization Napatech’s brings Growing partnership with Important expansion Deve
Slide 12: The Napatech Opportunity: Growth Strategy
The Napatech Opportunity: Growth Strategy • EXPAND CORE PRODUCT revenues with new competitive features • GROW NEW PRODUCT revenues with in-line features to access growing cybersecurity market opportunities • TRACTION in fast-growing VIRTUAL use-cases with addressable market needing apps deployed as
Slide 13: Q1 2021 Financials
Q1 2021 Financials NAPATECH A/S © COPYRIGHT 2021 28 April 2021 13
Slide 14: Consolidated Income Statement Q1 2021
Consolidated Income Statement Q1 2021 Q1 DK K '000 2021 2020 ∆ Key Highlights Revenue 46,824 48,536 -4% • Revenue in Q1 in USD up 6% Cost of goods sold (14,037) (15,128) compared to Q1’20 – down 4% in DKK Gross profit 32,787 33,408 -2% due to FX development GM% 70.0% 68.8% Other operating income 25
Slide 15: Consolidated Cash Flow Statement Q1 2021
Consolidated Cash Flow Statement Q1 2021 Q1 DK K '000 2021 2020 Key Highlights Earnings before tax (EBT) 5,269 (1,910) Adjustments to reconcile profit before tax to net cash flows 4,061 6,125 • Net Cash flow from operating W orking capital adjustments (21,260) (647) activities in Q1 -12.0 MDKK Inter
Slide 16: 2021 Outlook
2021 Outlook NAPATECH A/S © COPYRIGHT 2021 28 April 2021 16
Slide 17: Annual Guidance for 2021 - unchanged
Annual Guidance for 2021 - unchanged Guidance Middle Key Highlights Revenue DKK 210-230m DKK 220m • Revenue growth in USD between Gross margin 70-72% 71% $35.0-$38.3M corresponding to Staff expenses & Other external costs DKK 125-135m DKK 130m 17.8-29.1% growth Transferred to capitalized development
Slide 18: Why Invest In Napatech?
Why Invest In Napatech? STABLE REVENUE, EXCITING DELIVERING WINNING & CASH FLOW MARKET PRODUCT TOP GROWING & POTENTIAL INNOVATION CUSTOMER EARNINGS BRANDS NAPATECH A/S © COPYRIGHT 2021 28 April 2021 18
Slide 19: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 78 15 01 07 NO: +47 23 50 02 36 US: +1 844 625 1570 UK: +44 3333 009 264 To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. Texted question can be submitted using the button on the website. NAPATEC
Slide 20: Stay Connected With Napatech
Stay Connected With Napatech On The Web: Social Media: Other News: www.google.com/alerts www.google.com/alerts www.napatech.com/investor-relations www.napatech.com/newsletter NAPATECH A/S © COPYRIGHT 2021 28 April 2021 20