Slide 1: 4Q 2020 Presentation
4Q 2020 Presentation Ray Smets Heine Thorsgaard CEO CFO 25 February 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 10 NO: +47 23 96 39 38 US: +1 833 823 0589 UK: +44 3333 009 263 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: Mark Your Calendar for Napatech's Capital Markets Day
Mark Your Calendar for Napatech’s Capital Markets Day March 17, 2021 14:00 CET Sign-up @ www.napatech.com NAPATECH A/S © COPYRIGHT 2021 25 February 2021 3
Slide 4: 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 5: IMS Report Topics
IMS Report Topics • 2+ Years of Progress • Q4’20 & FY’20 Financial Summary • Business Highlights • 4Q 2020 & FY Financials • 2020 Outlook • Q&A NAPATECH A/S © COPYRIGHT 2021 25 February 2021 5
Slide 6: Napatech is Building Momentum for Future Growth
Napatech is Building Momentum for Future Growth Unlocking Higher Growth Earning a Path to the Next Level 2021 2020 Reaching Higher with Realistic Expectations • Grow Core Revenue • Gain Momentum in • New Product Revenue Virtualization Opportunity 2019 • New Design Wins • Invest in New Partnerships •
Slide 7: FY'20 Financial Summary
FY’20 Financial Summary Solid Revenue Growth +16% Best-Ever EBITDAC +21.9 DKK m Strong Free Cash Flow +33.6 DKK m Gross Margins of 71.5% Solid Earnings 9.6 DKK m Momentum NAPATECH A/S © COPYRIGHT 2021 25 February 2021 7
Slide 8: Business Highlights
Business Highlights NAPATECH A/S © COPYRIGHT 2021 25 February 2021 8
Slide 9: Napatech Builds SmartNICs
Napatech Builds SmartNICs Applications Cybersecurity Monitoring Infrastructure Cloud & Edge Mobile Financial Napatech SmartNICs Accelerate Server-based Applications Networks are Servers Deployed at Massive Scale NAPATECH A/S © COPYRIGHT 2021 25 February 2021 9
Slide 10: The Problem: Server CPU's Cannot Keep Up
The Problem: Server CPU’s Cannot Keep Up Applications Demand More CPU Power The Solution: FGPA SmartNICs SmartNIC solve the application performance Acceleration gap on standard server platforms Server CPU Performance Cannot Keep Up with Demand NAPATECH A/S © COPYRIGHT 2021 25 February 2021 10
Slide 11: Napatech is Emerging in a Large Growing Market
Napatech is Emerging in a Large Growing Market Category Breakdown January 2021 $6,000.0 • The latest report shows a shift from $5,000.0 $4.8B the Off-Load to Programmable $4,000.0 NIC segment Millions $2,683 • Napatech is $3,000.0 $2,130 ranked in the top $2.3B $1,663 $2,000.0 $1,209 10 of the total
Slide 12: Q4'20 Wins: Top Brands Deploy Napatech
Q4’20 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 13: Napatech Makes Major Progress in Fintech Market
Napatech Makes Major Progress in Fintech Market FINTECH Customers in FY2020 NAPATECH A/S © COPYRIGHT 2021 25 February 2021 13
Slide 14: Lenovo - Napatech Partnership Takes Shape
Lenovo - Napatech Partnership Takes Shape • Product Development Collaboration • Focused on NEW Virtualization Solution • Lenovo branded • Napatech designed • New Revenue in 2021+ NAPATECH A/S © COPYRIGHT 2021 25 February 2021 14
Slide 15: 4Q 2020 & FY Financials
4Q 2020 & FY Financials NAPATECH A/S © COPYRIGHT 2021 25 February 2021 15
Slide 16: Income Statement Q4 & FY 2020
Income Statement Q4 & FY 2020 Key Highlights Q4 FY Q4 FY DKK'000 2020 2019 2020 2019 ∆ ∆ • Revenue in Q4 down 3% in DKK compared to Q3’19 (up 4% in USD). Revenue FY up 14% in Revenue 52,478 54,013 194,233 170,607 -3% 14% Cost of goods sold (14,728) (13,807) (55,265) (43,421) DKK compared to ‘19 (up
Slide 17: Cash Flow Statement Q4 & FY 2020
Cash Flow Statement Q4 & FY 2020 Q4 FY DKK'000 2020 2019 2020 2019 Key Highlights Earnings before tax (EBT) 1,388 (437) 5,081 (14,252) • Net Cash flow from operating activities in Adjustments to reconcile profit before tax to net cash flows 10,910 11,117 32,629 31,142 Q4 was positive DKK 14.8m, and
Slide 18: 2021 Outlook
2021 Outlook NAPATECH A/S © COPYRIGHT 2021 25 February 2021 18
Slide 19: Napatech is Earning a Path to the Next Level
Napatech is Earning a Path to the Next Level • Solid Core Product Momentum • Building New Product Revenues • Winning New Design Wins • Gaining traction on key new partnerships NAPATECH A/S © COPYRIGHT 2021 25 February 2021 19
Slide 20: Annual Guidance for 2021
Annual Guidance for 2021 Guidance Middle Key Highlights Revenue DKK 210-230m DKK 220m • Revenue growth in USD between $35.0- Gross margin 70-72% 71% $38.3M corresponding to 17.8-29.1% growth • Strong FX head wind compared to 2020 Staff expenses & Other external costs DKK 125-135m DKK 130m expected T
Slide 21: 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 21
Slide 22: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 78 15 01 10 NO: +47 23 96 39 38 US: +1 833 823 0589 UK: +44 3333 009 263 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 23: 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 25 February 2021 23