Slide 1: Napatech Q1 2017 presentation
Napatech Q1 2017 presentation May 9, 2017 Henrik Brill Jensen, Chief Executive Officer 1 Napatech A/S © Copyright 2017
Slide 2: Napatech Q1 2017 Financials
Napatech Q1 2017 Financials 2 Napatech A/S © Copyright 2017
Slide 3: Financial Highlights
Financial Highlights USD sales in Q1 2017 was 8.2 MUSD EBITDA in Q1 2017 was 9.4 MDKK 17% increase compared to Q1 2016 3.2 MDKK increase compared to Q1 2016 16% EBITDA margin Q1 2017 Revenue in Q1 2017 was 57.6 MDKK 24% increase compared to Q1 2016 EBIT in Q1 2017 was (0.1) MDKK Improvemen
Slide 4: Financial Results Q1 2017
Financial Results Q1 2017 (Figures in MDKK) Q1 2017 Q4 2016 Q1 2016 Revenue 57.6 92.3 46.3 Growth YoY* 24% 32% 7% Gross Margin 73% 66% 73% EBITDA 9.4 28.0 6.2 EBIT (0.1) 17.7 (2.3) Cash flow from operating activities 14.9 5.7 8.6 Cash and cash equivalents, end of quarter 47.0 47.0 69.8 * YoY is the
Slide 5: Q1 2017 Revenue
Q1 2017 Revenue Sales and Revenue Growth (YoY) 30% Influencing factors: • The growth is primarily driven 25% by our Pandion business and recent Accelerator design wins 20% • Currency, revenue recognition and accounting adjustments 15% have some effect as we have seen the USD exchange rate 10% increa
Slide 6: Growth in All Regions
Growth in All Regions Quarterly revenue in MDKK 50 Geographical split: • North America showed a 40 growth of 22% compared with Q1 2016 30 • EMEA showed a growth of 27% driven by ramp-up of design wins secured in 2016 20 • APAC showed a growth of 43% due to timing of projects in the 10 region’s sale
Slide 7: Last Twelve Months Rolling Revenue
Last Twelve Months Rolling Revenue Revenue (DKK) 270 250 +12% 230 EBITDA (LTM): 210 190 +28% 170 150 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 7 Napatech A/S © Copyright 2017
Slide 8: Gross Margin Development
Gross Margin Development Gross Margin 80% Gross margin development: • The gross margin in Q1’17 is at 73%, in line with Q1 2016 75% • As previously stated, the margin will fluctuate with the actual product mix realized for 70% the period 65% 60% 2012 2013 2014 2015 2016 2017 YTD 8 Napatech A/S © Cop
Slide 9: EBITDA Margin
EBITDA Margin EBITDA Margin 35% Q1 2017 EBITDA margin: 30% • EBITDA margin is higher in Q1 compared to last year. This underlines the high scalability 25% in Napatech’s business, as higher revenue driver the 20% EBITDA margin up 15% 10% 5% 0% Q1 Q2 Q3 Q4 2015 2016 2017 9 Napatech A/S © Copyright 201
Slide 10: This is Napatech
This is Napatech 10 Napatech A/S © Copyright 2017
Slide 11: Napatech in Short
Napatech in Short Napatech helps IT organizations to reimagine their businesses by harnessing the cost, performance, security and innovation benefits of cloud-scale architectures, making them available to every network As presented on our CMD in April, Napatech pioneered the use of FPGA-based ac
Slide 12: Market Trends In Networking and Communications By 2020
Market Trends In Networking and Communications Cloud 5G Internet of Computing Mobile things 4 25 25 50 50 By 2020 BILLION MILLION BILLION BILLION TRILLION Connected People Applications Embedded Systems Devices and Sensors Gbps of Data Source: IDC 12 Napatech A/S © Copyright 2017
Slide 13: Fundamental Need Of All Internet Users: Stay Connected And Be Secure
Fundamental Need Of All Internet Users Stay Connected And Be Secure 174% Mobile App Year-over-Year Usage Growth 121% in 2014 103% Source: Flurry 89% 89% 74% 600 Installed Workloads in Millions Source: Cisco Global Cloud Index 2016 Increasing 49% 33% 30% 8% Internet 400 Lifestyle & Utilities & Messag
Slide 14: Applications Separate From User Services
Applications Separate From User Services Not Part Of The Data Delivery Path To The User Network management Cybersecurity applications applications ensuring users ensuring users be secure stay connected Users Services 14 Napatech A/S © Copyright 2017
Slide 15: Napatech Smarter Data Delivery Solutions
Napatech Smarter Data Delivery Solutions Ensure Delivery Of 100% Reliable Data For Analysis Network management Cybersecurity applications applications ensuring users ensuring users be secure stay connected Napatech Smarter Data Delivery Users Services 15 Napatech A/S © Copyright 2017
Slide 16: Napatech Smarter Data Delivery Solutions: How are They Deployed?
Napatech Smarter Data Delivery Solutions How are They Deployed? Typical Datacenter Some servers dedicated to Napatech ensures reliable With thousands of servers network management and data delivery to these supporting user services cybersecurity software application servers Cyber Cybersecurity Secur
Slide 17: SmartNIC Platform Portfolio
SmartNIC Platform Portfolio Application Open Commercial Store (Future) Source Application Open PANDION Compression Futures Engines Recorder Source Encryption, Search… Community Software Virtualization In-line Recorder (FPGA, driver, APIs) (OVS Offload) (Fast Path) (100% Capture) Hardware XS S M L XL
Slide 18: Customer Case: Safeguard IT From Cyber Threats
Customer Case: Safeguard IT From Cyber Threats Investigate any Security Event – 90 Days Back! The Challenge Benefits To safeguard their enterprise IT • 100% high-speed packet capture from cyber threats, Facebook • Ultrafast data retrieval, exceptional needed a solution to capture all performance and
Slide 19: Networks Are Becoming As Flexible As Computing Clouds
Networks Are Becoming As Flexible As Computing Clouds The Industry Are Backing Up To The Napatech Dock! To support the scale of users, devices, access points, applications, services and bandwidth, all with security – a radical new way of building, designing and operating IT infrastructure is emerg
Slide 20: Business Highlights
Business Highlights 20 Napatech A/S © Copyright 2017
Slide 21: Pandion Progression
Pandion Progression Pandion share of sales 14% Influencing factors: 12% • Pandion is a significant growth driver for the coming periods 10% • Pandion product mix sold: • As a recorder solution for 8% system integrators • As recorder software and 6% accelerators to OEM customers 4% • As a DELL-brande
Slide 22: Recent Design Wins
Recent Design Wins 100 Gigabit solution for a European customer in the Public Safety vertical for a Cyber Security solution 10 Gigabit design win for Japanese Network Monitoring company, for their own branded Network Monitoring solution Pandion design win for a North American customer in the F
Slide 23: Design-win effect on Q1 Revenue
Design-win effect on Q1 Revenue Pandion DWs Design wins during the last 5 quarters delivered 24% of the overall Q1 2017 revenue Accelerator DWs The Pandion business delivered: 8% of the overall revenue in Q1 is based on design-wins secured in 2016 and 2017 Current Sales The Accelerator busin
Slide 24: Outlook
Outlook The Roadmap to 100 MUSD by 2020 24 Napatech A/S © Copyright 2017
Slide 25: 2020 Strategy Secured by Strong Technology, Portfolio and Organization
2020 Strategy Secured by Strong Technology, Portfolio and Organization Expanding the core LEADING TECHNOLOGY EXPANDING THE CORE FIRM STRATEGIC EXECUTION Repackage solutions and Focus on pursuing and technologies to fit diverse Napatech is the leader in market needs exploiting emerging FPGA-based sol
Slide 26: Accelerated Growth Path Towards 2020
Accelerated Growth Path Towards 2020 Robust portfolio of current customers provides strong business foundation and 100 additional growth opportunities MUSD Catalogue of ongoing co-creation deployments with market leading customers based on strategic relationships Emerging SmartNIC opportunitie
Slide 27: Management's Outlook
Management’s Outlook Napatech’s strategy is to be the #1 vendor of SmartNIC Guidance for 2017: solutions, leading to an ambition of a 100 MUSD top-line • Revenue growth 10% - 20% by 2020, based on a strong product portfolio powered by leading-edge core technology • Gross margin around 68% • EBITDA
Slide 28: Stay Informed: Follow Napatech!
Stay Informed Follow Napatech! WANT TO LEARN MORE? …about Napatech, Smarter Data Delivery, SmartNICs, IoT, cloud computing, 5G Mobile, and other trends in the industry? Sign up for the Napatech News Sign up for OSE news Follow us on social media 28 Napatech NapatechA/S A/S © © Copyright 2017 Copyrig
Slide 29: Q&A Session
Q&A Session 29 Napatech A/S © Copyright 2017
Slide 30: Important Notice
Important Notice This presentation includes and is based, acceptance of new products and services, should be read and considered in inter alia, on forward-looking information changes in governmental regulations, connection with the information given and statements that are subject to risks interest