Slide 1: 4Q 2022 Interim Management Statement
4Q 2022 Interim Management Statement 28 February 2023 2023-02-28 COPYRIGHT © 2023 NAPATECH A/S
Slide 2: Q&A Session at the end of the presentation
Q&A Session at the end of the presentation DK: +45 89 87 50 45 NO: +47 81 50 33 08 US: +1 646 664 1960 UK: +44 20 3936 2999 Participant Access Code: 782813 To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. Texted question can be submitted using th
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 fo
Slide 4: Q4 2022 IMS Agenda
Q4 2022 IMS Agenda • Welcome and Introduction • Fiscal Year 2022 Overview and Our Strategic Process • Partnerships Transforming our Business • Markets Boosting our Business Opportunities • Financial Review and Outlook • Q&A Session 4 2023-02-28 COPYRIGHT © 2023 NAPATECH A/S
Slide 5: Welcome and Introduction
Welcome and Introduction • 2022 was disappointing as we didn’t meet our financial goals • 2022 was also a transformational year that we believe is the foundation • 2022 cost measures was taken – increased R&D investments to meet the backlog of requirements from our partners • Strong commitment, inve
Slide 6: Fiscal Year 2022 Overview and Strategic Process
Fiscal Year 2022 Overview and Strategic Process 6 2023-02-28 COPYRIGHT © 2023 NAPATECH A/S
Slide 7: Financial Summary for Q4 2022
Financial Summary for Q4 2022 2022 Full year summary Notes • Revenue DKK 158.6m, 19% decline YoY • Strong partnerships providing both solid foundation, and • EBITDA margin -13% compelling opportunities for 2023 Q4’22 Quarter summary • Higher than normal inventory • Revenue was DKK 33.9m, 38% decline
Slide 8: Our Strategic Process and Partnerships
Our Strategic Process and Partnerships • 18 months ago, Napatech set the strategic direction to The effect of change in strategy increase investments with focus on • We have secured signing of • New SW and HW technology, large new markets large agreements with multi • Strong partnerships to enhance
Slide 9: Partnerships Transforming our Business
Partnerships Transforming our Business 9 2023-02-28 COPYRIGHT © 2023 NAPATECH A/S
Slide 10: Our Intel Journey
Our Intel Journey • Key to strategy: Strengthen NAPA R&D investment and GTM Napatech-Intel Solution Overview • Intel leadership in FPGA, SmartNIC & IPU platforms • FPGA-based SmartNICs • FPGA-based IPUs • Shared focus on cloud, enterprise, telecom and OEM • Napatech software packages • Multi-year, m
Slide 11: Our AMD Journey
Our AMD Journey • Key to strategy: expand GTM with existing Napatech portfolio Highlights • Dedicated website promotion • Shared focus on cloud, enterprise, telecom, and OEM • Presence at MWC 2023 • Complete HW & SW solutions designed by Napatech • Early engagements underway • Targeted joint sales,
Slide 12: Our F5 Journey
Our F5 Journey • Multi-billion dollar tier-1 global OEM (FFIV) About the solution • Network and security hardware and software solutions • Napatech SmartNIC • Powered by Intel Agilex FPGA • Targets telco, cloud and hybrid-multi-cloud enterprises • Designed for volume servers • Demanding requirements
Slide 13: Markets Boosting our Business Opportunities
Markets Boosting our Business Opportunities 13 2023-02-28 COPYRIGHT © 2023 NAPATECH A/S
Slide 14: Network Interface Card (NIC) Market Segmentation
Network Interface Card (NIC) Market Segmentation Basic NIC ASIC-based. Multiple years between silicon revisions. Ultra-low cost. Ultra-low power. Small form-factor. Fixed network connectivity functions, and not programmable Offload NIC ASIC-based. Multiple years between silicon revisions. Slightly m
Slide 15: Programmable NIC Market Boosting our Business Opportunities
Programmable NIC Market Boosting our Business Opportunities 32% Highlights CAGR • Programmable NIC use-cases that are relevant to Napatech explode towards 2026: • 5G Networking • Cybersecurity • Financial • Cloud • Edge 10% • IoT CAGR • Artificial Intelligence • Machine Learning • These market oppor
Slide 16: The Importance of the Napatech 5G UPF Solution
The Importance of the Napatech 5G UPF Solution • Napatech's new User Plane Function (UPF) offload solution Highlights enables cost effective scale-up of users for Communications • Engagements include AMD, Service Providers packet core and Enterprises, when deploying A5G Networks, Advantech, their 5G
Slide 17: Large Business Potential Enabling our Ambitions
Large Business Potential Enabling our Ambitions • Product investments have unlocked leading use-cases • Complete HW and SW solutions target large designs >15x • New design wins drive transformational unit volumes Prospects • Key partnerships provide reach and relationships to win • One proof point:
Slide 18: Financial Review and Outlook
Financial Review and Outlook 18 2023-02-28 COPYRIGHT © 2023 NAPATECH A/S
Slide 19: Consolidated Income Statement Q4 & FY 2022
Consolidated Income Statement Q4 & FY 2022 Q4 FY Q4 FY Financial Summary DK K '000 2022 2021 2022 2021 ∆ ∆ Revenue 33,931 54,992 158,628 195,471 -38% -19% • Revenue in Q4 down 38% compared to Q4’21. Cost of goods sold (14,073) (15,305) (68,931) (55,113) Revenue in ’22 down 19% compared to ‘21 Gro ss
Slide 20: Consolidated Cash Flow Statement Q4 & FY 2022
Consolidated Cash Flow Statement Q4 & FY 2022 4th quarter F ull-Year DK K '000 2022 2021 2022 2021 Financial Summary Earnings befo re tax ( EBT) ( 13,512) 17,335 ( 44,144) 36,998 • Net Cash flow from operating activities in Q4 Adjustments to reconcile profit before tax to net cash flows 10,507 5,862
Slide 21: Cash Flows in 2022 impacted by extraordinary circumstances
Cash Flows in 2022 impacted by extraordinary circumstances Three extraordinary circumstances impacted cash flows significantly in 2022 Financial Summary 1. Low product margins primarily due to extraordinary component shortage on a few specific components. • Had products margins been at historical le
Slide 22: 2023 Expectations
2023 Expectations • 2022 was in many ways an unusual year. We expect things to Summary normalize during 2023. • With performance in the middle of the guided • In 2023, we expect: ranges: • Revenue in the range of 180 to 200mDKK • Revenue in 2023 is expected to grow 20% • GM% between 68%-71% • EBITDA
Slide 23: Q&A Session
Q&A Session DK: +45 89 87 50 45 NO: +47 81 50 33 08 US: +1 646 664 1960 UK: +44 20 3936 2999 Participant Access Code: 782813 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. 23 202