Slide 1: 2025 Half-Year Report
2025 Half-Year Report Lars Boilesen, CEO Heine Thorsgaard, CFO August 26, 2025 © NAPATECH 2025
Slide 2: Q&A Session
Q&A Session Following the presentation DK: +45 89 87 50 45 UK: +44 20 3936 2999 US: +1 646 233 4753 All other locations: +44 20 3936 2999 Access Code: 120993 To ask a question, press *1 on your telephone keypad. To withdraw your question, press *2 Texted questions can be submitted using the button o
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by Napatech A/S 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 forward-looking st
Slide 4: Agenda
AGENDA • BUSINESS STATUS • MARKET UPDATE • PIPELINE SPOTLIGHT • FINANCIAL RESULTS • OUTLOOK 4
Slide 5: Business Status and Outlook
BUSINESS STATUS AND OUTLOOK 5
Slide 6: Business Status
BUSINESS STATUS Financial Results • 2Q-2025 Revenue $4.8M USD, +43% year over year • 2Q-2025 Gross Margins 67%, as expected, +2% year over year • 1H-2025 Revenue Revenue up 26% compared to 1H24 • 3Q-2025 Good start to 3Q-2025 Recent Highlights • Executing Strategy Completed 200M NOK capital raise to
Slide 7: Market Update: Limitless AI powered by networks that think
MARKET UPDATE Limitless AI powered by networks that think 7
Slide 8: Napatech Network Interface Cards – The Heart of Modern AI Datacenters
NAPATECH NETWORK INTERFACE CARDS – The Heart of Modern AI Datacenters ACCELERATED PROCESSING PROGRAMMABLE NETWORKING SUSTAINABLE COST Offload and accelerate Hardware performance Rearchitect servers to burdensome CPU network, at the speed of remove ROI constraints from security, storage processing So
Slide 9: Market Validation: Early Adopters Prove Technology, Value, Benefits and Scale
MARKET VALIDATION: EARLY ADOPTERS PROVE TECHNOLOGY, VALUE, BENEFITS AND SCALE EMERGING NOW: 5000+ mass market Early cases emerging Hyperscale Merchant-built Cloud Operators Turnkey solutions Napatech 400+ adopters DEPLOYED NOW >12M cards in 2029 8 global companies Initially niche, bespoke Component
Slide 10: Opportunity: Our Time to Shine Is Now
OPPORTUNITY: OUR TIME TO SHINE IS NOW NIC market development by category 21.3 CAGR USD billions 19.1 • Advanced Network Cards are the future 5.8 46% 15.8 4.9 • 92% of demand is from Hyperscale operators 3.5 • The mass market will become 37% of demand 12.5 2.2 • Creating a $6B mass market SAM in 2028
Slide 11: Opportunity: Applications That Benefit from Napatech NICs
OPPORTUNITY: APPLICATIONS THAT BENEFIT FROM NAPATECH NICS CLOUD AND ARTIFICIAL INTELLIGENCE BUSINESS CRITICAL APPLICATIONS NETWORK INFRASTRUCTURE AI Infrastructure Cybersecurity Application and Network Monitoring AI Coprocessing Fintech Financial Services 5G Mobile Infrastructure AI Storage Accelera
Slide 12: Product: Napatech Network Interface Cards and CPU Co-Processors
PRODUCT: Napatech Network Interface Cards and CPU Co-Processors A D A Infrastructure Processing Unit Link E B SmartNIC B D Think C GPU/ASIC, FPGA for AI D Memory C E E Central Processing Unit D F Server F Napatech’s Advanced NICs play a crucial role in … providing access to CPU and GPU resources ✓ m
Slide 13: Business Model: Innovate Go-to-Market Lowers Opex and Increases Scalability
BUSINESS MODEL: INNOVATE GO-TO-MARKET LOWERS OPEX AND INCREASES SCALABILITY 13
Slide 14: Pipeline Spotlights
PIPELINE SPOTLIGHTS 14
Slide 15: Business Update: Design Win Pipeline and Base Business
BUSINESS UPDATE: Design Win Pipeline and Base Business New Design Win Pipeline Base Business Strengthening • Nearly 200 opportunities, >60% in new business and markets • Over 400 base customers • $400M in value, >80% in new business and markets • Design wins and sales increasing • Includes SmartNIC
Slide 16: Case Study: Tier-1 Server OEM
CASE STUDY: TIER-1 SERVER OEM HARDWARE SOFTWARE USE CASES Standalone SmartNIC NETWORKING AI STORAGE CONNECTIVITY (N3070X) STORAGE CLOUD STORAGE SECURITY AI CONTENT AND DATA REDUCTION INFRASTRUCTURE CLOUD TENNANT SERVICES MANAGEMENT 5G MOBILE INFRASTRUCTURE AND MORE…. PARALLEL FILE SYSTEM Butterfly 1
Slide 17: Case Study: Artificial Intelligence Infrastructure for Inferencing
CASE STUDY: ARTIFICIAL INTELLIGENCE INFRASTRUCTURE FOR INFERENCING • AI inferencing vendor win, d-Matrix • AI infrastructure back-end network • High-volume production • Hardware win reuse of tier-1 server HW design • Commitments: units, NRE fee • 5-year supply agreement • Development ahead of schedu
Slide 18: New Design Wins: Early Signs of Progress and Success
New Design Wins: Early Signs of Progress and Success • Cybersecurity • 5G Packet core • Data loss prevention • UPF offload • Product complete • >5x performance • Link-Inline SW • Disclosed design win • First new customer • First dev orders • Kontron • Customer launch GA • US global banking • First c
Slide 19: Upcoming Events
STAC Summit London 2025 7 October 2025 London, UK STAC Summit New York 2025 28 October 2025 New York, USA SuriCon 19-21 November 2025 Montreal, Canada 30 September 2025 San Jose, USA https://go.altera.com/innovators-day-2025-registration 19 19
Slide 20: Financial Review and Outlook
Financial Review and Outlook 20
Slide 21: Consolidated Income Statement Q2 & H1 2025
Consolidated Income Statement Q2 & H1 2025 Key Developments Q2 H1 Q2 H1 DK K '000 2025 2024 2025 2024 ∆ ∆ • Revenue in Q2 in USD up 43% compared to Q2’24 (up 36% in DKK). Revenue in H1 in USD up 26% compared to H1’24. Revenue 31,571 23,176 55,420 44,718 36% 24% Cost of goods sold (10,445) (8,105) (1
Slide 22: Consolidated Cash Flow Statement Q2 & H1 2025
Consolidated Cash Flow Statement Q2 & H1 2025 Q2 H1 Key Developments DK K '000 2025 2024 2025 2024 • Net Cash flow from operating activities in Q2 negative DKK 18.6m Earnings before tax (EBT) (28,234) (35,807) (65,049) (67,990) – H1 negative DKK 44.3m Adjustments to reconcile profit before tax to ne
Slide 23: NWC Improvement Initiatives
NWC Improvement Initiatives N C Assets • During 2025, we have planned and implemented several improvement initiatives aimed at reducing our Net Working Capital in the second half of 2025 and through 2026. • The key initiatives to improve the Napatech NWC focus on: • Reducing inventory levels and opt
Slide 24: 2025 Expectations
2025 Expectations • Napatech’s financial expectations for 2025 remain unchanged: Guidance Revenue DKK 150-190m Gross margin 69-71% Staff expenses & Other external costs DKK 170-180m Transferred to capitalized development costs DKK 8-12m • With performance in the middle of the guided ranges in 2025,
Slide 25: Financial Outlook: Key Performance Indicators
FINANCIAL OUTLOOK: KEY PERFORMANCE INDICATORS Units shipped • Unit sales driven by 32 000 increasing demand among mass-market customers • High gross margins enabled by the strong software component in Napatech’s 10 700 products, which also promote customer stickiness 5 837 5 278 5 700 4 371 • Opex r
Slide 26: Q&A Session
Q&A Session Following the presentation DK: +45 89 87 50 45 UK: +44 20 3936 2999 US: +1 646 233 4753 All other locations: +44 20 3936 2999 Access Code: 120993 To ask a question, press *1 on your telephone keypad. To withdraw your question, press *2 Texted questions can be submitted using the button o
Slide 27: Stay Connected With Napatech
Stay Connected With Napatech On The Web: Social Media: Other News: www.google.com/alerts https://newsweb.oslobors.no/ www.napatech.com www.napatech.com/newsletter 27