Slide 1: Q2 2016 Presentation – Henrik Brill Jensen, CEO
August 16th, 2016 – Henrik Brill Jensen, CEO Napatech A/S Copyright 2016 1 Napatech A/S Copyright 2016
Slide 2: Q2 2016 highlights
USD sales in Q2 2016 was 7.3 MUSD EBITDA in Q2 2016 was 3.2 MDKK Compared to 6.6 MUSD in Q2 2015 38% increase compared to Q2 2015 7% EBITDA margin in Q2 2016 Revenue in Q2 2016 was 46.6 MDKK 9% increase compared to Q2 2015 EBIT in Q2 2016 was negative 5.3 MDKK 1% increase compared to Q1 20
Slide 3: Key financials Q2'16, Q1'16, Q2'15
Q2’16 Q1’16 Q2’15 Revenue (MDKK) 46.6 46.3 42.7 Growth YoY* 9% 6% 2% Gross Margin 73% 73% 72% EBITDA (MDKK) 3.2 6.2 2.3 EBT (MDKK) (3.8) (5.8) (6.7) Cash flow from operating activities (MDKK) (11.3) 8.6 3.3 Cash and cash equivalents, end of quarter (MDKK) 48.5 69.8 57.7 * YoY is the growth of curren
Slide 4: Sales / Revenue Growth (YoY)
Sales / Revenue Growth (YoY) Influencing factors: Growth in underlying business, driven 12% by sale of Accelerator products and Pandion products 10% Lower US Dollar to Danish Kroner 8% exchange rate (YoY) creates headwind to the revenue 6% Revenue recognition and accounting adjustments have a
Slide 5: Gross Margin
Gross Margin Margin development: Focused and aggressive go-to-market 80% strategy could affect gross margin in the longer run 75% The gross margin in Q2’16 is better than expected, and due to a favorable product mix 70% 65% 60% 2011 2012 2013 2014 2015 2016 YTD 5 Napatech A/S Copyright 2016
Slide 6: EBITDA Margin
EBITDA Margin Q2 2016 EBITDA margin: EBITDA margin shows continued 25% growth compared to 2015 20% Growth in revenue have had a positive impact on the EBITDA margin 15% The development clearly shows our scalability, as increase in revenue 10% leads to margin expansion 5% 0% Q1 Q2 Q3 Q4 2015 20
Slide 7: Quarterly Revenue in MDKK by region
Quarterly Revenue in MDKK Geographical split: North America showed a growth of 50 9% compared with Q2 2015 EMEA showed a significant growth of 40 18% driven by new design wins 30 APAC showed a decline in general; our business continues to show good progress in China 20 10 - NAM EMEA APAC Q2'15
Slide 8: Our focus areas and 2016 targets
Our focus areas Target trend Target Comment 2016 Target 2016 YTD Revenue Deliver to guidance ~ 20% growth 8% growth Gross Margin Influenced by new product line(s) and go to market strategy ~ 70% 73% Overall Costs Improved overall profitability by sustained scalability 5% increase 6% increase EBITDA
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Slide 10: Pandion offering
Our Pandion offering today consist of 2 different products: Pandion 20: High performance and low rack-space consumption Pandion Flex: High performance and high storage capabilities The Pandion platforms enable our customers to build critical network management and security applications quick
Slide 11: Dell sell-through program
Previously announced Dell “Sell Trough” program is now being rolled out in North America where Pandion is sold under the Dell brand by Dell salesforce More than 100 Dell sales representatives have already been trained Dell’s strong salesforce will increase the market awareness of Pandion and b
Slide 12: 100 Gigabit accelerator portfolio
Market expectations for growth in 100 Gigabit deployments are very high Napatech has developed a 2 port 100 Gigabit Accelerator to address market needs and specific customer requirements for higher port density Napatech now offers a complete 100 Gigabit portfolio with 1 or 2 ports, compact siz
Slide 13: Design wins
10 Gigabit design win with a Chinese network monitoring company for the financial and public sector solution 100 Gigabit design win with European Test and Measurement equipment manufacturer for a Deep Packet Inspection (DPI) solution 10 Gigabit design win with US based network monitoring compa
Slide 14: Growth in Revenue and EBITDA (YoY)
Growth in Revenue and EBITDA (YoY) Comments to scalability: The Revenue to EBITDA ratio shows 127% 254% 53% solid sustained scalability trough 2015 and into 2016 50% 40% Fifth consecutives quarter with growth 30% in both revenue and EBITDA 20% 10% 0% -10% -20% -30% -40% -50% Q1'15 Q2'15 Q3'15 Q4
Slide 15: Revenue Growth (YoY)
Revenue Growth (YoY) Comments to quarterly revenue indicator: 25% First half of 2016 growth at 8% compared to negative 4% in first half 20% of previous year 15% Full year growth in 2015 ended at 19% 10% For 2016 guidance see the 5% “Management outlook” Section 0% H1 Full year -5% -10% 2015 201
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Slide 17: Management outlook and revised 2016 guidance
We continue to have a sharp focus on revenue growth and our targets Guidance for full year 2016 is revised at: for the remainder of 2016. And we believe that our Pandion product line will be the major contributor to our 2016 growth ambitions Revenue growth of 15% - 20% Pandion contributing wit
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Slide 19: Forward-looking statements
This presentation includes and is based, inter alia, Napatech A/S’ businesses, energy prices, market 2016 results presentations. Information contained on forward-looking information and statements that acceptance of new products and services, within will not be updated. The following slides are subj
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