Napatech A/s · OSL:NAPA
Napatech A/s — Q4 2013 Earnings Presentation
25 slides from Napatech A/s's earnings presentation, February 2014
Slide 1: Napatech Q4 2013 Presentation
Napatech Q4 2013 Presentation February 2014 High gross margins and improved profitability
Slide 2: Presented by Henrik Brill Jensen, CEO
Presented by Henrik Brill Jensen, CEO hbj@napatech.com 2
Slide 3: Financial highlights Q4-2013 and full year 2013
Financial highlights Q4-2013 and full year 2013 − Invoiced sales in 2013 was 32.6 MUSD 4.1% increase compared to 2012 − Revenue in 2013 at 182 MDKK 0.5% increase compared to 2012 − Q4-2013 revenue at 44.0 MDKK 4.6% increase compared to Q3-2013 16% decrease from Q4-2012 − Gross margin in Q4-2
Slide 4: Financial results Q4-2013
Financial results Q4-2013 Q4-2013 Q3-2013 Revenue (MDKK) 44.0 42.1 Growth 4.6% (18.7)% Gross Margin 74% 72% EBITDA (MDKK) 10.5 4.4 EBIT bf exceptional items (MDKK) 5.1 (0.8) IPO related cost (MDKK) 6.8 - EBT (MDKK) (1.5) (3.0) 4
Slide 5: Financial results Q4-2013 and full year 2013
Financial results Q4-2013 and full year 2013 Q4-2013 Q4-2012 2013 FY 2012 FY Invoiced sales (MUSD) - - 32.6 31,3 Growth - - 4.1% N/A Revenue (MDKK) 44.0 52.3 182 181 Growth (16)% 40% 0.5% 35% Gross Margin 74% 77% 72% 71% EBITDA (MDKK) 10.5 12.6 29.4 39.5 EBIT bf exceptional items (MDKK) 5.1 5.7 8.0
Slide 6: Cash flow Full year 2012 and 2013
Cash flow Full year 2012 and 2013 1,000 DKK 2013 FY 2012 FY Profit before tax 1,796 17,282 Net cash flow from operating activities 23,538 49,267 Investments in Product development (26,446) (18,433) Net cash used in investments activities (31,525) (21,895) Issue of shares 100,105 3,625 Net cash flow
Slide 7: 2013 growth in underlying business
2013 growth in underlying business USD exchange rate creates headwind Growth Influencing factors: 4,5% - Lower US Dollar to Danish 4,0% Kroner exchange rate 3,5% - Revenue recognition and 3,0% accounting adjustments 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% Invoiced in USD FX headwind* Adjustments Reported reve
Slide 8: Gross margin Continued improvements
Gross margin Continued improvements Gross margin Margin development: - Transition towards higher 76% speed products 74% - Operational excellence and 72% improvements 70% - Development in APAC business 68% 66% 64% 62% 2010 2011 2012 2013 8
Slide 9: High EBITDA margin Business model strength
High EBITDA margin Business model strength EBITDA margin Q4 EBITDA margin: - Cost monitoring 40% - Gross margin effect 35% - Option charge adjustment 30% 25% 20% 15% 10% 5% 0% Q1'13 Q2'13 Q3'13 Q4'13 9
Slide 10: 2013 YoY geographical growth
2013 YoY geographical growth Effects driven by US market Revenue Growth Geographical split: - Growth in APAC and 20% EMEA less affected by US - North America affected by 15% the market conditions in 10% 2nd half of 2013 5% 0% -5% NAM* EMEA APAC * Includes LAM sales 10
Slide 11: YoY geographical development Major regions
YoY geographical development Major regions Q4’13 Revenue Growth Geographical split: NAM EMEA - North American primary 0% impact to the business -10% - Geographical variances -20% - Large historical -30% fluctuations YoY Revenue Growth - EMEA recovery 80% - Growth in APAC 60% 40% 20% 0% -20% -40% Q3'
Slide 12: Recent events & shareholder status
Recent events & shareholder status 12
Slide 13: Recent business events
Recent business events Recognition and new opportunities − Release of new functionality to support the growing mobile market requirement for improving Quality of Experience in mobile networks − Napatech named Gold Winner in the Network Visibility Innovations category by the Golden Bridge Awards for
Slide 14: Top 20 shareholders January 31, 2014
Top 20 shareholders January 31, 2014 Shareholders 1 - 10 Shareholders 11 - 20 Investor Type Country (%) Investor Type Country (%) Ferd AS Ordinary Norway 22,25 DTU Invest rep. ved Sympion Ordinary Denmark 2,04 Northzone IV K/S Ordinary Denmark 22,00 Northzea Management Ordinary US 1,48 Skandinaviske
Slide 15: Strategic direction and focus
Strategic direction and focus 15
Slide 16: Napatech strategic direction
Napatech strategic direction Growing by focused execution Become the de-facto standard in any network management and security products Develop current Develop Expand Enhance and new verticals and product brand customer base geographies portfolio leadership 16
Slide 17: Developing customer base
Developing customer base Recent design win summary − 10 Gigabit design win at new US customer for Next Gen Firewall Design wins underline: Appliance, targeting enterprise, trading & industrial control systems - Pipeline of new customers - Expansion of business with − 10 gigabit design win for real t
Slide 18: Geographical expansion
Geographical expansion Executing on our plan − Enhancing our presence in Brazil is progressing according to our plans. Currently in final process obtaining special import classification, expecting grant of reduced import tax − Added Napatech local sales presence in Ottawa, Canada enhancing our relat
Slide 19: Expanding product portfolio
Expanding product portfolio 100 Gigabit intelligent adapter − Enhanced software package enabling easy migration path to all new Napatech products – streamlined functionality, ease of use and guaranteed line-rate performance for all our available operating systems (Linux, BSD and Windows) − New 10 Gi
Slide 20: Market outlook and management guidance
Market outlook and management guidance 20
Slide 21: Explosion in mobile traffic
Explosion in mobile traffic 10X growth in smartphone traffic 2013 to 2019 Mobile subscriptions growing with more than 2 Napatech solutions help operators billion by 2019 reaching 9.3 billion monitor and manage the health of 2013 2019 their networks and also ensure Mobile broadband subscriptions seei
Slide 22: Security is critical to everyone
Security is critical to everyone Breaches becoming extremely expensive Identities exposed in 2013 through attacks, Napatech solutions helps customers 343M human & system failure1 protect business critical information from data leaks and outside attacks, safeguarding personal information Average cost
Slide 23: Management outlook & guidance
Management outlook & guidance Business growth drivers − The general climate for network infrastructure investments are Guidance for full year expected to improve during 2014, especially in 2nd half of 2014 2014 is maintained at: − Our new 10 and 100 Gigabit product lines and expansion of our - Reven
Slide 24: Questions and answers session
Questions and answers session 24
Slide 25: Important Notice
Important Notice This presentation includes and is based, areas and industries that are or will be employees will have any liability to you inter alia, on forward-looking information major markets for Napatech A/S’ or any other persons resulting from your and statements that are subject to risks bus