Slide 1: Q1 2022 Interim Management Statement
Q1 2022 Interim Management Statement Ray Smets Heine Thorsgaard CEO CFO 3 May 2022 COPYRIGHT © 2022 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 2039 362 999 Participant Access Code: 120516 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: 1Q 2022 IMS Report Topics
1Q 2022 IMS Report Topics • What Excites Us About 2022 and Beyond • Q1 2022 Financial Results • 2022 Outlook • Q&A 4 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S
Slide 5: Our Opportunities Have Never Been More Compelling
Our Opportunities Have Never Been More Compelling Faster Growing SmartNIC Market 2026: Increasing $3.8B FPGA + CPU Investments in Evolving SmartNIC Technology Curve Cybersecurity Network Infrastructure Cloud & Edge Significant Progress with Tier-1 Strategic Growing Access to Partnerships New Design
Slide 6: Our Market is Growing Fast and Napatech is Poised to Accelerate
Our Market is Growing Fast and Napatech is Poised to Accelerate CY21—CY26 CAGR Basic NIC -19.9% $6.4B Offload NIC 10.1% $5.5B Market Share 2021 Programmable NIC 31.3% Grand Total 18.0% $5.0B $4.2B $3.5B $2.8B $2.3B 6 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S
Slide 7: Server Deployments Are Expanding the SmartNIC's Reach
Server Deployments Are Expanding the SmartNIC’s Reach • Server Market growth: $80B in ‘20 to $138B by ‘26 (12% CAGR) • This drives NIC and SmartNIC growth • Networks are built at massive scale to accelerate CPU-hungry • Servers need 2-8 NICs to increase the applications in data centers performance o
Slide 8: Napatech is Well Positioned Amongst Market Players
Napatech’s is Well Positioned Amongst Market Players Highest Performance & Programmability Customers select Napatech because of our software: Production-grade, plug-and-play, high-performance, feature-rich, with feature velocity SOC FPGA Napatech programmable SmartNICs Nvidia deliver hardware perfor
Slide 9: Evolutionary Step for SmartNICs is the IPU/DPU
Evolutionary Step for SmartNICs is the IPU/DPU Microsoft New SmartNic Architectures: Infrastructure Processing Unit (IPU) Data Processing Unit (DPU) Unlocks New Customers and Use Cases: FPGA + CPU Cloud bare-metal servers Hypervisor offload Microservices • We are enhancing our SmartNIC HW solutions
Slide 10: We Are Aggressively Expanding Our SmartNIC Solutions
We Are Aggressively Expanding Our SmartNIC Solutions To Grab More Market Potential Link-400™ (NT-400D13) Link-200™ (NT-200A02) Link-100™ (NT-100A01) Link-25™ (NT-50B01) 10 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S
Slide 11: Napatech's focus on accelerating virtualization networking functions
• Napatech’s focus on accelerating virtualization networking functions •is a key technology direction 11 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S
Slide 12: The 5G Era is Changing Everything in Telecom Infrastructure
The 5G Era is Changing Everything in Telecom Infrastructure • Max speeds of 20 Gigabits per second • 5G is a massive business • Massively lower latency challenge for all telcos • Incredibly faster response times • Major capital investments in new spectrum and infrastructure • Expanding so many possi
Slide 13: Napatech's New SmartNIC Solution Maximizes 5G Performance
Napatech’s New SmartNIC Solution Maximizes 5G Performance Introducing Solution for 5G User Plane Function • Virtual User Plane Function (vUPF) is a key 5G need, but is a CPU-hungry app impacting performance of servers • Our SmartNIC offload solution for 5G vUPF maximizes the user capacity of packet
Slide 14: The Napatech 5G Difference
The Napatech 5G Difference • The “Other Guys” • 50G Throughput • 6M Concurrent Flows The “Other • Flow learning rate of 60K/sec Guys” • 10Mpps throughput • Napatech NT200A02 • 100G Full duplex throughput • 100M Concurrent Flows • Flow learning rate of 2M/sec • 80Mpps (proposed) throughput Napatech h
Slide 15: Key Strategic Developments in 2022
Key Strategic Developments in 2022 • Lenovo continues testing with top APAC cloud and telecom/5G operators • Achronix partnership continues to evolve • Intel Significant Progress • Continued strategic partnership and developments • Napatech first-generation Intel-based SmartNICs coming in 2H-2022 •
Slide 16: Q1 2022 Financial Results
Q1 2022 Financial Results 16 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S
Slide 17: Q1 2022 Financial Results Summary
Q1 2022 Financial Results Summary • Growth YoY • +12% in DKK • +4% in USD • Gross Margins of 51% • Lower margins due to delivery of large HW- only order with plan to buy SW later. • If SW had been shipped with the HW, revenue in Q1 would have been ~$9.5M with 60% GM, about 25% YoY revenue growth • S
Slide 18: Q1'22 Global Customer Wins
Q1’22 Global Customer Wins 200+ global customers with ~75% of revenue from US-based customers in 2021 75% of revenue from OEMs with 25% of revenue from End-Users long-term strategic relationships & across multiple market segments for multi-year product design wins project design wins 18 3 MAY 2022 C
Slide 19: Consolidated Income Statement Q1 2022
Consolidated Income Statement Q1 2022 Q1 Q1 DKK'000 2022 2021 ∆ Key Highlights Revenue 52,237 46,824 12% • Revenue in Q1 in USD up 4% compared to Q1’21 - up 12% in Cost of goods sold (25,600) (14,037) DKK. Gross profit 26,637 32,787 -19% GM% 51.0% 70.0% • GM in Q1 51.0% down 19.0 basis points compar
Slide 20: Consolidated Cash Flow Statement Q1 2022
Consolidated Cash Flow Statement Q1 2022 Q1 DKK'000 2022 2021 Key Highlights Earnings before tax (EBT) (6,589) 5,269 • Net Cash flow from operating activities in Q1 negative DKK Adjustments to reconcile profit before tax to net cash flows 5,379 4,061 0.3m Working capital adjustments 1,005 (21,260) •
Slide 21: 2022 Outlook
2022 Outlook 21 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S
Slide 22: Accelerating Investment & Going For Growth Full Steam Ahead
Napatech’s Accelerating Investment & Going For Growth Full Steam Ahead • We see a large opportunity in fast-growing target • Napatech has increased investments in software use cases in cloud, mobile/telco, enterprise and development to accelerate feature velocity edge datacenters within this evolvin
Slide 23: Annual Guidance for 2022
Annual Guidance for 2022 Key Highlights • Expecting revenue in the range of DKK 235-260m corresponding to growth between 20%-33% compared to 2021. • Component pricing challenges are factored into Gross Margins • Increase to engineering capacity is fully accounted for within outlook • With performanc
Slide 24: Why Invest In Napatech?
Why Invest In Napatech? Profitable and Great reputation Increasing Targeting high scalable business with customers and investments in close growth, very model business partners collaboration with interesting new key industry leaders market segments 24 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S
Slide 25: 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 2039 362 999 Participant Access Code: 120516 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 26: Thank You!
Thank You! NT-0012 Rev.1 3 MAY 2022 COPYRIGHT © 2022 NAPATECH A/S