Ceragon Networks Ltd. · NASDAQ:CRNT
Ceragon Networks — Investor Presentation (August 2020)
20 slides from Ceragon Networks's investor presentation, August 2020
Slide 1: The #1 Wireless Hauling Specialist Positioned to Lead in a Growing Market
THE #1 WIRELESS HAULING SPECIALIST POSITIONED TO LEAD IN A GROWING MARKET Investor Presentation // August 2020 Proprietary and Confidential
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-loo
Slide 3: Ceragon at a Glance
CERAGON AT A GLANCE INNOVATIVE MARKET LEADER GLOBAL COMPANY 4G & 5G NETWORK ENABLER COMPANY SNAPSHOT Customers who choose based on value of Significant activity in each region technology select Ceragon +2,000 TOTAL CUSTOMERS +1M SYSTEMS DEPLOYED COUNTRIES WITH +140 SYSTEMS DEPLOYED % of revenue Last
Slide 4: We Do Wireless Hauling
WE DO WIRELESS HAULING CRITICAL TECHNOLOGY FOR 4G AND 5G NETWORKS WIRELESS HAULING – AN ALTERNATIVE TO FIBER DEPLOYMENT AN ESSENTIAL PART OF ANY NETWORK EVOLUTION FOR FASTER AND MORE COST-EFFECTIVE DEPLOYMENTS Connects approximately 50% of all cell sites globally (current & forecast) Proprietary and
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS POSITIONED TO LEAD IN THE GROWING 5G MARKET 5G CERAGON A GROWING MARKET POSITIONED TO LEAD AND TAKE MARKET SHARE Market growth driven by 5G opportunities for • Leading wireless hauling specialist service providers • Unique technology Microwave & millimeter-wave global revenues
Slide 6: COVID-19 Impacts the 5G Market: Short Term Risk, Long Term Gain
COVID-19 IMPACTS THE 5G MARKET: SHORT TERM RISK, LONG TERM GAIN BROADBAND: THE NEW ESSENTIAL UTILITY • Telecom and broadband services are the new lifeline • There is a surge in network capacity demand • Some service providers are taking action to ramp up their network infrastructure • 5G use-cases a
Slide 7: The Growing 5G Market
THE GROWING 5G MARKET 5G EXPECTED TO CREATE OPPORTUNITIES FOR SERVICE PROVIDERS New revenue streams via new service offerings & additional target markets differentiated service for WFH 5G to drive growth Combined with Accelerating deployment in number of connections significant growth in traffic of
Slide 8: 5G Operator Opportunities Drive Market Growth
5G OPERATOR OPPORTUNITIES DRIVE MARKET GROWTH… …WHILE CREATING NETWORK CHALLENGES OF A DIFFERENT SCALE THAN 4G 5G EXPECTED TO CREATE OPPORTUNITIES FOR SERVICE PROVIDERS New revenue streams via new service offerings & additional target markets differentiated service for WFH NETWORK New New New TRENDS
Slide 9: Best-of-Breed Vendor Strategies and Vertical Integration
GROWING 5G NETWORK COMPLEXITY DRIVES OPERATORS TO ADOPT BEST-OF-BREED* VENDOR STRATEGIES ‘BEST-OF-BREED’ LEADERSHIP THROUGH UNIQUE VERTICAL INTEGRATION BEST-OF-BREED MARKET SEGMENT REVENUE - 2019 USD [M] 4000 Other Ceragon, 15% 17% TURNKEY 3500 3000 Vertical integration SERVICES 2500 1720 Nokia Best
Slide 10: Best-of-Breed Leadership Drivers
BEST-OF-BREED LEADERSHIP DRIVERS BUILT ON VERTICAL INTEGRATION CHIPSET ALL - OUTDOOR NETWORK DISAGGREGATED WIRELESS HAULING UNIQUE MULTICORE TECHNOLOGY BEST-FIT FOR NETWORK EXPANSION PIONEERING OPEN NETWORKS IN THE HAULING DOMAIN FAST DEPLOYMENT | SIMPLE SITE ACQUISITION LOW TOTAL NETWORK INVESTMENT
Slide 11: Unique Technology Built on Vertical Integration
UNIQUE TECHNOLOGY BUILT ON VERTICAL INTEGRATION HIGHEST INDUSTRY RADIO CAPACITY DISAGGREGATED SOFTWARE AT ANY SPECTRUM WIRELESS HAULING DEFINED NETWORKING CAPACITY Network Orchestrator 100Gbps SDN APPS Hierarchical Controller 50Gbps SDNMASTER Radio Wireless hauling Vertical integration domain contro
Slide 12: Complete Network Lifecycle Support
COMPLETE NETWORK LIFECYCLE SUPPORT BUILT ON VERTICAL INTEGRATION • Network planning & design • Network topology optimization Vertical integration • Network rollout planning • Network rollout execution and support • Customer support • Preventive maintenance • NOC operation • Predictive Analysis • Inf
Slide 13: Serving Customers Worldwide
SERVING CUSTOMERS WORLWIDE PRESENT EVERYWHERE TO CAPITALIZE ON 5G Tier-1 Operator 5G Proprietary and Confidential
Slide 14: Financials
FINANCIALS Proprietary and Confidential 14
Slide 15: Track Record of Execution
TRACK RECORD OF EXECUTION • Consistently profitable from 2015-2018 (Revenue) (in millions) (Net Income) $400 $40 371 • 2019 results negatively impacted by lower revenue 349 344 $350 332 from India and $3.3 million in one-time items $30 294 286 • Focus on maximizing gross profit dollars $300 $20 17.5
Slide 16: Strong Balance Sheet
STRONG BALANCE SHEET • Positioned to weather challenges (U.S. dollars in millions) (Unaudited) • Positive cash flow of $4 million from operations and investing activities a/o June 30, 2020 • Short-term bank debt: >$20.3 million unused Cash & cash equivalents 35.2 borrowing capacity Short-term loans
Slide 17: Characteristics of Operating Model
CHARACTERISTICS OF OPERATING MODEL Good management of controllable elements Quarterly Operating Model • Deals accepted based on contribution to gross profit dollars 110 40% • Tendency toward trade-off between revenue and gross margin 100 90 35% • Stringent control of operating expenses 80 30% 70 Qua
Slide 18: Summary
SUMMARY Proprietary and Confidential 18
Slide 19: Positioned to Capitalize on Accelerated, Multi-Year Evolution to 5G
POSITIONED TO CAPITALIZE ON ACCELERATED, MULTI-YEAR EVOLUTION TO 5G + Leading player in a market which is expected to accelerate growth + Differentiated, technologically-advanced platforms that give operators a time-to-market, flexibility and capacity advantage + Competitive strengths position us to
Slide 20: The #1 Wireless Hauling Specialist
THE #1 WIRELESS HAULING SPECIALIST Proprietary and Confidential
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