Napatech A/s · OSL:NAPA

Napatech A/s — Q3 2021 Earnings Presentation

21 slides from Napatech A/s's earnings presentation, Nov 4, 2021

  1. Slide 1: 3Q 2021 Interim Management Statement

    3Q 2021 Interim Management Statement Ray Smets Heine Thorsgaard CEO CFO 3 November 2021 NAPATECH A/S © COPYRIGHT 2021 3 November 2021

  2. Slide 2: Q&A Session at the end of the presentation

    Q&A Session at the end of the presentation DK: +45 78 15 01 10 NO: +47 23 50 02 36 US: +1 646 722 4904 UK: +44 3333 009 266 To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. Texted question can be submitted using the button on the website. NAPATEC

  3. 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

  4. Slide 4: 3Q 2021 IMS Report Topics

    3Q 2021 IMS Report Topics • The Future is Bright for Napatech • 3Q 2021 Business Highlights • 3Q 2021 Financial Results • 2021 Outlook • Q&A NAPATECH A/S © COPYRIGHT 2021 3 November 2021 4

  5. Slide 5: The Future is Bright for Napatech

    The Future is Bright for Napatech NAPATECH A/S © COPYRIGHT 2021 3 November 2021 5

  6. Slide 6: Napatech Builds SmartNICs and SmartNIC Software

    Napatech Builds SmartNICs SmartNICsand SmartNIC Software Napatech SmartNICs Accelerate Server-based Applications • We design high-performance programmable SmartNICs to offload servers and accelerate apps • Our software powers the SmartNICs - our key strategic advantage NAPATECH A/S © COPYRIGHT 2021

  7. Slide 7: The Evolution of the SmartNIC is the IPU

    The Evolution of the SmartNIC is the IPU • We are enhancing our SmartNIC HW solutions to include x86 and ARM CPU cores (IPU) • We are investing in our SmartNIC SW to power our expanding SmartNIC HW portfolio • We have built key partnerships to take a leading role as this evolution occurs • Our ambit

  8. Slide 8: The Opportunities for Napatech Have Never Been More Compelling

    The Opportunities for Napatech Have Never Been More Compelling Faster Growing Emergence of SmartNIC Next Generation Telecom OEM Market IPU Tier-2 Cloud Time: NOW FPGA + CPU Enterprise Hyperscale 2025: $3.6B Growing Significant Progress Opportunities Will Be with Strategic Transformational Partnershi

  9. Slide 9: Napatech is Accelerating Investment in Link-Virtualization

    Napatech is Accelerating Investment in Link-Virtualization Full Steam Ahead • We see a large opportunity in fast- • Napatech is increasing investments in growing virtual use-cases targeting software development to accelerate feature modern cloud, mobile/telco, enterprise velocity within this evolvin

  10. Slide 10: 3Q 2021 Business Highlights

    3Q 2021 Business Highlights NAPATECH A/S © COPYRIGHT 2021 3 November 2021 10

  11. Slide 11: 3Q 2021 Continues Streak of Solid Business Results

    3Q 2021 Continues Streak of Solid Business Results • Growing & Profitable • 3Q 2021 YoY Revenue Growth +7% • Gross Margins 3Q of 73.1% • EBITDAC & EBITDA 3Q Positive and up YoY • Earnings are Positive YTD, up 15.1 DKKm YoY • Free Cash Flow 3Q of 4.3 DKKm • Free Cash Flow YTD is +12.1 DKKm adjusted f

  12. Slide 12: 2021 Continues with Positive YoY Results

    2021 Continues with Positive YoY Results Revenue over the last three YTD periods YTD positive earnings demonstrates underscore the strength and stability of business leverage and longer-term Napatech’s business profitable operation $M Revenue DKKm DKKm Result for the period 25 160 25 141.8 22.6 140.

  13. Slide 13: Q3'21 Wins: Top Brands Deploy Napatech

    Q3’21 Wins: Top Brands Deploy Napatech Networking & Security Telecom & Cloud Government & Defense Financial / Other Increasing speeds, 5G increases speeds, Mission-critical apps Faster networks & evolving threats users & devices, need zero packet nanosecond require performance greater software loss,

  14. Slide 14: Napatech Increases Pricing Reacting to Global Supply Chain Situation

    Napatech Increases Pricing Reacting to Global Supply Chain Situation • Napatech issues price increase effective Jan 2022 for all impacted products • Costs have jumped significantly in Q4’21 for all SmartNIC components • Additionally, proactive sourcing of SmartNIC components requires deploying more

  15. Slide 15: 3Q 2021 Financials

    3Q 2021 Financials NAPATECH A/S © COPYRIGHT 2021 3 November 2021 15

  16. Slide 16: Consolidated Income Statement Q3 & YTD 2021

    Consolidated Income Statement Q3 & YTD 2021 Q3 YTD Q3 YTD DK K '000 2021 2020 2021 2020 ∆ ∆ Key Highlights Reven u e 47,247 44,352 140,479 141,755 7% -1% • Revenue in Q3 in USD up 7% compared to Q2’20 Cost of goods sold (12,699) (13,280) (39,808) (40,537) (up 7% in DKK). Revenue YTD in USD up 6% Gro

  17. Slide 17: Consolidated Cash Flow Statement Q3 & YTD 2021

    Consolidated Cash Flow Statement Q3 & YTD 2021 Q3 YTD DK K '000 2021 2020 2021 2020 Key Highlights Earn in gs befo re tax ( EBT) 7,941 947 19,663 3,693 • Net Cash flow from operating activities in Q3 Adjustments to reconcile profit before tax to net cash flows 5,390 8,029 12,537 21,719 DKK 12.7m – Y

  18. Slide 18: 2021 Outlook

    2021 Outlook NAPATECH A/S © COPYRIGHT 2021 3 November 2021 18

  19. Slide 19: Annual Guidance for 2021 - Unchanged

    Annual Guidance for 2021 - Unchanged Guidance Key Highlights Revenue DKK 210-230m • Napatech remains confident in partner and customer progress Gross margin 70-72% impacting our pipeline development for Q4. Staff expenses & Other external costs DKK 125-135m • Despite component pricing Transferred to

  20. Slide 20: Why Invest In Napatech?

    Why Invest In Napatech? EXCITING REVENUE, STABLE DELIVERING WINNING MARKET CASH FLOW & PRODUCT TOP POTENTIAL & GROWING INNOVATION CUSTOMER EARNINGS BRANDS NAPATECH A/S © COPYRIGHT 2021 3 November 2021 20

  21. Slide 21: Q&A Session at the end of the presentation

    Q&A Session at the end of the presentation DK: +45 78 15 01 10 NO: +47 23 50 02 36 US: +1 646 722 4904 UK: +44 3333 009 266 To ask a question, press ZERO ONE on your telephone keypad. To withdraw your question, press ZERO TWO. Texted question can be submitted using the button on the website. NAPATEC

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