Smartoptics Group Asa · OSL:SMOP
Smartoptics Group Asa — Q2 2023 Earnings Presentation
21 slides from Smartoptics Group Asa's earnings presentation, Aug 23, 2023
Slide 1: Financial Presentation Q2 2023
Financial Presentation Q2 2023 August 23, 2023
Slide 2: Today's agenda
Today’s agenda • Q2 2023 highlights • Smartoptics – strong position in a large untapped market • Q2 2023 financials • Wrap-up and outlook
Slide 3: Continued growth and solid profitability in Q2 2023
Continued growth and solid profitability in Q2 2023 Revenue Revenue Growth Gross Margin Q2: 17.0 MUSD Q2: +16.3% Q2: 49.2% YTD: 31.1 MUSD YTD: +17.4% YTD: 49.9% EBITDA Margin EBIT1 Margin Operating Cash Flow Q2: 18.7% Q2: 16.0% Q2: - 1.6 MUSD YTD: 18.6% YTD: 15.8% YTD: +4.2 MUSD Note: 1) EBIT equals
Slide 4: Highlights of Q2 and key initiatives for 2023
Highlights of Q2 and key initiatives for 2023 Key events during Q2 2023 Building a stronger Smartoptics in 2023 • Continued good momentum in Enterprise and typical Smartoptics • Continued to strengthen organization with focus on R&D to customers. 400 Gbit/s demand is still strong capture larger acco
Slide 5: Today's agenda
Today’s agenda • Q2 2023 highlights • Smartoptics – strong position in a large untapped market • Q2 2023 financials • Wrap-up and outlook
Slide 6: Founded in 2006 Smartoptics is a challenger in optical communication
Founded in 2006 Smartoptics is a challenger in optical communication – addressing a global market Customers Large enterprises Cloud providers and internet exchanges CSP: Telecom & network operators Market and Key Trends Products and Solutions • Ever increasing demand for bandwidth • High-capacity op
Slide 7: The market for fiber optical network equipment is worth 16 billion USD worldwide
The market for fiber optical network equipment is worth 16 billion USD worldwide • 16 billion USD world market • Key driver is data growth • Open and disaggregated – 50% is Metro – Cloud migration & new data centers solutions – 50% is EMEA and North America – Migration to 400Gbit/s – Shift toward mo
Slide 8: Smartoptics gaining market share steadily in a field of 6-7 significantly larger players
Smartoptics gaining market share steadily in a field of 6-7 significantly larger players Market shares 2023 YTD (June 30) Smartoptics market share development 2019-2023 YTD Metro WDM EMEA and North America Metro WDM EMEA and North America combined Other Smartoptics Other Smartoptics Cisco 1.7% Ribbo
Slide 9: Smartoptics is well positioned for long term growth
Smartoptics is well positioned for long term growth Key assets Milestones • Attractive and future-oriented technology – open and cost- • Improving product offering addressing the service provider efficient metro market: – Expanded offering in Open line systems • Well positioned in small and medium-s
Slide 10: Continued strong financial development
Continued strong financial development Revenue and profitability development Key milestones • Continuous expansion of product portfolio creates foundation for sustained growth 60 26% 57.4 – DCP-M (launched 2017) 55 24% – DCP-F (launched 2020) 22% – DCP-R (launched 2022) 50 45.9 17.5 20% – DCP-404 Mu
Slide 11: Today's agenda
Today’s agenda • Q2 2023 highlights • Smartoptics – strong position in a large untapped market • Q2 2023 financials • Wrap-up and outlook
Slide 12: Strong growth in business areas Solutions, Software & Services
Strong growth in business areas Solutions, Software & Services Revenue by business area Q2 specific development • Software and Services showing very strong (MUSD) growth 1.8 (10%) • Solutions again above 30% growth +92% 0.9 (7%) • Devices not growing following a strong Q1. 4.7 (27%) YTD flat develop
Slide 13: EMEA drove the growth in Q2, growth in Americas despite lack of 5G related projects
EMEA drove the growth in Q2, growth in Americas despite lack of 5G related projects Revenue per Region and Quarter – Last 5 quarters (MUSD) Americas EMEA APAC +28% +4% 8.6 8.5 8.1 7.7 7.4 7.3 6.7 6.2 6.1 6.2 +30% 1.0 0.7 0.7 0.7 0.6 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2022 2023 2022 2023 20
Slide 14: Solid financial position – reduced inventory levels
Solid financial position – reduced inventory levels Balance Sheet Jun 30, 2023 Working Capital Development past 5 quarters (MUSD) (MUSD) 19.1 19.4 43.4 43.4 2.9 15.5 15.9 15.8 5.4 9.4 17.9 15.4 15.9 15.4 13.2 14.1 11.9 10.7 11.5 10.1 2.8 33.5 Q2 Q3 Q4 Q1 Q2 Inventories Trade Receivables Working Capi
Slide 15: Continued revenue growth and solid profitability
Continued revenue growth and solid profitability Revenue (MUSD) Gross Margin (%) EBITDA & EBIT (MUSD) +16% EBITDA 17.5 17.0 EBIT 14.6 50.7% 13.5 14.1 49.2% 47.2% 47.4% 40.0% 3.3 3.0 2.9 2.6 3.2 2.7 2.8 2.4 2.6 2.2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 EBITDA & EBIT Margin (%) Return on Capita
Slide 16: Today's agenda
Today’s agenda • Q2 2023 highlights • Smartoptics – strong position in a large untapped market • Q2 2023 financials • Wrap-up and outlook
Slide 17: Long term ambitions stay firm
Long term ambitions stay firm 2025/26 2023 Q2 aspirations 17.0 MUSD Revenue ~100 MUSD (LTM 62.0 MUSD) Gross margin 49.2% ~45% EBITDA margin 18.7% ~17-20% EBIT margin 16.0% ~13-16% 17
Slide 18: Profit and Loss Statement
Profit and Loss Statement Profit and Loss Statement Q2 2023 Comments to Q2 events kUSD • Continued strengthening of the 2023 2022 Change organization with focus on R&D drives Q2 Q2 employee expenses Total revenue and other operating income 16 989 14 608 +16.3% Direct cost of sales 8 637 7 713 Employ
Slide 19: Cash Flow Statement
Cash Flow Statement Cash Flow Statement for Q2 of 2023 Comments Amounts in USD 1,000 2023 Q2 2022 Q2 • Dividend pay out of 4.4 million USD in May Cash flows from operating activities 2023 included in “financing activities” Profit/(loss) before income tax 3 043 3 423 Adjustments for Taxes paid Deprec
Slide 20: Balance Sheet
Balance Sheet Balance Sheet for Jun 30, 2023 kUSD kUSD 2023 2022 2023 2022 Q2 Q2 Q2 Q2 Intangible assets 897 826 Share capital 179 193 Property, plant and equipment 2 654 1 301 Share premium 11 715 12 665 Right of use assets 2 149 1 693 Other paid in capital 139 151 Noncurrent receivables against re
Slide 21: Thank you
smartoptics Thank you