Slide 1: Investor Presentation FY 2023 Results
6 March 2024 Investor Presentation FY 2023 Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Ekinops. This presentation is not for purely indicative. It does not constitute an offer or invitation for the sale or onward distribution. Neither the whole nor any part of the information in this purchase of securities or any of the businesses or a
Slide 3: Speakers
Speakers Didier Brédy Dmitri Pigoulevski CEO CFO 3 Classification : public
Slide 4: Ekinops' Mission Statement
Ekinops’ Mission Statement To provide open, trusted and innovative network connectivity We enable our customers’ success by delivering high value-added software-driven solutions Open Trusted Innovative 4 Classification : public
Slide 5: We provide open, trusted and innovative network connectivity solutions
We provide open, trusted and innovative network connectivity solutions FY 2023 revenue: 129.1 m€ - FY 2023 EBITDA: 18.6 m€ • 2021: +12% growth – 16.9% EBITDA • 2022: +23% growth – 17.7% EBITDA THREE • 2023: +1% growth – 14.4% EBITDA ACTIVITIES Staff: +500 people (End-2023) 1 Optical Transport • 55%
Slide 6: Ekinops' Portfolio
Ekinops’ Portfolio Network Management System SBC, SD-WAN, FW, SDN-NFV Edge Computing COMPOSE Solutions for Software Defined Networks & Network Management System Software Hardware ONEACCESS EKINOPS360 Data & Voice WDM,OTN L1 Routers Ethernet Device L2, L3 Optical Transport Solutions for Metro / Long-
Slide 7: Why we win ... and Deliver !
Why we win ... and Deliver ! Access Transport OneOS6, a unique Operating System incl. routing Proprietary optical interface Runs on physical/special-purpose CPEs (pCPEs) 1 Designed in-house with off-the-shelf components, or universal/virtualized CPEs (uCPEs) highly differentiated in performance and
Slide 8: Customers: Operators & Service Providers
Customers: Operators & Service Providers 1/3rd of the top 100* are customers More than 3 million routers deployed OneAccess : Top 3 in our segment +50% of Ekinops360 installed-base in the USA * Total Telecom Global 100 Business Analysis 8 Classification : public
Slide 9: Activity & Highlights FY 2023
ACTIVITY & HIGHLIGHTS FY 2023
Slide 10: FY 2023: +1% revenue growth
FY 2023: +1% revenue growth • 129.1 m€ revenue in FY 2023: +1% growth • +2% growth at constant exchange rates 127.6m€ 129.1m€ • +9% sequential growth in Q4 2023 (vs. Q3 2023) • Declining demand and economic slowdown in H2 2023 • +27% growth in Optical Transport, -15% decline in Access • Continued st
Slide 11: Double-digit growth in North America and EMEA
Double-digit growth in North America and EMEA EMEA France North America Asia-Pacific (excl. France) 32% 41% 25% 2% vs. 36% vs. 34% vs. 23% vs. 7% in FY 2022 in FY 2022 in FY 2022 In FY 2022 -11% decline Robust increase of +6% growth -65% decline +23% Economic slowdown despite a very challenging Reve
Slide 12: FY 2023 Top 10 clients
FY 2023 Top 10 clients % revenue Change Geography Business 2023 vs.2022 Client #1 France Access 20% -9% Client #2 EMEA Transport 8% - • +11% revenue growth on Top 10 clients Client #3 Noram Transport 6% +8% • Strong growth for 3 Top 10 clients in Europe Client #4 EMEA Access 5% +251% o Client #4: +2
Slide 13: Key 2023 business highlights
Key 2023 business highlights Availability of New CFP2-based 400G MEF 3.0 Carrier Ethernet certification for Ekinops upgrades Strata Networks’ Transport Solution, offering lower cost, Ekinops’ entire Ethernet Access Device Optical transport network using the lower power coherent solutions than what p
Slide 14: Further progress in sustainable performance in 2023
Further progress in sustainable performance in 2023 Reduced carbon footprint First CoP* published reduction in tons of CO2 emissions on testifying to the progress on implementing revenue (tCO2e/m€) by -40% vs. 2022 the Ten Principles and helping reach the 17 Sustainable Development Goals 3 strategic
Slide 15: Financial Results FY 2023
FINANCIAL RESULTS FY 2023
Slide 16: P&L (1/2)
P&L (1/2) • Steady (in €) gross margin vs. +7% increase in operating expenses In €m - IFRS - Audited 2022 2023 Var. • R&D : +2.8 m€ Revenue 127.6 129.1 +1% • increase in staff: +3.5m€ of staff & contractors costs • increase of +0.4 m€ in amortization Gross margin 67.6 67.3 n.s. • off-set by -1.1 m€
Slide 17: EBITDA margin of 14.4% in 2023
EBITDA margin of 14.4% in 2023 EBITDA EBITDA margin (in m€) (in % of revenue) 17.7% 14.4% 16.9% 16.0% 15.9% 22.6 m€ 18.6 m€ 17.6 m€ 12.4% 15.0 m€ 14.8 m€ 10.4 m€ 2018 2019 2020 2021 2022 2023 17 Classification : public
Slide 18: P&L (2/2)
P&L (2/2) €m - IFRS - Audited 2022 2023 Var. EBITDA(1) 22.6 18.6 -18% % of revenue 17.7% 14.4% • amortization expenses of 12.1 m€, including 5.3 m€ Amortization -tangible & intangible assets (3.6) (4.6) of PPA technologies (vs 11.8 m€ & 6.3 m€ in 2022) Amortization -Technologies (PPA) (6.3) (5.3) Am
Slide 19: Cash-Flow Statement
Cash-Flow Statement €m - IFRS - Audited 2022 2023 Cash flow before working capital & 23.6 17.8 taxes • Working capital decrease in H2 2023, due to business Change in operating working capital (13.6) (3.3) slowdown and optimal cash management Tax paid (0.6) (1,0) Cash flow from operating activities 9
Slide 20: Net cash of 25.8 m€ by end December 2023
Net cash1 of 25.8 m€ by end December 2023 €m - IFRS - Audited 31/12/2023 Cash & cash equivalent 47.2 • 18.3 m€ of bank loans Financial liabilities2 21.4 • Factoring liabilities: financial assets sold are included in o/w bank loans 18.3 trade receivables o/w factoring liabilities 2.8 • Bank debt rela
Slide 21: Balance sheet
Balance sheet €m - IFRS - Audited 31/12/2022 31/12/2023 €m - IFRS - Audited 31/12/2022 31/12/2023 Non-current assets 79.8 78.8 Shareholders’ equity 113.6 119.4 o/w goodwill 28.5 28.5 Financial liabilities 18.9 21.4 o/w intangible assets 21.1 17.1 o/w bank loans 14.1 18.3 o/w right-of-use assets 6.8
Slide 22: July 2023: New 100 m€ syndicated line of financing
July 2023: New 100 m€ syndicated line of financing to support Ekinops’ external growth strategy • Signing of a 50 m€ loan facility (can be increased to 90 m€) intended for external growth • Aim: to finance one or more M&A transactions and related costs • Maturity: 7 years • Setup of a 10 m€ revolvin
Slide 23: Capital markets snapshot
Capital markets snapshot Shareholding Stock market data (at 4 March 2024) 26,801,716 shares (31 December 2023) • ISIN: FR0011466069 • Ticker symbol: EKI 3.3% • Stock price: 3.90 € 11.9% Management & Employees • Market capitalization: 105 m€ (comp. B) • FY 2023 Daily average liquidity : €190 K 11.8%
Slide 24: Outlook
OUTLOOK Classification : public
Slide 25: What's to come in 2024
What’s to come in 2024 • Access activity severely impacted in H2 2023 • economic slowdown • rising interest rates affecting investment policies and financial health of companies • high level of inventory at service providers’ • expected rebound as the economy recovers • Stabilized market in early 20
Slide 26: Transport 2024: Product news to support our growth
Transport 2024 : Product news to support our growth End to End service creation, alien wave management, optimized network operations High Performance Low Cost 100G Edge OTN 400G/800G • Cost optimized 100G • Latest 135Gbaud DSP • 400 Gbps switching • Long reach and optics capacity in 1RU form • High
Slide 27: Access 2024: Ready to empower the Branch
Access 2024: Ready to empower the Branch Clo aa ud / S S / Edge Ekinops’ Uniqueness Unique Vendor in the world combining all Network Services in a COMPUTING cu VI RT U single device powered by a single OS Se AL / N IZA WA TIO SD- N CE 2024: we should start seeing some return on our DA TA VO I softwa
Slide 28: Thank you
Thank you Ekinops France www.ekinops.com 13 avenue Morane Saulnier, 78140 Vélizy Villacoublay, France www.ekinops.com