Slide 1: Q4 2016 Presentation
Q4 2016 PRESENTATION February 14th, 2017 – Henrik Brill Jensen, CEO Napatech A/S Copyright 2016 1 Napatech A/S Copyright 2016
Slide 2: Financial Highlights Q4 2016
Financial Highlights Q4 2016 2016 – full year EBITDA in Q4 2016 was 28.0 MDKK Revenue 234.7 MDKK 8% growth 11.7 MDKK increase compared to Q4 2015 EBITDA margin 19% 30% EBITDA margin in Q4 2016 USD sales in Q4 2016 was 13.3 MUSD EBIT in Q4 2016 was 17.7 MDKK 27% increase compared to Q4 2015
Slide 3: Financial Results Q4 2016
Financial Results Q4 2016 Q4’16 Q3’16 Q4’15 Revenue (MDKK) 92.3 49.6 69.9 Growth YoY* 32% (18%) 44% Gross Margin 66% 71% 73% EBITDA (MDKK) 28.0 6.1 16.3 EBT (MDKK) 17.7 (3.0) 7.5 Cash flow from operating activities (MDKK) 5.7 10.0 31.1 Cash and cash equivalents, end of quarter (MDKK)** 47.0 48.0 75.
Slide 4: Q4 2016 Revenue
Q4 2016 Revenue Sales / Revenue Growth (YoY) Influencing factors: 35% The growth is primarily driven by our Pandion business and recent Accelerator design wins 30% Currency, revenue recognition and 25% accounting adjustments have some effect as we have seen the USD 20% exchange rate increase tow
Slide 5: Gross Margin Development
Gross Margin Development Gross Margin Gross margin development: The gross margin in Q4’16 is at 66%, 80% which brings the overall gross margin for 2016 to the expected level of 70% 75% The gross margin in Q4’16 is affected by changes in the product-mix and enhanced Pandion sale 70% 65% 60% 2011
Slide 6: EBITDA Margin
EBITDA Margin EBITDA Margin Q4 2016 EBITDA margin: 35% EBITDA margin is higher in Q4 compared to last year, this underlines the high scalability in Napatech’s 30% business, has higher revenue drives the EBITDA margin up 25% 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 2015 2016 6 Napatech A/S Copyright 2016
Slide 7: Growth in NAM and EMEA
Growth in NAM and EMEA Quarterly Revenue in MDKK Geographical split: North America showed a growth of 70 25% compared with Q4 2015, related to a couple of large OEM customers 60 EMEA showed a significant growth of 50 143% driven by ramp up of design wins secured in 2016, and one-off 40 projects
Slide 8: 2016 Key Financial Focus Areas
2016 Key Financial Focus Areas Full year compared to 2016 target & 2015 2016 Full Year Our focus areas Target Comment 2016 Target compared to 2015 Revenue Delivered to guidance 5 - 15% growth 8% growth Gross Margin Influenced by new product line(s) and go to market strategy ~ 70% 70% Overall Costs I
Slide 9: This is Napatech
This is Napatech Napatech A/S Copyright 2016 9 Napatech A/S Copyright 2016
Slide 10: Key Internet Trends fueling our Business
Key Internet Trends fueling our Business Fundamental Needs of Users Increasing internet dependence Services More moving to Stay connected sophisticated the cloud services and usage Be secure Higher network Exploding speeds volumes of data 10 Napatech A/S Copyright 2016
Slide 11: Enabling Connectivity and Security
Enabling Connectivity and Security Fundamental to our Internet Dependence Network Management Cybersecurity Applications ensuring Applications ensuring users stay connected users be secure Napatech Smarter Data Delivery Users Services 11 Napatech A/S Copyright 2016
Slide 12: Smarter Data Delivery at a Glance
Smarter Data Delivery at a Glance The Data Journey Click on Picture to start Video 12 Napatech A/S Copyright 2016
Slide 13: Smarter Data Delivery Targeting High-Value, Hi-Need Industries
Smarter Data Delivery Targeting High-Value, Hi-Need Industries Telecom Financial Cloud and Infrastructure Operators Services Data Center and Defence Data for assuring a Data for Data for ensuring Data for systems reliable and secure ensuring efficient, the accessibility and securing people and mobil
Slide 14: Smarter data. Delivered. our Strategic Ambition
Smarter data. Delivered. our Strategic Ambition Our ambition is to be the #1 vendor for Smarter Data Delivery Solutions – providing a 100 MUSD top-line by 2020 Our strategy is powered by major global trends within Mobile, ACCELERATOR SOLUTIONS Cyber Security, Virtualization and IOT, as well as c
Slide 15: Business Highlights
Business Highlights Napatech A/S Copyright 2016 15 Napatech A/S Copyright 2016
Slide 16: Design-win effect on Q4 Revenue
Design-win effect on Q4 Revenue Strong Performance by recent Design Wins Q4 2016 delivered a record high revenue, coming from both Accelerators and Pandion product lines – recent design wins and new customers contributed significantly to the growth The Pandion business delivered the following gr
Slide 17: Recent Design Wins
Recent Design Wins 10 Gigabit design win with European based network security company for a Public Infrastructure and Defense solution 10 Gigabit design win for a Tier 1 North American test & measurement equipment manufacturer for a Telecommunication solution 40 Gigabit design for a North Amer
Slide 18: Business Outlook
Business Outlook Napatech A/S Copyright 2016 18 Napatech A/S Copyright 2016
Slide 19: Management Outlook 2017
Management Outlook 2017 Napatech´s strategy is to be the #1 vendor of Smarter Data Delivery Guidance for 2017: Solutions, based on market expansion, product line investment and Revenue growth of 10% - 20% strong Tier 1 customer penetration Gross margin around 68% Based on the growth of 8% in
Slide 20: Q&A Session
Q&A Session Save the Date: Capital Market Day in Oslo on April 5’th, 2017 Stay Informed - Follow Napatech! Want to learn more? About Napatech, Smarter Data Delivery, Virtualization, IOT, 100 Gigabit …. and other trends in the industry Sign up for the Napatech News Sign up for Oslo Exch. News
Slide 21: Important Notice
Important Notice This presentation includes and is based, inter alia, on products and services, changes in governmental considered in connection with the information given forward-looking information and statements that are regulations, interest rates, fluctuations in currency orally during the pres
Slide 22: Thank you
Thank you Napatech A/S Copyright 2016 22 Napatech A/S Copyright 2016