Adtran Networks Se · XETR:ADV
Adtran Networks — ADVA Optical Networking — Investor Presentation (February 2015)
31 slides from Adtran Networks's investor presentation, February 2015
Slide 1: ADVA Optical Networking Investor Presentation
ADVA Optical Networking Investor Presentation February 2015
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements with words such as “believes”, “anticipates” and “expects” to describe expected revenues and earnings, anticipated demand for optical networking solutions, internal estimates and liquidity. These forward-look
Slide 3: ADVA Optical Networking Today
ADVA Optical Networking Today Mission Key Facts Our MISSION Our NUMBERS is to be >1400 employees the trusted partner EUR 339m revenue for innovative 20 years of innovation connectivity solutions that ADVANCE Our CUSTOMERS next-generation Hundreds of carriers networks for cloud Thousands of enterpris
Slide 4: What We Do
What We Do Social Chat Community Mobility Cloud Innovative Phone Connectivity Partners Email Search Scalable, programmable and secure optical networking solutions for the digital age 4 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 5: Capitalizing on Cloud and Mobility
Capitalizing on Cloud and Mobility Approx. $200 billion Global annual infrastructure investment $15 billion* in optical transport Social Chat Community Cloud & Next-Generation IP Mobility Cloud Services Video Voice Email Partners Search Data Phone Interactive Multimedia Local Experience * 2014 marke
Slide 6: Business Segment Overview
Business Segment Overview Addressable Market 2014* Revenue Contribution 2014** Carrier Ethernet Access EUR 11.0 billion EUR 339.2 million +9.2% vs. 2013 Ethernet Wholesale * Industry analyst estimates for metro WDM equipment (“Optical”) and Ethernet access devices ** Segmental distribution of ADVA O
Slide 7: Our Solutions Overview
Our Solutions Overview FSP Service Manager Carrier Ethernet Access Access Metro Core Ethernet Wholesale Business Ethernet Mobile Backhaul FSP 150 FSP 3000 Carrier Infrastructure Broadband Backhaul Metro Networks Long Haul Private Enterprise Networks Data Center Connectivity Low-Latency Networks Auto
Slide 8: Infrastructure Transformation
Infrastructure Transformation The optical networking renaissance has begun
Slide 9: Cloud & Mobility: the Age of Data Centers
Cloud & Mobility: the Age of Data Centers Network Operators Enterprises Data centers are the new cornerstones of our networked societies 9 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 10: Enabling the Cloud I: Coupling Mega Data Centers
Enabling the Cloud I Coupling Mega Data Centers Private Enterprise Networks Data Center Interconnect Low-Latency Networks Data center Backup center High-speed connectivity to increase data center performance 10 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 11: Enabling the Cloud II: Load-Balancing Mega Data Centers
Enabling the Cloud II Load-Balancing Mega Data Centers FSP Service Manager Carrier Infrastructure Broadband Backhaul Metro Networks Long Haul Open, programmable, optical network Flexible Terabit/s infrastructure for better cloud efficiency 11 © 2015 ADVA Optical Networking. All rights reserved. Conf
Slide 12: Enabling the Cloud III: Secure & Scalable Cloud Access
Enabling the Cloud III Secure & Scalable Cloud Access Carrier Ethernet Access Ethernet Wholesale Business Ethernet Mobile Backhaul Business Ethernet Carrier Mobility Ethernet Next-Generation Access Secure cloud access solutions for fixed and mobile users 12 © 2015 ADVA Optical Networking. All rights
Slide 13: Where is the Networking Focus?
Where is the Networking Focus? Profitable, mass-consumed, video Virtual functions* Popular web content Advertising *NFV (Network Function Virtualization) is going to host virtual functions proximate to the service edge in the metro Enthusiasm for additional (networking) investment is in the metro 13
Slide 14: What Technologies Will Win?
What Technologies Will Win? 5% IT Elements* *Caching/Content Delivery Networks (CDN), 17% Instant Messaging Services (IMS), etc. Non-Optical 23% 55% Networking 60% 40% Optical Networking Source: CIMI corp Jan 2015; Today 2020 http://blog.cimicorp.com/?p=2036 Metro spend on optical networking will gr
Slide 15: Capitalizing on Cloud and Mobility
Capitalizing on Cloud and Mobility Fundamental shift to open, programmable Shift from IPsec to lower layer encryption, optical platforms creating dynamics integrated into our network elements in the existing supply landscape Market leader with 20 years of experience in DCI* 100G inflight encryption
Slide 16: Competitive Overview
Competitive Overview Key Competitors Our ADVAntages Carrier Ethernet Access Timing excellence Mobile Backhaul Intelligent service definition and backhaul Business Ethernet Proven leadership in Ethernet Access Devices Ethernet Wholesale Central and distributed NFV implementations Carrier Infrastructu
Slide 17: Customer-Optimized Sales Model
Customer-Optimized Sales Model Solutions integration OEM NMS integration Long relationships DIRECT CUSTOMER e.g. Regional focus VAR Vertical segments Long relationships Three-pronged distribution model to flexibly address customer needs 17 © 2015 ADVA Optical Networking. All rights reserved. Confide
Slide 18: Our Broad Customer Base
Our Broad Customer Base Service Providers Enterprises Internet & Cloud Government & Education Global success with innovative connectivity solutions 18 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 19: Our Global Presence
Our Global Presence Munich Meiningen Gdynia York Shenzhen Atlanta Singapore Headquarter Neuchâtel Office Representative Application and technology expertise close to our customers 19 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 20: Financial Performance
Financial Performance 20 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 21: Annual IFRS Revenues and Pro Forma Profitability
Annual IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit* +6% +9% +7% -6% +25% 310.9 330.1 310.7 339.2 291.7 40.4% 39.3% 35.0% 37.7% 38.4% 2010 2011 2012 2013 2014 Pro Forma Operating Income** 21.8 13.3 17.3 +26% +30% 8.6 9.5 +118% -61% +10% 4.6% 5.6% 6.6% 2.8% 2.8% 2010
Slide 22: Quarterly IFRS Revenues and Pro Forma Profitability
Quarterly IFRS Revenues and Pro Forma Profitability Revenues and Pro Forma Gross Profit* +11% +10% +14% +1% -5% 87.2 87.1 86.7 76.2 78.1 39.3% 35.4% 32.8% 35.3% 36.6% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Pro Forma Operating Income** 5.1 3.5 2.3 0.4 0.4 3.0% 0.5% 0.5% 4.0% 5.9% Q4 2013 Q1 2014 Q2
Slide 23: IFRS Profitability
IFRS Profitability 2013 2014 EUR Million Q4 Q1 Q2 Q3 Q4 Pro Forma Operating Income 2.3 0.4 0.4 3.5 5.1 (3.0%) (0.5%) (0.5%) (4.0%) (5.9%) Operating Income 1.9 0.1 0.0 3.1 5.1 (2.5%) (0.1%) (0.0%) (3.5%) (5.9%) Net Income* 8.5 -0.4 0.0 4.4 4.3 (11.1%) (-0.5%) (0.0%) (5.1%) (5.0%) Diluted EPS in EUR*
Slide 24: Cash and Net Liquidity
Cash and Net Liquidity 90 83.9 75 Cash & Cash Equivalents 60 48.9 45 Net Liquidity 30 15 0 Q4 Q4 2011 2014 (in millions of EUR) Record high quarter-end cash and net liquidity positions at the end of Q4 2014, demonstrating financial strength and operational flexibility 24 © 2015 ADVA Optical Networki
Slide 25: IFRS Balance Sheet
IFRS Balance Sheet Dec. 31 Sep. 30 Dec. 31 Dec. 31 Sep. 30 Dec. 31 Assets 2013 2014 2014 Equity & liabilities 2013 2014 2014 Cash & cash equivalents 80.9 82.6 83.9 Accounts payable 26.5 39.8 33.0 Accounts receivable 52.7 57.1 54.0 Financial liabilities 39.2 36.5 35.0 Inventories 40.1 46.1 47.0 Other
Slide 26: Quarterly Revenues Per Region
Quarterly Revenues Per Region 87.2 87.1 86.7 76.2 78.1 11% 9% 6% 6% 4% 31% 25% 32% 34% 33% 69% 64% 58% 63% 55% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 EMEA Americas Asia-Pacific (in millions of EUR) 26 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 27: IFRS Consolidated Cash Flow Statement
IFRS Consolidated Cash Flow Statement EUR million Q3 2014 Q4 2014 Net cash provided by operating activities 16.4 12.4 Net cash used for investing activities -10.6 -10.1 Net cash provided by (used for) financing activities -2.9 -1.8 Net effect of foreign currency translation 0.6 0.8 Net change in cas
Slide 28: Guidance Q1 2015
Guidance Q1 2015 • Revenues between EUR 90 million and EUR 95 million • Pro forma operating margin between 0% and 4% of revenues* • ADVA Optical Networking will continue to perform detailed quarterly reviews of the expected business development in respect of all intangible assets, including capitali
Slide 29: Investor Relations Overview
Investor Relations Overview Recent Investor Activities Financial Analyst Coverage As of Feb 25, 2014 Recommendation/ Last Last Institution target price update change Nov-Feb Investor roadshows and conferences in Europe and America Oddo Seydler Bank Buy (€4.00) Feb 23, 15 (€4.00) Deutsche Bank Ho
Slide 30: In Summary, How We ADd VAlue
In Summary, How We ADd VAlue Profitable growth Focus on Thought Operational growth leadership excellence markets Expanding Differentiated Loyal opportunities technology customers ADVA Optical Networking is a thought leader in developing innovative connectivity solutions for cloud and mobile services
Slide 31: Thank You
Thank You Karin Tovar Director Investor Relations t +1 201 940 7212 t +49 89 89 06 65 940 [email protected] www.advaoptical.com IMPORTANT NOTICE The content of this presentation is strictly confidential. ADVA Optical Networking is the exclusive owner or licensee of the content, material, and in
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