Net Insight Ab Class B · OMXSTO:NETI_B
Net Insight Ab Class B — Investor Presentation (March 2013)
60 slides from Net Insight Ab Class B's investor presentation, Mar 20, 2013
Slide 1: Welcome: Breakfast Meeting for Analysts and Investors
Welcome Breakfast Meeting for Analysts and Investors Summit Conferences, Stockholm March 20, 2013
Slide 2: Agenda
Agenda Program starts at 9.00 am and ends at 10.30 am • Introduction to Net Insight Fredrik Trägårdh, CEO • Financial Overview Thomas Bergström, CFO • Strategy going forward Fredrik Trägårdh, CEO • Net Insight’s positioning and competitive landscape Per Lindgren, CTO • SwissCom Broadcast Jacques Bae
Slide 3: Net Insight introduction
Net Insight introduction net insight”
Slide 4: PERCENT
PERCENT QUALITY . . ~ SERVICE
Slide 5: Increase quality of service in media networks
INCREASE QUALITY OF SERVICE IN MEDIA NETWORKS REDUCED TOTAL COST OF OWNERSHIP FASTER LAUNCH OF NEW REVENUE GENERATING SERVICES 5
Slide 6: Business segments
Business segments Broadcast & Digital Terrestrial Cable TV and IPTV Media Networks Networks Telcos Broadcasters Telcos Telcos Satellite operators National and Regional CableTV operators Post production DTT operators Events 6
Slide 7: Network owners, broadcasters, service providers
NETWORK OWNERS BROADCASTERS SERVICE PROVIDERS: TELCOS, SATELLITE AND MEDIA OPERATORS CABLETV AND IPTV OPERATORS 7
Slide 8: Network positioning of the Nimbra platform
Network positioning of the Nimbra platform xWDM Corporate Base DSLAM / Edge FTTx HFC Media Transmit Satellite router station Local dist. cache QAM Access tower Content Delivery Networks Consumer Broadband Wholesale Optical Digital Terrestrial Media Networks Corporate WAN LTE Mobile Cable TV Satellit
Slide 9: One platform for many segments
One platform for many segments 9
Slide 10: 175 customers in more than 60 countries
175 CUSTOMERS in more than 60 COUNTRIES IMPROVED MARKET PERCEPTION with FOCUS on UNIQUE CAPABILITIES in IP NETWORKS STRENGTHEN our CORE PRODUCTS and NEW ACCESS PORTFOLIO 10
Slide 11: Market development versus financial performance
Market development versus financial performance Project delays Analog Switch-off in many countries Macro or market trend towards smaller initial network investments Consolidation between media network operators 11
Slide 12: Customers and Countries
Customers and Countries Number of Customers Number of Countries 200 70 180 60 160 140 50 120 40 100 80 30 60 20 40 10 20 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year-end 2012 - 175 customers in 60 countries 12
Slide 13: Customer References
Customer References Production Contribution Distribution KT 13
Slide 14: Financial Overview
Financial Overview net insight”
Slide 15: 2011 – 2012 Profit bridge
2011 – 2012 Profit bridge -10 -12 -22 -3 15
Slide 16: Revenue Profile by Business Area 2005-2012
Revenue Profile by Business Area 2005-2012 • BMN 76% of total business. • DTT influenced by political decisions. • CATV & IPTV opportunistic approach 16
Slide 17: Product Mix
Product Mix • Share of services and software show slight increase • Possibility to leverage installed base for future services and software sales • Pricing trend towards software sales 17
Slide 18: Gross Margins
Gross Margins • Pricing discipline and manufacturing cost reductions • High Gross Margin excl depreciation implies strong leverage on profit • Flat sales volumes and increased depreciation on capitalized R&D affects the Gross Margin negatively 18
Slide 19: Cost Structure (excl COGS)
Cost Structure (excl COGS) Q4 efficiency program Note: OPEX excluding restructuring charges + reversed R&D capitalization • Investments in product portfolio and geographic reach • Efficiency and cost reduction program concluded, bringing cost base down by 25 MSEK 19
Slide 20: Financially well positioned for growth
Financially well positioned for growth • Cash Balance end of 2012 amount to186 MSEK • Solid balance sheet pre-requisite for growth 20
Slide 21: Strategy going forward
Strategy going forward Net Insight Presentation
Slide 22: Addressable market
Addressable market Broadcast & Digital Terrestrial Cable TV and IPTV Media Networks Networks EUR 2 billion EUR 300 million EUR 50-100 million Net Insight’s EUR 100-300 CAGR 8% CAGR 6-8% million Note: Company’ estimate of market size and market growth rate i.e not a prediction of future revenues. Net
Slide 23: Key Industry trend
Key Industry trend Industry themes collected through 30+ customer and competitor interviews Broadcasters Rising Emerging Broadcasters Not IP/MPLS Want Simplicity Markets Price Sensitive Convergence Growing need to Latent growth in Price sensitivity is Move towards cope with emerging markets low amon
Slide 24: Strategic focus
Strategic focus • Grow existing business within BMN and DTT • Beyond DTT – the next ”wave” • Several opportunities for Net Insight to expand business • Increase revenue with new products in existing segments • Leverage existing products and technology in new segments • Value creation/M&A options con
Slide 25: Net Insight Strategic Opportunities and addressable market
Net Insight Strategic Opportunities and addressable market A) Gain market share in BMN and DTT B) Adjacent market with existing customers C) New segments with existing technology 2012 A B C Net Insight Presentation 25
Slide 26: Summary Strategic Opportunities for Net Insight
Summary Strategic Opportunities for Net Insight Addressable market in 2017 A) Gain market share in BMN and DTT 800- 900- 400 600 900 1200 B) Adjacent market MEUR MEUR MEUR MEUR with existing customers C) New segments with existing technology 2012 A B C Note: Company’ estimate of market size and mark
Slide 27: Net Insight strategy
Net Insight strategy Strategic focus Reponse/Actions Segment Focus: BMN/DTT focus, Continue to gain market share in BMN & DTT opportunistic in CATV/IPTV CATV contribution a way in to CableTV operators Leverage new investments and presence in BRIC Geographic Penetration in BRIC for both markets
Slide 28: Net Insight positioning & competitive landscape
Net Insight positioning & competitive landscape Net Insight Presentation
Slide 29: Shift in Media content consumption
Shift in Media content consumption Historically Content Distribution Consumers Terrestrial TV Few CATV channels Satellite 29 Net Insight Presentation 29
Slide 30: Media content consumption
Media content consumption Today Content Distribution Consumption TV - Terrestrial TV Thousands of channels CATV Satellite Video-On- Demand Digital Terrestrial TV Internet streaming Internet Web-TV Mobile Networks 30 Net Insight Presentation 30
Slide 31: Net Insight Presentation
Net Insight Presentation 31
Slide 32: Improving quality and integrity over IP networks
Improving quality and integrity over IP networks Video Quality Studio Quality Broadcaster Quality Content Acquisition Quality Distribution Quality Best effort quality = Net Insight Dedicated Dedicated IP Managed IP Unmanaged IP Higher Packet loss, Optical Networks Networks Networks lower cost links
Slide 33: Nimbra end-to-end solutions over IP networks
Nimbra end-to-end solutions over IP networks Studio Campus Networks Dedicated IP Networks Managed IP Networks Unmanaged IP Networks Venue Networks Net Insight Presentation 33
Slide 34: Net Insight's response to market trends
Net Insight’s response to market trends Broadcasters Rising Emerging Broadcasters Not IP/MPLS Want Simplicity Markets Price Sensitive Convergence Growing need to Latent growth in Price sensitivity is Move towards cope with emerging markets low among large standardization on increasingly will acceler
Slide 35: Competitive landscape
Competitive landscape • Harris • Ericsson • Nevion • Alcatel Lucent • MediaLinks • Huawei • Evertz • Evertz • Cisco • Juniper • Huawei • Fragmented market with no clear market leader • Opportunity to broaden portfolio through integration or M&A Net Insight Presentation 35
Slide 36: Net Insight's advantage over competition
Net Insight’s advantage over competition 36 Net Insight Presentation 36
Slide 37: Net Insight's unique capabilities in IP networks
Net Insight’s unique capabilities in IP networks Net Insight Presentation 37
Slide 38: Leverage our technology: real-time, reliability, security
LEVERAGE OUR TECHNOLOGY REAL-TIME RELIABILITY SECURITY GPS INDEPENDENT TIME SYNC Net Insight Presentation 38
Slide 39: Customer Case – SwissCom
Customer Case – SwissCom Net Insight Presentation 39
Slide 40: Swisscom Broadcast customer information
• Information can be found on the Net Insight webpage: • www.netinsight.net/sv/Customers/Swisscom-Broadcast/ Net Insight Presentation 40
Slide 41: Business and markets
Business and markets Net Insight Presentation 41
Slide 42: Market Share Net Insight
Market Share Net Insight Based on 2011 revenues and estimated adressable market 40% BMN 35% DTT 30% 25% 20% 15% 14% 15% 12% 9% 10% 10% 10% 5% 5% 3% 0% Global EMEA Americas Asia Pacific Net Insight Presentation 42
Slide 43: Business in New Countries
. •Business in ”New Countries” 43 Net Insight Presentation 43
Slide 44: Business in New Countries; Leverage Existing Customers
. •Business in ”New Countries” •Leverage Existing Customers 44 Net Insight Presentation 44
Slide 45: Leverage New Functionality/Products
. •Business in ”New Countries” •Leverage Existing Customers •Leverage New Functionality/Products 45 Net Insight Presentation 45
Slide 46: Good traction in China
. •Good traction in China 46 Net Insight Presentation 46
Slide 47: Good traction in China; Local Presence
. •Good traction in China •Local Presence 47 Net Insight Presentation 47
Slide 48: DTT in progress
. •Good traction in China •Local Presence •DTT in progress 48 Net Insight Presentation 48
Slide 49: Global network influencing service providers
. •Good Traction in China •Local Presence •Global network•DTT is happening influencing several Service Providers 49 Net Insight Presentation 49
Slide 50: Global network influencing all service providers
. •Local Presence •Local Presence •Good Traction in China •Local Presence •DTT is happening •Global network influencing all Service Provider 50 Net Insight Presentation 50
Slide 51: World class references
. •Local Presence •World Class references •Good Traction in China •Local Presence •DTT is happening •Global network influencing all Service Provider 51 Net Insight Presentation 51
Slide 52: IP functionality
. •Local Presence •World Class references •IP functionality •Good Traction in China •DTT is happening •Global network influencing all Service Provider 52 Net Insight Presentation 52
Slide 53: Local presence and references
. •Local Presence •Local Presence •World Class references •IP functionality •Good Traction in China •DTT is happening •Global network influencing all Service Provider •Local Presence 53 Net Insight Presentation 53
Slide 54: World class partners
. •Local Presence •Local Presence •World Class references •IP functionality •Good Traction in China •DTT is happening •Global network influencing all Service Provider •Local Presence •World class partners 54 Net Insight Presentation 54
Slide 55: Significant references
. •Local Presence •Local Presence •World Class references •IP functionality •China is growing fast •Local Presence •DTT is happening •Global network influencing all Service Provider •Local Presence •World class partners •Significant References 55 Net Insight Presentation 55
Slide 56: Selective Cable TV approach
. •Selective Cable TV approach •Local Presence •Local Presence •World Class references •IP functionality •Good Traction in China •Local Presence •DTT is happening •Global network influencing all Service Provider •Local Presence •World Class Partners •Significant References 56 Net Insight Presentatio
Slide 57: Leverage one of the largest J2K networks
. •Selective Cable TV approach •Local Presence • Leverage One of the largest J2K network •Local Presence •World Class references •IP functionality •Good Traction in China •Local Presence •DTT is happening •Global network influencing all Service Provider •Local Presence •World Class Partners •Signifi
Slide 58: Summary
Summary Net Insight Presentation 58
Slide 59: What's new, What's better and What's next?
What’s new, What’s better and What’s next? 1. A real need to manage quality and real-time traffic 2. Well proven and respected solution to improve quality over IP networks 3. Growth opportunities in existing and new segments 4. Competent and focused organization. Scalable performance 5. Strong growt
Slide 60: Forward-looking statements
The information presented herein may contain forward-looking statements. These statements relate to future events or Net Insight’s future performance. Any statements that are not statements of historical fact (including without limitation statements to the effect that Net Insight or its management "