Ceragon Networks Ltd. · NASDAQ:CRNT
Ceragon Networks — Investor Presentation (May 2022)
23 slides from Ceragon Networks's investor presentation, May 2022
Slide 1: The Global Innovator & Provider of 5G Wireless Transport Solutions
THE GLOBAL INNOVATOR & PROVIDER OF 5G WIRELESS TRANSPORT SOLUTIONS CAPITALIZING ON 5G EVOLUTION May | 2022 1
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Ceragon Networks Ltd. (“Ceragon” or the “Company”) for informational purposes only. This presentation is proprietary to the Company and may not be reproduced (in whole or in part) nor summarized, passed, distributed, disseminated and/or copied withou
Slide 3: Our Vision
OUR VISION To create equal digital opportunities for all people around the world by bringing communication capabilities everywhere. 3
Slide 4: Our Wireless Transport Specialty
OUR WIRELESS TRANSPORT SPECIALTY A KEY DIFFERENTIATOR & A CRITICAL TECHNOLOGY FOR 4G & 5G NETWORKS WIRELESS TRANSPORT – AN ALTERNATIVE TO FIBER DEPLOYMENT AN ESSENTIAL PART OF ANY NETWORK EVOLUTION FOR FASTER AND MORE COST-EFFECTIVE DEPLOYMENTS Connects approximately 45% of all cell sites globally (
Slide 5: Company Snapshot: Strong Position
COMPANY SNAPSHOT: STRONG POSITION INNOVATIVE MARKET LEADER GLOBAL COMPANY COMPANY SNAPSHOT 4G & 5G NETWORK ENABLER Customers who choose based on value Significant activity in each region of technology select Ceragon (2021) (UNITS) +2,000 TOTAL CUSTOMERS +1M SYSTEMS DEPLOYED 14% COUNTRIES WITH Other
Slide 6: Ceragon Growth Path
CERAGON GROWTH PATH 6
Slide 7: Disruption in the Market Drives Our Growth
DISRUPTION IN THE MARKET DRIVES OUR GROWTH $55M $160M $300M 190%+ 80%+ Future Growth Growth Growth 2005 2009 2018 2021+ 7
Slide 8: Market Snapshot: Growing TAM
MARKET SNAPSHOT: GROWING TAM Ceragon boasts repeated to success in introducing to disruptive technologies for and now wireless transitions from: to 5G ERA & OPENRAN ADOPTION EXPECTED TO INCREASE OUR TAM FOR 1ST TIME IN YEARS 5G requires higher In parallel, with OpenRAN and Our SoC will enable us to
Slide 9: Key Driver of 5G Wireless Gen Transition
KEY DRIVER OF 5G WIRELESS GEN TRANSITION Exodus to online world creating 1 urgent need for more capacity 7 Extensive global presence to diverse clientele - Offering backhaul, fronthaul and Managed Services solutions 2 Telcos & Private Networks everywhere are developing 6 Well-positioned to provide o
Slide 10: 79+ Operators Increase Fronthaul & CSR
79+ OPERATORS INCREASE FRONTHAUL & CSR IN 42 MARKETS ALREADY IN BEST-OF-BREED NEW DEPLOYING OR COMMITTED SEGMENT (BACKHAUL) MARKETS FOR CERAGON 10
Slide 11: New Deals, Increased Demand, Domain Expertise
NEW DEALS INCREASED DEMAND DOMAIN EXPERTISE 5G networks complexity to drive increased An organic & natural evolution Awarded a multi-year agreement by demand for network monitoring, of our extensive domain’s experience leading US network service provider optimization & upgrades & software tools 11
Slide 12: Best-of-Breed Versus Bundled-Deals Segment
BEST-OF-BREED VERSUS BUNDLED-DEALS SEGMENT Best-of-Breed (units) Market is slightly growing Segment is growing 14% Other 5% 25% Nokia Ceragon $2.28B 7% BEST-OF-BREED Aviat Networks 9% SIAE 17% Huawei $1.52B 10% BUNDLED DEALS Ericsson 13% NEC Best-of-breed is the larger segment Open networks architec
Slide 13: 5G Drives Transformation of Cell Site IP Transport
5G DRIVES TRANSFORMATION OF CELL SITE IP TRANSPORT Cell Site Routers become disaggregated 5G Requires Densification & Simplification, allowing the separation of functional Disaggregation enables faster adoption of 5G leading to increase in IP Cell Site Devices components APPS REDUCED COST SOFTWARE O
Slide 14: Recent Highlights
May 2, 2022 DISH Wireless Selects Ceragon for 5G Transport RECENT February 24, 2022 Tier 1 Operator in India Places Initial $15 Million Orders for Nationwide 4G expansion with Ceragon HIGHLIGHTS February 16, 2022 Ceragon Awarded Multi-Million Dollar Contract to Deliver Connectivity as a Service to O
Slide 15: Ceragon Competitive Position
CERAGON COMPETITIVE POSITION 15
Slide 16: Ceragon Product Strategy
CERAGON PRODUCT STRATEGY A FLEXIBLE APPROACH TO 5G NETWORK TRANSFORMATION LEADING VECTOR: FLEXIBLE, OPEN ALL-OUTDOOR WIRELESS TRANSPORT KEY ENABLER 1: DISAGGREGATED WIRELESS TRANSPORT LATENCY CAPACITY Fits industry trend 100Gbps The ‘Best-of-Breed’ approach - no vendor lock in <10,000us Low total ne
Slide 17: 460+ Operators Globally
460+ OPERATORS GLOBALLY ABLE TO CAPITALIZE ON WORLDWIDE 5G TRENDS 17
Slide 18: Ceragon's Unique Position
CERAGON’S UNIQUE POSITION CHIPSET SYSTEMS SOFTWARE UNIQUE MULTICORE TECHNOLOGY BEST-FIT FOR PIONEERING OPEN NETWORKS OUTDOOR NETWORK SOLUTIONS IN THE WIRELESS TRANSPORT DOMAIN FAST DEPLOYMENT | SIMPLE SITE ACQUISITION LOW TOTAL NETWORK INVESTMENT ENABLER FOR NETWORK DENSIFICATION FAST NETWORK ROLLOU
Slide 19: Financials
FINANCIALS 19
Slide 20: Q1 2022 Brings Accelerated Momentum
Q1 2022 BRINGS ACCELERATED MOMENTUM WITH STRONG BOOKINGS, NEW CUSTOMERS AND ORDERS $70.6 $74.0 $68.3 $68.6 $76.1 $77.8 $70.3 $90 40.0% $80 35.0% Very strong start to the year in North America $70 29.0% 33.5% 31.0% 30.0% 31.5% 27.7% 29.6% Healthy bookings in India, LATAM, and Europe (record $60 28.9%
Slide 21: Selected Financial Metrics
SELECTED FINANCIAL METRICS Q2 2021 – Q1 2022 BALANCE SHEET GEOGRAPHIC REVENUE MIX ($ Millions) 8% FINANCIAL 20% Q1’20 Q2'20 Q3'20 Q4'20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 11% Africa METRICS Latin America APAC Revenue $55.9 $62.4 $70.6 $74.0 $68.3 $68.6 $76.1 $77.8 $70.3 Cash(1) $44.1 $35.2 $29.2 $27.1 $3
Slide 22: Ceragon Investment Thesis - We Adapt and Grow!
CERAGON INVESTMENT THESIS - WE ADAPT AND GROW! 5G-ERA & OPENRAN EXTENSIVE GLOBAL OFFERING BACKHAUL, IN-HOUSE SOC: HIGHER ADOPTION EXPECT TO PRESENCE TO DIVERSE FRONTHAUL & MANAGED PERFORMANCE AT SPEEDS INCREASE TAM FOR 1ST CLIENTELE SERVICES SOLUTIONS TO OF UP TO 100GB, COST TIME IN YEARS SUPPORT TA
Slide 23: Thank You
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