Adtran Networks Se · XETR:ADV
Adtran Networks — ADVA Optical Networking — FY2014 Earnings Presentation
24 slides from Adtran Networks's earnings presentation, Feb 26, 2015
Slide 1: Q4 and FY 2014 IFRS Financial Results
Q4 and FY 2014 IFRS Financial Results February 26, 2015 Martinsried/Munich, Germany
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: Business Update and Outlook
Business Update and Outlook Brian Protiva Chief Executive Officer 3 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 4: 2014 in Review
2014 in Review • Revenues rose to a record high of EUR 339.2 million in 2014, up a sound 9.2% vs. 2013; pro forma operating income* at EUR 9.5 million or 2.8% of revenues in 2014, after EUR 8.6 million or 2.8% of revenues in 2013 • Fourth consecutive quarter with year-on-year growth; revenue and pro
Slide 5: Prospects for 2015
Prospects for 2015 • First signs of the telecommunications industry slowly returning to growth in Europe: • Europe’s largest carrier, Deutsche Telekom budgeting EUR 23.5bn in the next five years for its German landline and mobile networks, small cells and the digitalization of infrastructure Carrier
Slide 6: New Executive Team
New Executive Team Brian Protiva CEO Sales and Marketing Development Finance Christoph Human Resources Ulrich Glingener Dopfer Operations IR, IT, Legal CTO Quality Management CFO Experienced, focused and well-aligned leadership team 6 © 2015 ADVA Optical Networking. All rights reserved. Confidential
Slide 7: 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 7 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 8: 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 8 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 9: 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 9 © 2015 ADVA Optical Networking. All rights reserved. Confi
Slide 10: 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 10 © 2015 ADVA Optical Networking. All rights
Slide 11: 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 11
Slide 12: 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 13: 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 14: 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 15: Financial Performance
Financial Performance 15 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 16: 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 17: 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 18: 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 19: 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 19 © 2015 ADVA Optical Networki
Slide 20: 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 21: 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) 21 © 2015 ADVA Optical Networking. All rights reserved. Confidential.
Slide 22: 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 23: 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 24: 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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