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Ähnlich wie EXFO Mrk NB Financial - Jan 2013 (20)
EXFO Mrk NB Financial - Jan 2013
- 1. Marketing with NB Financial
Germain Lamonde
Chairman, President & CEO
January 10, 2013
- 2. Forward-Looking Statements
Certain statements in this presentation, or given in response to your questions, may constitute
forward-looking statements within the meaning of the Securities Act of 1934. The Private
Securities Litigation Reform Act of 1995 provides “safe-harbors” for such forward-looking
statements and we intend that any forward-looking statements made today be subject to the
safe harbors. We caution you that any forward-looking statements are just predictions. They
are not guarantees of future performance and involve risks and uncertainties. Actual results
may differ materially from those projected in forward-looking statements and we invite you to
review the company’s most recent filings with the Securities and Exchange Commission or
Canadian securities commissions for a discussion of the factors at risk. These forward-looking
statements speak only as of the date of this presentation and, unless required by law or
applicable regulations, we will not be reviewing or updating the material that is contained
herein.
Annual financial data in this presentation is prepared in accordance with international financial
reporting standards (IFRS) and Canadian generally accepted accounting principles (GAAP).
Quarterly financial data is prepared in accordance with IFRS standards. For a reconciliation of
EBITDA and adjusted EBITDA to net earnings (loss), refer to the Q1 2013 press release or
“Non-IFRS Financial Measures” section on EXFO’s website.
© 2013 EXFO Inc. All rights reserved.. 2
- 3. EXFO at a Glance
Who We Are What We’ve Done Where We’re Going
› No.2 supplier in portable › Gained market share year-in › Increase wireless presence
telecom testing and innovation and year-out for past 27 years
› Enable network operators to
leader in IP service assurance
› Ten-year sales CAGR of 20% reduce operating expenses
› Helping network operators and
› Difficult market in FY 2012 › Expand share of wallet with
equipment manufacturers
› EXFO sales: -7% YoY Tier-1 operators
design, deploy and monitor IP
fixed and mobile networks › End-markets: Double-digit › Accelerate profitability through
decreases execution
© 2013 EXFO Inc. All rights reserved. 3
- 4. Segmented Sales — FY 2012
Americas
› FY 2012 Sales: $130.6 M
› Growth YoY: -4.6%
› Sales Split: 52%
EMEA
› FY 2012 Sales: $71.0 M
› Growth YoY: -16.4%
› Sales Split: 29%
Asia-Pacific
› Protocol-layer sales increased 4.4% YoY
› Physical-layer sales decreased 14.5% YoY › FY 2012 Sales: $47.3 M
› Growth YoY: +1.2%
› Sales Split: 19%
BOTH PRODUCT GROUPS TO GROW IN FY 2013
IF END-MARKETS REMAIN STABLE
© 2013 EXFO Inc. All rights reserved.. 4
- 5. Bandwidth Demand
Global IP traffic
Up 4X from 2011-2016
Mobile IP traffic
Up 18X (Cisco)
DESPITE STRONG FUNDAMENTAL DRIVERS, PAUSE IN CARRIER SPENDING
© 2013 EXFO Inc. All rights reserved.
© 2013 EXFO Inc. All rights reserved. 5
5
- 6. US Carrier CAPEX
Capital Intensity
20.0%
18.0% 15.6%
14.6% 15.1%
16.0% 12.7% 13.3%
14.0%
12.0%
10.0%
Source: Morgan Stanley
8.0%
6.0%
4.0%
2.0%
0.0%
2010 2011 2012E 2013E 2014E
AT&T Verizon Sprint T-Mobile Average
4G/LTE AND COMPETITION TO DRIVE INVESTMENTS
© 2013 EXFO Inc. All rights reserved.. 6
- 7. Growth Strategy
Increase Wireless Enable Operators Expand Share of Accelerate
Presence to Reduce OPEX Wallet with Tier-1 Profitability via
Operators Execution
Wireless sales to Key productivity Doing business Combining revenue
continue growing differentiators, with ~80% of top-100 growth with a tight
(~24% of sales FTB Ecosystem and operators worldwide control on expenses
in FY 2012) EXFO Connect
Growing market share for 27 consecutive years
© 2013 EXFO Inc. All rights reserved.. 7
- 8. Riding the Right Waves
Market-Driven Innovation
› Wireless backhaul
› 4G/LTE, 3G
› FTTH, VDSL2
› 40G/100G upgrades
Focus on Execution
› Unmatched customer
experience
INNOVATION AND EXECUTION ENABLE MARKET-SHARE GAINS
© 2013 EXFO Inc. All rights reserved.. 8
- 9. Revenue Mix/Gross Margin Evolution
FY 2006 | FY 2012 Gross Margin
70%
65%
11%
60%
45%
In % of sales
55% 55%
50%
89%
45%
Sales: $107.4 M Sales: $250.0 M 40%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Protocol Other
MOVING TOWARD HIGHER-MARGIN, PROTOCOL-LAYER SALES
© 2013 EXFO Inc. All rights reserved.. 9
- 10. Telecom Market
PROTOCOL
PHYSICAL
TAM $700 M $3.2 B
SAM $550 M $1.8 B
Annual growth rate ~5% ~15%
Sales ― FY 2012 $135.1 M $113.7 M
Sales growth ― FY ’12/’11 -14.5% 4.4%
Five-year sales CAGR 3.9% 46.1%
Gross margin profile Low-60s (%) Mid-70s (%)
Major competitors JDSU, Anritsu, Sunrise JDSU, IXIA, Tektronix
PROTOCOL BUSINESS IS KEY GROWTH VECTOR
© 2013 EXFO Inc. All rights reserved. 10
- 11. Telecom Market
PROTOCOL
PHYSICAL
TAM $700 M $3.2 B
SAM $550 M $1.8 B
Annual growth rate ~5% ~15%
Sales ― FY 2012 $135.1 M $113.7 M
Sales growth ― FY ’12/’11 -14.5% 4.4%
Five-year sales CAGR 3.9% 46.1%
Gross margin profile Low-60s (%) Mid-70s (%)
Major competitors JDSU, Anritsu, Sunrise JDSU, IXIA, Tektronix
PROTOCOL BUSINESS IS KEY GROWTH VECTOR
© 2013 EXFO Inc. All rights reserved. 11
- 12. Physical-Layer Business
PORTABLE OPTICAL COPPER ACCESS
› Market leader with >35% market › New MaxTester series approved by
share three Tier-1 NA carriers
› Market dominance in FTTH testing › Supports pair bonding & vectoring
(100 Mb/s)
© 2013 EXFO Inc. All rights reserved. 12
- 13. Protocol-Layer Business
TRANSPORT AND DATACOM WIRELESS SERVICE ASSURANCE
› Multi-service analyzers for • Protocol analyzers: 4G/LTE and 3G › Probe-based systems targeted at
SONET/SDH, OTN and Ethernet test solutions for deploying and medium to large network operators
troubleshooting applications
rates from 10M to 100G › Primary focus on active testing to
• Network simulators: Large-scale
› Pioneered new standard for Ethernet emulation of subscriber sessions to validate service-level agreements
testing (EtherSam) test routers, gateways and session › Monitoring multi-play services on
› Comprehensive portfolio for wireless border controllers a single platform is key differentiator
backhaul • Stratgic partnership with Artiiza
Networks for eNode B wraparound
testing (air interface to EPC)
© 2013 EXFO Inc. All rights reserved. 13
- 14. Protocol-Layer Business
TRANSPORT AND DATACOM WIRELESS SERVICE ASSURANCE
› Multi-service analyzers for • Protocol analyzers: 4G/LTE and 3G › Probe-based systems targeted at
SONET/SDH, OTN and Ethernet test solutions for deploying and medium to large network operators
troubleshooting applications
rates from 10M to 100G › Primary focus on active testing to
• Network simulators: Large-scale
› Pioneered new standard for Ethernet emulation of subscriber sessions to validate service-level agreements
testing (EtherSam) test routers, gateways and session › Monitoring multi-play services on
› Comprehensive portfolio for wireless border controllers a single platform is key differentiator
backhaul • Stratgic partnership with Artiiza
Networks for eNode B wraparound
testing (air interface to EPC)
© 2013 EXFO Inc. All rights reserved. 14
- 15. Key Differentiator
PUTTING INTELLIGENCE INTO OUR PLATFORMS!
© 2013 EXFO Inc. All rights reserved. 15
- 16. FTB Ecosystem
Asset management software
› Test data pushed and stored in the Cloud
› Units traced via GPS
› Customized test reports
Applications that make life easier
› Software releases and upgrades
› Utilities for full operability
› How-to videos
FTB-1, FTB-200 & FTB-500
› ~40,000 smart platforms
› Windows architecture
› Multiple connectivity (3G, Wi-Fi, Bluetooth)
REDUCES CARRIER OPEX
© 2013 EXFO Inc. All rights reserved.. 16
- 17. FTB Ecosystem + EXFO Connect + EXFO Apps Store
›
EXFO Apps Store ›
Test Equipment Manager
Test Data Manager
Contains: S/W releases & › GPS/Route Optimization
updates, new applications, training
› Work Ticket Management
material,
productivity tools, etc › License sharing or rental
› Training Management
› Etc (from EXFO or 3rd parties)
FTB Ecosystem Download applications and
(20+ optical, transport, datacom configurations onto platform Automatically
and copper acces test modules)
close job ticket › Notification
Corporate › Billing
OSS › Signature
Search and
Pass › Next work
request custom
results order
configuration
› Etc.
Automatically upload
test results REDUCES Op/Ex for Operators &
Load configuration and
immediately start testing NEMs
› Established base of ~40,000 compliant platforms
© 2013 EXFO Inc. All rights reserved.. 17
- 18. Financial Snapshot
$300 Revenue
70.0%
› $250 M (-7% YoY)
$250 60.0% › Gained market share
› FY’13: 6-10% growth
50.0%
(estimate)
Sales CAGR of 20%
$200
over last 10 Years 40.0%
Gross Margin
› Improved to 63.3%
$150 30.0%
› Up 9X out of 10 years
› FY’13-15: Trending up
20.0%
$100
10.0%
Adjusted EBITDA Margin
$50
0.0% › From 3.0% to 7.3%
In US$ Millions
› Mid-term goal: 15%
36% 34% 21% 24% -5% 32% 33% -7%
-10.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenue Gross Margin Adjusted EBITDA Margin
© 2013 EXFO Inc. All rights reserved.. 18
- 19. We plan on increasing our sales
volume to better absorb the cost of
being a global player, thus leveraging
economies of scale.
Germain Lamonde
EXFO CEO
© 2013 EXFO Inc. All rights reserved. 19
- 20. Annual Run-Rate
of $350-$400M
WITHIN
3-4 YEARS
Generates EBITDA
Margin of 15%
© 2013 EXFO Inc. All rights reserved.. 20
- 21. 1
Annual Financial Results
(in US$ millions, except gross margin)
Sales Net R&D Expenses Net Earnings/Loss2
Gross Margin SG&A Expenses Adjusted EBITDA3
1 All financial results from continuing operations, except net earnings/loss and adjusted EBITDA.
2 Fiscal 2011 and 2012 financial results according to IFRS; prior years according to Canadian GAAP.
3 EBITDA is defined as net earnings (loss) before interest, income taxes, depreciation of property, plant and equipment, amortization of intangible assets, impairment of goodwill and extraordinary gain.
Adjusted EBITDA represents EBITDA excluding the change in the fair value of the cash contingent consideration and the gain from the disposal of discontinued operations.
© 2013 EXFO Inc. All rights reserved.. 21
- 22. Q1 2013 Highlights
› Sales reached
› Bookings attained $XX.X M, (B/B ratio of 1.0X)
› Gross margin* improved to XX.X%
› Adjusted EBITDA** amounted to $X.X M (X.X% of sales)
› Signed partnership with Artiza Networks to offer the industry’s
highest-capacity, end-to-end 4G/LTE simulation solution
› Announced contract wins at three tier-1 North American
operators for MaxTester copper/DSL series
› Introduced floating test licenses for FTB Ecosystem
© 2013 EXFO Inc. All rights reserved.. 22
- 23. Strong Value Proposition
5 Good Reasons to Invest in EXFO
1. Excellent track record of sales growth
Sales CAGR of 20% in last 10 years
2. Well-positioned for key growth drivers
Bandwidth expansion and IP network convergence
3. Balancing sales growth and profitability
Targeting EBITDA* margin of 15% on revenue of $350 to $400 M
4. Solid balance sheet
Cash position of $67.1 M and negligible debt ― as at August 31, 2012
5. Experienced and disciplined management team
Deep knowledge of managing business in growth and downward markets
* EBITDA is defined as net earnings before interest, income taxes, depreciation of property, plant and equipment, and amortization of intangible assets.
© 2013 EXFO Inc. All rights reserved. 23